False Hope in Financial Free Lunch
By The Mogambo Guru
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“President Barack Obama said Thursday he wants to tax banks to recoup the public bailout of foundering firms at the height of the financial crisis.”! Hahaha!
I am sure that you, being the astute Junior Mogambo Ranger (JMR) that you are, are laughing merrily with along with me – Hahahahahaha! – because this is so, so, so Theater-of-the-Absurd funny on so many, many, many levels, once you get beyond the horrifying, un-funny realization that it is abysmally, shockingly, alarmingly stupid on just the one level: it is a known fact that a tax on a business is just another expense to the business, like labor and raw materials, that is added to the prices that they must charge their customers in order to make a profit, which makes prices go up as the businesses raise prices to maintain their profit margins by recouping the tax they had to pay by, in case you haven’t been paying attention, raising prices, which is inflation, which is the one thing a country does NOT want, making a tax on business the most stupid thing you can do.
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I’m not laughing at the fool in the WH or all the other fools on the Hill. They are sooo dumb!
And, we’re just as dumb to not standing up to ALL of them.
(1) ANY tax on ANY company is dumb. EITHER: (A) the company takes this new cost and passes it along to the customers. (Might even mark it up a little, a la any regulated utility that has a license to steal!) OR (B) if the cost can’t be passed along due to (international?) competition, it goes out of business and closes down and let’s go all its employees. How dumb can one person, even the President, be?
(2) Banks are a special type of company. It deals in money. If you are supposedly trying to get the banks to loan money to Main Street to get the economy moving, taking money from them makes ZERO sense! Perhaps, the President may want to speak to to little Timmy tax cheat Geithner, who defends AIG rescue as essential (to Goldman Sachs) and Helicopter Ben, about the banks borrowing from Treasury at zero and buying Treasury Bills at 3%. Seems like that is worse than the bail out!
The “Corporate tax” should be ZERO. Only real people pay taxes!
Argh!
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Reinke Faces Life 