Thursday, July 1, 2010

Obama’s Tax Follies

While I didn't vote for Obama, I had high hopes that he would govern from the middle and lead our economy into recovery. Unfortunately, Obama, Pelosi and Reid cannot seem to understand one simple fact: Industries create good jobs, the government does not.

For example, our banking industry took a huge hit in the financial meltdown. Many of their executives deserve to get canned. Nevertheless, imposing a $19billion tax increase on the industry is folly. The simple truth about taxation is that Taxation causes people to do less of the taxed item.

Be it lending, hiring its own employees, or offering good deals to consumers, banks won't do good things for the economy unless they can keep the money they earn.