In reference to “climate change”, Paul Krugman leads with:
This just in: Saving the planet would be cheap; it might even be free. But will anyone believe the good news?
Two points – it is entirely debatable as to whether the planet needs saving. Science and the data produced certainly doesn’t support the supposition. I’m talking about real science. Not the pseudo-science of the alarmist side – the science denier side. Given that, why should anyone care about whatever “good news” Krugman is shilling today.
Second point – is government involved in the solution (he studiously tries to disguise that in his article)? Of course it is. Then it will be neither cheap nor free. And most likely it will be terrible to boot, hurt the economy, make government larger and more intrusive, etc., etc., etc.
So no, Mr. Krugman, anyone with two brain cells to rub together – and that likely excludes you – won’t believe much of anything that comes out of the pseudo-science, and now pseudo-economics of the left.
Large quote from Andy McCarthy. This is an important point that so many in the West simply refuse to acknowledge:
This point has been made so many times it should hardly be necessary to point out that Obama and Kerry, like Kerry’s predecessor Hillary Clinton, and like many Bush-administration officials before them (including President Bush), are dead wrong when they deny the nexus between Islamic doctrine –– the literal scriptures –- and terrorism, decapitations, totalitarian government, repression of women, rabid anti-Semitism, the murder of homosexuals, and so on. Still, it would be a serious error merely to observe that they are wrong, snicker at their fecklessness, and move on.
There is a reason they are taking a position diametrically opposed to reality.
Obama and Kerry, like transnational progressives in both of our major political parties, believe there are “moderate Islamists” who are the key to stability in the Middle East. Now, the term “moderate Islamist” is contradictory: an Islamist wants government by sharia, Islam’s totalitarian societal framework and legal code. There is nothing moderate about sharia. Those who want it implemented are not “moderates” even if they don’t commit mass-murder to get their way. Sharia is also anti-liberty, anti-equality, and anti-Western. Therefore, we should oppose Islamism just as we oppose other freedom-killing ideologies. That doesn’t mean we need to go to war with all Islamists, but we should work to diminish their influence and we should never regard them as a solution to anything.
Notwithstanding their abhorrence of the West, “moderate Islamists” are regarded by Obama and Kerry as potential allies: people, groups, and, in the case of Turkey, for example, countries that we can work with to solve the problems plaguing the Middle East and overcome our own security challenges. It is thus critically important to Obama and Kerry for the public to believe that (a) all Islamists are not basically the same and (b) there is a sharp difference — a day-and-night difference — between “moderate Islamists” and terrorist organizations like the Islamic State and al-Qaeda. If, instead, the public becomes convinced that all Islamists, violent or non-violent, adhere to essentially the same ideology, the administration’s goal of working with Islamic supremacists becomes politically untenable.
It is impossible to convince people that non-violent (or, at least, purportedly non-violent) Islamists are not representative of Islam. The administration tried that with its “largely secular” Muslim Brotherhood flyer . . . and has been embarrassed ever since by the howls of laughter. Most significant Islamist groups are rooted in or affiliated with the Brotherhood. Not only do these groups claim the mantle of Islam’s representative; our government concedes that status to them.
Because they refuse to acknowledge this they simply hold out a “solution” that doesn’t exist. So-called “moderate Islam” is only a ratcheted down version of the extremists. Perhaps “moderate Islam” doesn’t want to take part in killing you, but they’re not particularly upset that the extremist version is doing it for them. They may differ in the methods, but they’re not indifferent to the result – i.e. the world converting to Islam and the establishment of Sharia law. That is the ultimate goal of Islam. Weasel wording it doesn’t change that fact.
So how does one go about convincing “moderate Islam” to back off? Well one way to to recognize the threat, and the threat isn’t just limited to “extremists”. However, such recognition is antithetical to the tenets of the left’s multi-culturalism. Every culture is “worthwhile” and has “value”. Even those which justify the murder of non-believers and homosexuals, enslave and mutilate women, and essentially redefine misogyny. The very people who support this sort of “tolerance” would likely be its first victims.
Back to the question – how do we back off “moderate Islam?” Well this is going to sound exceedingly violent, but it is meant to be. You have to ruthlessly and completely wipe out the extremists. But instead, we seem to be contemplating a strategy of “managing” the threat. As Michael Totten notes:
The reason we must reject the tempting tendency to close our eyes and hope this problem goes away is that Allah doesn’t always sort things out according to American interests.
Life is filled with things we don’t want to do but have to do anyway. No one wants radiation or chemotherapy, but if you get cancer, you’re going to have to take it despite the fact that it might not work and that it will certainly feel like it’s killing you.
Let’s not kid ourselves. ISIS — or ISIL as the President calls it — is cancerous. And it is not a benign tumor. It is metastasizing and will not stop growing stronger and deadlier until it is dealt with aggressively and, at the absolute minimum, contained.
And only that sort of treatment will impress “moderate Islam” – period. Of course, that’s only step 1. Step 2 will be even more painful for the Western left. It is all about intolerance. That’s right, it’s about being intolerant of ideas, principles and cultural norms that attack and would eventually destroy Western culture as we know it. Islam is as intolerant of our Western culture is we should be of it’s culture. Just because some group of elitists on the left decided one day that all cultures are equal and valuable has now been shown to be simplistic pap. And unless Western civ is in the mood to commit suicide, it is going to have to make some very hard and intolerant decisions in the near future.
So if the West is to survive, it’s time to take a real “step 1″, not some half-measure that I am pretty sure is being contemplated as we speak.
Many violent jihadists who go on to join al-Qaeda and, now, the Islamic State (an offshoot of al-Qaeda) got their start in the Muslim Brotherhood. They seamlessly graduate from Brotherhood teaching to insatiable jihad because Brotherhood teaching lauds jihad. In fact, the transition happens because many of those who receive Brotherhood instruction become frustrated by the contradiction between the Brotherhood’s aim of a worldwide caliphate and endorsement of jihad to achieve it, on the one hand, and its counsel of patience in pursuing it, on the other.
It is precisely because Islamists share an ideology rooted in Islam, and what they see as a divinely mandated mission of conquest, that a Muslim can so predictably evolve from student to sharia adherent to “moderate Islamist” to not-so-moderate Islamist to terrorist. It happens frequently. And the common ideology rooted in Islam also explains why so many “moderate Islamists” financially and morally support violent jihadist organizations even if they don’t take up arms themselves.
Why? Because, as I said, the “moderates” are not at all indifferent to the outcome brought about by the extremists. And until we wrap our heads around that and do what is necessary to actually and finally address the real threat we face, it’s not going to get any better and could easily get much worse. It isn’t about extremists and moderates, it’s about a toxic culture/religion that was recognized as such by the West centuries ago as a threat. As for the present, there’s very little difference between “moderate” and “extremists” with regard to the final outcome they seek:
The Islamic State has presumed to declare a caliphate. Al-Qaeda franchises think that is hasty — especially since someone else is running the caliphate — and would proceed more gradually, setting up emirates and hoping for more consensus among Islamists. Both organizations want to confront the West only violently; the Muslim Brotherhood, on the contrary, teaches that, while violent jihad has its place (see Hamas), it is valid to negotiate with the West, to infiltrate the West’s institutions, and to achieve whatever conquest can be achieved without violence.
The VA system has given us a hint of what we can expect from a government run health care system in the US. But the UK has been doing it since 1948. And, it appears, most of those who want a single payer, government system purposely turn a blind eye to the UK’s experience:
Death rates in NHS hospitals are among the highest in the western world, shock figures revealed yesterday.
British patients were found to be almost 50 per cent more likely to die from poor care than those in America.
They have five times the chance of dying from pneumonia and twice the chance of being killed by blood poisoning.
Experts say that, despite recent improvements, NHS death rates still outstrip those in many other European countries.
Note the second sentence. That’s as of today. To date, our government hasn’t the level of intrusion or time to turn the health care system in the US into an NHS.
If you think its bad now, just imagine the entire country run like the VA. Or NHS.
President Barack Obama will attend a United Nations summit on climate change in September.U.N. Secretary-General Ban Ki-moon has invited heads of state and other leaders to the Sept. 23 summit in New York. The U.N. says the goal is to spur governments, industry and civil groups to make new commitments to addressing climate change.The summit comes one year before world leaders will gather in Paris for global climate talks aimed at securing a deal to reduce greenhouse gas emissions. Obama has set a goal to cut U.S. emissions 17 percent by 2020, compared to 2005 levels.
The Obama administration will seek a non-binding international accord – rather than a treaty – at a United Nations climate summit in Paris next year on reducing the greenhouse gas emissions that contribute to global warming, The New York Times reported Wednesday.
It was a widely anticipated move, as President Barack Obama has repeatedly said he would act alone, bypassing Congress, if lawmakers declined to support his proposal.
So one would assume that the UN meeting would lay the groundwork for the Paris talks, no? Since it all under the auspices of the UN? And this apparently is very important to our president, no? He’s going to attend, he’s got a plan (one of the few plans his administration has ever managed to push out there) to make a commitment for the US while bypassing Congress. What could go wrong with this issue that is so important to Obama? And he’s certainly consulted with other world leaders to ensure their cooperation and backing, right?
Indian Prime Minister Narendra Modi, leader of the world’s third-largest greenhouse gas-emitting nation, won’t join his U.S. and Chinese counterparts at a United Nations climate summit next month in New York. Modi’s absence is a bit of a blow to the summit.
Chinese counterparts? The Chinese are blowing it off too:
Chinese president Xi Jinping has decided to skip a meeting of world leaders on climate change in New York, according to climate insiders, casting doubt on the summit’s potential to make progress ahead of next year’s major UN climate summit in Paris.
You think? But, as the commercial says, “that’s not all”:
German daily TAZ reports that German Chancellor Angela Merkel isn’t going to bother attending the Ban Ki-Moon initiated climate conference in New York this coming September. The TAZ adds this has been “confirmed by a government spokesman“. Merkel’s decision to snub the event is likely another sign that efforts to forge a climate agreement are already dead in water. The TAZ writes: “Ultimately only Europe and very few other countries remain on board. Canada for example has opted out. Japan and Russia are also no longer taking part.”
Always the last to know. Kind of like his foreign policy, isn’t it? No India. No China. No Russia. No Canada, Germany or Japan.
So, if all of these major players in the world don’t see a reason to show up for Obama and Moon’s little show, how are those two going to sell this to world as an emergency situation that needs drastic action?
I know — call in John Kerry!
And the clown car continues to careen down the path to nowhere.
And I’m not talking about Putin’s attempt to resurrect it – I’m instead talking about this horrific overreaction by state of Maryland to … a book set in the future:
A 23-year-old teacher at a Cambridge, Md. middle school has been placed on leave and—in the words of a local news report—”taken in for an emergency medical evaluation” for publishing, under a pseudonym, a novel about a school shooting. The novelist, Patrick McLaw, an eighth-grade language-arts teacher at the Mace’s Lane Middle School, was placed on leave by the Dorchester County Board of Education, and is being investigated by the Dorchester County Sheriff’s Office, according to news reports from Maryland’s Eastern Shore. The novel, by the way, is set 900 years in the future. . . .
Imagine that—a novelist who didn’t store bombs and guns at the school at which he taught. How improbable! Especially considering that he uses an “alias,” which is apparently the law-enforcement term for “nom de plume.” (Here is the Amazon page for The Insurrectionist, by the way. Please note that the book was published in 2011, before McLaw was hired.)
According to an equally credulous and breathless report in the Star-Democrat, which is published in Easton, Md., the combined efforts of multiple law-enforcement agencies have made area children safe from fiction. Sheriff Phillips told the newspaper that, in addition to a K-9 sweep of the school (!), investigators also raided McLaw’s home. “The residence of the teacher in Wicomico County was searched by personnel,” Phillips said, with no weapons found. “A further check of Maryland State Police databases also proved to be negative as to any weapons registered to him. McLaw was suspended by the Dorchester County Board of Education pending an investigation and is no longer in the area. He is currently at a location known to law enforcement and does not currently have the ability to travel anywhere.”
As I find and read more stories like this on a much more frequent basis, I have to wonder what happened to America. Where did it go? And when?
The fact that anyone would find this supportable is phenomenal in and of itself, yet here we have the report … McLaw was obviously taken as a credible threat because he wrote … fiction to sell books.
Jeffery Goldberg goes on:
It is somewhat amazing that local news reports on this case don’t make clear whether McLaw is under arrest, and if so, on what charge. It is equally astonishing that the reporters on this story don’t seem to have used the words “First Amendment” in their questioning of law-enforcement officials, and also astonishing they don’t question the Soviet-sounding practice of ordering an apparently sane person who has been deemed unacceptable by state authorities to undergo a psychological evaluation.
It would be useful to know if McLaw is under investigation for behavior other than writing two novels—and perhaps he will be shown to be a miscreant of some sort—but so far, there is no indication that he is guilty of anything other than having an imagination, although on Maryland’s Eastern Shore, as news reports make clear, his imagination is considered an active threat.
Dorchester County Superintendent of Schools Dr. Henry Wagner told WBO that police will be present at the middle school “for as long as we deem it necessary,” and the sheriff said that law-enforcement officials across the Delmarva peninsula have been given McLaw’s photo in case he shows up in their jurisdictions—though again, it is not clear if he is, in fact, in police custody at the moment.
This is what happens when people quit thinking and only do “their duty”. When rules like “zero tolerance” replace common sense.
What happened to McLaw is an outrage. It is unacceptable. It should be condemned in the very strongest of terms.
Yet, at least by the media there, it seems all perfectly sane and normal. And, apparently, the police force as well. School. Etc.
Maryland (and Cambridge in particular) should be utterly ashamed.
How many times have we been treated to hissy fits by the environmental left when it comes to species other than humans and their endangerment? What group has constantly pushed for laws that protect animals from humans? And where have the enviros been mostly silent as a particular group of animals is wantonly slaughtered daily in the name of green, renewable energy?
California’s massive Ivanpah solar power plant can produce enough electricity for 140,000 households — but the environmental cost is nothing less than an avian slaughter.
The plant’s 350,000 mirrors bounce sizzling sunlight to the tops of three 40-story boiler towers, heating steam for turbine electricity generators. Temperatures near the towers can reach up to 1,000 degrees Fahrenheit, heat certainly sufficient to fry a fowl.
“Workers at the state-of-the-art solar plant in the Mojave Desert have a name for birds that fly through the plant’s concentrated sun rays — ‘streamers,’ for the smoke plume that comes from birds that ignite in midair,” the Associated Press reports this week.
That’s a common occurrence, the AP continues; federal investigators saw a bird burn roughly every two minutes. Ivanpah owner BrightSource estimates that “about a thousand” die each year, and one environmental group says the plant kills up to 28,000 birds each year.
Of course, if you do the math (and account for 12 hours of darkness each day) it comes out to about 130,000 a year – assuming the observation that one bird “burns” every two minutes. And the outcry? Yeah, not so much.
And some of the birds it is killing are, among others, endangered:
As the plant prepared to begin operations, workers found the winged corpses of “a peregrine falcon, a grebe, two hawks, four nighthawks, and a variety of warblers and sparrows,” the Wall Street Journal reported earlier this year.
You want a “silent spring”? Keep building these sorts of installations.
What about wind turbines? Well, Ivanpah comes up a piker in comparison:
Ivanpah isn’t the only green darling with a lot of bird blood on its hands, either. The American Bird Conservancy estimates wind turbines slay 440,000 birds each year, and the an analyst writing in the Wildlife Society Bulletin says it’s closer to 573,000 — in addition to 888,000 bats.
And, as usual, our federal government makes exceptions to the law for favored industries:
Federal wildlife officials on Friday for the first time agreed not to prosecute a developer if an endangered California condor is struck and killed by turbine blades at its proposed wind farm in the Tehachapi Mountains, about 100 miles north of Los Angeles.
You accidentally do it and watch how much of an exception they make for you.
In the meantime, with all this data showing massive bird kills among solar and wind turbine installations?
Crickets – unless they find some other sort of “green energy” source that happens to wipe them out too.
Well, if reports are true it appears our self-crowned king has decided he’s found a way to obligate us to a treaty without following the Constitution’s proviso for doing so.
In seeking to go around Congress to push his international climate change agenda, Mr. Obama is echoing his domestic climate strategy. In June, he bypassed Congress and used his executive authority to order a far-reaching regulation forcing American coal-fired power plants to curb their carbon emissions….
American negotiators are instead homing in on a hybrid agreement — a proposal to blend legally binding conditions from an existing 1992 treaty with new voluntary pledges. The mix would create a deal that would update the treaty, and thus, negotiators say, not require a new vote of ratification.
Countries would be legally required to enact domestic climate change policies — but would voluntarily pledge to specific levels of emissions cuts and to channel money to poor countries to help them adapt to climate change. Countries might then be legally obligated to report their progress toward meeting those pledges at meetings held to identify those nations that did not meet their cuts.
“There’s some legal and political magic to this,” said Jake Schmidt, an expert in global climate negotiations with the Natural Resources Defense Council, an advocacy group. “They’re trying to move this as far as possible without having to reach the 67-vote threshold” in the Senate.
“Political magic”? Is that the state of our nation now – we resort to “political magic” when we can’t get our way as the Constitution requires? Well, yes.
President Obama seems to be following a script laid out in May, 2014 by former Undersecretary for Global Affairs Timothy Wirth, who was the Clinton Administration’s lead negotiator for the Kyoto Protocol, and former South Dakota Senator Thomas Daschle who astutely asserted that “the international community should stop chasing the chimera of a binding treaty to limit CO2 emissions.” They further noted that more than two decades of U.N. climate negotiations have failed because “nations could not agree on who is to blame, on how to allocate emissions, or on projections for the future.”
Wirth and Daschle are advocating that the climate negotiators adopt a system of “pledge and review” at the 2015 Paris conference of the parties to the UNFCCC. In such a scheme nations would make specific pledges to cut their carbon emissions, to adopt clean energy technologies, and to wring more GDP out of each ton of carbon emitted. The parties would review their progress toward reducing greenhouse gas emissions every three years and make further pledges as necessary to achieve the goal of keeping the increase in average global temperature under 2°C. Since there would be no legally binding targets, there would be no treaty that would require politically difficult ratification. If insufficient progress is being made by 2020 they argue that countries should consider adopting globally coordinated price on carbon.
Now this isn’t to say that this is going to work or even have an effect, but it is a blatant attempt to have one’s way (via “political magic”) while avoiding the unpleasantness of a failure to get a ratification by tw0-thirds of the Senate (its all about getting the leverage to pass a carbon tax).
And, as usual, Mr. Obama doesn’t care one whit about much more than getting his way – just ask Senate Democrats:
President Obama’s election-year plan to win a new international climate change accord is making vulnerable Democrats nervous.
The administration is in talks at the United Nations about a deal that would seek to reduce global greenhouse gas emissions by “naming and shaming” governments that fail to take significant action.
The State Department on Wednesday denied a report in The New York Times that the plan is to come up with a treaty that would not require Senate confirmation, but that appeared to provide cold comfort to Democrats worried the issue will revive GOP cries about an imperial Obama presidency.
One Democratic strategist said the proposal would put swing-state candidates who are critical to the party keeping its Senate majority “in front of the firing squad.”
“You’re … making it more difficult for them to win and certainty putting them in a position to lose,” the strategist said.
Silver linings … always look for the silver lining to those storm clouds.
And then there’s immigration …
I’ve never really been much of a Burger King fan, but guess what I’m having for lunch today?
Why? Because Burger King has given us an opportunity to point out one reason why our economy is lagging. And, as usual, it has to do with government policy. Politicians would like to play the blame game and point at corporations like Burger King moving to Canada (after a merger with Canadian based Tim Hortons) as the reason. Instead, it is the federal government’s oppressive and unprecedented corporate tax rate that is helping to keep our economy floundering by providing incentive for corporations to leave.
Megan McArdle writes a great column today. To begin with she cites a paragraph from Matt Levine that makes the point that most in the media and almost all politicians opposing the merger fail to make:
The purpose of an inversion has never been, and never could be, and never will be, “ooh, Canada has a 15 percent tax rate, and the U.S. has a 35 percent tax rate, so we can save 20 points of taxes on all our income by moving.” Instead the main purpose is always: “If we’re incorporated in the U.S., we’ll pay 35 percent taxes on our income in the U.S. and Canada and Mexico and Ireland and Bermuda and the Cayman Islands, but if we’re incorporated in Canada, we’ll pay 35 percent on our income in the U.S. but 15 percent in Canada and 30 percent in Mexico and 12.5 percent in Ireland and zero percent in Bermuda and zero percent in the Cayman Islands.”
Got it? The US government does something no other first world government does. McArdle explains:
The U.S., unlike most developed-world governments, insists on taxing the global income of its citizens and corporations that have U.S. headquarters. And because the U.S. has some of the highest tax rates in the world, especially on corporate income, this amounts to demanding that everyone who got their start here owes us taxes, forever, on anything they earn abroad.
This is a great deal for the U.S. government, which gets to collect income tax even though it’s not providing the companies sewers or roads or courts or no-knock raids on their abodes. On the other hand, it’s not a very good deal for said citizens and corporations, especially because our government has made increasingly obnoxious demands on foreign institutions to help them collect that tax. Both private citizens and corporations who have a lot of income abroad are deciding that they’d rather renounce their ties to the U.S. than deal with the expense and hassle of letting it tap into income that they have earned using some other country’s roads and sewers and police protection.
Practically speaking, global taxation is hard to enforce and loaded with bad incentives, which is why our fellow members of the Organization for Economic Cooperation and Development have moved away from global taxation of corporate income, and abandoned global taxation of personal income. If anything, the U.S. has gone in the other direction — by insisting, for instance, that foreign companies report various financial transactions with U.S. citizens to the Internal Revenue Service, and taxing foreign cost of living allowances, which makes it more expensive for companies to employ expats. On the corporate side, the Barack Obama administration has repeatedly suggested tightening up on tax deferral of foreign income and other credits, which would make it even more expensive to be a corporation based in the U.S.
So why base in the US with this being the case? Why wouldn’t any sane US based corporation be trying to find a remedy to this pernicious and oppressive tax code? In reality, this describes it rather well:
[I]t boils down to “the police kept people from sacking your first headquarters, so therefore you owe us 35 percent of everything you make, forever.” Loan sharks and protection rackets offer more reasonable terms than this.
Yes, they likely do. You know you have a problem when more and more of government begins to resemble criminal gangs. And that’s where we are headed. Instead of looking at a solution that will benefit a corporation and give them an incentive to remain and pay taxes, our government and the politicians seem bound and determined to make the corporation the bad guy with absurdly Orwellian insults like “economic patriotism” and “corporate deserters”. This, instead, should be the bottom line:
If we’re worried about inversion, then the U.S. government should follow the lead of other developed countries, and move to territorial taxation. Otherwise, we should stop complaining when people and corporations decide that they’d rather be a citizen of some more sane system somewhere else.
While perusing a Frank Bruni op-ed in the NYT, I ran across this:
Conventional wisdom says that better unemployment and job-creation numbers could save Democrats. But many Americans aren’t feeling those improvements. When asked in the Journal/NBC poll if the country was in a recession — which it’s not — 49 percent of respondents said yes, while 46 percent said no.
Got that, despite what 49% believe, the country is “not” in recession? Why? Because some obscure organization (NBER) that determines that has said so.
But here’s a little clue, if 49% believe that, no matter what is declared, how does one suppose they’ll act when it comes to their own little piece of the economic pie? Yup, that’s right, like we’re in a recession. In other words, it really doesn’t matter whether or not the recession is “official” or not, like Bruni says, but then seemingly ignores, “many Americans aren’t feeling those improvements”. That’s because vastly more than the “official” unemployment number remain unemployed. Then there are the underemployed. They don’t give a rip what NBER says. They know how they’re living, how their lives have changed and what they’re facing. Which is why you see:
There’s a feeling of helplessness that makes the political horizon, including the coming midterm elections, especially unpredictable. Conventional wisdom has seldom been so useless, because pessimism in this country isn’t usually this durable or profound.
A feeling of helplessness has never been something, at least in my life time, that this country has ever had. I’m sure during the Depression, there was certainly some of that, but then, I wasn’t living then.
The interesting point there though is the Depression is where the citizens of this country began to look more toward government as an institution of hope. However misplaced that was, it is indeed what happened. FDR. The New Deal. Yatta, yatta, yatta – for years it was credited with pulling us out of the economic pit we found ourselves in. Popular myth had it that without government we’d still be mired in a substandard economy (nevermind the growing body of evidence which puts the onus of the Depression on government failure). Of course, in reality it was WWII that pulled us out. But that myth was popular and a certain segment of the political sphere nurtured and grew it.
Well, as I’ve always said, reality has a way of bitch slapping fantasy at some point in time and that’s pretty much what has finally happened in the last 6 years. Reality has set in. The myth of big government being able to handle such a crisis has been blown to hell. Result?
In the most recent of Sosnik’s periodic assessments of the electorate, published in Politico last month, he wrote: “It is difficult to overstate the depth of the anger and alienation that a majority of all Americans feel toward the federal government.” He cited a Gallup poll in late June that showed that Americans’ faith in each of the three branches had dropped to what he called “near record lows,” with only 30 percent expressing confidence in the Supreme Court, 29 percent in the presidency and 7 percent in Congress.
There should be no surprise for anyone in those numbers. None. Big government has failed. After all the promises, all the money, all the “policies”, all the assurances and all the faith put in its ability to handle any crisis, especially the economic crisis, the myth has exploded. The gullible, who have believed the myth all these years, now feel angry with the institution into which they put so much faith. It was literally a secular religion for some.
Well if there’s a silver lining in all of this mess is the fact that in the future, when this myth again tries to reemerge, we have an era to point to which demonstrates its bankruptcy. We’ll call it “the cash for clunkers” era of government – when government came up a clunker.
I’m not sure how else you interpret this “inversion” nonsense.
Burger King Worldwide Inc. is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons Inc., a deal that would be structured as a so-called tax inversion and move the hamburger seller’s base to Canada.
The two sides are working on a deal that would create a new company, they said in a statement, confirming a report on the talks by The Wall Street Journal. The takeover would create the third-largest quick-service restaurant provider in the world, they said.
The point of this sort of a merger, beside the business aspect, is to move the headquarters of Burger King to a lower tax nation:
Inversion deals have been on the rise lately, and are facing stiff opposition in Washington given that they threaten to deplete U.S. government coffers. A move by Burger King to seal one is sure to intensify criticism of them, since it is such a well-known and distinctly American brand.
By moving to a lower-tax jurisdiction, inversion deals enable companies to save money on foreign earnings and cash stowed abroad, and in some cases lower their overall corporate rate. Even though many of the headline-grabbing inversion deals of late have involved European companies, Canada has also been the focal point for a number of them, given its proximity and similarity to the U.S. Canada’s federal corporate tax rate was lowered to 15% in 2012.
And surprise – Canada’s economy is picking up steam and corporations are eyeing it as a place to locate. Imagine that.
Canada’s corporate tax rate in Ontario of 26.5% (the federal rate of 15% plus Ontario’s provincial corporate tax rate of 11.5%) is considerably favorable to the American corporate tax rate of 35% thanks in large part to the conservative Canadian government led by Stephen Harper. The Harper government lowered the federal tax rate to 15% in 2012 down originally from 28% since it took office in 2006.
In fact, a recent KPMG Report, Focus on Tax, ranked Canada as the #1 country with the most business-friendly tax structure among developed countries when adding up a wide range of tax costs to businesses from statutory labor costs to harmonized sales tax. When comparing developed countries to what companies pay in the U.S.; Canada came in at 53.6%, the U.K. came in at 66.6%, and the Netherlands at 74.5% of the U.S. corporate tax burden.
Meanwhile, our politicians are trying to find a way to prevent that, because, well because they apparently think corporations work for them and exist to pay whatever tax rate they deem necessary. Of course, in a free country, this wouldn’t even be an issue. Corporations, like people, have the right to move wherever they wish. It is their call, not the government’s.
But, here that’s not the case:
Burger King’s possible merger to obtain the favorable Canadian corporate tax rate is a true reflection of the American corporate tax rate being the highest in the OECD. However, rather than taking the same stance on outright cutting the corporate tax rate as the Harper government did to keep the U.S. a competitive place to do business, President Obama calls tax inverting companies like Burger King “corporate deserters who renounce their citizenship to shield profits”. At the urging of President Obama, Congress is considering a bill to make it harder for companies to change addresses abroad. Treasury Secretary Jacob Lew called for a “new sense of economic patriotism,” asking Congress to pass curbs to inversions. The Treasury Department currently is also preparing options to deter or prevent corporate tax inversions potentially on its own.
“Corporate deserters”. “Economic patriotism”. It’s Orwellian Newspeak at its finest. Imagine anyone trying to “shield profits” from a grasping and out-of-control government. It is also another, in a long line of indicators, that this is no longer a free country in the sense we used to believe it was. It is now a country where every other entity is subservient to the needs or wants of intrusive, controlling government.