Friday, May 15, 2009

Obama's big stick and corporate taxes

Obama's big stick

King Obama is an abusive ruthless dictator playing populist politics while destroying the nation. See below:

Executives and trade groups that praised Obama's outreach during his post-election transition period say they have felt less welcome since he took office in January. More troubling, they say, are his populist-tinged, sometimes acid critiques of certain sectors, including large companies that keep some profits overseas to reduce their U.S. tax burden.

If Obama doesn't want companies to keep money overseas to reduce their tax burden, then maybe he should cut marginal corporate tax rates here to a point that it would be more attractive for companies to bring money back to the US.

Rutgers University political scientist Ross Baker says Obama uses such pointed language to create an us-against-them dynamic in which he aligns himself with average Americans and depicts his opponents as selfish powers working just for themselves. Obama's targets, Baker says, usually are unsympathetic and faceless corporations or hedge funds.

"If you use inflammatory, populist language," Baker said in an interview, "it's best to use it on organizations or interests that aren't terribly popular."

"It's a negotiating ploy," he said. In the early stages of a presidency, he said, "you advance your cause very dramatically, even confrontationally."

The ploy can prove potent. On May 8, the final holdouts among Chrysler's creditors reluctantly agreed to accept far smaller repayments from a bankruptcy reorganization than they had first demanded. Obama's public rebukes had taken a toll, as had his hardball negotiations with all of Chrysler's lenders, unions, executives and other key players.

"The only point the president was making was that many creditors went the extra mile and kept Chrysler afloat," said David Axelrod, a top adviser to Obama. A handful of holdouts forced the bankruptcy, he said, "and it was important to explain that fact."

This is silliness. Creditors probably saw that they could get more by liquidating the company than keeping it afloat. Now the taxpayers have to pay bloated salaries to bad management and auto workers. Creditors are villainized for trying to rightfully recover their capital.

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