published Tuesday, July 3rd, 2012

Venez a Chattanooga!

Irresponsible government spending is a multi-national interloping cancer that is destroying, without prejudice or concern, every economy that it encounters. Sadly, the growing majority of debt-ridden nations are rejecting "austerity" or, as defined in economics, deficit cutting through spending reductions.

Elections have consequences and are especially meaningful in these times of economic crisis.

In France, the newly elected president, Francois Hollande, promised and is set to deliver on a list of tax increases that include a hefty 75 percent top rate for those who earn more than one million euros annually, an increase from the current 41 percent rate, to address his nation's economic burdens.

The Financial Times reports that French business owners are grumbling. One head of a large company asking for anonymity boiled about the business climate, "Collapsing margins, plunging order books, new extreme pressures on treasuries, uncertainties that put big projects on standby, employment plans frozen and investment projects at best suspended but often completely scrapped." Turning to the promised increase in business taxes, the executive furiously continued, "A catastrophe! It will be much harder to attract good people, and if you find them, they won't want to be based in France."

Hollande and his Socialist majority in Parliament also are advocating imposing a tax on dividends with the intent to "push companies to reinvest profits rather than distribute them to shareholders," according to commentary in Les Echos, the daily financial newspaper in Paris. The paper quoted the leader of one of France's largest companies expressing his anger toward the new tax: "A lot of wealthy people will leave and I am sure the government will end up collecting less than before."

While participating in the G20 Summit in Los Cabos, Mexico, Great Britain's Prime Minister David Cameron needled the new French president at the Group of 20 most influential economies with his admonition, "If the French go ahead with a 75 percent top rate of tax, we will roll out the red carpet and welcome more French businesses to Britain ... "

Among remarks by President Barack Obama at the close of the summit, notably absent were any offering a welcome to the disgruntled leaders of the French business world. So, in the best southern spirit of graciousness, let Tennessee open the door.

Venez a Chattanooga! Come to Chattanooga, Tennessee!

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casett said...

It's an economic debacle most politicians just don't get. Higher taxes do NOT equal more revenue. Crafty attorneys, tax consultants and moving companies know exactly how to get around them.

I don't know anyone who thinks there should be zero taxes. I know many who think taxes should be fair, equal and well represented by those in power. This remains the big rub in America and elsewhere.

As in any household budget, the answer lies not in raising taxes, but in reducing spending. Unfortunately, so many of our elected officials are addicted to spending our money for their own reelection hopes rather than for the common good.

July 3, 2012 at 6:20 a.m.
joneses said...

The liberal agenda is only about higher taxes so they can redistribute the wealth to all their liberal friends for the sole purpose of only making different people wealthy. it is easier for these liberals to take money from others than to earn it as they lack the intellect to create wealth by hard work.

July 3, 2012 at 6:51 a.m.
fairmon said...

Ask your local council or commission member what the future unfunded liabilities are? Bonds, pensions and health care for government employees. Ask them how you can get a line item copy of the budget. Good luck on getting either. This county and city like many across the country is closer to bankruptcy or "major" tax increases than current office holders want people to know. That is if they realize that fact.

July 3, 2012 at 9:09 a.m.
lightkeeper said...

Where were you while Bush was running up a 1.3 trillion dollar deficit he left us with, thats when you should have been whinning.

July 3, 2012 at 9:45 a.m.

Lightkeeper, Nope, can't whine when a Republican is in power. That's unpatriotic.

Casett, you are mistaken, sometimes the proper way to deal with a problem is to increase income to match expenses. Why? Because not spending money can be more expensive when you fail to meet your needs.

Just ask anybody who puts off fixing their roof until it blows off.

But you never think about that. It's just cut taxes, cut spending, embrace austerity and that's all.

July 3, 2012 at 2:04 p.m.
chatt_man said...

happy, you just mentioned two things I've never heard of before...

Putting off repairs on a roof until it just "blows off"?!?

And a statement that suggests Obama should "cut taxes"?!?

July 3, 2012 at 2:43 p.m.

You've never heard of somebody putting off needed repairs to the point of it costing more to fix? Really?

More to the point, you haven't noticed how the Republican mantra is demanding more and more tax cuts?

If you've never heard of either of these things, I wonder what your experiences are.

July 3, 2012 at 4:14 p.m.
chatt_man said...

OK, I'll admit I must have missed something?

Roofs generally don't deteriorate and "blow off", they usually are leaking so bad before they "blow off" that you have to address them. If anything, they would get so bad without attention that they cave, or fall in.

My apologies are in order on the tax one, I misread your response to lightkeeper. Sorry...

July 3, 2012 at 4:37 p.m.

Actually, in my experience, noticing leaking is another one of the points where you really realize you could have fixed it a lot sooner but now you've got to pay a larger bill before you didn't fix that sooner.

July 3, 2012 at 9:50 p.m.
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