In a stunning depiction of how bad our tax code has become, the Wall Street Journal on March 10 found that 60 major U.S. companies parked a total of $166 billion abroad last year, enabling them to avoid almost $100 billion in taxes. Otherwise put, around 40 percent of these companies’ aggregate total earnings were shielded from taxes — and also made unavailable for paying dividends or making investments in the United States.
According to Friday's Labor Department report, the economy generated 236,000 new jobs in February, dropping the unemployment rate to 7.7 percent. But these number do not reflect some unsettling facts: Part-time jobs increased while full-time jobs fell, and the labor force itself continued to shrink.
Despite much speculation that huge government agency orders for billions of rounds of ammunition are deliberately designed to result in "de facto" gun control, a more reasoned response is that demand is outstripping supply and it will eventually inevitably come back into balance.
The price of gasoline, according to the Energy Information Administration, may fall in the near future, but will likely rise again and continue to stay high for a number of reasons.
The announcement that Time Warner may be selling most of its magazines to another publisher is more evidence of its continuing loss of credibility in a market increasingly receiving its news and commentary from more reliable and trustworthy sources.
Get set for the Obama administration’s post-election tsunami of business-killing, job-killing, economy-killing federal regulations. It’s already begun. Take a look at www.regulations.gov, the administration’s regulatory website. The home page informs us that in the last 90 days, the administration has posted 5,934 new regulations.
The graveyard of American businesses is receiving another occupant. Orwigsburg, Pennsylvania-based apparel manufacturer FesslerUSA, over 100 years old, is closing its doors. The company, founded in 1900, began by producing cotton underwear, and most recently has marketed private-label fashion knitwear. Its all-American approach to business reflected the values and ingenuity that made American capitalism thrive.
According to the text of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the law is supposed “to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too big to fail,’ [and] to protect the American taxpayer by ending bailouts.”
However, as is usually the case with federal laws, Dodd-Frank does precisely the opposite.
Friday’s jobs report from the Bureau of Labor Statistics (BLS) stated that “total non-farm payroll employment increased by 171,000 in October, and the unemployment rate was essentially unchanged [from September] at 7.9 percent.”
Another day, another subsidized “green energy” firm going bankrupt. This time it’s A123 Systems Inc., a Massachusetts-based manufacturer of batteries for electric cars that received about $500 million in state and federal assistance, including a $249 million grant from the U.S. Department of Energy (DOE).
A123, which has tumbled in value from $2.3 billion to just $11 million, filed for bankruptcy in Delaware on Tuesday after missing an interest payment on $143.8 million of debt.