Wednesday, April 21, 2021
Biden Taxes Will Reduce Global Competition, Slow Growth: Practice What You Preached Dr. Yellen
To pay for a portion of this exploding spending, the president has called for an increase in the corporate income tax rate from 21% to 28%, and a boost in the income tax rate on households making more than $400,000. The added corporate tax rate is on top of state the assessment of 44 states and D.C. that have corporate income taxes on the books ranging from North Carolina’s single rate of 2.5% to a top marginal rate of 11.5% in New Jersey.
An increase in the federal corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to an average of almost 34% and would be the highest among the 37 OECD nations which have an average corporate rate of 22% with lowest rates for Ireland at 12.5%, and Switzerland at 8.5%. This increase would harm U.S. economic competitiveness and increase the cost of U.S. firms. The Tax Foundation estimated that the hike would reduce long-run GDP growth by approximately one-fourth, eliminate 159,000 jobs, and reduce wages by 0.7%.
But instead of engaging in global competition, the Biden Administration is attempting to coerce OECD members into raising their rates. To quote ex-academic economist, Federal Reserve Chairman, and current U.S. Treasury Secretary Janet Yellen, “Destructive tax competition will only end when enough major economies stop undercutting one another and agree to a global minimum tax.”
I guess she only believed in market-based economics and competition when she was teaching macroeconomics at the University of California-Berkley. Welcome to the 21st Century Dr. Yellen. The U.S. must compete in the global economy, not attempt to fix prices, and limit competition. This is not legal for companies in the U.S., and should be verboten for OECD nations.
Ernie Goss
Tuesday, March 23, 2021
Monday, February 22, 2021
Mainstreet Versus Wallstreet: Stocks Did Better Under Democrat Presidents (Workers Under Republicans)
Monday, January 25, 2021
Punishing Success by Raising Taxes: Biden’s Bite to Support Government Expansion
Table 1: Top tax rates for highest (rates are
for income tax rates only, and do not include other Biden increase such as
capital gains) |
|||
|
Current Top Income tax rate |
Biden addition |
New top tax rate |
1. California |
64.15% |
2.60% |
66.75% |
2. Hawaii |
61.85% |
2.60% |
64.45% |
3. New Jersey |
61.60% |
2.60% |
64.20% |
4. Oregon |
60.75% |
2.60% |
63.35% |
5. Minnesota |
60.70% |
2.60% |
63.30% |
6. D.C. |
59.80% |
2.60% |
62.40% |
7. New York |
59.67% |
2.60% |
62.27% |
8. Vermont |
59.60% |
2.60% |
62.20% |
9. Iowa |
59.38% |
2.60% |
61.98% |
10. Wisconsin |
58.50% |
2.60% |
61.10% |
Notes: Iowa’s income tax rate allows the
deductibility of federal income taxes and is thus somewhat lower than that
listed. |
Table 2: Ten states with the greatest income
inequality |
||
State |
Total Current top tax rate |
2018 Gini coefficient |
1. District of Columbia |
59.80% |
0.524 |
2. New York |
59.67% |
0.513 |
3. Connecticut |
57.84% |
0.501 |
4. Louisiana |
56.85% |
0.494 |
5. California |
64.15% |
0.491 |
6. New Mexico |
55.75% |
0.489 |
7. Florida |
50.85% |
0.489 |
8. Massachusetts |
55.85% |
0.488 |
9. Alabama |
55.85% |
0.486 |
10. Arkansas |
57.45% |
0.485 |
Thursday, December 17, 2020
Will Biden Forgive Student Loans? Why Not Automobile Loans?
A kettle of progressive Democrats is demanding that President-Elect Biden issue an executive order extinguishing student debt in the first week of his reign. Past and present students currently owe $1,700 billion (yes that is $1.7 trillion). Since 2006, student debt has expanded by 253.4%, while income to pay the debt has advanced by one-third that pace, or 79.8%. But there are clear problems and benefits of such action.
Tuesday, November 10, 2020
Thursday, October 15, 2020
Read Biden’s Lips: “More New Taxes” What Is a Fair Share of Taxes?