Obama: Why Reaganomics Didn't Work. Spread the Wealth

Senor

Probably because we are one of the only countries who believe in liberty and justice for all and when a corp. is taxed they can just raise prices and keep their income at the same levels. When they all do this, then it defeats the government interference, thus securing liberty a little longer.

of KY @ Oct 22, 2008 14:22:35 PM

Come on!

How many times can conservatives keep saying that we have the 2nd highest corporate tax rate in the world before someone calls them out on it.

2/3 of corporations don't pay any income tax. And if you take into account all of the loopholes that exist for corporations, the average effective tax rate for corporate income is closer to 17%, well below the average.

The difference between the US and nations with "lower" corporate tax rates, is that our government is dominated by corporate lobbyists, so that effective rate of 17% goes to the corporations who lobbied the hardest to have the charlatans in congress to create these loopholes in the tax code.

What we should do is end all corporate tax breaks, stop trying to make policy through the tax code, and cut our corporate tax rate to 20%. That will effectively be a tax increase for a lot of corporations, but a tax cut for the more honest ones.

On top of that end all subsidies and loan guarantees to all corporations. The only way government should be involved in business is as short term equity holders like what Europe (and now the US) is doing with the banks. Limited exposure with profits equally socialized with risks.

Michael Haimson of NY @ Oct 22, 2008 13:21:01 PM

Next 4 Years

Whoever wins the presidency will not be able to keep any of the promises made while campaining. Whoever takes office will not be able to push any of his own agenda through because the crisis has not even reached it's pinnacle yet.

Only thing I can pray for is whoever it is will keep us safe. No matter what people say about Bush, he kept us safe in our own nation. In times of trouble and weakness, the enemies will grow braver and as Biden says "Mark my words, Obama will be tested." Lets see how the Democratic controlled government will respond. I doubt "talking" will be answer and if we don't show our "superiority" we will be attacked again and again.

Good luck to all of us and hope we can survive the next 4 years cuz whoever wins will LOSE in 4 years!

Candice of CA @ Oct 22, 2008 11:54:47 AM

Foolish electorate deserves socialist Obama & Dem Congress

James,

Thanks for your appearances on CNBC.

As frustrated as I am on seeing the country take a sharp leftward turn, I have come to the conclusion that the foolish American electorate deserves the leaders it puts to power to. We will have no one to blame but ourselves for the leaders that we choose. In a sad way I feel Obama's disastrous policies (if/when he becomes President) will lead this country to near-doom, helped by a presumably Democratic supermajority in Congress. We will all suffer thanks to a dumbed down, stupid electorate. Keep fighting the good fight brother. Capitalism rocks! Unfortunately, all the idiots want the fruits of capitalism without any pain!

of GA @ Oct 22, 2008 11:31:01 AM

Reaganomics and Socialism

Reaganomics and Socialism

The world just took a big leap towards socialism two weeks ago when most of the world’s large banks became partially nationalized. This was done on George Bush’s watch and with several Bush appointees.

Again, it is the natural conclusion to Reaganomics. Reaganomics is dead and neo-Reagainite conservatism is in critical condition.

Neal of CA @ Oct 22, 2008 11:22:47 AM

Government without an ethical rudder set tax policy

It seems odd that the basis for advocating certain tax rates is at what rate does severe damage occur? In other words, how much blood can we take before we risk killing the patient?

Apparently the principles of private property and self determination of individuals no longer have any power to sway government tax policy. In other words, you may work for it, and your employer may pay it to you, but WE THE GOVERNMENT will decide how much of it you are really allowed to keep and make spending decisions on ... just because, and because if you complain too loudly and try to do anything about it, we'll arrest you and throw you in jail.

I think we were misinformed about which side won the Cold War.

ruralcounsel of VT @ Oct 22, 2008 10:04:33 AM

Nonsense I say too

Companies pay dividends when they can't reinvest those dollars to produce the rates of return that their investors expect.The fact that they are not holding on to the cash indicates that they don't need to raise equity. So I beg to differ but you are the one who is confused !

DJC of FL @ Oct 22, 2008 09:42:49 AM

"Nonsense, you say?"

Yes. One reason is because dividends are paid after taxes. It would be nearly impossible for companies to issue equity if investors knew not to expect significant dividends.

You are also slightly confused about companies' propensity to raise wages to avoid taxes. Simply doesn't happen.

E.B. of NY @ Oct 22, 2008 09:23:39 AM