Daily Archives: 17 February 2016

Democrat Extortion, State Level

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Louisiana Democratic Gov John Bel Edwards is suggesting the legendary Louisiana State University football team’s 2016 season might be canceled—and other doomsday consequences—unless the GOP-legislature swiftly passes a package of tax increases to help close a looming $940 million budget shortfall.

The budget deficit is projected to reach $2 billion by the start of the next fiscal year. The Republicans should call him out on his naked extortion threats. And then pass a budget with $2.5 billion in spending cuts and $500 million in tax cuts. Does Edwards want to balance the budget, or is his precious spending and taxing all he cares about?

After all, the state’s economy runs over $250 billion as of 2015. Surely, they can find $2.5 billion just by shaking the state government’s couch cushions.

HSBC’s Move

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HSBC (née Hongkong and Shanghai Banking Corp) was considering moving its headquarters out of London and back to its roots in Hong Kong. Much of the consideration, and much of its decision not to move, were driven by Great Britain’s decision to tax all British banks’ overseas earnings in the aftermath of the Panic of 2008 and Great Britain’s subsequent decision not to tax HSBC so heavily.

However, I think the primary motivation for HSBC’s decision to stay put is buried at the bottom of the linked article.

…concerns about China’s growing influence over Hong Kong had helped make it more likely the bank would stick to London.

Indeed. Other banks should take heed.