Economic ignorance

[GratefulCitizen]

There are many who think the dims are ruthlessly trying to take over the economy by destroying it.

Don't doubt that they want more control, but the "destroying" part seems more to be a case of incompetence.

The latest nonsense:

With the current and projected level of unsustainable spending and the determination to control the day-to-day activities of the American people, the Obama administration and the Democrats in Congress will do anything to expand revenue to the Treasury, the consequences (unintended or otherwise) be damned.

The United States under the current governing regime continues to move toward a powerful central government. As a step in that direction, the Congress and the White House recently granted the Internal Revenue Service more police power to not only collect taxes, but within that process, to negate the legal rights of the people to petition the courts and to control the behavior of American and non-American taxpayers.

On March 18, 2010, President Obama signed yet another stimulus act ($17.5 billion) using the innocuous-sounding title of the Hiring Incentives to Restore Employment Act (cynically abbreviated to H.I.R.E.). This bill was touted as another step in helping job creation. In reality, it does the opposite.

Hidden within the bowels (page 27) of this so-called jobs legislation is an unreported (in the once-mainstream media) provision known as Foreign Account Tax Compliance. Apparently, the congressional leadership did not want attention focused on this as a standalone bill, so it was hidden within a much more popular-sounding jobs bill. The justification for passing this provision was ostensibly to crack down on so-called tax evaders.

In summary, this bill requires that foreign banks and financial institutions disclose the full details of American account-holders to the IRS -- and to withhold 30% of all outgoing capital flows into those accounts if the IRS (not the courts) deems the account-holder "recalcitrant." These requirements would also apply to non-American citizens living in the United States or to foreigners having investments and paying taxes within the country.

If these stipulations are deemed illegal by a given foreign nation's domestic laws, then the financial institution and the account-holder are required to close the account.

The end result of this action, if allowed to stand, will be to force banks and other foreign financial institutions to stop doing business within the United States, and further, make the country much less attractive to foreign investors, who will now come under the heavy hand of the IRS.

Per the Swiss Bankers Association, "These measures could have a boomerang effect and will make the US less attractive for foreign investors."

And per the Swiss-American Chamber of Commerce, "A lot of banks simply will not be able to do business in the US and that would cause considerable damage to the US economy."

Not only banks, but the activities of asset-managers and securities-dealers will be affected. The administrative cost of tracking down all U.S. (citizen and non-citizen) clients and making efforts to make sure that they are tax-compliant will be enormous and impractical.

Therefore, foreign investors viewing the overall landscape of what was once the preeminent nation for investment will not subject themselves to the machinations of the IRS and other enforcement agencies, which have been given unlimited power to broadly interpret regulatory bills passed by this Congress and signed by President Obama.

The IRS, through its police power, can now involve itself in the ability of U.S. citizens to choose where and how they can invest their money or have bank accounts.

Actions such as this will result in minimal long-term domestic and foreign capital investment in new ventures or expansion of existing businesses in the United States. The country is experiencing a recovery, but one limited to financial intuitions and Wall Street (underwritten by the taxpayer). The current stock market rebound reflects a surge in cash investment before massive income and capital gains tax increases begin in 2011. However, with actions such as the Foreign Account Tax Compliance provision, job creation so vital to the nation's economic health will not occur.

http://www.americanthinker.com/2010/...war_on_we.html

[GratefulCitizen]

Herding atomic cats.

Perhaps something should be done about the derivatives market.
These aren't the right people for the job.

WASHINGTON — President Barack Obama vowed Friday to veto a financial overhaul bill that doesn't regulate the eclectic derivatives market, even as Senate Republicans lined up en masse against it.

Legislation pending in Congress would for the first time regulate derivatives, complex financial instruments like the mortgage-backed securities that contributed to a near economic meltdown in 2008 when their value plummeted during the housing crisis.

Obama said he wants derivatives to be strongly regulated, and he added that he's ready to veto any financial reform bill that comes to his desk without it.

But there's some dispute among Democrats about how far such regulation should go.

Further complicating matters Friday, Senate Minority Leader Mitch McConnell obtained signatures from 40 fellow GOP senators voicing opposition to the Senate bill and demanding further negotiations.

McConnell, R-Ky., won the support of one last holdout _Sen. Susan Collins of Maine — increasing his leverage as Democrats prepare to bring the legislation to the floor for debate.

The unified GOP stance came as a setback for majority Democrats who were hunting for individual Republicans to peel away from their party caucus to help the Democrats get the necessary 60 votes to overcome a likely procedural roadblock.

"We are united in our opposition to the partisan legislation reported by the Senate Banking Committee," the Republicans said in a letter to Senate Majority Leader Harry Reid, D-Nev.

http://www.google.com/hostednews/ap/...dEAlgD9F4AMO80

[rdret1]

In the midst of all of this, POTUS and his wife declared they made over $5M last year and paid about $1.5M in taxes, while his poor VP and his wife only made about $300K. Yea, he is connected with the "working people" all right.

[Defender968]

Originally Posted by rdret1

In the midst of all of this, POTUS and his wife declared they made over $5M last year and paid about $1.5M in taxes, while his poor VP and his wife only made about $300K. Yea, he is connected with the "working people" all right.

You know last time I checked the top tax bracket is 45%, maybe someone should take a look into the POTUS's taxes cause on first look it looks like he was a little light on what he paid

[plato]

Originally Posted by Defender968

You know last time I checked the top tax bracket is 45%, maybe someone should take a look into the POTUS's taxes cause on first look it looks like he was a little light on what he paid

Detroit NAACP said too, that the Prez looked a little lighter this year than he did when elected.

YMMV

[Defender968]

Originally Posted by Broadsword2004

Not quite; the top marginal income tax rate right now is 35%, when the Bush tax cuts expire it goes to 39.6%.

Plus FICA of 7.65% which gets you to 42.65% or 47.25% after the Bush tax cuts....Like I said looks a little light

[Green Light]

Heck, he makes all that money and lives in public housing?

[wch84]

Originally Posted by Green Light

Heck, he makes all that money and lives in public housing?

He's trying to live up to the example of Charlie Rangel...