Racing to the Bottom

So far, Ireland is winning, and that’s paying off big for the Irish.

In the past eight years, the country of five million has watched its corporate tax income triple to the tune of 22.6 billion euros last year, equivalent to almost $24 billion—giving it a budget surplus last year of a comfortable €8 billion euros when many governments are suffering from a postpandemic debt hangover.

And

Ireland became a hot spot for US companies by slashing its corporate tax rate from 40% to 12.5% starting in the late 90s, and offering a well-educated workforce and a tariff-free way into the European Union.

That’s a lower rate than the European Union wants, and it’s lower than the 15% tax, globally applied and agreed among some 136 countries, and that Yellen is so desperate to get the US trapped into.

The Irish, though, are raking in the tax revenues because of—not despite—their lower tax rate regime: they’re leaving business’ profits increasingly in the hands of those businesses for business use, they’re attracting foreign businesses, and all that lower tax-induced increasing economic activity produces, on net, more revenue for the Irish government.

This is the wealth and prosperity that Progressive-Democrat President Joe Biden, his Progressive-Democrat Treasury Secretary Janet Yellen, and the rest of the Progressive-Democratic Party cronies want to deny us ordinary Americans as they demand United States’ participation in a global tax cabal that lets the cabal avoid economic competition in favor of power.

One more thing: the Irish are considering throwing all of their prosperity into a cocked hat in favor of joining the high-tax cabal; they’ll do that at their own severe economic peril.

Energy Subsidies

This table shows the size of the subsidy for the indicated energy source along with the size of the subsidy per trillion BTU produced by that energy source.

Million$/ TrillionBTU Million $ Trillion BTU
Solar 4.153 7,522 1,811
Geothermal 1.665 353 212
Wind 0.947 3,592 3,791
Coal 0.072 873 12,033
Biomass 0.06 312 5,171
Nuclear 0.048 390 8,065
Oil & Nat Gas 0.033 2,304 68,804

The table is constructed from data in the EIA report, Federal Financial Interventions and Subsidies in Energy in Fiscal Years 2016–2022.

Notice that the Solar subsidy is orders of magnitude greater than those for coal or for oil and natural gas. The wind subsidy is similarly bloated.

Despite these actual facts, the Mainstream Left keeps pushing the myth of too much subsidy for hydrocarbons.

 

H/t: DrBob2 at The Motley Fool.

Why Lend?

How can a financial entity lend? Progressive-Democrat President Joe Biden now is moving to hide individuals’ medical debt from potential lenders.

[P]roposed regulations would prohibit consumer reporting companies from including medical debts and collecting information on consumer reports that creditors use to make underwriting decisions. Creditors would also be barred from using medical collections information when evaluating borrowers’ credit applications.

This on the heels of his constant attempts to render student debt holders unaccountable for their debt.

Since lenders are increasingly being denied recourse, and now they’re to be denied useful information about a potential “borrower’s” ability to repay a debt a priori, why—how—could any lender make a decision to lend, other than to raise its interest rate very high, commensurate with the very high risk being inflicted on that lender by Government?

Look for the Biden administration to start trying to cap lending interest rates, next.

Progressive-Democrats’ Assault on American Energy and Americans’ Health

In addition to Progressive-Democratic President Joe Biden’s and his Cabinet cronies’ direct assault on our ability to produce our own energy (among the latest attacks is this), Biden and his syndicate are attacking our energy use through attacking us ordinary Americans in our homes.

Here’s a partial list of devices we use to make our lives comfortable, even merely livable, in what used to be our castles—our homes:

  • Gas stoves
  • Ovens
  • Clothes washers
  • Refrigerators
  • Refrigerator freezers
  • Freezers
  • Air conditioners
  • Dishwashers
  • Pool pumps
  • Battery chargers
  • Ceiling fans
  • Dehumidifiers
  • Microwave ovens
  • Portable electric spas
  • Air compressors

Biden’s regulations are intended to price these things out of reach of our middle- and lower-income groups of citizens. Things, mind you, like food preparation and storage tools, hygiene devices, devices for heating and cooling our shelters.

This is the utter contempt Party has for us American citizens.

Federal Government Shutdowns

I’ve written a few times (the latest here) about the results of Federal government shutdowns. Progressive-Democratic Party politicians always and everywhere are in full-throated panic-mongering about the disaster that is a shutdown. Far too many Republican Party politicians timidly accept the Leftist Party’s claims and seek to do anything, even on bended knee, to avoid a shutdown.

I have a challenge for them, and for all you out there in reader land.

Here are two graphs, the first from Macrotrends showing our GDP growth rate from year to year from 1961 through 2022, and the second from stastica showing GDP levels over the more focused period of 1990-2022.

My challenge is this: find, in either graph, the Federal government shutdowns of 2013, 2018, and 2018-2019.

As an aside, as I write this late Saturday, the House passed a 45-day, keep the government open, funding bill; the Senate then passed the House bill and forwarded the thing to President Joe Biden (D). The bill omitted any spending cuts, steep or otherwise, and dropped any aid for Ukraine.

This, in light of the above, represents a surrender to the Progressive-Democrats forced by the allegedly Republican Chaos Caucus led by Zoo Master Matt Gaetz (R, FL), who have offered nothing beyond “No” to any bill on offer, including the prior Republican-led House stop-gap bill that included significant cuts to spending—which would have given time to work out the remaining appropriations bills with even deeper and broader spending cuts. Gaetz might as well have joined Progressive-Democrat Congressman Jamaal Bowman in deliberately pulling a Congressional office fire alarm in an attempt to stall any House action at all.