Economy
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Title: The Money Hole
Source:
HE
URL Source: http://www.humanevents.com/article.php?id=44188
Published: Jun 18, 2011
Author: John Stossel
Post Date: 2011-06-18 09:17:52 by CZ82
Keywords: None
Views: 121840
Comments: 157
The Money Hole by John Stossel, 06/15/2011 America is falling deeper into debt. We're long past the point where drastic action is needed. We're near Greek levels of debt. What's going to happen? Maybe riots -- like we've seen in Greece? We need to make cuts now. Some governors have shown the way. You know about Chris Christie, Scott Walker, Rick Scott, John Kasich, etc. But you probably don't know about Luis Fortuno. Fortuno is governor of Puerto Rico. Two years ago, he fired 17,000 government workers. No state governor did anything like that. He cut spending much more than Walker did in Wisconsin. In return, thousands of union members demonstrated against Fortuno for days. They clashed with police. They called him a fascist Fortuno said he had to make the cuts because Puerto Rico's economy was a mess. "Not just a mess. We didn't have enough money to meet our first payroll." Fortuno's predecessors had grown Puerto Rico's government to the point that the state employed one out of every three workers. By the time he was elected, Puerto Rico was broke. So the new conservative majority, the first in Puerto Rico in 40 years, shrank the government. What was cut? "Everything. I started with my own salary." The protesters said he should raise taxes instead of cutting spending. "Our taxes were as high as they could be, actually much higher than most of the country. So what we've done is the opposite." Fortuno reduced corporate taxes from 35 percent to 25 percent. He reduced individual income taxes. He privatized entire government agencies. "Bring in the private sector," Fortuno said. "They will do a better job. They will do it cheaper." Fortuno's advice for leaders who want to shrink the state: "Do what you need to do quickly, swiftly, like when you take off a Band-Aid. Just do it. And move on to better things." Canada did that years ago. When I think Canada, I think big government. I'm embarrassed that I didn't know that in the mid-'90s, Canada shrank its government. It had to. Its debt level was as bad as ours is today, almost 70 percent of the economy. Canada's finance minister said: "We are in debt up to our eyeballs. That can't be sustained." Economist David Henderson, a Canadian who left Canada for the United States, remembers when The Wall Street Journal called the Canadian dollar "the peso of the north." It was worth just 72 American cents. "Moody's put the Canadian federal debt on a credit watch," Henderson said. The problem, he added, was that Canada had a government safety net that was more like a hammock. "When I was growing up in Canada, people who went on unemployment insurance were said to go in the 'pogie.' You could work as little as eight weeks, taking the rest of the year off." So in 1995 Canadian leaders cut unemployment benefits and other programs. It happened quietly because it was a liberal government, and liberals didn't want to criticize their own. The result was that Canada's debt stopped increasing. As the government ran budget surpluses, the debt went down. "The economy boomed," Henderson said. "Think about what government does. Government wastes most of what it spends, and so just cutting government and having that money in the hands of people means it's going to be used more valuably." Canada fired government workers, but unemployment didn't increase. In fact, it fell from 12 percent to 6 percent. Canadian unemployment is still well below ours. And the Canadian dollar rose from just 72 American cents to $1.02 today. Canada also raised some taxes. But the spending cuts were much bigger, six to one: agriculture was cut 22 percent; fisheries, 27 percent; natural resources, almost 50 percent. "We should learn from Canada's experience that you can cut government substantially," Henderson said. "It is so wasteful. There's so much to cut, without causing much real pain -- not causing pain, but helping your economy grow, helping people become better off." Henderson added, "We need to move more quickly than the Canadians did. Unfortunately, we're moving more slowly than the Canadians did." If we're moving at all. While Canada thrives, we pour more money down the hole.
Poster Comment: Now we know why Obozo went to Puerto Rico, can't have an American "territory" doing just the exact opposite of what the Great Leader is doing.....
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#60. To: CZ82 (#0)
America is only 1 of 5 developed countries in the world that tax repatriated foreign earnings. That's after U.S. companies paid taxes on those earnings in the countries where the money was earned. It shouldn't take a genius to understand why U.S. companies are holding $3 trillion of foreign earnings overseas and refusing to bring the money home to invest here. No wonder why the economy is in the toilet. US Corps Pay Billions in Taxes to Overseas Authorities New research shows that US companies operating internationally pay out nearly a quarter of their profits to overseas tax authorities, before being taxed for the second time by the Internal Revenue Service. The US Tax Foundation has stood up to speak out against the currently common media sentiment that US corporations are not paying enough taxes on their foreign profits. In its latest Fiscal Fact report, published on April 26th, the Tax Foundation explained that the US has in place an effective system of taxing corporate profits in the US and abroad, requiring US companies with foreign operations to effectively pay 35 percent tax on their profits regardless of where they are earned. Currently, a US firm operating overseas is required to pay the corporate profit tax rate in the country where they conducted business. On a US level the company may receive a credit for taxes paid internationally, and will be required to make further payments to meet the US federal corporate rate of 35 percent. The new Tax Foundation’s research indicates that in 2007, US companies paid approximately USD 99 billion to foreign tax authorities, at an effective average tax rate of 25 percent. Scott Hodge, president of the Tax Foundation, commented on the finding, saying, “…the truth is US companies pay plenty of income taxes on international profits— they pay them to the host countries where that income is earned and where the benefits of those taxes are received.” Offering a suggestion to explain the commonly debated idea that companies are paying too little on their international earnings, Scott Hodge said, “…Washington simply wants another bite at the apple with our worldwide tax system.” The research showed that in 2007, US corporations had total taxable foreign incomes of approximately USD 392 billion. The largest portion of the earnings was garnered in Europe, where companies received USD 167 billion in incomes, and faced an effective tax rate of 24 percent. Across Asia, US corporations gathered USD 75 billion, and paid an effective rate of 30 percent. The highest tax rates were seen by companies operating in the African continent, at 38 percent of the incomes earned cumulatively across the respective countries.
It's already affecting the birth rate YOUR area. Hint, hint, Japanese cancer treatment centers will be lucrative investments.
I don't hate the rich just because they were successful. Everyone is supposed to be equal before the law. Why should they pay higher taxes. If everyone is taxed at the same rate. That would be fare. If you make 10 times as much money. You pay 10 times the taxes. If you make 1000 times as much money. You pay 1000 times as much taxes. You probably have a problem with that though. I mean being a libearal and all.
You came up with the number of 1/3. What do you base that on? I think it is your imagination.
Is that your imagination again? Or do you have some science behind the apparent speculation.
I just joined your prophecy club. But I bet it's a low ball number. The Japanese will never let the truth out, but it's already affecting birthrates half a world away.
So it is your imagination. You know what happens to false prophets right?
You know what happens to false prophets right? Your threats have no standing since you have no idea at this time if I'm false or not.
Threat?
I'm still waiting for him to provide proof that the poor have big screen TVs Xbox pS3s and cell phones purchased with government money.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
I know people on welfare. I've been in some of their houses. Do you think it isn't true?
So you wouldn't object to a bill that if someone gets government assistance those items would be seized to pay back the taxpayers?
Only the rich deserve government subsidies. They'll create a job in China.
I think it's anecdotal evidence that really proves nothing.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
I'll have to disagree with you again.
Does that include bankers? (really, such an odd thing for a freedom loving man to suggest)
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
Here is a fact for you. Most people are on welfare because they are to fucking lazy to get a job. It is a problem created largely by democrat programs. Kind of like the tourists feeding the Pelicans. Then when winter comes the Pelicans die because no one is feeding them. They forgot how to do it for themselves.
Do you think it isn't true? Do you think Sony's or similiar lobbyists would for one minute support legislation that would not allow a certain segment of the American public to buy their products no matter where the money originated?
Does that include bankers? (really, such an odd thing for a freedom loving man to suggest) The bankers shouldn't get anything either. Let them go bankrupt, don't bail them out like Bush/Obama. A freedom loving man loves to keep what he earns. Not give it away to deadbeats. Is it really that hard for you to understand?
Nothing happens to them other than looking stupid. This year that could be a plus by raising them to the top of the GOP presidential candidate list.
It should be illegal for foreign companies of governments to lobby our congress, senate or president.
Looks like more of that corporate socialism.
Then why blame Obama for the high unemployment rate?
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
Because he came to Ohio and like about NAFTA. That and other things.
That says poor, not people receiving government assistance. It doesn't say whether or not appliances are owned by the individual or by the landlord when the housing is rented. Are the vehicles road worthy, how old are they. How many TVs are big screen? Were TVs, answering machines, phones, VCRs, CD players, etc. purchased retail or at garage sales and thrift stores. Were any of those things gifts? Again, the information provided is meaningless in the context of this discussion.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
Bush bailed out banks, not bankers. A freedom loving man loves to keep what he earns. Not give it away to deadbeats. The method you describe is fitting for totalitarian state.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
I suppose the government should outlaw thrift stores and garage sales because they exploit poor people. ROTLMAO. You have become totally unhinged from reality.
That and other things. So that's why lazy people don't work?
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
So people keeping what they earn is totalitarian? lol. Thanks for the laugh.
You have become totally unhinged from reality. If that's how you read it, then you, sir, are unhinged.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
When I upgraded my color televisions over the years - in fine working order - I gave them to those in need.
They don't work because they are happy to suck the government tit.
You're a fine man Fred. I take back everything bad I ever said about you.
No, government taking stuff away from poor people that the government decides the people are too poor to own. Thanks for the laugh. Back attcha!
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
So the "poor" are entitled to other peoples money. And don't ask any questions. If they say they want welfare you better pay it to them. I worked for a pair of liberals for 5 years. Here is a couple of things they said. Welfare is good because that way I don't have to work with them. Bush fucked up so bad that the country went out and elected a nigger.
LF posters would deny you that right. Stone would insist government control what you do with your old TV.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
So then Obama has nothing to do with the unemployment rate. A bunch of people just spontaneously decide not to work.
It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte
There's plenty of good paying jobs too, but the commute's a bitch.
Your brain is malfunctioning again. Obama supports these programs that are like magnets. When Republicans try to do the right thing and scale them back and cut them. The demon party screams you hate old people, while at the same time murdering little precious babies.
If taxes weren't so high. Then people would have more money.
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"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#61. To: A K A Stone (#58)
Bullshit. A third? Come on be real.
#62. To: mininggold (#59)
You don't trust your banker? I though you loved the rich.
#63. To: mininggold (#61)
#64. To: mininggold (#61)
It's already affecting the birth rate YOUR area.
#65. To: A K A Stone (#63)
(Edited)
You came up with the number of 1/3. What do you base that on? I think it is your imagination.
#66. To: mininggold (#65)
#67. To: A K A Stone (#66)
So it is your imagination.
#68. To: mininggold (#67)
#69. To: mininggold, A K A Stone (#65)
I just joined your prophecy club. But I bet it's a low ball number.
#70. To: lucysmom (#69)
#71. To: lucysmom (#69)
#72. To: lucysmom (#69)
I'm still waiting for him to provide proof that the poor have big screen TVs Xbox pS3s and cell phones purchased with government money.
#73. To: A K A Stone (#70)
Do you think it isn't true?
#74. To: mininggold (#72)
Only the rich deserve government subsidies.
#75. To: A K A Stone (#71)
So you wouldn't object to a bill that if someone gets government assistance those items would be seized to pay back the taxpayers?
#76. To: lucysmom (#73)
#77. To: lucysmom (#69)
I'm still waiting for him to provide proof that the poor have big screen TVs Xbox pS3s and cell phones
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#78. To: A K A Stone (#70)
I know people on welfare. I've been in some of their houses.
#79. To: lucysmom (#75)
So you wouldn't object to a bill that if someone gets government assistance those items would be seized to pay back the taxpayers?
#80. To: A K A Stone (#66)
You know what happens to false prophets right?
#81. To: mininggold (#78)
#82. To: jwpegler (#77)
#83. To: A K A Stone (#76)
Most people are on welfare because they are to fucking lazy to get a job.
#84. To: lucysmom (#83)
Then why blame Obama for the high unemployment rate?
#85. To: jwpegler (#77)
#86. To: A K A Stone (#79)
The bankers shouldn't get anything either. Let them go bankrupt, don't bail them out like Bush/Obama.
#87. To: lucysmom (#85)
(Edited)
Were TVs, answering machines, phones, VCRs, CD players, etc. purchased retail or at garage sales and thrift stores.
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#88. To: A K A Stone (#84)
Because he came to Ohio and like about NAFTA.
#89. To: lucysmom (#86)
The method you describe is fitting for totalitarian state.
#90. To: jwpegler (#87)
I suppose we should definitely outlaw thrift stores and garage sales because they exploit poor people. ROTLMAO.
#91. To: lucysmom (#85)
#92. To: lucysmom (#88)
So that's why lazy people don't work?
#93. To: Fred Mertz (#91)
When I upgraded my color televisions over the years - in fine working order - I gave them to those in need.
#94. To: A K A Stone (#89)
So people keeping what they earn is totalitarian? lol.
#95. To: lucysmom (#94)
No, government taking stuff away from poor people that the government decides the people are too poor to own.
#96. To: Fred Mertz (#91)
When I upgraded my color televisions over the years - in fine working order - I gave them to those in need.
#97. To: A K A Stone (#92)
They don't work because they are happy to suck the government tit.
#98. To: lucysmom (#97)
(Edited)
So then Obama has nothing to do with the unemployment rate. A bunch of people just spontaneously decide not to work.
#99. To: lucysmom (#97)
So then Obama has nothing to do with the unemployment rate. A bunch of people just spontaneously decide not to work.
#100. To: mininggold (#98)
There's plenty of good paying jobs too, but the commute's a bitch.
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