Monday, February 07, 2011
It isn't the complexity of the tax code that drives us crazy, it is the amount of money the government takes in taxes. If that weren't the case, why would we spend so much effort and money looking for ways to pay less in taxes?
Demand for a company's products is but one factor that we consider in deciding whether to add to the payroll. And if we feel the demand isn't going to last, or we think the costs of adding an employee are too high relative to the demand, then we're not going to add staff, at least not in the United States. We'll boost productivity, we'll add outside contractors, we'll add employees in less-expensive countries.
Another point: Obama made reference to the massive boost in economic production during WWII. True, but most of that was in goods sold to the government... and that isn't what we're looking for today.
Now... if I were Obama... well, first of all, if I were, we wouldn't be in the mess we are, I would never have done 90% of what he did. But, starting with the status quo, here's what I would do to boost economic growth...
Immediately stop the anti-business rhetoric. Stop with the arguments that businesses have an obligation to hire people, or to share their profits with employees (it may be a good idea for businesses to do so, but it isn't the role of government to demand that they do).
Get rid of both Sarbanes-Oxley and the recently passed financial reform law. Neither one provides benefits anywhere near their costs.
Repeal Obamacare. No need to elaborate.
Boost domestic drilling for oil and gas.
Allow businesses to mandate binding arbitration to resolve employment disputes.
Institute loser-pays in civil suits.
Cut tax rates, not just for corporations but for any Schedule C net income.
Stop bailing out companies and people who fail. No more mortgage support for people behind on their mortgages.
End government ownership of AIG, GM, Chrysler and all the other companies that the government took shares in... and do so now even if doing so now results in a 'loss' to the government. Get rid of Fannie and Freddie.
Roll back environmental regulations to where they were in 2000.
Stop meddling in business disputes. The battle over net neutrality is not a matter for the government, let the respective players sort it out. Stop worrying about whether Google is monopolizing search, or whether Apple is playing fair with giving access to their App Store.
Stop government funding of 'pet' business endeavors such as 'green energy' and so on. There is no shortage of private funds to support businesses that have potential. And if no one is willing to risk their own money, that is proof that the government shouldn't be spending tax money propping up companies that survive only from government handout to government handout.