Dr. Mark J. Perry and Mark Levin Discuss Tariffs

Mark Levin hosts Life, Liberty, & Levin and this week he is joined by American Enterprise Institute Scholar Mark J. Perry to discuss trade in America today. (Mark J. Perry is concurrently a scholar at AEI and a professor of economics and finance at the University of Michigan’s Flint campus. He is best known as the creator and editor of the popular economics blog Carpe Diem. At AEI, Perry writes about economic and financial issues for American.com and the AEIdeas blog.) How tariff’s effects other countries and Americans as well, along with President Trumps strength against China, and where we may go wrong if we’re not careful.

Mark Levin gives us an Econ 101 class on tariffs and taxes. This is why the unions love this because it protects their jobs and not other businesses in the States.

An interesting part of the call which I stitched to before the other segment is an article in the Wall Street Journal which notes that the reason car manufacturers build in Mexico is due to free-trade agreements:

  • Audi says that an array of free trade agreements favors Mexico over U.S. sites. Its not just the price of skilled labor that is attractive to Audi. If you think about a $50,000 car made in the U.S. that is then exported to Europe there is a 10% duty on that car. So that’s $5000 in duties that Audi is paying. When that same car is made in Mexico there is no duty. This means with an already concentrated area of auto manufactures in Mexico, low cost skilled labor and free trade agreements it is a huge win for Audi and it will be easy to do business. No reinventing the wheel or stepping out alone as the only auto manufacture, Audi is simply following suit. (WSJ)

Not only will these Executive Orders (E.O.) worsen us in the long run (unless this administration has something else up their sleeve), it is the same thing we gripped about when Obama was President and Left leaning legal scholar, Jonathan Turley said was not what the office of President was intended for. I agree.

What is interesting is the juxtaposition the Dems find themselves in regarding the E.O.’s. You see, you had many challenges to Obama’s E.O.’s and he holds the record for the most overturned by the Supreme Court (SCOTUS) in our history as a country. But they were brought to the court mainly by Republican Attorney Generals in a state or a group — or a combination thereof. AND YES, many of these actions Trump is taking with his pen and paper are just as unconstitutional. However, in 2018 we find this:

The GOP will be defending just eight seats, while Democrats must fight for 23 — plus another two held by independents who caucus with Democrats.

This means that since the Democrats know their constituents are already upset enough at them to switch parties… why would you rock the boat on some of these executive orders that they know their constituents like. Like the car manufactures/unions. What Democrat in their right mind would bring a case to SCOTUS to overturn something they wish they had did?

Or how bout’ the growing concern in the black community about jobs and the influx of illegal immigrants? You see, they type of people Trump is putting on the Court would vote AGAINST what Trump is doing. They are originalists, and so, the Democrats would certainly win these cases if brought before the conservative Court.

  • But they also have to win in 2018. They are essentially protecting 25-seats.

So many of these E.O.’s Trump is writing could easily be overturned if moved forward by the Democrats. Right now however, doing so would be politically dangerous for them. For now at least.

The Bill Gates Income Tax | Arthur Laffer

THE BILL GATES INCOME TAX (WALL STREET JOURNAL)
If Washington’s most famous billionaires are really worried about their state’s finances, they’d write personal checks to the government and leave everyone else alone.


Bill Gates Sr. has personally contributed $500,000 to promote a statewide proposition on Washington’s November ballot that would impose a brand new 5 percent tax on individuals earning over $200,000 per year and couples earning over $400,000 per year.  An additional 4 percent surcharge would be levied on individuals and couples earning more than $500,000 and $1 million, respectively.

Doing so would put the state’s economy at risk, says Arthur Laffer, chairman of Laffer Associates.

To imagine what such a large soak-the-rich income tax would do to Washington, we need only examine how states with the highest income-tax rates perform relative to their zero-income tax counterparts. Comparing the nine states with the highest tax rates on earned income to the nine states with no income tax shows how high tax rates weaken economic performance.

  • In the past decade, the nine states with the highest personal income tax rates have seen gross state product increase by 59.8 percent, personal income grow by 51 percent and population increase by 6.1 percent.
  • The nine states with no personal income tax have seen gross state product increase by 86.3 percent, personal income grow by 64.1 percent and population increase by 15.5 percent.

Over the past 50 years, 11 states have introduced state income taxes exactly as Washington is proposing — and the consequences have been devastating, says Laffer.

  • Each and every state that introduced an income tax saw its share of total U.S. output decline.
  • Some of the states, like Michigan, Pennsylvania and Ohio, have become fiscal basket cases.
  • Even West Virginia, which was poor to begin with, got relatively poorer after adopting a state income tax.
  • Over the past decade, the nine states with the highest tax rates have experienced tax revenue growth of 74 percent — a full 22 percent less than the states with no income tax.

Leftist Scare Tactics About Tax Bill

Larry Elder plays CBS’ tax special with three families (watch the CBS video here at TOWNHALL) from different incomes: (a) little under $40,000 a year; (b) more than $150,000 a year; (c) couple’s combined income was $300,000. Turns out ALL THREE will get a tax return. The Democrats know they are in trouble!

Here Are The Winners And Losers Of The New Tax Law  — In that article is a link to THIS TAX CALCULATOR

Rush Limbaugh Interviews Paul Ryan About The Tax Law

This interview took place minutes after the House passed the tax bill. There were things in this bill I had no idea were in there. Here is what I posted on my Facebook:

  • I finally know why the Dems are Soo bent out of shape over the tax bill. I was listening to Rush Limbaugh interview Paul Ryan. Wow! Talk about a YUGE conservative win on many fronts. F-O-R INSTANCE – ANWR is opened up for energy resources! WOW! You know how many years Repubs and conservatives wanted this! Awesome.

Awesome Indeed.

We Are All Going To Die

GAY PATRIOT notes the rhetoric in our Democrat Left:

Hysterically shrieking “Republican tax cuts are going to kill us all!” is the official position of the Democrat Party.

[….]

PATRIOT LISTS SOME EXAMPLES

[….]

But don’t forget, Global Warming is also going to kill us all. And repealing Obamacare is going to kill us all. Changes to the school lunch program are going to kill our children so they won’t even live long enough to commit suicide as transgender teenagers.  Even the slightest cuts to the size and scope of the Federal Bureaucracy, that’s going to kill us all, you betcha. And concealed carry reciprocity is surely going to kill us all.

But, hey, it’s better than being sent to Mike Pence’s Electrocution Death Camps.

Taxes Are Killing Small Businesses

Did you know that U.S. businesses are taxed at one of the highest rates in the developed world? How bad is it? And why should you care? Watch this short video to find out.

This video is part of a collaborative business and economics project with Job Creators Network. To learn more visit about JCN.

Paul Krugman Gets Rude Awakening

(Originally posted in July of 2012, re-posted as a response to Dennis Prager asking if Paul Krugman has ever debated anyone. RARELY, but here is one of the few examples)

Just so many know, Krugman never debates, and this is one of the only times I am aware of he has. From Video Description:

Tyler Durden submitted this much longer presentation (which I shortened) over at Zero Hedge, and points out the emotional clash between the two economists that is sure to be watched by the many free-marketers out there. Tyler entitled this posting, “The Ultimate Krugman Take-Down,” …he continues:

Forget Ali – Frazier; ignore Santelli – Liesman; dismiss Yankees – Red Sox; never mind Silva – Sonnen; the new undisputed standard by which all showdowns will be judged happened in Spain over the weekend. During a debate on Europe’s crisis, Pedro Schwartz (a mild-mannered Spanish ‘Austrian’ economics professor) took on the heavyweight Paul ‘I coulda been a Fed Chair contender’ Krugman, and – in our humble opinion – wiped the floor with his Keynesian philosophy. From the medicinal use of more debt to fix too much debt, to the Japanization of world economies and the demand-side bias of every- and any-thing – interested only in the short-term economic growth; the gentlemanly Spaniard notes, with regard to the European crisis, the fact that “Keynesians got us into this mess and now we have to sacrifice our principals so that they can get us out of this mess”. Humble and generous in his praise – though definitively serious with his criticism – Schwartz opines: “Often Nobel prize winners are tempted to pontificate on matters that are outside the specialty in which they have excelled,” noting “the mantle of authority whereby what ever they say – whether sensible or not – is accepted with resignation from some and enthusiasm by others.” Krugman’s red-faced anger is evident at the conclusion as he even refused to shake Schwartz’s hand after the debate.

YUGE Tax Cuts (Dennis Prager)

Dennis Prager reads from an IBD ARTICLE about the benefits from Trump’s tax plan… AS WELL AS starting out the show by showing the ludicrous nature of the envious Left. I include a dissenting call to end the upload.

GAY PATRIOT has some key bullet points:

  • Slightly lower personal income tax rates. (Top rate from near-40% to 35%.)
  • Eliminating almost all income tax deductions, except mortgage interest and charitable contributions.
  • Much lower corporate income tax rates. (Top rate from 35%, one of the world’s highest, to 15%.)
  • A one-time tax on overseas business profits. (That haven’t been repatriated to the U.S. Apple has a lot.)
  • A “territorial system” where future profits that corporations earn abroad, are not taxed.
  • Repealing a bunch of taxes and complications, most notably the Alternative Minimum Tax (AMT) and the estate tax.

Here is an excerpt from the article mentioned:

President Trump’s tax plan, unveiled on Thursday, slashes the corporate tax rate from a top rate of nearly 50% to 15%. It’s a smart move. Not only will it kick start the economy and job growth, but it’s likely he’ll be able to get bipartisan support.

Right now, there is no consensus on broad-based tax reform. So, at least for now, a broad tax reform package including tax cuts, fewer deductions and a flattening of tax rates may be tough to achieve. Even Republicans, who are eager for some kind reform, remain split on how it should be done.

But nearly everyone agrees that the current U.S. corporate tax rate is outrageous.

Sadly, average Americans often don’t agree. They believe that corporations pay no taxes. But that’s not true. U.S. corporations pay a top marginal rate of close to 40%, compared to an average of about 24% for all the OECD nations.

That puts U.S. companies at a tremendous disadvantage to other nations’ companies and reduces the money they have available for investing and hiring new workers.

We don’t know what else Trump’s tax reform will contain, but just cutting corporate taxes would be a big winner. Even President Obama supported the idea in 2015, when he and congressional Democrats were considering a deal that would cut corporate tax rates in exchange for spending more on infrastructure.

But apart from Washington political wrangling, the economic reasons for a corporate tax cut are even more compelling.

Back in 2015, the nonpartisan Tax Foundation ran the numbers and concluded that cutting the corporate rate to 15% would boost GDP by 3.7% and actually increase federal revenues by 0.3%.

More importantly, it would be a huge boon to working Americans: “Depending on the size of the corporate rate reduction, we would expect to see an additional 425,000 to 613,000 new jobs, and wages would increase between 1.9% and 3.6% over the long-term.”

That means higher after-tax incomes for all. Talk about a stagnation-buster. That’s a recipe for 3% plus annual GDP growth, something that never happened during the Obama years. The plan that was Trump unveiled Thursday said that one of the goals of tax reform was to “grow the economy and create millions of jobs.”

[….]

Nor is this a “tax cut for the rich,” as some have claimed.

As IBD noted last September, the “dirty little secret” of corporate taxes is that corporations don’t actually even pay them. Average Americans — that’s you — do. You pay it through lower wages, lower returns on investments and retirement accounts, and higher prices for the things you buy.

A study last year by The R Street Institute noted that “some studies suggest that as much as three-fourths of direct corporate income-tax costs are borne by a firm’s workers.”

High corporate tax rates are also why many big American companies are undergoing “inversions” — merging into a foreign company, then relocating their headquarters to the foreign country to avoid super-high U.S. taxes.

In short, our excessively high corporate tax rate does nothing good for the economy, for investors or for workers. While 15% is a very good rate, it would be better to get rid of it entirely….

(read it all)