Economy
See other Economy Articles
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: 121815
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.....
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
Comments (1-40) not displayed.
.
.
.
#41. To: A K A Stone (#39)
LOL. I would rather run over my foot with a lawnmower than try to explain anything else to these resentful, envious, dimwits. There's no point.
How many people have seen the fruits of their hard work and planning wiped out in the collapse the ponzi scheme orchestrated by the banksters?
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
You're talking chump change. The biggest ponzi scheme in world history is social security. The government did it not the evil bankers.
Right. But this time, if they get more in tax cuts and subsidies, they will create more jobs at home - really.
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
Income distribution, not redistribution.
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
Since the bankers are instrumental in creating all the depressions and panics we have had in our history where citizen's savings and retirements went up in smoke, they do have some culpability.
Corporations believe only the markets should receive liquidity from the Fed.
That sounds like opinion and not fact. I don't really like Banks. But they aren't responsible for everything wrong financially with us.
Not only does America soak top income earners like no other country in the world, we also have the highest combined corporate tax rates in the world (Yes, the OCED chart says we're #2, but Japan just sliced 5 points off of their corporate tax rate, so we are now #1.) Kind of like star trek. Where everyone has a replicator and there is no money. The government doesn't even know how to fix it's own case of hemmoroids and that's an easy fix..... LOL.... Star Trek, I think that's the only program allowed on the DNC channel....
"I love the 45 caliber M1911, I respect the 9MM M9 Beretta but I only carry a CZ for my own personal protection". Quote courtesy of Lt Col John Dean Cooper, recognized as the Father of Modern Handgunning
The first column shows the percentage of taxes the top 10% pays. The second column shows the percentage of income the top 10% earns. The third column shows the ratio of taxes to income that the top 10% pays. Here, read this: 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
You are free to look it up for yourself. Do you know there was only a fifty year period where we had a fairly stable economy and then Glass-Steagal was rescinded and we find ourselves ...here. Your banker is now a stock broker. Who do you think he will look out for first?
I have an idea. How about looking out for yourself.
Well at least Japan is wising up, took them long enough though.... can't say the same thing for our current "regime", they will never learn.....
"I love the 45 caliber M1911, I respect the 9MM M9 Beretta but I only carry a CZ for my own personal protection". Quote courtesy of Lt Col John Dean Cooper, recognized as the Father of Modern Handgunning
You sure are using a lot of "four letter words" today.... you need to go wash your keyboard out with soap!!!!
"I love the 45 caliber M1911, I respect the 9MM M9 Beretta but I only carry a CZ for my own personal protection". Quote courtesy of Lt Col John Dean Cooper, recognized as the Father of Modern Handgunning
Well I never looked at my banker as my mommy and daddy who are supposed to look out for me. I look at them as sharks who want my money and charge me fees for everything. You can't even cash a check made out to you anymore without being fingerprinted and fee'd. Yeah I made up a word.
Maybe you should move there since in one year they decreased their average life expectancy by a third.
Bullshit. A third? Come on be real.
You don't trust your banker? I though you loved the rich. All that crap you go through with your bank is more Bush DHS BS to make sure you are not funding some terrorist cell.
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.
Comments (81 - 157) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/LatestYou might need to get the dictionary out for them and define facts.
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#42. To: A K A Stone (#33)
Lucysmom thinks that the government should tell you what you get and how much. It shouldn't be a result of your hard work and planning.
#43. To: lucysmom (#42)
How many people have seen the fruits of their hard work and planning wiped out in the collapse the ponzi scheme orchestrated by the banksters?
#44. To: mininggold (#35)
Their jobs are being created in China.
#45. To: A K A Stone (#37)
So income shouldn't be earned. It should be distributed.
#46. To: A K A Stone (#43)
The biggest ponzi scheme in world history is social security. The government did it not the evil bankers.
#47. To: lucysmom (#45)
Income distribution, not redistribution.
#48. To: mininggold (#46)
Since the bankers are instrumental in creating all the depressions and panics we have had
#49. To: CZ82 (#0)
It shouldn't take a genius to understand why America's economy is in the toilet. Country Combined Central and Provisional Corporate Tax Rate Japan 39.5 United States 39.2 France 34.4 Belgium 34.0 Germany 30.2 Australia 30.0 Mexico 30.0 Spain 30.0 Luxembourg 28.8 New Zealand 28.0 Norway 28.0 Canada 27.6 Italy 27.5 Portugal 26.5 Sweden 26.3 Finland 26.0 United Kingdom 26.0 Austria 25.0 Denmark 25.0 Netherlands 25.0 Korea 24.2 Israel 24.0 Switzerland 21.2 Estonia 21.0 Chile 20.0 Greece 20.0 Iceland 20.0 Slovenia 20.0 Turkey 20.0 Czech Republic 19.0 Hungary 19.0 Poland 19.0 Slovak Republic 19.0 Ireland 12.5
"Everything that can be invented has been invented."-- Charles Duell, Commissioner of US Patent Office, 1899
#50. To: A K A Stone (#33)
Lucysmom thinks that the government should tell you what you get and how much. It shouldn't be a result of your hard work and planning.
#51. To: jwpegler (#38)
Do you know how to read? Apparently not. So let me explain it to you.
#52. To: A K A Stone (#48)
I don't really like Banks. But they aren't responsible for everything wrong financially with us.
#53. To: mininggold (#52)
#54. To: jwpegler (#49)
#55. To: A K A Stone (#53)
I have an idea. How about looking out for yourself.
#56. To: CZ82 (#55)
#57. To: CZ82 (#54)
Well at least Japan is wising up, took them long enough though.... can't say the same thing for our current "regime", they will never learn.....
#58. To: mininggold (#57)
#59. To: A K A Stone (#56)
I look at them as sharks who want my money and charge me fees for everything. You can't even cash a check made out to you anymore without being fingerprinted and fee'd. Yeah I made up a word.
#60. To: CZ82 (#0)
"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?
.
.
.
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]