(I expect any day to see that title as a spam header). Gee, let's see -- the economy is in the tank and the unemployment rate is increasing, what to do, what to do....?
If you're Obama administration, the answer is, "Whack the big corporations good and hard! Tax 'em even more than they already are and make being a U. S. corporation a liability!" Clever.
Where Smoot-Hawley was ostensibly protectionist and hurt U.S. exports indirectly, by inciting retaliatory tariff increases by other nations, the proposal from the White House bypasses that folderol by simply attacking U. S. firms that do business overseas. That'll show 'em! --Show 'em the desirability of incorporating elsewhere, that is.
When government -- any government! -- drives the economy, we're on the bus to failure. It is all the more galling in that every time this sort of thing happens (and it happens all the time), we handed them the keys.
Will this one be a debatable footnote, a catastrophe or a mere fizzle on the news cycle? I don't know. The assumptions behind it, though, they're corrosive; if they don't eat through in this instance, they'll do so somewhere else. Count on it.
2 weeks ago