All posts by Wintery Knight

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Boeing builds new 787 plant in South Carolina to escape Washington Democrats

You can’t pass regulations and taxes on corporations and then expect them to supply residents of your state with jobs. They will move to another state, and eventually, to another country.

Consider this commentary from Illiquid Assets. (H/T ECM)

Excerpt:

Two stories jumped out at me this morning the first was Boeing backing up its warning to Washington State politicians that they needed to reform the business environment and taxation model or lose future business investment and jobs. The response from the State was a whole new plan with localized Cap and Trade via the Western Climate Initiative, no reform of labor laws that allowed a protracted Union strike that shut down Boeing just as the world was starting its slip into recession combined with and other Green initiatives sure to drive up operating and labor costs. So Boeing has decided to open the second assembly line for the 787, not in Washington State, but in South Carolina and the politicians in Olympia claim they did not see it coming. South Carolina has a lower tax rate and a “Right to Work” law that means you do not have to join a union to work at a union business.

A right-to-work law means that the corporation does not have to be shackled by the demands of corrupt leftist unions, who are largely responsible for driving the American auto industry into the ground, in my opinion.

And now, consider this statement from Republican State Rep. Dan Christiansen. (H/T Sound Politics via iPandora)

Excerpt:

It’s extremely disappointing that Boeing has chosen South Carolina over Washington, but not surprising at all. Boeing has been very critical of our state’s difficult regulatory atmosphere. At the end of the day, it has to be able to compete successfully on an international scale, especially against Airbus. Instead of providing a level playing field, Washington has consistently put up barriers that make it difficult not only for Boeing to compete, but also for other employers throughout our state.

It’s been no secret that other states have been courting Boeing for years. Boeing has tried to make it work here. However, it has gotten to a point with unemployment insurance issues, regulatory burdens, business and occupation taxes, and recently, the governor being willing to consider tax increases, that Washington is no longer a place where Boeing can be competitive.

In South Carolina, it took only days for Boeing to get the permits it needs to move forward with the second 787 plant. In Washington, it would take years. That’s one of many examples in which our state has not been helpful and has stood in the way of the ability for Boeing to successfully compete here.

When Boeing decided several years ago to move its headquarters from Seattle to Chicago, many of my House Republican colleagues and I warned that unless the Legislature was willing to make reforms to improve the state’s business climate, we may see further departures. The governor and the majority party have been in denial about concerns of job providers and now our predictions are unfortunately coming true.

We must also remember this is not just about Boeing. Many other employers rely on Boeing and its workforce to support their companies. Hundreds of thousands of jobs in Washington are indirectly related to Boeing and are affected. I’ve been very critical not only about how our state has treated Boeing, but all employers in Washington. Even when the Legislature made concessions to Boeing in 2003 to secure the Dreamliner in our state, I also said we should extend those tax relief benefits to all businesses. Unfortunately, very little has been done in the Legislature to make Washington attractive for business.

Today’s announcement needs to be a wake-up call to our political leaders in Washington to create a more competitive business climate before we lose more employers to other states.

(Click through to the article for another view)

Eventually, maybe the American people will realize that they can’t attack “big corporations” without facing the consequences. Until then, Democrats will keep raising taxes and adding regulations that causes business to shift jobs to low-tax states, and eventually, overseas. Outsourcing is caused by Democrats who are hostile to businesses. Unemployment is caused by Democrats who are hostile to businesses.

Understanding the real effects of the Democrat health care reform bill

Story from the Wall Street Journal. (H/T ECM)

Excerpt:

The Congressional Budget Office figures the House program will cost $1.055 trillion over a decade, which while far above the $829 billion net cost that

[…]All this is particularly reckless given the unfunded liabilities of Medicare—now north of $37 trillion over 75 years.

[…]As for Medicaid, the House will expand eligibility to everyone below 150% of the poverty level, meaning that some 15 million new people will be added to the rolls as private insurance gets crowded out at a cost of $425 billion. A decade from now more than a quarter of the population will be on a program originally intended for poor women, children and the disabled.

[…]All told, the House favors $572 billion in new taxes, mostly by imposing a 5.4-percentage-point “surcharge” on joint filers earning over $1 million, $500,000 for singles. This tax will raise the top marginal rate to 45% in 2011 from 39.6% when the Bush tax cuts expire—not counting state income taxes and the phase-out of certain deductions and exemptions. The burden will mostly fall on the small businesses that have organized as Subchapter S or limited liability corporations, since the truly wealthy won’t have any difficulty sheltering their incomes.

This surtax could hit ever more earners because, like the alternative minimum tax, it isn’t indexed for inflation. Yet it still won’t be nearly enough. Even if Congress had confiscated 100% of the taxable income of people earning over $500,000 in the boom year of 2006, it would have only raised $1.3 trillion. When Democrats end up soaking the middle class, perhaps via the European-style value-added tax that Mrs. Pelosi has endorsed, they’ll claim the deficits that they created made them do it.

Under another new tax, businesses would have to surrender 8% of their payroll to government if they don’t offer insurance or pay at least 72.5% of their workers’ premiums, which eat into wages. Such “play or pay” taxes always become “pay or pay” and will rise over time, with severe consequences for hiring, job creation and ultimately growth. While the U.S. already has one of the highest corporate income tax rates in the world, Democrats are on the way to creating a high structural unemployment rate, much as Europe has done by expanding its welfare states.

Meanwhile, a tax equal to 2.5% of adjusted gross income will also be imposed on some 18 million people who CBO expects still won’t buy insurance in 2019. Democrats could make this penalty even higher, but that is politically unacceptable, or they could make the subsidies even higher, but that would expose the (already ludicrous) illusion that ObamaCare will reduce the deficit.

Click here to read the rest of the article. It’s quite comprehensive and yet concise.

Great news! Illustra Media’s DVD of Craig/Hitchens debate out in late November

I just got an e-mail back from Illustra Media about the professional version of the Craig/Hitchens debate.

Excerpt:

The debate DVD that you are referring to is now scheduled for release sometime in mid to late November 2009.  You can check on our web-site, www.Go2RPI.com, to see the latest information.  You should have no problem having it in time for Christmas.

I am very pleased with this news! I am hoping that I can buy a dozen copies for all my co-workers and friends. I notice that Amazon is already selling the Wilson/Hitchens debate on morality and meaning. I don’t like pre-suppositionalists like Doug Wilson, but he kicks butt in his debates with Hitchens. I think pre-suppositional arguments must be combined with evidential arguments.

Be sure and buy the other Illustra Media DVDs on intelligent design.