As usual, the left is wondering whether corporations pay their “fair share.”  This time, it seems they may have a point.  As Time magazine reported yesterday, a recent Wall Street Journal study of Congressional Budget Office statistics showed that American corporations paid an effective tax rate of 12.1% last year.  That’s the lowest number in four decades, despite a nominal tax rate that runs 35%, second only to Japan’s 39.5%; if you include state corporate taxes, America is now number one in the world.

So why the low effective tax rate?  According to both the Journal and Time, it’s due to a corporate tax break set into the stimulus package, which allowed corporations to use an accounting trick: they could take write-offs on capital investments all at once rather than over time.  Typically, you take a tax write-off as the value of a good depreciates – if you buy a computer, it loses value over time, and you write that in your tax returns.  Under the stimulus package, you were allowed to basically write off the whole purchase.  The result was huge write-offs for corporations.

Now, normally, this wouldn’t be a bad thing.

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The Communist Party USA/Democratic Socialists of America aligned Congressional Progressive Caucusis pushing a huge government jobs bill.

Reps Grijalva and Ellison at the Capitol press conference

“Responding directly to national demand for a massive jobs program”, members of the Congressional Progressive Caucus, December 13, 2011, introduced the Restore the American Dream for the 99 Percent Act into the House of Representatives.

The bill would create more than 4 million jobs and reduce the deficit by more than $2 trillion over the next 10 years, making it the biggest government effort thus far to marshal the resources needed to address the economic crisis.

While no one expects the bill to pass in the Republican-controlled House, the left views the Bill as a blueprint of what must be done by the Obama Administration must do hold “progressive” support in 2012. The socialist wish list is all there, from the Works Progress Administration like works schemes, so successfully colonized by the communists in the ’30s, trade protectionism, tax increases, a financial transactions tax, to massive increases in government intrusion into health and education.

This “jobs” bill even calls for “eliminating unneeded weapons systems” and the reduction by half of US forces in Europe. No doubt the Communist Party’s old allies in Russia will be very happy about this one.

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LANGUAGE WARNING – Dozens of Occupy DC protesters were arrested on K Street in Washington D.C. today for obstruction of a public highway. When we at MRCTV arrived, police began the process of arresting the participants.

However, while the protesters were lying in the streets, blocking traffic, and refusing to move, one Occupy participant warned them to move because they did not have the money to bail them out. We interviewed him while the arrests were underway and he told us they were not instructed to be arrested at that given time. The protester insinuates, like other videos have shown, arrests from the Occupy movements are staged as theatrics to draw attention to the group- which one attendee told us off camera.

Officer Hugh Carew from the D.C. Metropolitan Police Department told MRCTV that 62 people have been arrested. Of the 62, the public affairs official stated 61 were for obstruction of a public highway. He was unsure about the last arrest.

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It could almost make your head spin. With an economy on the front end of another recession, President Obama’s tax attack on the folks who are most likely to succeed, invest, start new businesses, and create jobs is nothing short of staggering. Only liberal-left class-warfare ideology can explain this.

In his speech on Monday, Obama laid out $1.5 trillion in tax hikes over ten years, aimed almost entirely at America’s well-to-do. This includes $800 billion from rolling back the top rates in the Bush tax-cut plan, $470 some-odd billion to reduce itemized deductions for upper-bracket payers, and — oh yes — a millionaire’s tax called the “Buffett Rule.”

Pause a moment on the Buffett Rule. Almost all of Warren Buffett’s income comes from capital gains taxed at 15 percent. He only pays himself $100,000 a year, which would be taxed at the top rate. Most of his wealth is untaxed as unrealized capital gains. So his effective income-tax rate is lower than his secretary’s.

So what?

The vast majority of millionaires pay a 35 percent current tax rate on personal income from salaries, bonuses, and small-business income. Their effective tax rate is around 30 percent, much higher than the roughly 20 percent effective rate for the so-called middle class (depending, of course, on how you define the middle class).

Remember that the top 1 percent of income-tax payers shoulders 40 percent of all income taxes. They are paying their fair share. Then remember that 50 percent of income-tax filers don’t pay any income tax at all.

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Can you hear that great sucking sound? It’s the sound of government shrinking around the world, as Portugal just joined Greece, Ireland and soon many others in acknowledging they are bankrupt and asking their European brethren for a bail-out. What is frightening to the big government advocates is this collapse was caused by a doubling of Portugal’s borrowing costs in just three weeks. The klaxon horns are going off in Europe and America; cut deficit spending or be destroyed by rising interest rates.

Over the last two decades, governments in Europe and the United States have been massively using taxpayer subsidies to sponsor favoured industries, under the smoke screen of National Industrial Policy. The theory, developed by Harvard economist and former Secretary of Labor in the Clinton Administration, Robert Reich, stated that governments must “deliberately and strategically” speed the movement of capital and labor into “higher-valued production” or suffer social decline; with infant mortality rates rising and employment and life expectancy falling. Reich championed National Industrial Policy planners would more efficiently allocate capital and labor resources to satisfy consumer demand than large corporations who inefficiently use marketing to bend customer demand to their needs. He claimed it was the duty of government to induce through direct subsidies and worker retraining grants uncompetitive companies to scrap production and steer investment in industries of the future.

Europe adopted National Industrial Policy through the introduction of the Euro currency and banking deregulation. Southern European countries like Portugal, Italy, Greece and Spain got low-interest German and French bank loans to scrap supposedly uncompetitive local manufacturing and “cushion” the transition of workers into leisure services and retirement housing development. Germany and France got elimination of competition and export growth to Southern Europe. Europeans were ecstatic for 15 years; the South had a real estate and banking boom, the North had a manufacturing and banking boom.

The U.S. adopted a National Industrial Policy during the Clinton Administration in 1999 by tying bank deregulation to a colossal expansion of the Community Reinvestment Act. The big banks got unlimited ability for multi-state banking and abolition of the 1933 Glass–Steagall Act prohibitions against banks engaging in high risk securities and derivative trading for their own accounts. Planners got huge quota requirements for loans to inter-city and rural communities. President Clinton hailed that the signing of the Gramm-Leach-Bliley Act “establishes the principles that, as we expand the powers of banks, we will expand the reach of the [Community Reinvestment] Act”.

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