Why is NOT increasing taxes a “tax cut”?
How about “for every dollar we give the rich (give??, didn't those "richies" earn it?) they only give back 30 cents” meaning of course that they save a lot.
So, the only good citizens are ones that spend all their money and save none (like for retirement or make funds available for investment)? Ever get a loan from a bank with no savings deposits?)? We save so little now that we have to borrow trillions of savings from other countries and run huge fiscal and trade deficits. Is that good?
How about ethanol. Because of the government mandates, we over-invested in corn-ethanol production capacity and distorted corn prices and crop planting decisions. Now, ethanol companies are going bankrupt. Congressional response? Mandate higher ethanol mixtures for our gas to save failing firms, even though this is not the best for our engines.
And we now know it takes a “gallon” of fossil fuel to make a gallon of ethanol, a losing proposition for air quality. Of course we have an import tax on cheaper South American ethanol to protect our less efficient producers and we have a subsidy for domestic production. As a result, our trading partners are complaining about the growing volume of exports of ethanol from the U.S., subsidized by taxpayers to the tune of 45 cents a gallon.
How much more of a mess can Congress make of it? Stay tuned. Congress is moving on, leaving their bad past legislation to continue to drag down our potential and misallocate our resources.
William Dunkelberg is an Economic Strategist, Boenning & Scattergood and Chief Economist, National Federation of Independent Business.