Recently I wrote a piece on the comparative analysis between progressive socialists and constitutional conservatives in the area of economics. Previously, we posted a piece on the perversion of The Law using French economist Frederic Bastiat’s essay.
Well, it didn’t take long for Barack Hussein Obama to prove our point. You can always get a hint as to what progressive socialists have as their next target based on their latest poll-tested bumper sticker slogan — this time, as we discussed, it is economic patriotism.
And in that vein, Obama and his designated hit man at the Treasury Department, Jack “Nothing New” Lew, are examining ways to punish businesses for doing business — after all, “they didn’t build that.”
In what the liberal media is calling tax evasion and un-American, Obama is angered by American corporations, businesses, and companies that are moving their headquarters out of America in order to survive. It’s really very simple: the anti-private sector tax policies are driving private sector businesses away from our shores. And please don’t give me any liberal talking points because Obama said nothing when his friend Jeffrey Immelt took GE to China and found ways to effectively pay no corporate taxes. And Apple is no better – it’s all about crony capitalism.
To stop it, Obama is considering an executive order or an administrative action by way of agency or bureaucratic fiat.However, last month, according to ABC News, “Treasury Secretary Jacob Lew said the administration had examined the tax code and determined that without new laws, its options were limited. But on Tuesday, the Treasury Department said that while only legislation can fully fix the problem, the Obama administration was searching for ways to provide a partial fix, warning that corporate inversions are actively eroding the U.S. tax base.” Instead of leading and governing, Obama continues to demagogue and demonstrate he is nothing more than a rigid socialist ideologue. He could simply work with Congress — and for those of you who slept through civics, that’s the House and Senate — to reform the American corporate tax rate, which is currently the world’s highest. Our federal corporate tax rate stands at 39.6 percent and when you add in state corporate rates of four to six percent, you have a tax environment unfriendly to business growth — and therefore business expansion.
President Obama should take the lead and recommend cutting the rate to between 22 and 25 percent and eliminate all loopholes and exemptions — just a simple flat tax rate. That would incentivize trillions of dollars to return to America and spur on economic growth in a free market system — not one based on government spending and money-printing. I would all but bet the ranch that if this were a Bill Clinton presidency, he’d take the common sense course of action — as he did with a conservative GOP House and Senate on other fiscal issues.
Tax inversions are legal, but Obama seeks to enact legal plunder in order to fuel his big government expansion and welfare nanny-state schemes.
As ABC details, “in an inversion, a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate, allowing the company to lower its tax bill. Frequently the companies maintain their U.S. headquarters and operations, and the U.S. entity often maintains control of the company. Obama argues that amounts to companies attempting to choose which tax laws they want to follow — a luxury not granted to individual taxpayers.”
Perhaps Obama could finally offer individuals some tax reform – he didn’t seem to care about increasing individual taxes when his Obamacare individual mandate was declared a tax!
But here is the issue, if Obama and Lew choose to take executive or administration action it will clearly be seen as the executive branch attempting to rewrite the American tax code — which by the U.S. Constitution is a prescribed, enumerated duty of the Congress. But hey, ya think that will stop Obama? Methinks this is all part of his pushing the envelope, especially as he uses the language of divisiveness.
Here is how Comrade Obama refers to these corporations: “they’re basically renouncing their citizenship and declaring that they’re based somewhere else, just to avoid paying their fair share.”
It’s all about messaging, and calling these companies un-patriotic, un-American and unwilling to pay their fair share is his attempt to sway the masses to his side in the arena of populist support. And if goes without saying you’ll have the liberal media support — just Google “Obama executive orders on tax inversions” and look at the article titles from liberal media outlets.
What will happen is less economic growth, and with a barely breathing GDP of two percent, this is the last thing we need. However, for Obama, as Bastiat stated, it’s not about doing what is best for our country. It’s all about his greed, thirst for power and misconceived benevolence — which pits economic empowerment against his design for economic enslavement.