Wednesday, December 8, 2010

How Is Unemployment A Tax Uncertainty Problem?

I really don't understand how Larry Kudlow's brain functions.  He knows full well that businesses had record profits overall last quarter according to the Commerce Department and productivity numbers were up, but he's still claiming "tax uncertainty" is keeping businesses from hiring.

This is the nineteenth straight month with unemployment above 9 percent.

Now, after the severe financial panic of two years ago, it seems clear that too many tax and regulatory obstacles are blocking satisfactory job creation. And it also seems clear that a number of fresh new incentives will be necessary to spur the kind of prosperity that Americans desire. Following the deep recession, we need shock-therapy, pro-growth, tax-cut and deregulatory incentives. 

Post-election, is the Washington war on business really over? Has the war on successful earners and investors truly ended? Is the class war against capital still being waged by the White House? 

Will Obama bring senior business people into his inner circle? Are we going to get pro-growth tax reform for individuals and corporations? Are we truly going to limit government spending in order to reduce the onerous budget deficit? Is King Dollar currency stability on the table? 

These are all key questions for the economy’s future and the murky unemployment outlook. 

First of all with businesses making record profits, they are finally starting to hire again.  Job openings are up sharply this month. So maybe it's not so dire for employers as everyone thinks.

Second of all, I'm assuming Kudlow hates the new tax cut deal because it's going to add some $900 billion to the national debt, right?  It's got everything he wants, estate tax capitulation, a payroll tax cut for workers, business tax cuts and extensions, and the Bush tax cuts for the wealthy...but it's going to blow a hole in the deficit, which Kudlow warns us will kill King Dollar.

So Larry, do you like this deal or not?

1 comment:

Lowkey said...

So Larry, do you like this deal or not?

Larry likes not having to publicly state that he's either for something the President is trying to do, or against a tax cut package.

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