This week, President Obama held a summit in Washington, D.C., with top CEOs to discuss a variety of economic topics.  Among them was U.S. competitiveness in the global economy, with Obama describing the issue upfront as an “overarching theme,” and with the message being sent that competitiveness impacts domestic job creation.

Obama’s comments were timely, because on Tuesday, it emerged that Japan, which currently maintains the highest corporate tax rate of any O.E.C.D. (i.e., developed) nation, will cut its corporate income tax by “5 percentage points in a bid to shore up its sluggish economy,” according to the New York Times.

Currently, Japan’s corporate tax rate is about 40 percent, slightly higher than but roughly the same rate as the U.S. rate.

However, Japanese leaders aim to cut the tax rate in order to make the country more competitive, internationally, provoke new investment and boost job creation.  Japan is worried about its unemployment rate of 5.1 percent–a figure of envy to most in Europe and the U.S., where unemployment is running substantially higher.

The fact that Japan’s corporate tax rate, post-cut, will remain higher than that of South Korea (24 percent) or Germany (29 percent) however has some figures skeptical as to whether the plan will work.  In addition, Japan may raise its consumption tax rate to offset the cut, which could minimize positive effects that would otherwise flow from it.

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The Senate is likely to vote today on the DREAM Act, which would provide a ‘path to citizenship’ to individuals who entered the country illegally as children.

From the Associated Press:

President Barack Obama signed into law a huge, holiday-season tax bill extending cuts for all Americans on Friday, saluting a new spirit of political compromise as Republicans applauded and liberals seethed. The benefits range from tax cuts for millionaires and the middle class to longer-term help for the jobless.

The most significant tax legislation in nearly a decade will avert big increases that would have hit millions of people starting in two weeks on New Year’s Day. Declared Obama: “We are here with some good news for the American people this holiday season.”

“This is progress and that’s what they sent us here to achieve,” Obama said as a rare bipartisan assembly of lawmakers looked on at the White House.

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They touch our lives in so many ways, and now Reason.tv acknowledges those who tell us that if it looks good, tastes good, or feels good, it should be illegal.

Live (to tape) from the fourth floor of the Sepulveda Center in Los Angeles, California—it’s the 2010 Nanny of the Year Awards!

Over the past year, Reason.tv has recognized plenty of busybodies who relish minding other people’s business, but who deserves to succeed 2009’s winner (Meddlin’ Mike Bloomberg), and take home the 2010 Nanny?

Will it be the heartland mayor who sacked the Lingerie Football League? The Peach State pol who sued a man for growing vegetables in his own yard? A member of the food police?

Remember, it’s a dishonor just to be nominated. So get your awards season started off right, and tune in to the only black-tie ceremony that delivers busybodies, bikini babes, and bacon!

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Folks in need of cash often depend on a federal tax refund to help them through a tough time.  Prior to this year, they might go to a tax preparer like H&R Block to get their returns completed.  Since it might take several weeks to get a refund, H&R Block and many other tax preparation services would offer the client a loan against their federal tax refund.  A bank would fund that loan, because the bank would have the refund signed over to it, and IRS refunds are guaranteed by the Federal Government.

But now, President Obama’s Nanny State is quashing these loans, forcing those folks into more expensive options.

Refund Anticipation Loans (RALs) have APR’s of around 100%, meaning that a $2,000 refund might cost the client $100 while waiting three weeks or so for their refund.  Nanny Statists and ignorant consumer activist groups like the Consumer Federation of America decide that’s just too much to pay for a loan.

Because, after all, they need to decide for us.

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Teacher union leaders have been known to bark back when their strongest job protection – tenure – is referred to as a job for life.

“Despite current misconceptions tenure is not ‘given’ by the DOE. The only legal requirement for tenure is actually time; three years for teachers. After a three year period, within license, of being on payroll and the DOE has done nothing to stop the clock, you are automatically granted tenure,” Kaufman writes. “In fact you can be theoretically rated unsatisfactory for each of the three years and still get tenure if the DOE doesn’t fire you or cause you to extend your probation.”

Next week, the Federal Communications Commission (FCC) is anticipated to try to push through net neutrality regulations in the course of its December 21 meeting.  But as a letter released this week by thirty Republican senators makes clear, key members of the legislative branch are having none of it, and will force a confrontation on the Senate floor if the FCC proceeds.

In the letter, according to the Washington Examiner, Sens. John Ensign, R-Nev., Kay Bailey Hutchison, R-Texas, John McCain, R-Ariz., Kit Bond, R-Mo., Judd Gregg, R-N.H., Michael Enzi, R-Wyo., Mitch McConnell, R-Ky., Jim DeMint, R-S.C., James Risch, R-Idaho, Mike Johanns, R-Neb., John Thune, R-S.D., Saxby Chambliss, R-Ga., Roger Wicker, R-Miss., Lamar Alexander, R-Tenn., Robert Bennett, R-Utah, John Barrasso, R-Wyo., Mike Crapo, R-Idaho, Sam Brownback, R-Kansas, Jon Kyl, R-Ariz., John Cornyn, R-Texas, David Vitter, R-La., Orrin Hatch, R-Utah, Tom Coburn, R-Okla., Pat Roberts, R-Kansas, Johnny Isakson, R-Ga., Jim Bunning, R-Ky., Jim Inhofe, R-Okla., Richard Burr, R-N.C., and Chuck Grassley, R-Iowa, state that:

[The FCC has] admitted in published statements that the legal justification for imposing these new regulations is questionable and “has a serious risk of failure in court.” It is very clear that Congress has not granted the Commission the specific statutory authority to do what you are proposing. Whether and how the Internet should be regulated is something that America’s elected representatives in Congress, not the Commission, should determine.

Rep. Fred Upton, who is set to take over the chairmanship of the House Energy and Commerce Committee, which has jurisdiction where net neutrality is concerned, has already signaled his disapproval of the move in a letter to FCC Chairman Julius Genachowski, which reads in part:

The FCC does not have authority to regulate the Internet, and pursuing net neutrality through Title I or reclassification is wholly unacceptable. Our new majority will use rigorous oversight, hearings and legislation to fight the FCC’s overt power grab.

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I don’t really have a particular dog in the fight for RNC Chair. After twenty years in politics, I think well-run individual campaigns are more important to victory than the machinations of a national party organization. The RNC should mostly just raise lots of money, get out the vote and then…get out of the way. Its really kind of a political Hippocratic oath; first, do no harm…to the party’s brand or its candidates.

Still, I’ve been fascinated by Dan Riehl’s coverage of the race and, specifically, the problems swirling around the frontrunner (!?), Reince Priebus. Priebus is GOP Chair in Wisconsin and, along with about three dozen other state chairs, had a pretty good election cycle this November. (Of course, also along with three dozen other state chairs, he had a pretty disastrous cycle in 2008.) Until very recently, he was also on staff at the RNC, serving as General Counsel after steering Michael Steele into the Chairmanship.

On the side, it seems, he also used his legal skills and government and political contacts to secure federal stimulus money for clients. Redstate thinks there is nothing unusual in this, just another lawyer-helping-his-clients situation. Although, as Dan Riehl points out today, his work went quite a bit further than simply advising clients on the stimulus’ impact. And keep in mind, Priebus was the state GOP Chair at this exact time. At the very least, that obvious conflict sets up some pretty funny juxtapositions.

On March 5, 2009, Priebus co-authored a client alert heralding the awarding of $500 million to Wisconsin and noted:

The $529 million in stimulus funds allocated for Wisconsin state and local transportation projects is likely to result in increased opportunities for Wisconsin road, bridge and other transportation contractors, subcontractors and suppliers.

Of course, a little less than a year later he told this to the Stevens Point Journal:

“The stimulus, the jobs bill, all of them — they all create a very small amount of government jobs, but they cost us our future,” Priebus said. “We get very little in return for the massive amount of money that we’re putting toward these government programs.”

I doubt the media would ever do anything with those two quotes. Doubtless, they will also overlook this quote from a pitch also co-authored by Priebus:

If you are interested in learning about other provisions included in The Act, the Michael Best Stimulus and Economic Recovery Team is prepared to assist you in understanding the implications and in developing and implementing a strategy to secure the benefits of this unprecedented legislation. Specifically, we will assist you to identify opportunities, prepare appropriate proposals and make targeted contacts to secure funds.

Well, isn’t that precious.

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss what the dead $1.1 Trillion Omnibus spending bill means for small businesses, and what really started the financial crisis.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Democrats drop funding fight, opt for short-term deal
Political Rashomon on Financial Crisis Panel
Financial Crisis Primer: Questions and Answers on the Causes of the Financial Crisis
Why Our Statement Is Not a Dissent or a GOP Report
Financial Crisis Primer

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There’s a lot of attention being paid to yesterday’s landslide vote in the House to prevent a big tax increase next year. If you’re a glass-half-full optimist, you will be celebrating the good news for taxpayers. If you’re a glass-half empty pessimist, you will be angry because the bill also contains provisions to increase the burden of government spending as well as some utterly corrupt tax loopholes added to the legislation so politicians could get campaign cash from special interest groups.

If you want some unambiguously good news, however, ignore the tax deal and celebrate the fact that Senator Harry Reid had to give up his attempt to enact a pork-filled, $1 trillion-plus spending bill. This “omnibus appropriation” not only had an enormous price tag, it also contained about 6,500 earmarks. As I explained in the New York Post yesterday, earmarks are “…special provisions inserted on behalf of lobbyists to benefit special interests. The lobbyists get big fees, the interest groups get handouts and the politicians get rewarded with contributions from both. It’s a win-win-win for everyone — except the taxpayers who finance this carousel of corruption.”

This sleazy process traditionally has enjoyed bipartisan support, and many Republican Senators initially were planning to support the legislation notwithstanding the voter revolt last month. But the insiders in Washington underestimated voter anger at bloated and wasteful government. Thanks to talk radio, the Internet (including sites like this one), and a handful of honest lawmakers, Reid’s corrupt legislation suddenly became toxic.

The resulting protests convinced GOPers, even the big spenders from the Appropriations Committee, that they could no longer play the old game of swapping earmarks for campaign cash. This is a remarkable development and a huge victory for the Tea Party movement. Here’s part of the Washington Post report on this cheerful development.

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As we are about to enter year 5 of this ‘Great Recession’, I have been trying to remember how things were before 2007 and over the last few years, take an inventory of what I have seen and heard in my daily and professional life. Pearl Buck famously said, “If you want to understand today, you have to search yesterday.”

So, here is what I’ve found:

Surprisingly, it seems that almost everywhere I look jobs are being offered. ‘Help Wanted’ signs are creeping up both in store fronts and on internet websites. If you know where to look and you have the skills needed for this new economy, there is a job for the taking. I don’t know if unemployment checks are keeping potential workers at home, but there are opportunities out there.

Construction has been virtually nonexistent, while remodeling is certainly in vogue. Just about the only place I see construction anymore, is in very close proximity to one of those American Recovery and Reinvestment Act signs. Infrastructure spending has been the lifeblood of this industry but that can’t continue indefinitely.
What about the consumer? When the market tanked in 2007 and a lot of folks began losing their homes, jobs, and investment accounts, something happened to the American consumer: they stopped spending on things they didn’t need and they started to save.

People are now more conscious than ever about saving money. Clients in my CPA office generally say one of two things to me (or both): How can I make my money work harder for me and how can I keep more of my paycheck every month? I’ve heard these questions a lot over the years, and in good times it was followed with, ‘…because I want to buy a boat/vacation home/etc’. Now, people simply want to keep their homes and hopefully put their kids through college.

Is this a welcome development for the consumer-driven America? Not likely, but it probably should be. Last week I talked about how the Fed is hoping to use propaganda to trick Americans into spending more money in hopes that it will stimulate the economy.

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On Wednesday, I wrote about the Reince Priebus stimulus problem.  Yesterday, Redstate, which usually hunts RINOs, decided to carve out some of its valuable real estate to defend Priebus with an overly nuanced post. I wouldn’t exactly call it a glowing endorsement. Heh!

I should note at the outset of this post that I do not have very strong feelings one way or the other about Reince Priebus, who is currently seeking to replace Michael Steele as RNC chairman … Priebus may yet be found to be unsuitable for the job for any number of reasons, but this is not one of them.

But, besides that, it’s purely lawyer-esque and totally off the mark. Reince (Evidently Not Ready for Prime-Time) Priebus started the real furor when he immediately melted-down and had his law firm start scrubbing the website, despite the many screencaps. Are you serious? So much for his crisis management skills. I mean, really?

If there was nothing wrong, why try to hide it? Also, the argument that his firm was simply doing its lawyer-ly duty doesn’t wash. This was about client solicitation. As a partner and high-powered political player, Priebus’ name was listed as key contact and co-author on multiple Stimulus-related documents for a reason. Come on, guys. You have to do better than this, or find non-damaging ambulances to chase. Can you say, profiteering? I knew that you could!

So, what’s Priebus going to do when he next mis-speaks three times, calling for Obama’s execution, to earn Worst Person in the World honors from that idiot, Olbermann? Get Keif to scrub his show archives? Fast-forward to 2 minutes into this video for the audio. This is the guy to replace Steele if you think he’s gaffe prone?

Really?? Oh, okay. As I said on Twitter, Obama in 2012 looks better every time some prominent Republican starts making news.

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The Food and Drug Administration’s (FDA) announced yesterday that it would ration the late-stage cancer drug Avastin for breast cancer patients. (Ironically, the same day, the EU announced it would not ration access to Avastin.)  The reaction to the FDA’s decision has been fierce:

Rep. Kay Granger:  “For the 17,500 women across the country who rely on Avastin to survive, I am extremely disappointed the FDA has chosen to take away one of the very few options for the treatment of late-stage breast cancer. To make matters worse, this announcement comes on the same day that European drug regulators approved the continued use of Avastin for women with late-stage breast cancer.  It is troubling that women in Germany and France will soon have access to a life-saving drug, while women in the U.S. will not. I will continue to work in the 112th Congress to ensure doctors and patients continue to have access to every available treatment option.”

Rep. Rodney Alexander:  “As expected, the Obama administration has begun its process of rationing health care with its announcement to remove Avastin from the market for women suffering from metastatic breast cancer. Today’s decision to limit women’s access to a lifesaving treatment is amiss, and indicative of the frightful direction our health care system is headed.

 For the government to deny access to such a viable treatment is a severe intrusion into personal health care decisions that should be left between the patient and the doctor. Given that this drug helps over 17,000 patients manage their disease, it appears this move is merely based on cost cutting and rationing rather than on any real medical grounds.  Avastin has extended the lives of thousands of individuals suffering from this devastating disease. Going forward, they will no longer be afforded that opportunity. This decision represents the first major example of things to come if components of the recent health care overhaul are allowed to continue. I will work with others in the incoming majority to restore the fundamentals of the U.S. health care system.”

Susan B. Komen Foundation for a Cure:  Komen for the Cure’s president, Elizabeth Thompson said that the organization is concerned about the potential impact on women who are benefitting from Avastin if the FDA ultimately removes its approval for the drug for breast cancer treatment. “We want to be sure that women who are using Avastin, and for whom it is working, can continue to have access to it, that their insurers will continue to pay for it and that the drug’s manufacturer, Genentech/Roche, continues making the drug available to women through its patient support programs and considers an expanded access program.”

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Today:

In 1973, Palestinians killed 30 people in the Rome airport

In 1981, an American general is kidnapped by the Red Brigade in Italy

In 1983, the IRA bombed Harrods in London, killing 6 people

Happy Holidays!

For those keeping score at home, the Democrats have pulled the tax-cut extension and still have no idea how to complete a budget. They’ve punted on a number of issues that they claimed were big priorities for them. So…what to do?

Oh yeah, throw a big party!!

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Judge Henry Hudson’s recent decision in Virginia v. Sebelius rejected the notion that Obamacare’s individual mandate is constitutionally justified as either a regulation of interstate commerce or a tax for the general welfare.

First we will examine the individual mandate as a regulation of interstate commerce, but some basic background of Commerce Clause jurisprudence is in order.  In Perez v. United States (1971), the Supreme Court outlined three kinds of commerce for which Congress could regulate: (1) channels, (2) instrumentalities, and (3) activities which substantially affect interstate commerce.  If you have not seen these terms within the confines of the Constitution it is because they do not appear.  However, this understanding of the commerce clause has been drilled into the minds of attorneys for the last 40 years.  Frankly, Commerce Clause jurisprudence needs a re-examination, regardless of the health care issue.

A century of questionable precedents guides the courts.  One of the most egregious examples of government overreach occurred in Wickard v. Filburn (1942).  A farmer that grew more than his government mandated allotment of wheat, for personal use, was deemed to have substantially affected interstate commerce.  Interestingly, a similar case came up in 2005 involving (pay attention liberals) cultivation of marijuana for personal use in California, and in compliance with state law.  In Gonzalez v. Raich (2005), Justice Clarence Thomas dissented from an opinion confirming the federal government’s regulatory power over personal cultivation and use (yes, you read that correctly).  He rather presciently penned this statement:

If Congress can regulate this under the Commerce Clause, then it can regulate virtually anything – and the Federal Government is no longer one of limited and enumerated powers.

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A newly released economic impact study finds that the Environmental Protection Agency’s “Tailoring Rule” – a back-door Cap-and-Trade style regulation scheme that limits the greenhouse gases industries can emit – jeopardizes over 130 renewable energy projects, between 11,000 and 26,000 green jobs, and $18 billion in capital investment across the country.

Worse, that is just the Tailoring Rule’s effect on a single industry, biomass. Although biomass is generally considered a carbon neutral and renewable energy resource, the EPA included in it’s list of “most wanted” industries. The economies and renewable energy goals of nearly 30 states could be jeopardized.

The study is neatly summarized here on the National Alliance of Forest Owners’ website, along with comments from people central to the industry. The full study is posted below.

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Featured (in order of appearance):

Andy Levy, Fox News’ Red Eye with Greg Gutfeld Gov. Gary Johnson, Our America Initiative

Roger Stone, Political Strategist, Blogger, The StoneZone

John Stagliano, Evil Angel Productions

Cyan Banister, CEO, Zivity.com

Robert Corn-Revere, Davis Wright Tremaine

Kevin D. Williamson, Deputy Managing Editor, National Review

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