by | ECONOMY, TAXES
The WSJ is reporting this evening that Congress has decided to delay voting on the status of the Bush tax cuts until after the election. While they lay the blame on Republicans, the truth is that the Democrats are running scared in the late stages of election season and incumbents don’t want their vote to go on record.
This further impacts Americans and small businesses who will have to wait to know how their taxes will be affected next year.
Mark Zandi, chief economist of Moody’s Analytics, wrote last week. “The uncertainty of not knowing what tax rates will be just a few months from now is adding to the collective nervousness.” He called the impact on business decision-making, especially hiring, “discernible”.
The Democrats have proven yet again that they are willing to sell out the wealth and health of our nation’s economy for a few Congressional seats.
http://online.wsj.com/article/SB10001424052748703384204575509793142421332.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
by | ECONOMY
In a report over at Bloomburg, Jim Tisch gets right to the heart of spending. He surmises:
[E]conomic growth will remain sluggish in part because executives lack confidence in the Obama administration’s policies….President Barack Obama’s health care reform, financial regulation and moratorium on offshore drilling are keeping businesses from spending money to expand….“The thing that business people don’t like is uncertainty. Part of the problem is that business has very little confidence in what’s been going on and very little visibility.”
I’ve been constantly saying that consumptive spending is not enough to have any real stimulus effect; it is investment spending that will make any noticeable difference. But businesses are plagued by a precarious economy, and therefore are choosing to hold off on projects and expansion that would normally pump revenue into the economy. As a result, the growth and recovery that we need is inert.
http://www.crainsnewyork.com/article/20100826/FREE/100829836#
