The OECD’s Scheme to Raise Tax Burdens on Workers, Consumers, and Investors

People pay every single penny of tax that politicians impose on corporations.

The investors that own companies obviously pay (more than one time!) when governments tax profits.

The workers employed by companies obviously pay, both directly and indirectly, because of corporate income tax.

And consumers also bear a burden thanks to business taxes that lead to higher prices and reduced output.

Keep these points in mind as we discuss BEPS (“base erosion and profit shifting”), which is a plan to increase business tax burdens being advanced by the Organization for Economic Cooperation and Development (OECD), a left-leaning international bureaucracy based in Paris.

Working on behalf of the high-tax nations that fund its activities, the OECD wants to rig the rules of international taxation so that companies can’t engage in legal tax planning.

The Wall Street Journal’s editorial page is not impressed by this campaign for higher taxes on employers.

Obama is now at war in Syria: Illegal bombing campaign begins

The Obama administration is finally doing what it wanted to do last year: bomb Syria. The airstrike campaign against the Islamic State in Syria began on Monday evening with the support of some Middle Eastern allies:

U.S. Central Command said the strikes were conducted with a mix of fighters, bombers, drones and Tomahawk missiles.
[…]
Bahrain, Jordan, Qatar, the United Arab Emirates and Saudi Arabia joined in or supported the strikes, according to Central Command.

The strikes targeted ISIS training areas, command and control centers, storage facilities and a finance center, Central Command said.

It also announced that the strikes hit not only ISIS but a separate terror group, Khorasan.

Central Command said the group is “a network of seasoned al-Qa’ida veterans - sometimes referred to as the Khorasan Group - who have established a safe haven in Syria to develop external attacks, construct and test improvised explosive devices and recruit Westerners to conduct operations.”

There are a few things to weigh when thinking at the bombing campaign against the Islamic State in Syria. First, as Jim Antle points out, there is “no legal basis” for this war. President Barack Obama has a responsibility to go to Congress to seek authorization. He failed to do, and, in fact, has openly flaunted his decision to, once again, bypass the Constitution.

Obamacare’s employer mandate is hurting workers and businesses, and Harry Reid is stalling on a legislative fix

A little than a month after the Internal Revenue Service released guidance on Obamacare’s employer mandate, after prolonged delays unilaterally enacted by the administration, a coalition of business groups have launched a new campaign against the provision. The Hill explained the details in its “Overnight Regulation” newsletter at the end of last week:

A coalition of industry groups on Friday will announce a fresh attack on the Affordable Care Act’s definition of full-time employment. The campaign takes aim at the 30-hour threshold set out in ObamaCare’s employer mandate.

The provision has roiled businesses and congressional Republicans who say the standard defies the conventional view that 40 hours on the job constitutes full-time work. Further, they charge, the looming rules have led employers to switch full-time workers to part-time schedules in order to avoid the cost of providing health insurance.

The employer mandate, which generally requires businesses to offer health coverage, has been the subject of multiple delays. It will take effect in January for larger firms and a year later for more medium-sized companies – unless its opponents have their way.

The employer mandate is a provision of Obamacare that originally required businesses with 50 or more full-time employees, defined as someone who works at least 30 hours a week, to offer health insurance benefits or face a punitive per worker tax.

White House Foreign Policy Dangerously Changes by the Day

When word filtered out yesterday that President Obama, on the heels of his reiteration of “no boots on the ground” to the military men and women at CENTCOM, had instructed the Pentagon that he was the final say on any individual airstrike in Syria (“…[to] better ensure the operation remain focused on his main goal for that part of the campaign: weakening the militants’ hold on territory in neighboring Iraq.”), pundits rightly began to ask questions.  Allahpundit at HotAir had several, including the possibility that Obama must consider our new engagement a “counterterrorism” measure rather than a traditional war:

Seriously?: Vulnerable Senate Democrat refuses to debate foreign policy with Republican opponent

It’s stories like these where you wish you could have been a fly on the wall in the room while this decision was made. Apparently, Sen. Mark Pryor (D-AR) refused to talk about foreign policy in an upcoming debate with his Republican opponent, Rep. Tom Cotton (R-AR). Well, not only did Pryor’s campaign refuse, they lied about, to boot:

Senator Mark Pryor (D., Ark.) declined to debate foreign-policy issues with Representative Tom Cotton (R., Ark.) when they meet next month.

“The campaign for Democratic U.S. Sen. Mark Pryor said last week that it had not rejected any topics from being included in the only debate agreed to so far by the senator and his Republican challenger, U.S. Rep. Tom Cotton,” a local media outlet reports. “But an email obtained by the Arkansas Democrat-Gazette on Tuesday showed that Pryor’s campaign had rejected the inclusion of foreign policy in the debate sponsored by the Fayetteville Chamber of Commerce.”

In the e-mail, the debate moderator tells the Cotton campaign that “Pryor folks rejected adding ‘foreign policy’ to the list of topics for the Fayetteville Chamber debate.”

There are a couple reasons why Pryor is probably skittish on the issue. First, the mid-term election is shaping up to be focused on foreign policy, given the tensions with Russia, the deteriorating situation in Libya, and the rise of the Islamic State in Iraq and Syria. There’s also the administration’s ongoing training and armament of Syrian rebels who are involved in a bloody civil war against Bashar al-Assad’s regime.

Democrats have found their scapegoat, and it’s not Barack Obama

Debbie Wasserman Schultz

President Barack Obama’s approval rating is falling faster than Usain Bolt can run. The latest poll from The New York Times and CBS News shows his foreign policy numbers in the tank, dropping to the lowest point of his presidency. His numbers on the economy haven’t really moved much this year, either. Meanwhile, the GOP’s favorability rating — once in the cellar — has almost pulled even with Democrats.

Yet, Democrats seem to be looking for a scapegoat who isn’t named Barack Obama. Sure, many party faithful will concede that this White House is a drag on Democratic House and Senate candidates. And they acknowledge that President Obama’s approval ratings could cost them control of the upper chamber.

But, in politics, everything rolls down hill. And, according to a recent report from Politico, it appears that a scapegoat has been identified in Rep. Debbie Wasserman Schultz (D-FL), who has led the Democratic National Committee since May 2011:

Doomed to repeat history: Funding Syrian rebels could create another Libya-like foreign policy crisis

Watching history repeat itself was not enough for Sen. Rand Paul (R-KY).

The senator from Kentucky took the stage yesterday morning and didn’t stop talking until he made sure the public and the empty chamber had listened to his concerns.

During his remarks on the floor of the Senate, Paul highlighted his reasons to oppose the amendment authorizing president Obama’s plan to provide training and arms to what he calls moderate rebels in Syria. The plan passed both the House and the Senate as an amendment to the continuing resolution funding the government until December 11.

Before the vote, however, Paul raised and urged the empty chamber to put an end to Obama’s plan of arming fighters in Syria who have not proven to be fundamentally opposed to ISIS. “We gave 600 tons of weapons to the Syrian rebels in 2013 alone,” Paul said as he urged his colleagues to keep in mind that the United States is not the only country providing weapons to the rebels.

According to Paul, a Wall Street Journal report detailed “millions of dollars in direct US aid to rebels” from “nearly 8 months ago or more.” As the aid continues to be funneled to rebels in Syria, Paul claims that “no one really knows where that all ended up: Jane’s Terrorism Center noted, the transfer of Quatari arms to targeted groups has the same practical effect as shipping them to Al Nusra, a violent jihadist force.”

By not knowing where these weapons are going and who’s actually making use of the military training, Paul believes passing a resolution that will fund this operation abroad in the hopes that that it might deter ISIS is ludicrous:

Senate Democrats are going to wait until after the election to authorize military action against the Islamic State

Senate Democratic leaders

Senate Democrats have decided to punt on a resolution authorizing military force against the ISIS until after the mid-term election, handing a blank check to President Barack Obama to act unilaterally in the interim:

“We’re going to take up the construction of a new authorization for the use of military force. It’s long overdue,” said Senate Democratic Whip Dick Durbin (D-Ill.).

The authorization would focus narrowly on ISIS, likely bar the deployment of ground troops and set a one-year time limit on military action.

The plan to vote on a resolution specifically authorizing strikes against the extremist Sunni group could help reassure liberal Democrats nervous about supporting a measure that authorizes President Obama to train and equip moderate rebels in Syria.

Durbin announced the roadmap at a Democratic leadership press conference shortly before the chamber was scheduled to vote on a government funding measure that included the so-called Title 10 authority to train the rebels.

Why are Senate Democrats waiting until after the election? Well, they don’t want to do anything to upset their base, some of whom could stay at home because of dissatisfaction with what they could see as the party getting the United States into another Middle Eastern quagmire. If some leftist Democrats stay home, it could further endanger the party’s already slim chances of holding onto the upper chamber.

Statist Policy and the Great Depression

It’s difficult to promote good economic policy when some policy makers have a deeply flawed grasp of history.

This is why I’ve tried to educate people, for instance, that government intervention bears the blame for the 2008 financial crisis, not capitalism or deregulation.

Going back in time, I’ve also explained the truth about “sweatshops” and “robber barons.”

But one of the biggest challenges is correcting the mythology that capitalism caused the Great Depression and that government pulled the economy out of its tailspin.

To help correct the record, I’ve shared a superb video from the Center for Freedom and Prosperity that discusses the failed statist policies of both Hoover and Roosevelt.

Now, to augment that analysis, we have a video from Learn Liberty. Narrated by Professor Stephen Davies, it punctures several of the myths about government policy in the 1930s.

Professors Davies is right on the mark in every case.

It’s time for some accountability: House of Representatives passes Audit the Fed bill

The House of Representatives passed, by an overwhelming margin, the Federal Reserve Transparency Act (H.R. 24), a measure that would require a meaningful audit of the United States’ central bank.

There was some question whether House Republican leaders would bring the measure to the floor for a vote, but, thanks to grassroots efforts to encourage members to cosponsor the bill, its popularity couldn’t be ignored. The Federal Reserve Transparency Act, which had gained more than 218 cosponsors, passed the lower chamber in a 333 to 92 vote.

“For the past 100 years, the Federal Reserve, a quasi-government agency, has acted under a veil of secrecy – controlling our monetary policy and thus, our economy. While in recent years, the Fed has been granted a greater role in overseeing the regulation of our financial system, current law specifically prohibits audits of the Federal Reserve’s deliberations, decisions, or actions on monetary policy,” said Rep. Paul Broun (R-GA), who introduced the measure in January 2013. “This lack of accountability and transparency has led to grievous consequences — and it must end.”

 


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