« on: February 23, 2012, 09:03:00 AM »
Obama’s Crony Capitalist Trap Door
Before you give the President a gold star for good governance, take a step back, turn up the lights, look around the room, and you’ll see that President Obama has replaced some of those tax loopholes with a giant trap door that’s just the right size for all of his political cronies to slip through.
Here are the details of Obama’s latest crony capitalist ploy. Yesterday, the President proposed reducing the corporate tax rate from 35 percent to 28 percent. That’s certainly a landmark moment – a liberal President calling for a lower corporate tax rate is a Nixon goes to China moment. It’s also long overdue, considering that the U.S. corporate tax rate is the second highest in the world, making it nearly impossible for American companies to compete in the global economy. But here’s where the trouble begins.
Under the President’s “framework,” he singles out specific industries he doesn’t like — oil and gas, insurance, and small aircraft manufacturers, for example — and proposes to close what he asserts are their loopholes, thereby raising their taxes. But with his other hand, he opens a trap door and waves his friends through, cutting their tax rates to 25 percent “and to an even lower rate for income from advanced manufacturing activities.”
Heritage FoundationNice business you got there. It would be a shame if anything were to happen to it....
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If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.
