President Obama’s wildly irresponsible budget proposal is remarkably punishing to economic growth, at a time when an economy weakened by years of Obamanomics is about to tumble into a shallow grave of 1.1 percent GDP growth. The President raises taxes on virtually every aspect of investment, from capital gains and dividends, to corporate taxes, and the personal income taxes of investors and business owners. If an enemy of America had been asked to design a weapon of economic sabotage to push the tottering U.S. economy into recession, they might have come up with something like the Obama budget.
One of the predictable consequences of slapping nervous businessmen with confiscatory tax increases is that more operations will be moved overseas. There are plenty of places for a corporation to escape the grasp of a tax-hungry Obama Administration, since America already has among the highest corporate taxes in the developed world, and Obama wants to make them even higher. Some people criticize capital flight as unpatriotic, but there comes a point at which keeping investments within our borders is illogical.
Well, the geniuses who brought you Solyndra and Cash for Clunkers have a solution to that problem: a global minimum tax that would cripple the rest of the industrialized world by raising their tax rates to Obama levels. Then nobody would have a reason to outsource or move their investments overseas. It’s so incredibly obvious! Why didn’t someone think of this sooner?
Here’s Gene Sperling, Director of the White House National Economic Council, to lay it out for you:
It would be hard to get a quote that more perfectly encapsulates the economic lunacy of Barack the Mad and his court, without bringing Jon Corzine back to the White House as an economic guru. He even says, verbatim, that the point of the Global Minimum Tax is to create “the assurance that nobody is escaping doing their fair share,” and compares it to Obama’s ridiculous class-war “Buffett Rule.” When the socialists are openly talking about using force to block off the routes of escape, things are getting serious.
It seems unlikely that the entire industrialized world could be induced to sign on to a Global Minimum Tax, especially since some of them have already junked Obama-style confiscatory tax regimes and enjoyed the resulting growth. The likely result of a partially-successful attempt to impose a global tax would be a smaller number of disobedient, business-friendly nations eating more of everyone else’s lunch. The next logical step would be laws against investing overseas, backed up with physical force.
There’s an old saying that you can find the freest nations by observing where all the refugees are fleeing to. You can spot the oppressive regimes by looking for the walls covered with barbed wire, and machine guns facing inward. It looks like the Obama team is itching to get started on its economic Berlin Wall.
While we await those “gory details” about this exciting new tax proposal, savor the low comedy of an Administration that wants to run up $11 trillion more in debt boasting that it has made “tough choices.”