Merry Christmas
The Front Page Cover
The Events of the Week -- Featuring:
The 'Fixer Uppers': Who are these monsters?
by Michael Brown
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Trump, Carrier and Cronyism
Robin Smith: During the presidential campaign, Donald Trump became the voice of the forgotten working class. He clearly declared that the movement of American companies to Mexico and China, taking American jobs with them, was unacceptable, and he pledged to reduce corporate taxes and excessive regulation to aid U.S. workers in keeping their jobs. So it was no surprise that even before taking office Trump renegotiated a deal with Carrier, an Indiana-based subsidiary of United Technologies, to keep the company from moving 1,000 jobs to Mexico. Trump leveraged this event as a major campaign promise made and kept even before the Inaugural.
As for the details, the state of Indiana provided Carrier with a decade's worth of tax incentives valued at $7 million. It was mighty handy to have VP-elect Mike Pence still serving as governor of the Hoosier state to facilitate such an incentive package. Generally absent from mainstream discussions, however, was the leverage that Trump-Pence had with parent company United Technologies. As a recipient of about $10 billion in subsidies to export aircraft engines via the controversial Export-Import Bank, the government-run corporation that finances and insures foreign purchases, United Technologies likely understood that the air conditioning bone might be connected to the aerospace bone in Trump's book of anatomy.
The Carrier deal has opened the door for a healthy discussion on America's tax policy and two questions that must be answered: Are America's economic markets actually free? Is global trade free and fair?
Before tackling those questions, let's stipulate that America's tax policies are generally unfavorable for business. The federal corporate tax rate is 35% (with another average 4% tacked on by states and local governments), making it the world's third highest. The global average is 22.5%, and all of our major competitors, from China to Germany to the UK, have rates between 20% and 30%. Ireland's is just 12.5%. Team Trump-Pence has promised to reduce America's corporate tax rate to 15%.
Now, to those two questions about free and fair markets and trade. Unfortunately, much of the criticism of Trump's Carrier deal is valid. Cronyism is still cronyism when Trump does it.
But any criticism of Trump's deal should likewise be dealt to each and every state for similar deals. The incentives offered by the state of Indiana to Carrier are really no different from favors dealt by any other state, or sometimes by the federal government (Solyndra, anyone?). Incentives range from educational grants for workforce development and retraining to childcare to site development to actual tax credits per job created to the subsidized price of energy. That's how our system works. It's not ideal, but Trump's only playing the same game.
According to Good Jobs First, which tracks corporate deals and state incentive packages, for the last two decades, New York State has awarded in excess of $25 billion to businesses through more than 77,000 subsidies. Louisiana follows second in the ranking with $16 billion in subsidies in just over 8,200 awards. The top 10 is rounded out with Michigan, Washington, New Jersey, Indiana, Kentucky, Texas, Oregon and Missouri. But every single state and the District of Columbia incentivizes companies with taxpayer-funded deals.
What about the question regarding trade. Is the global trade market free and fair?
Did you know that 148 of America's trading partners have tariffs by other names, such as a value-added tax (VAT) or goods and service tax, on their nation's imports ranging from 2% to 27%? So while America generally refuses to apply tariffs to imports to meet the terms of trade deals, American products are taxed by our competitors. Is that fair?
It's unfortunate that Trump threatened to use tariffs against American companies if they move jobs offshore. It could be that his threat will keep jobs here, but if it doesn't and he carries through, it'll just be a tax on American consumers.
Did you know that in China, more than $15 trillion in assets is produced by 150,000 state-owned enterprises (SOE) employing more than 30 million Chinese citizens? These SOE's — or "zombie corporations" — have one boss: the Communist Chinese government. If market share is being lost, forced mergers occur. If overhead increases, wages are manipulated, as is their currency. The Chinese not only ignore intellectual property of competitors, once stolen, their communist companies reproduce at a fraction of the cost and send back to America. Is this free or fair trade?
Within America, our governments at the local, state and federal level have interfered with free markets. That's the current system.
Within the realm of globalism and corporatism, trade deals have been crafted to operate on a sliding scale of variants that permit some to avoid any types of regulations or standards that match those applied within the U.S. That's the current system.
Trump has announced to the world that these systems are going to be used to protect American jobs first as reforms occur to boost the economy for Americans, not the citizens of the world. Principled policy always looks good on paper, but in America and internationally, it's not practiced. Trump promised to "drain the swamp" and to overturn the status quo. If Carrier's any indication, he's not off to a great start. Then again, the Americans who kept their jobs and anybody who's rooting for other Americans to keep theirs won't mind seeing Trump work the art of the deal. ~The Patriot Post
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liar-nObama Pushes $44 Billion
in Midnight Regulations
by Tim Brown
{freedomoutpost.com} ~ Barack Hussein liar-nObama Sobarkah Soetoro is clearly a dangerous man in these final days of his second term. While the administration is looking to advance $75 billion worth of new regulations (consider it unconstitutional restrictions on liberty)... $44 billion of those regulations were "midnight" regulations that will be published sometime after Election Day and prior to liar-nObama's last day in office, according to a report. The American Action Forum (AAF) compiled a list of 40 rules scheduled to be published in the Federal Register since November 2016. "The $75 billion estimate contains roughly 40 monetized figures out of what will be hundreds of potential final rules," Sam Batkins, AAF's director of regulatory policy, wrote in a report on potential midnight regulations... http://freedomoutpost.com/obama-pushes-44-billion-in-midnight-regulations/
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Dobbs – Media Distraught Trump Disobeyed
Jimmy Carter, Talked To Taiwan
by Rick Wells
{rickwells.us} ~ Lou Dobbs has a few thoughts “on our President-elect’s brilliant campaign to upset and upend the calcified orthodoxy of the political establishment in Washington and to tick off leaders of the People’s Republic of China at the same time... And all he had to do was just pick up the phone and start talking with the President of Taiwan, Tsai Ing-wen.” Dobbs notes, “Donald Trump doesn’t even take office for another 45 more days but he’s already making history, from his victory to making deals with businesses like Carrier and now talking with Taiwan’s president, the first time a US leader has spoken directly with Taiwan’s leadership in 35 years.” “The left-wing national media slamming Trump for daring to do such an outrageous thing,” Dobbs observes, ” the daffy, utterly laughable left of the media having itself quite a little fit. The New York Times all snarky and complaining in their articles today but without an original, sound thought about how did such rigidity in American thinking ever form in the first place.”... http://rickwells.us/dobbs-media-distraught-trump-disobeyed-jimmy-carter-talked-taiwan/
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Trump handed 'trigger' to end sanctuary cities
by Leo Hohmann
300 sanctuary cities and counties in the U.S.
{wnd.com} ~ Rep. John Culberson, R-Texas, says he’s got a plan already in place that will likely eliminate sanctuary cities on Day 1 of the Trump administration... At least 14 cities have spoken out defiantly in the wake of President-elect Donald Trump’s surprise victory last month, saying they will continue to offer sanctuary to illegal criminal aliens regardless of Trump’s attempts to end the sanctuaries, Culberson says. But Culberson says the power of the purse is something Congress has at its disposal, and he intends to help Trump shut off the flow of federal dollars to sanctuary cities... http://www.wnd.com/2016/12/trump-handed-trigger-to-end-sanctuary-cities/
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The West's Politically Correct Dictatorship
by Giulio Meotti
by Giulio Meotti
The brave work of the artist Mimsy, satirizing the brutality of ISIS
{gatestoneinstitute.org} ~ It might look like a golden age for free speech: more than a billion tweets, Facebook posts and blogs every day. But beneath this surface, freedom of expression is dramatically retreating... Students at the City University of London, home to one of Britain's most respected schools of journalism, voted to ban three newspapers from its campus: The Sun, Daily Mail and Express. Their "crime", according to the approved motion, is to have published stories against migrants, "Islamophobic" articles, and "scapegoating the working classes that they so proudly claim to represent." City University, supposedly a place dedicated to openness and questioning, became the first Western educational institution to vote for censorship, and ban "right wing newspapers." The filmmaker David Cronenberg called this self-censorship, after the massacre at Charlie Hebdo: "a weird, serpentine political correctness." It is one of the most lethal ideological poisons of the 21st century. It is not only closed-minded and ridiculous, it makes us blind to the radical Islam that is undermining our mental and cultural defenses... https://www.gatestoneinstitute.org/9491/politically-correct-dictatorship
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Trump May Release Iran
Nuke Deal Docs liar-nObama Hid...
by Jeff Dunetz
{lidblog.com} ~ According to the Daily Beast the private files outlining hidden agreements made as part of the Iran nuke deal may be released in one of President Trump’s first actions in office... Senior officials who will be part of the Trump administration are already discussing what so-far-unseen information about the Iran agreement they will be able to make public after January, according to an individual who has participated in those conversations. Last month Bloomberg View reported the Trump team was looking at declassifying and releasing potentially “embarrassing” Iran nuke deal-related documents that the liar-nObama administration had made classified, including documents linking Iran to Sunni terror groups and outlining cash transfers to Iran... http://lidblog.com/iran-nuke-deal-docs/
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