I’m not in favor of private sector business breaking the law nor am I in favor of politicians doing the same. The Democrats and Obama favor regulation that will lead them to their promised land of government control over private business.
Chris Dodd (D-CT) and Barney Frank (D-MA) have now completed their House and Senate versions of financial regulation that Barack Obama wants on his desk by Independence Day. How appropriate, lose more independence on the day we celebrate what is now become fleeting liberty and independence.
A 2,000-page monstrosity, the Dodd-Frank financial regulation bill is short on specifics, giving regulators significant power to determine its impact. This law is going to be continually rewritten by federal bureaucrats for years to come.
Here is a small breakdown of the faulty Dodd-Frank financial industry takeover:
Permanent Bailout Authority: Dodd-Frank creates an “orderly liquidation” process empowering regulators to seize financial institutions they deem failing. The bill allows regulators to takeover and sell off a private business without judicial review. Seizing private property doesn’t pass the Constitutional smell test.
Trusting the Same Regulators that Failed Last Time: Dodd-Frank establishes a new 10-member Financial Stability Oversight Council composed of regulators that would be responsible for monitoring and addressing system-wide risks to the financial system. This group will have unlimited powers to draft financial firms into the regulatory system and even force them to sell off or close pieces of themselves.
Brand New Innovation Killing Regulators: Dodd-Frank establishes a new Bureau of Consumer Financial Protection with broad powers to regulate the financial products and services that can be offered to consumers.
Micromanaging the Market: Dodd-Frank creates a form of the “Volcker rule” which would largely prohibit any bank or other institution with FDIC-insured deposits from undertaking proprietary trading or from owning or sponsoring hedge funds or private equity funds.
Fannie and Freddie Forever: Dodd-Frank does nothing to address Fannie Mae or Freddie Mac both government pets who have received much of the Federal bailout money. Both government sponsored failures are now in receivership and played an enormous part in the housing bubble, despite complete denial by Dodd and Frank.
As someone who donated to Scott Brown’s campaign to win a Senate seat in Massachusetts he has been on record as cutting a deal to help his state institutions with language that may exempt them from some of this mess. I call it a vote for a favor and screw the rest of the nation. I also wrote and called the Brown reelection offices to call out previous votes for stimulus money and the so-called jobs bill as disingenuous.
However, Brown is now reconsidering his original vote in favor of the measure. Scott released a statement explaining:
“My fear is that these costs would be passed onto consumers in the form of higher bank, ATM and credit card fees and put a strain on lending at the worst possible time for our economy. I’ve said repeatedly that I cannot support any bill that raises taxes.”
Had Brown not figured this out before his initial vote? Are other Republicans on board with this mess? Where are the erstwhile Maine “RINO” twins Olympia Snowe and Susan Collins?
This bill will retard economic growth, cost taxpayers billions and further retard job growth. Pick your poison but any member of the GOP cutting a side deal for this enormously flawed legislation is beyond a RINO and should never confuse themselves as Conservative.
The devil is in the details and drilling down into Dodd-Frank and voting for it is climbing in bed with the Devil. Indeed!
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The fastest growing states in the United States are ones with no income tax. Compare the growth of the nine states without an income tax to the nine states with the highest rates and it’s no surprise the former out grow the latter by leaps and bounds. Businesses and the wealthy are leaving the tax burdens behind to find real hope and change in business friendly climates.
Change in behavior occurs when government policy dictates how much businesses and individuals will pay in taxes, forcing people to make choices and the survival of the fittest and smartest dictates who will move and success versus who will stay and die a financial death.
Two of America’s richest people, Bill Gates and Warren Buffett hold their wealth in tax free non-taxed forms of unrealized capital gains. Incentives matter and when government pays people to not work they choose not to work. When government backs off, lowers taxes and frees money up for investment people go back to work, businesses grow and create climates of prosperity.
According to a 2004 U.S. Treasury report:
“High income taxpayers accelerated the receipt of wages and year-end bonuses from 1993 to 1992—over $15 billion—in order to avoid the effects of the anticipated increase in the top rate from 31% to 39.6%. At the end of 1993, taxpayers shifted wages and bonuses yet again to avoid the increase in Medicare taxes that went into effect beginning 1994.”
Put away your party horns, cancel that trip to Times Square or Las Vegas to bring in the new year of 2011 because the George W. Bush tax cuts are going to end. Fasten your financial seat belt because federal, state and local tax rates are scheduled to rise quite sharply simply by allowing former tax cuts to end, therefore, causing taxes to rise. Don’t be fooled by the deceitful Barack Obama, everyone earning money will get a sharp tax increase across the board and they won’t see it coming until they receive that first paycheck and it’s substantially less in the net income column.
There is a “sunset” provision in the Bush tax cuts which cause them to expire when Congress and the Marxist regime in the White House allow this to happen. It won’t be pretty:
Many other changes will also occur as a result of the sunset provision in the Bush tax cuts. Even before the sunset provision takes effect the Obama regime has been very busy quietly raising taxes in many forms.
You say those taxes don’t affect me, I’m not wealthy, I’m not rich, I’m middle-class or below and those evil rich folks need to pay their fair share. Have you ever heard of the “trickle-down” process of unintended consequences? Get ready to bend over.
When people realize that the tax man cometh and his wheelbarrow is bigger than ever before they start planning ahead. You see, smart business owners and those evil rich people don’t like giving up what they worked so hard to build. You see, even those evil rich people have homes, cars and families. Those evil rich business owners who create jobs need money to sustain their business, reinvest to grow, keep jobs and create new ones. Otherwise, unemployment enters the picture and businesses shutter the windows and close the doors.
It’s very simple to figure this out and you don’t need an MBA in economics and financial management to understand that when taxes go up, income goes down. Currently some geniuses are saying we’re in the midst of an economic recovery while unemployment is 9.7-percent and closer to 17-percent when people who have left the job market are factored in.
Barack Obama is no Ronald Reagan, but if your fairly intelligent you already figured that part out.
Conservative economist Arthur Laffer writes:
In 1981, Ronald Reagan—with bipartisan support—began the first phase in a series of tax cuts passed under the Economic Recovery Tax Act (ERTA), whereby the bulk of the tax cuts didn’t take effect until Jan. 1, 1983. Reagan’s delayed tax cuts were the mirror image of President Barack Obama’s delayed tax rate increases. For 1981 and 1982 people deferred so much economic activity that real GDP was basically flat (i.e., no growth), and the unemployment rate rose to well over 10%.
But at the tax boundary of Jan. 1, 1983 the economy took off like a rocket, with average real growth reaching 7.5% in 1983 and 5.5% in 1984. It has always amazed me how tax cuts don’t work until they take effect. Mr. Obama’s experience with deferred tax rate increases will be the reverse. The economy will collapse in 2011.
Yes, you read that last sentence correctly - “The economy will collapse in 2011.”
Smart people are preparing to move their investments. In 2010, without any prepayment penalties, people can cash in their Individual Retirement Accounts (IRAs), Keough deferred income accounts and 401(k) deferred income accounts. After paying their taxes, these deferred income accounts can be rolled into Roth IRAs that provide after-tax income to their owners into the future. Or put into a shoe box or steamer trunk and hidden in the attic or basement.
These acts will cause an unsustainable crash in tax receipts to the government. Deficits and unemployment will rise dramatically and today’s numbers will look good compared to the coming drama about to unfold due to the tax and spend government in place today.
This chaos may be welcome to the Obama regime who want complete control over the United States of America, turning it into a third world country. However, people with businesses and money will move out, some right out of the country and those revenues will be missed.
When businesses prosper government revenues naturally increase to record levels. Your government is using a fiscal policy that reverse that natural stream of money into the Treasury. That trickle you hear is just a small drip right now but the roof will cave in when the flood of taxes are invoked by simply letting the former Bush tax cuts disappear. Indeed!
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Mr. Barack Obama has been relentless in his attack on Wall Street. He health care plan and many other initiatives are taxing American’s at all levels despite his denial of not raising taxes but cutting them. As Mark Levin recently stated on his radio show, “Obama is a serial liar.”
Yesterday in a speech on financial reform at Cooper Union in New York City Mr. Obama took aim at Wall Street and once again turned himself into the “Great Prophet.”
It was a “failure of responsibility that I spoke about when I came to New York more than two years ago—before the worst of the crisis had unfolded,” Mr. Obama said yesterday in a speech on financial reform at Cooper Union in New York City. “I take no satisfaction in noting that my comments have largely been borne out by the events that followed.”
If we only new how talented Mr. Obama was we could have saved ourselves from total personal economic collapse. NOT!
Afterall, Senator Obama was opposing the reform of Fannie Mae and Freddie Mac which is really at the the heart of America’s financial woes. Not to worry, Obama is touting a reform bill that would give him and his regulators vast new sway over financial markets and risk-taking. It’s called more government control over the private sector and financial markets. We call it Marxist – Communism.
Obama and his ilk wish to transfer more control over credit allocation and the financial industry to the federal government. The industry was heavily regulated before and it didn’t stop the mania and panic, but if anything close to the current bill passes, the biggest banks will become the equivalent of public utilities. Free markets and capitalism will be lost.
The irony is that this may, or may not, reduce the risk of future financial meltdowns and taxpayer bailouts. A new super council of regulators will be created with vast new powers to determine which firms pose a “systemic” financial risk, to set high capital and margin levels, to veto certain kinds of business for certain firms, and even to set guidelines for banker compensation—or maybe not. The point is that these crucial questions will be settled not by statute, but by regulatory discretion after the law passes.
If you think Wall Street beats a path to the Beltway now, wait until the banks seek to influence how regulators will define, say, “proprietary trading.” Whatever its flaws, the Glass-Steagall Act of 1932 clearly defined the difference between a commercial and investment bank. This time, the rules will be written by regulators at Treasury, the Federal Reserve, the CFTC, SEC and FDIC, among others. As he so often does, Mr. Obama yesterday denounced “the furious efforts of industry lobbyists to shape” the bill “to their special interests.” But if his reform passes, this lobbying is certain to continue, more furiously.
Prophet Obama would have his surrogate “Masters of the Universe” assigned to clear derivatives for daily settlement on exchanges and a clearinghouse. Brace yourself under the knowledge that Goldman Sachs was the second largest contributor to the Obama campaign and has a CEO who frequently visits the White House. Forget the clamoring, porn-watchers at SEC, this current investigation and fiasco is smoke and mirrors. GS and Obama frequently bed together.
The new master of this universe would be Gary Gensler, a Goldman Sachs alumnus who now chairs the Commodity Futures Trading Commission. Under the bill moving through the Senate, he would decide which derivative transactions must be “cleared” and traded via electronic exchanges, and which can continue to be traded over-the-counter. Perhaps Mr. Gensler is as wise as King Solomon, or at least John Paulson. Perhaps, like Mr. Obama in 2008, he—and his successors—will be able to foresee the next crisis and determine the derivatives contracts that pose the most future risk.
The devil is in the details and don’t think unions and lobbyists have been left out of this plan to nationalize the markets.
Or consider the Senate provision, too little discussed, to let the SEC give shareholders more clout over corporate board elections. This would federalize what has long been state predominance in corporate law, while giving the largest and most activist investors far more leverage to impose their agendas on business.
In practice, this means giving more influence over corporate decisions to labor unions and their political surrogates who run the large public pension funds. Their goals are as likely as not to include political causes such as easier unionization, cap-and-trade regulation, or disinvestment in this or that unpopular business or country. This, too, comes down to giving more power to the political class to run business—in this case, even non-financial businesses.
Now we’re down to that business of lying and deciding who is lying as we have two soundbites from two Democrats.
Obama:
“What is not legitimate is to suggest that we’re enabling or encouraging future taxpayer bailouts, as some have claimed. That may make for a good sound bite, but it’s not factually accurate,” he said. “A vote for reform is a vote to put a stop to taxpayer-funded bailouts. That’s the truth.”
Sen. Ted Kaufman (D-DE) from the Senate floor that:
“…by expanding the [federal] safety net—as we did in response to the last crisis—to cover ever larger and more complex institutions heavily engaged in speculative activities, I fear that we may be sowing the seeds for an even bigger crisis in only a few years or a decade.”
Someone is lying and we place our bet on Barack Hussein Obama - Serial Liar. Indeed!
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Barack Hussein Obama announced he favors Obamacare health care made law through reconciliation but although he has a busy schedule lying to the American public, disrespecting their wishes and crying Communism for all and we are all Comrades now, he signed into law a new board game for us to play while we face our uncertain future.
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