Taxes are Killing the Economy
The Stock Market has rallied since March 10. Is this a short term improvement in a Bear Market? Unless we see some positive progress in the real economy, the stock market cannot sustain the upward movement. The economy is lousy with construction at a low and many small businesses recording their worst year ever in 2008 continuing into 2009. One major reason the economy remains stalled is taxes are rising rapidly in individual states and the federal government to support government spending like drunken sailors. Amid all of the bailouts, the backstops, the guarantees, and the ongoing promises of aid, we are seeing a dramatic decline in federal and state government revenue (because of the bad economy). It is just worrisome to see more and more promises from the government against the backdrop of such a weakening economy! When will people learn that if you tax something you get less of it and if you subsidize something you get more of it? Let’s stop more taxes on income and growth and let’s stop subsidizing problem banks!