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Middle Class Jobs Continue to Lag

Nonfarm payroll employment gains were 160,000 in April according to the Bureau of Labor Statistics, a drop of 40,000 from the prior three month average. Job gains occurred in professional and business services, health care, and financial activities, while mining employment continued to decline.

The reason for the decline in the U.S. economy and the continuing problem in the American balance of trade can be gleaned from delving into the areas that continue to be the weakest. Manufacturing employment changed little in April (+4,000), after losing 45,000 jobs over the prior 2 months. Mining employment continued to decline in April (-7,000). The industry has lost 191,000 jobs since a recent peak in September 2014. More than three-fourths of the job losses over this period have been in support activities for mining.

Middle income jobs are suffering. A jobs market that is based on health care, retail, and consulting services produces little that can be exported.

While the White House continues to tout an unemployment rate of 5%, the reality is far different.  The number is made artificially low by the declining number of Americans in the workforce (a four decade low) and it fails to reflect that a substantial number of jobs created are low-paying or part time positions that replace full time, lost middle income jobs. Additionally, a worrisome large number of the unemployed, 25.7%, have been unemployed for a prolonged period.

Among the employed, the number working part time for economic reasons, also referred to as involuntary part-time workers, was 6.0 million in April. This measure has shown little movement since November. (Involuntary part-time workers are those who would have preferred full-time employment but were working part time because their hours had been cut back or because they were unable to find full-time work.)

Reuters reports that “Manufacturing’s job problem undercuts hopeful forecasts that U.S. companies would bring significant numbers of jobs back from overseas. That’s simply not happening to a degree sufficient to offset the continuing exodus of work and suggest deeper problems roiling factory floors…The slowdown in oil and gas has radiated deep into the economy and huge cuts by heavy equipment and farm machinery manufacturers are battering thousands of smaller suppliers across the industrial belt….the downturn has spread gloom across the U.S. industrial heartland…many Midwest manufacturers say they are as disillusioned with Washington’s view of the economy as their hourly workers.”
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While manufacturing jobs had been declining for several decades, the dramatic downward slide can be traced to President Clinton’s allowing China off the hook from yearly reviews of its policies.

It is deeply frustrating that the current employment crisis in middle income jobs is not just  the temporary result of a cyclical downturn.  It is the direct result of the White House’s tax and environmental policies. Taxes for U.S. corporations are the highest in the developed world, which encourages companies to move their jobs overseas. The Obama Administration’s regulatory tidal wave, especially those designed to destroy the coal industry, have targeted not only a large number of jobs, but also some of the best paying middle income jobs in the economy.

CNS  notes that “Over the course of the 86 full months that President Barack Obama has completed serving in the White House—from February 2009 through March 2016–the U.S. Treasury has collected approximately $18,764,164,000,000 in tax revenues (in non-inflation-adjusted dollars), according to the Monthly Treasury Statements issued during that period…That equals approximately $124,003 for each of the 151,320,000 persons who, according to the Bureau of Labor Statistics, had either a full- or part-time job during March 2016. During the same 86-month stretch of the Obama presidency, the total debt of the federal government increased from $10,632,005,246,736.97 to $19,264,938,619,643.07, according to the Treasury. That is an increase in the debt of $8,632,933,372,906.10—or approximately $57,051 for each of the 151,320,000 people with jobs as of March.

HotAir reports that there is “visceral disgust” for Obama’s environmental policies in the Appalachian counties… West Virginia…energy costs are expected to go up 40 percent under Obama’s Clean Power Plan (CPP), which sets to cut greenhouse gas emissions by 32 percent by 2030 from 2005 levels. It’s a regulatory nightmare, a job killer, and a policy that Hillary Clinton plans to continue if she’s elected.”

Investors.com believes that Obama’s “policies have made it harder than ever for manufacturers to hire…New Environmental Protection Agency regulations to slash carbon emissions 30% by 2030 will have a devastating effect on factory jobs. A study by the Heritage Foundation found that this regulation by itself would cost each American $7,000 in income while killing 500,000 factory jobs and 45% of all coal-industry jobs. Then there’s the just-released ozone standards, also from the EPA’s job-killing policy shop. A study by NERA Economic Consulting for the National Association of Manufacturers (NAM) estimated a $140 billion hit to GDP and as many as 1.4 million jobs lost each year. Since Obama took office, thousands of new regulations have gone into effect. In 2012, regulation cost the U.S. economy about $2 trillion, or 12% of GDP. And manufacturers have been hit hardest. The average factory today spends $19,564 per worker to comply with regulations. For small manufacturers, it’s bigger: $34,671 per worker.”

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Russia’s Next Invasion

Another Russian invasion of an Eastern European nation is brewing, and this time the consequences will be enormous.

Moscow has combined the threat of overwhelming military force with economic and internal political pressure to pull Bulgaria into its orbit. Russian reconnaissance and transport planes are frequently flying on Bulgaria’s eastern border, straining the nation’s antiquated air defense systems. Sources also indicate that Russia has also attempted to gain dominance in Bulgaria by buying influence in local media.

Bulgaria is a member both of NATO and the European Union. By treaty, aggressive acts on one NATO member must be treated as an attack on all, including the United States.

Last fall, According to reports in the U.K.’s Independent,   Bulgaria’s President Rosen Plevneliev warned that after its invasion of the Ukraine, Russia was targeting Bulgaria.  “Russia has trained its sights on the Balkans to wage a ‘hybrid warfare’ campaign aimed at destabilising the whole of Europe.”  Plevneliev accused the Kremlin of launching “massive cyber attacks on Bulgaria’s government institutions and increasingly testing Bulgaria’s airspace…The very efficient and secure way for Russia to destabilise Europe is through the Balkans, so that is what Mr. Putin is focusing on,”

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Observers believe that this isn’t just an attack on one nation, but on the whole of Europe. The European Reform organization stressed: “It is time that we properly understand Russian activities in Bulgaria, especially in light of recent developments taking place in Ukraine, Syria, and a number of Eastern European countries. Using its old divide et impera tactics, Russia is challenging the unity among EU Member States by taking advantage of a number of different factors including economic links or support for political parties which have especially strong ties with Moscow (like Ataka in Bulgaria). It is time we look closer at Putin’s game, a big part of which is a conflict in the East of Ukraine, and react before it is too late.”

“If the Ukrainian conflict has taught us anything, it is that Russia has recently diverted much of its resources and focus from mobilising hard power in protecting its interests to soft power, including funding media outlets and political parties. This shift can be seen very clearly in Bulgaria which is suffering from Moscow’s harmful interferences.  In November 2006, Vladimir Chizhov, Moscow’s Ambassador to the EU, famously called Bulgaria ‘Russia’s would-be Trojan horse in the EU’. Although Bulgaria has long been regarded as the European country most vulnerable to Russian influence, there is no place for a passive reaction from the European side.”

Defense News reports that in response to the Russian threat, “The governments of Ukraine, Romania and Bulgaria are discussing plans to set up a joint military brigade, according to an announcement by Ukrainian President Petro Poroshenko following a meeting with his Romanian counterpart, Klaus Iohannis, in Bucharest…The latest move by the three countries follows an earlier initiative by Ukraine, Poland and Lithuania to set up a joint military brigade, dubbed the Litpolukrbrig. The brigade will comprise about 4,000 troops, and it is expected to reach full combat readiness in 2017.”

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Mayor de Blasio Wants Nationwide Influence, May First Have to Fight Ethics Charges

Why should anyone outside of the Big Apple even remotely care about a scandal involving horses (yes, horses) in New York City?

There is, indeed, a very good reason.  The city’s now beleaguered hard-left mayor, Bill de Blasio, who has sought to take a leadership position in the nationwide progressive movement, is thoroughly emblematic of the venality and hypocrisy of the extremist movement throughout the United States.

Mayor de Blasio has a personal history that is rather stunning, but apparently acceptable to his Progressive supporters.  At a time when the Soviet Union was, thanks to the Sandinista regime,  using Nicaragua as an anti-American forward base for its military, de Blasio was an ardent supporter of the Sandinistas. He violated federal law by spending his honeymoon in Cuba. How bad was the Sandinista regime so beloved by de Blasio?  Judicial Watch notes that “By 1983 there were about 20,000 political prisoners held in the Marxist regime’s jails, the highest number of political prisoners of any nation in the hemisphere with the exception of Fidel Castro’s communist Cuba.” A New York Times review quotes de Blasio as being an “advocate of democratic socialism.”

The central goal of the Progressive Movement is the centralization of power in a national government which they lead. Like extremist movements everywhere, they believe the ends justify the means. To amass power, they play the system, use Trojan horse issues, and ignore ethical rules.

During his 2013 campaign for Mayor, de Blasio weirdly decided to make an issue of the use of the famous horse-drawn carriages in and around Central Park, seeking to end the tradition so popular with tourist and locals alike.  He alleged that he was concerned with the welfare of the horses, but the argument was unconvincing, at best.  It was later discovered that a substantial donor wanted the land the horse stable was located on, but the owner wouldn’t sell. The Mayor then suggested using taxpayer dollars to build a new stable in Central Park. The animal rights group involved has now been subpoenaed.

The Mayor, according to reports, engaged in other similar schemes, masked by supposedly progressive causes, as a way gaining donations. Rather than go to further social causes, the funds were instead routed to like-minded progressive candidates.
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Interestingly enough, it is Progressives who constantly advocate for tough campaign finance rules, but only when it applies to their opponents.  For decades, left-leaning organizations, many financed by public dollars, have funneled funds and assistance to candidates. However, should anyone on the opposing side do the same, excuses are found to restrict them. That is the reason Progressives have opposed the Citizens United decision so bitterly.

According to the New York Post the state Board of Elections has accused de Blasio of “willful and flagrant” violations of campaign finance laws,” the very same type of laws Progressives advocate to keep money out of politics (except, of course, dollars from left wing groups,  supportive unions, etc.)

Progressives are quick to criticize contributions from the Koch brothers, but turn a blind eye towards the enormous cash funneled from billionaires such as George Soros, (who has a highly questionable reputation) and Tom Speyer. De Blasio’s recent fundraiser for Hillary Clinton (He served as Clinton’s campaign manager for U.S. Senate) was composed, notes the NY Daily News of a “a who’s who of top lobbyists” who “served on the host committee of Bill de Blasio’s $1 million fund-raiser with Hillary Clinton.”

In addition to taking jobs away from carriage drivers and funding leftist candidates, de Blasio’s other passion apparently is criticizing cops. His verbal attacks on his own city’s police force, which most believe to be the most professional and unbiased in the nation, has been so severe that at one point officers mounted a work slow down of nonemergency activities in response. A National Review study notes that “public safety remains at risk from an activist mayor who sees his base as the anti-police Left.”

True to Progressive tactics, de Blasio has sought taxpayer funding for his partisan national political crusades using a variety of unconvincing excuses. Wherever you live in the USA, Mayor de Blasio, friend of the Castros and Sandinistas, wants to influence your local government.

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Inappropriate Campaign Tactics

Presidential elections are generally hard fought, no-holds barred contests. However, several disturbing occurrences in the 2016 campaign have gone far beyond the usual rough and tumble of the quadrennial slugfest.

The initial salvo began even before the start of the campaign season, and has already been widely discussed. The inappropriate opposition of the Democrat Party to common-sense measures to insure the accuracy of voter registration rolls and to verify that only qualified voters actually cast ballots has been clearly documented.

Several new strategies have recently been added.

The GOP has generally been identified as tougher on crime, and in favor of more stringent sentencing. It follows, then, that those on the receiving end of that philosophy have not been favorably disposed towards Republican candidates. That has not placed the GOP at a disadvantage, since convicted felons, under current law in most states, have forfeited their right to vote as a consequence of their misdeeds.

In late April, Terry McAuliffe, Governor of the key swing state of Virginia and a personal friend of Hillary Clinton, announced that he was restoring voting rights of more than 200,000 Virginians who were convicted of felonies such as murder, rape, armed assault and other crimes.  Some analyses indicate that the governor’s restoration would be permitted despite the status of any unpaid fines or restitution requirements. A press release from McAuliffe’s office noted these ex-cons had “served their time and completed any supervised release, parole or probation requirements. Each of those Virginians will immediately regain the right to register to vote, to run for office, to serve on a jury and to serve as a notary public… The Governor implemented his action by signing an order restoring the rights of every Virginia felon who completed his or her sentence and all other requirements as of April 22nd, 2016. The total number of Virginians impacted by the Governor’s order today is 206,000. He also instructed the Secretary of the Commonwealth to prepare a similar order monthly in order to restore the rights of individuals who complete their sentences in the future. Article V, Section 12 of the Constitution of Virginia grants the Governor the authority to “remove political disabilities consequent upon conviction” of a felony.” The governor’s action did not extend to restoring Second Amendment rights.
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There has been harsh reaction. A National Review assessment questions whether the Governor can provide a blanket pardon, as opposed to a case-by-case action. The article quotes legal sources claiming that McAuliffe is essentially rewriting the state constitution. An Associated Press (AP) description left no doubt that the purpose of the move had less to do with the rights of released criminals and everything to do with the 2016 election. AP noted that at the announcement, left-wings groups were present, handing out voter registration forms. A BBC article quoted Republican Caucus Chairman Ryan T. McDougle: “Terry McAuliffe wants to ensure that convicted pedophiles, rapists, and domestic abusers can vote for Hillary Clinton.”

The Clinton campaign’s proclivity towards unusual tactics extends beyond enhancing the Democrat base using questionable means.  It is also extending into areas that embrace bare-knuckled politics in innovative ways. A New York Post article found that a “pro-Hillary Clinton super PAC plans to spend $1 million responding to her online ­critics” by deploying “a digital task force” to oppose Clinton opponents online.

The concept of silencing critics of Democrats in general can be seen in other actions, as well. The Obama Administration has engaged in a number of measures that would have a chilling effect on free speech. The latest, outlined in a Fox News report, is a Federal Election Commission move to censure a film maker who produced a movie sharply critical of the Obama Administration. Joel Gilbert, producer of a number of politically-themed independent films, is being targeted under the excuse that his movie, which has no connection to any campaign, should have filed reports to the FEC as though it were part of a campaign.  Interestingly, the FEC has not undertaken similar actions against pro-Democrat works on tv and in movies.

A potentially violent tactic has also been observed, as protestors have taken to blocking roads and streets leading to rally sites used by at least one GOP candidate.

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Environmental Extremists Illegal Assault on Free Speech

An unprecedented legal attack, in utter violation of the First Amendment, has been launched against a think tank. According to Claude Walker, the left wing attorney general of the U.S. Virgin Islands, the Competitive Enterprise Institute (CEI)  has committed the “offense” of disagreeing with Progressive extremists on the issue of climate change. The move is in line with the anti-free speech action of U.S. Attorney General Loretta Lynch who “referred to the FBI”   consideration of whether to prosecute those who dare to question the claims of environmental extremists.

According to CEI, “The subpoena requests a decade’s worth of communications, emails, statements, drafts, and other documents regarding CEI’s work on climate change and energy policy, including private donor information. It demands that CEI produce these materials from 20 years ago, from 1997-2007….”

In a statement on CEI’s website, General Counsel Sam Kazman pledged: “CEI will vigorously fight to quash this subpoena. It is an affront to our First Amendment rights of free speech and association for Attorney General Walker to bring such intimidating demands against a nonprofit group. If Walker and his allies succeed, the real victims will be all Americans, whose access to affordable energy will be hit by one costly regulation after another, while scientific and policy debates are wiped out one subpoena at a time.”

In a reply to the subpoena, which has more in common with actions taken by totalitarian regimes than anything in American jurisprudence, CEI’s legal counsel stated:

“The subpoena that you served on the Competitive Enterprise Institute (“CEI”) is a blatant attempt to intimidate and harass an organization for advancing views that you oppose. There is no way to understand your demand that CEI turn over all of its internal documents concerning climate change and its communications…other than as an effort to punish it for its public policy views, chill its associations, and silence its advocacy. You acknowledged as much in your remarks at the March 29 “AGs United for Clean Power” press conference in New York. You said that you launched this investigation not to carry out any law-enforcement duty, but to ‘make it clear to our residents as well as the American people that we have to do something transformational’ about climate change, stop ‘rely[ing] on fossil fuel,’ and ‘look at reliable energy.’ You are entitled to your opinions on public policy, but you have no right to wield your power as a prosecutor to advance a policy agenda by persecuting those who disagree with you. That is, in fact, the law: ‘If there is any fixed star in our constitutional constellation, it is that no official, high or petty, can prescribe what shall be orthodox in politics, nationalism, religion, or other matters of opinion or force citizens to confess by word or act their faith therein.’
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The subpoena has prompted intense opposition by those in the media worried about the dictatorial nature of both it and the actions of U.S. Attorney Loretta Lynch. In an editorial, the Wall Street Journal stated: “Sometimes we wonder if we’re still living in the land of the free.”

The actions of the climate radicals becomes more extreme as the science against their point of view becomes more obvious.  They refuse to discuss key facts such as the lack of any warming for almost two decades; the fact that, long before factories and cars existed, the Earth regularly cooled and heated; (Europe was warmer in the 10th Century A.D. and during the Roman Empire, and it was colder during the “Little Ice Age” which began in 1300 A.D.) and the revelation that other planets have endured temperature increases at about the same time the Earth did, despite the absence of human activity. They also refuse, in their bid to sanction any activities that may theoretically cause warming, to discuss the findings of Russian and German solar scientists who believe that decreased sun activity may be the harbinger of colder temperatures for a good portion of the next 50 years.

The howls of the climate extremists extend to absolute fabrications.  The claim that the scientific community unanimously agrees with them is little short of sheer nonsense. Over 31,000 scientists have objected, for example, to President Obama’s claim that the matter is “settled science.”

It is increasingly apparent that the excuse of global warming is being used to ram a series of unpopular leftist economic policies down the throats of Americans. As the lack of science and overt conflicts of interest are exposed, the result is a fascist-like attempt to silence critics through harassing law suits.

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Free Press: An Endangered Species?

Freedom of the press is increasingly endangered throughout the globe.

The existence of unbridled journalism is vital to the entire concept of democracy. It is essential for providing a forum in which all problems facing a government can be resolved by a thorough airing of all facts and solutions, and to attack instances of corruption and power grabbing.

Unfortunately, the concept of free speech is taking a worldwide beating. Outright censorship by totalitarian governments, management of media outlets that seek to slant the news towards a particular point of view, and the growing trend towards labelling open discussions as “offensive” and then banning them, combine to make an objective and independent press an endangered species.

Reporters Without Borders has released its 2016 “World Press Freedom Index,” and the news is distressing. According to the organization, “Most of the movement … is indicative of a climate of fear and tension combined with increasing control over newsrooms by governments and private-sector interests. The…Index reflects the intensity of the attacks on journalistic freedom and independence by governments, ideologies and private-sector interests during the past year.”

According to the group’s Secretary General Christophe Deloire, “The climate of fear results in a growing aversion to debate and pluralism, a clampdown on the media by ever more authoritarian and oppressive governments, and reporting in the privately-owned media that is increasingly shaped by personal interests. Journalism worthy of the name must be defended against the increase in propaganda and media content that is made to order or sponsored by vested interests. Guaranteeing the public’s right to independent and reliable news and information is essential if humankind’s problems, both local and global, are to be solved.”

All of the Index’s indicators revealed a decline in press freedom over the past several years. The problems are not confined to just censoring individual news stories. The very infrastructure of journalism is under assault, as well. The study notes that “Some governments do not hesitate to suspend access to the Internet or even to destroy the premises, broadcast equipment or printing presses of media outlets they dislike. The infrastructure indicator fell 16% from 2013 to 2016.”

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In addition to government censorship and biased media management, pressure from aggressive pressure groups have damaged free speech. For quite some time, the threats from Islamic extremists has produced a chill, particularly in Europe and the middle east, on the need for a frank discussion of the key issues of terrorism, maltreatment of females, political corruption under the guise of religious leadership, and other related issues. Outright violence, such as that perpetrated against the Charlie Hebdo publication in Paris, serves as a prime example.

Reporters Without Borders notes that “The “media environment and self-censorship” indicator has deteriorated by more than 10% from 2013 to 2016.”

Even before the latest Index was published, there were an increasing number of complaints within the United States, for example, that social media outlets have acted prejudicially against individuals expressing viewpoints contrary to the prevailing Progressive orthodoxy, a trend clearly visible on college campuses. The Internet, the New York Analysis of Policy and Government believes, may be the media most at risk. The bizarre plan of the Obama Administration to surrender control of the internet to an international body composed of many members that practice censorship, scheduled to take place by November, does not bode well for the future.

Nor does the growing quest for expanding operations in China by private social media moguls. Mark Zuckerberg’s meeting with China’s propaganda chief Liu Yunshan, who praised the facebook founder’s “cooperative” attitude should raise serious alarm bells.

No nation has ever enacted free speech protection as substantial as America’s Constitutional First Amendment guarantee. But for the first time, that absolute right is being substantially assaulted. From college campuses which limit student statements that challenge leftist orthodoxy, to acts (which have not yet been successful) such as that by Senator Charles Schumer (D-NY) to actually amend the Bill of Rights to allow censorship of paid political speech in the name of campaign finance regulation, the free press faces dangerous times.

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Indiana: 2016’s Pivotal Moment?

Today’s Indiana primary may be crucial for both parties. It may also spark a pivot when the campaign emphasis changes from personalities to policy.

For far too long, the 2016 Presidential campaign season has not substantially focused on issues, despite the urgent challenges facing the American economy and the national defense. In the wake of the inevitable whittling down of a number of the candidates, more attention may finally be paid to the mounting problems that seem to increase in seriousness daily.

Here’s how the candidates stand at the start of today’s crucial contest:

Sanders and Clinton have appealed to the vast number of voters who have been hard hit by the twin dilemmas of the aftereffects of the Great Recession (caused by federal policies mandating the distribution of loans to those without the means to repay them) and the failed economic policies of the Obama Administration, while at the same time supporting those very same policies.  They have both also concentrated on wooing the increased numbers of Americans dependent, to varying degrees, on entitlement programs.

Sanders, despite his advocacy of redistributionist policies that cannot succeed without enormous and eventually counterproductive tax hikes, has been surprisingly resilient.  Much of his appeal rests with millennials. They are saddled with enormous debt from vastly overinflated college tuition, and have comparatively little prospects for decent paying employment in a job market that continues in the doldrums (ironically due to policies that he supports.) While his solutions are not viable, his emphasis has focused a spotlight on a very real problem.

Clinton’s appeal has largely been to Democrat loyalists who wish to continue on the path President Obama has pursued.  A key area of support anticipated by the former Secretary of State has not materialized, as younger women have not been particularly receptive to her gender message, and millennials in general are turned off by her rather long history of questionable ethics. Both now form the core of support for Sanders. Clinton is faced with an intriguing dilemma. To keep the support of party faithful, she must paint herself during the primary as the legitimate heir to President Obama. In the general election, however, she must divorce herself from the poor results of the Obama Administration’s policies at home and abroad. In foreign affairs, that may well prove impossible. She was the co-architect of the disastrous “Reset” with Russia that left the Kremlin with an advantage in nuclear arms, and alienated key European allies.  Her role in the Benghazi scandal was more than just inept; an ongoing FBI investigation may well prove it to be criminal, as well.
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The GOP has endured its most bruising primary in living memory, and it remains to be seen whether partisans of the numerous contestants can put aside ill feelings and coalesce behind the eventual nominee.  Talk of a scheme by the Republican leadership to insert itself into the contest in one way or another has done nothing but alienate voters, many of whom already criticize party officials as being inept and unwilling to forcefully confront the White House.

The three remaining GOP candidates have delayed the vital step of replacing their criticism of each other with attacks on the policies of their Democrat opponents.  The aftermath of the Indiana primary may change that.

John Kasich is the most pragmatic of the remaining candidates in either party,  and the only one with executive governmental experience. He has not, however, adequately articulated a vision for meeting the significant crises affecting the U.S., or provided a convincing reason to choose him over other GOP alternatives. In an anti-incumbent year, his appeal has been limited.

Ted Cruz has articulated the most consistent approach towards addressing issues, and has established a record of strictly adhering to his beliefs, even at the expense of his own popularity within the Senate. He appeals strongly to conservatives, libertarians and constitutionalists who have become deeply concerned over President Obama’s power grabs. His supporters frequently remind voters that Reagan, too, was unpopular with the GOP leadership before becoming president. But his rough campaign tactics and personal difficulty in establishing a consistent relationship with the Senate leadership has limited his ability to gain the necessary support. His naming of former candidate Carly Fiorina is a skillful attempt to expand his appeal to women voters.

Donald Trump has broken new ground in his unorthodox bid for the Republican nomination.  An “outsider” to the Republican mainstream and the usual power brokers, his self-funded campaign has exceeded all expectations, and may have brought a whole new group of voters into the Republican Party’s orbit.  He almost single-handily made Obama’s ruinous immigration policies a key issue in the campaign. Trump has now attempted to completely refocus the national discussion on foreign policy with his recent speech on that topic.  In a year when most voters give incumbents consistent low marks, he is seen as a viable alternative to business as usual, contrasting his private sector practices with Washington’s failed approach.  However, while his official website does provide some details, his tendency to make broad statements rather than provide specific policy details has worried some observers, and his avoidance of specificity (and his outsider status) has served, to this point, as a barrier to his desire to be considered the “presumptive nominee.”  There are concerns that his lack of specificity would contrast poorly in general election debates with Clinton or Sanders.

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Democrat Candidates Propose Tax Hikes

The two Democrat presidential candidates have proposed increasing income taxes. Fueling much of their concepts regarding federal levies is their belief that corporations and wealthy individual aren’t paying a fair share.  The facts, however, indicate otherwise.

According to the Pew Research Center “ In 2014, people with adjusted gross income, or AGI, above $250,000 paid just over half (51.6%) of all individual income taxes, though they accounted for only 2.7% of all returns filed, according to our analysis of preliminary IRS data. Their average tax rate (total taxes paid divided by cumulative AGI) was 25.7%. By contrast, people with incomes of less than $50,000 accounted for 62.3% of all individual returns filed, but they paid just 5.7% of total taxes. Their average tax rate was 4.3%.”

What about corporations? According to KPMG  corporations pay the highest taxes, at 40%. The global average is 23.87%. The western hemisphere average is 27.35%, the Europe average is 20.12%, and the Asian average is 22.59%.

The result of this is obvious.  According to a National Review study  “Almost 50 companies have chosen to ‘invert’ [move their domicile out of the U.S. for tax purposes] over the last ten years. More than in the previous 20 years.”

The exodus of companies out of the U.S. means less jobs, and less revenue.

According to the Americans for Tax Reform, Hillary Clinton has proposed $1 trillion in tax hikes:
“$350 Billion Income Tax Increase for a ‘New College Compact’  Clinton has proposed a $350 billion income tax hike in the form of a 28 percent cap on itemized deductions.

“$275 Billion Business Tax Increase for “Infrastructure”—Clinton has called for a tax hike of at least $275 billion through undefined business tax reform. According to the Clinton campaign document, “Hillary will fully pay for these [Infrastructure] investments through business tax reform.”

“$400 Billion ‘Fairness’ Tax Increase — According to her published plan, Clinton has called for a tax increase of ‘between $400 and $500 billion’ by ‘restoring basic fairness to our tax code.’ These proposals include a ‘fair share surcharge,’ taxing carried interest capital gains as ordinary income, and raising the Death Tax.

“However, Clinton has also proposed several tax increases not included in the tally above. Because her campaign has failed to release specific details for many of her proposals, the true figure is likely much, much higher than $1 trillion. For instance:

“Capital Gains Tax Increase — Clinton has proposed an increase in the capital gains tax to counter the ‘tyranny of today’s earnings report.’ Her plan calls for an overly complex, byzantine capital gains tax regime with six brackets for those whose total taxable income puts them in the top 39.6 percent bracket. Her campaign has not said how much this will increase taxes.

would only further burden markets by discouraging trading and investment. Inevitably, costs associated with this new tax will be borne by millions of American families that hold 401(k)s, IRAs and other savings accounts.’

The Tax Foundation outlines Bernie Sander’s tax increase proposals:

“Individual Income Tax Changes

  • Adds four new income tax brackets for high-income households, with rates of 37 percent, 43 percent, 48 percent, and 52 percent.
  • Taxes capital gains and dividends at ordinary income rates for households with income over $250,000.
  • Creates a new 2.2 percent “income-based [health care] premium paid by households.” This is equivalent to increasing all tax bracket rates by 2.2 percentage points, and would raise the top marginal income tax rate to 54.2 percent.
  • Eliminates the alternative minimum tax.
  • Eliminates the personal exemption phase-out (PEP) and the Pease limitation on itemized deductions.
  • Limits the value of additional itemized deductions to 28 percent for households with income over $250,000.

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“Payroll Tax Changes

  • Creates a new 6.2 percent employer-side payroll tax on all wages and salaries. This is referred to by the campaign as an “income-based health care premium paid by employers.”
  • Creates a 0.2 percent employer-side payroll tax and 0.2 percent employee-side payroll tax, to fund a new family and medical leave trust fund.
  • Applies the Social Security payroll tax to earnings over $250,000, a threshold which is not indexed for wage inflation.

“Business Income Tax Changes

  • Eliminates several business tax provisions involving oil, gas, and coal companies.
  • Ends the deferral of income from controlled foreign subsidiaries.
  • Changes several international tax rules to curb corporate inversions and limit use of the foreign tax credit.

“Estate Tax Changes

  • Decreases the estate tax exclusion from $5.4 million to $3.5 million.
  • Raises the estate tax rate from 40 percent to a set of rates ranging between 45 percent and 65 percent.
  • Changes several estate tax rules involving asset valuation, family trusts, gift taxes, and “

“Other Changes

  • Creates a financial transactions tax on the value of stocks, bonds, derivatives, and other financial assets traded by U.S. persons. The rate of the tax ranges from 0.005 percent to 0.5 percent, depending on the type of asset.
  • Limits like-kind exchanges of property to $1 million per taxpayer per year and prohibits the use of like-kind exchanges for art and collectibles.”

The Republican candidates have proposed cutting taxes.

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