Tag Archives: Corporate Taxes

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Andrew Klavan compares the Ryan budget to the Obama budget

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Andrew Klavan on the culture. (H/T Club For Growth)

Douglas Groothuis also tweeted this Fox News article by Paul Ryan, in which Ryan talks about the current economic crisis and his plan to address the issues.

Excerpt:

There are three main reasons why the president’s policies have made this recovery weaker than usual:

1. Regulatory uncertainty: After the stimulus passed, the president turned his attention immediately to costly overhauls of the nation’s financial and health-care sectors. These overhauls needlessly transferred more control over America’s economy to government bureaucrats in Washington, without fixing the problems they were intended to address. The transfer of so much power to the arbitrary dictates of federal regulators has made it hard for businesses to plan for the future with confidence, and things will remain this way until these laws are replaced with real reforms.

2. Tax uncertainty: The president’s ad hoc tax policies, with a mix of tax hikes on job creators and temporary rebates for others being the hallmarks of his approach, have left businesses in the lurch. Moreover, the president’s new health care law imposes a crushing $800 billion tax hike, and he continues to threaten businesses and families with higher rates in the future, even as he dithers on his vague promise to address America’s uncompetitive corporate tax rate, which is the highest in the developed world.

3. Debt uncertainty: The president has not put forward a plan that saves Medicare from bankruptcy, even though nonpartisan experts tell us that this could happen in 9-13 short years unless we act. Each year that we fail to put our critical government health and retirement programs on a path to long-term solvency, we are making trillions of dollars of unfunded promises to future retirees. We are already borrowing 40 cents of every dollar we spend, and Washington’s inability to solve its spending problems is leading rating agencies such as Standard & Poors to downgrade our credit outlook. Government under this administration is failing at its number-one economic job, which is to create a stable, predictable environment for job creators.

Also: One seniors group is already supporting the Ryan plan.

News

LSU Professor: Repeal of oil industry tax credits will cost 150,000 jobs

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From Marathon Pundit.

Excerpt:

Two days ago I participated in a blogger conference call with Dr. Joseph Mason, a professor of finance and the Hermann Moyse Jr./Louisiana Bankers Association Endowed Chair of Banking at Louisiana State University’s E. J. Ourso College of Business.

Since the Deepwater Horizon blowout began spilling oil into the Gulf of Mexico, Mason has been a consistent voice in support of energy industry jobs. A moratorium on drilling in the Gulf could would have devastating results on employment, Mason warns. But that’s not the only threat to energy industry jobs. On Monday Mason released his latest study on tax policy, “Regional and National Economic Impact of Repealing the Section 199 Tax Deduction and Dual-capacity Tax Credit for Oil and Gas Producers.”

Dual-capacity allows oil companies to deduct taxes it pays abroad, something I was able to do when I owned a mutual fund comprised exclusively of foreign stocks. Section 199 allows companies to deduct up to nine percent of their net income derived from domestic oil production.

Okay…so what if the oil industry pays more tax? Well, that puts our nation’s energy industry at a disadvantage. Specifically, Mason argues, “Without it US-based [energy] firms compete on an uneven global playing field against Russian and Chinese firms that receive substantial state support.”

“The higher energy taxes would cost by my estimates,” Mason added, “some $341 billion in lost economic activity and $68 billion in wages.”

Wages means jobs…Just in the next year our economy will lose 150,000 jobs in the next year if President Obama and the Democrats have their way on dual-capacity and Section 199. And they might. Yesterday the Senate struck down an amendment by Florida Senator Bill Nelson, a Democrat who sees the light, to keep Section 199 in place.

As for job losses, where will they come from? Obviously in the Gulf states, but in others too. Texas will lose 38,000 jobs and Louisiana 13,500. But in other states–such as California, the painful effects will be felt as well: 23,000 lost jobs there, as well as 4,000 more in Ohio, Indiana will suffer 3,000 layoffs, and my own Illinois, which is not a big oil producer, will lose 4,500 positions. And that is just in year following the repeal of Section 199 and the dual capacity credit.

I’ll conclude with a quote from Rep. Paul Ryan (R-WI), “You can’t love jobs while hating the people who create them.”

I stole his whole post! I hope John doesn’t mind.

As for job losses, where will they come from? Obviously in the Gulf states, but in others too. Texas will lose 38,000 jobs and Louisiana 13,500. But in other states–such as California, the painful effects will be felt as well: 23,000 lost jobs there, as well as 4,000 more in Ohio, Indiana will suffer 3,000 layoffs, and my own Illinois, which is not a big oil producer, will lose 4,500 positions. And that is just in year following the repeal of Section 199 and the dual capacity credit.

I’ll conclude with a quote from Rep. Paul Ryan (R-WI), “You can’t love jobs while hating the people who create them.”