A global organization recently conducted a survey of over 1,200
CEOs from 60 different countries, in which the top three concerns most often
cited by US-based CEOs surrounded economic uncertainty, deficit and debt
burdens, and over-regulation. In last night's State of the Union address, about
the only thing President Obama succeeded in doing was exacerbating, rather than alleviating,
these concerns.
Throughout
his speech he made clear his desire to increase spending and raise taxes on
just about everything, from savings, to investments, and on those who provide
jobs. For starters, his proposed "insourcing" program - which at first
blush sounds like a great way to bring jobs home to America -- would actually
only succeed in making it harder for American companies to compete in the
global market, which in turn would impact jobs here.
The
program would require that US companies pay tax on the income they earn in
foreign markets as they earn it,
rather than being taxed on the income they bring back to the US. His thinking
is that this will discourage US businesses from doing business
overseas, and therefore, keep jobs here. Yet all it really does is punish US
companies for trying to compete globally, which could hamper their strategies for succeeding here as well. Why would any American president support policies that make it difficult for American businesses to succeed anywhere?
President Obama acknowledged that US
businesses already have the highest tax rate in the world. But rather than
embrace meaningful tax reform that would make American companies more
competitive here and on the global playing field, the President opts to place
additional tax burdens on them. Clearly he doesn't understand that taking more
money from private companies will not spur them to hire more people.
Meanwhile,
Obama picks and chooses which industries or employees he feels deserve support.
He gives subsidies to the green industry and bribes companies to hire veterans,
which may sound compassionate, but what about letting the free market decide
which products and services are most in demand, and which people are the best
suited for a job? In the President's approach, any jobs created by his hands-on
manipulations are basically government-funded and, therefore, only tenuously sustainable.
But as for jobs created in the private sector by free market pursuits, when
Boeing announced plans to invest $1 billion in a new plant in South Carolina
(which would've created many much-needed jobs), Obama allowed his friends at the National Labor Relations Board to squash the private company's plans because the new plant would've allowed non-union employees. Obama then rejected the Keystone Pipeline
project, an undertaking that would also have provided thousands of real American jobs.
As for another major challenge facing US businesses, nothing in the President's speech last night indicated plans to dial down the untenable regulations placed
on so many private sector industries, such as the almost impossible Dodd-Frank regulations, the monstrous Obamacare, and the many job-stifling rules handed out by the
Environmental Protection Agency without any oversight whatsoever.
The
President's approach to jobs and tax reform is clear: it's not about jobs or
reform. Instead, his plans are to continue taking more from private companies so he can give more to his
chosen pet projects. During his 2008 campaign, the President was clear on his
desire to "redistribute" wealth - and since he's been president, the
"despised" wealthy have lost 40% of their wealth.
Unfortunately, what he doesn't understand - or seem to care about - is that
when governments try to redistribute wealth, nobody gets richer, but
everyone gets poorer.
Judging by last night's speech, Obama has no plans
to scale back his prosperity-crushing agenda. It was riddled with references to
making the "wealthy" pay their fair share, as if the successful are
evil people who deserve punishment, and despite the fact that the top
earners pay the most in tax dollars, while the bottom 49% pay
zero in federal income taxes.
The President's passion clearly lies not in
improving America, but in fanning the flames of class warfare. He's doing a
good job so far, too, judging by the Occupy Wall Street protest movement he
encouraged across America. While our Commander in Chief pits class against
class, he forgets that the people he's so fond of castigating are the ones who
provide the jobs he feigns such interest in creating.
How much more does the President think he can
put on the shoulders of those creating the jobs before these companies are put
out of business? Who'll pay for the President's chosen pet projects then?
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