Wednesday, September 03, 2008

More On Why Obama Ain't Selling

We recently had the pleasure(?) of an Obama "Town Hall" meeting here in Martinsville. It was widely billed as an event whereby those "most affected by the failed Bush policies" could express their needs to the one presidential candidate willing to listen to their plight. Never mind that most of those attending were the local Democratic party elite, let's stick with the subject for now. (Besides, I'll soon publish video of the local NAACP president's take on the event. He's angry that it was reserved for the Democratic elite.)

Let's start with the way the event was billed. A quote from the Martinsville Bulletin sums it up nicely.
Obama will meet with local workers and families “who have been impacted by the failed trade policies of the Bush administration,” a release from his campaign Saturday stated.

“Look at communities across Virginia and it is hard to see another one that has been as dramatically impacted” by economic problems, said Kevin Griffis, a spokesperson for Obama’s campaign in the state.

Obama will hold a town hall-type meeting with displaced workers and their families. The meeting’s location will not be released publicly because attendance will be by invitation only, Griffis said.

He said community leaders and local Obama campaign officials will identify people who will be invited to the meeting.
Most, if not all, of the job losses in Martinsville and Henry County stem from NAFTA, a Bill Clinton legacy, not a Bush policy. As I said in my previous piece, Obama's tax policies will only exacerbate the problem, not help alleviate it.

Probably the single most salient point to consider is that NAFTA made it more economical for business to flee the high corporate tax rates currently imposed on America's job engine, business.

What will a President Obama do to stop the flow of jobs offshore? He has told us. He will increase corporate tax rates. He'll punish those greedy suckers for making money here in America and redistribute that money to those less fortunate. He fails to remind you though that America's corporate tax rate of 35% is already second highest of all industrialized countries. Increase it another notch and just watch the jobs flee offshore.

Who pays corporate taxes? We all do. Corporate taxes are a cost of doing business, just like the light and phone bill and the cost of labor. Those costs are incorporated into the cost of every product. So unless you buy groceries, or clothes, or cars, or furniture, or are an employee, you do not contribute to the payment of those corporate taxes.

John McCain has a plan though that will increase employment. A plan that may bring some of those jobs back to our shores. A plan that makes sense, rather than makes "feel good".

First, let's look at McCain's plan to create jobs, or bring old ones back. He'll reduce that onerous corporate tax rate -- the one we all pay, remember? -- to a rate that is more competitive in the world marketplace. A rate that will encourage businesses to stay here, or others to come back. He will also work against higher tax rates on small business income. Income that is currently taxed at an individual rate. The result will be an expansion of small businesses, America's real jobs engine.

For those jobs that stay here, or new jobs created, he also has a plan that will increase real wages. McCain's plan calls for incentives designed to increase productivity. Higher productivity equals higher wages. He will make it easier and more advantageous to develop and apply new technology by expanding the existing tax credit for research and development, and make it permanent.

Finally, in direct opposition to Obama, McCain will stimulate saving by keeping tax rates low on earnings from saving in the form of dividends and capital gains. More savings also equals more investment in business and an increase in productivity. McCain has also promised to enhance the incentive to save by reducing the maximum estate tax rate.

Obama has "feel good", "tax them and give the money to us" plans. John McCain has a plan that makes sense. A plan that will keep America strong. A plan that will raise all boats, as long as those in the boat are willing to bail the stagnant water that is now in the bilge.

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