How "Free Trade" Has Led Foreign Co.'s to Own and Control 1/4 of the U.S.A.

I am shocked to see the author of the article blaming free trade, NAFTA and WTO for the US trade deficit falling off the cliff. Imagine the US have no free trade, did not join NAFTA and WTO for the last three decades but still need to fight two wars and still wanted to chase the american dreams. Where does the US get all the money? Borrow? Printing? Can't sell a lot of things to other countries as free trade is not welcomed.

Fair trade, Were Fair? they trade, the United States Looses A G A I N !!!!!!!!! .

NEXT...(Almost) FREE... AMERICAN COMPANY TAKEOVERS... Imagine the Chinese owning Bank of America!

Wanna Raise Taxes on the Rich?
Reduce the marginal tax burden on success.

By John Tamny

In an excellent column featuring just a few of the many silly predictions made by
mainstream economic thinkers of days past, Forbes's Rich Karlgaard noted the back-cover description of MIT economist Lester Thurow's 1980 book, The Zero-Sum Society: "the American economy will not solve its most trenchant problems — inflation, slow economic growth, the environment — until the political economy can support, in theory and in practice, the idea that certain members of society will have to bear the brunt of taxation and other government-sponsored economic actions."

Just as the U.S. was about to begin an almost uninterrupted economic expansion that continues to this day, by way of marginal tax cuts that stimulated the growth that licked inflation, Thurow proposed an economic plan that would have set growth back, reduced money demand, and made environmental projects less pressing (as they would have been difficult to introduce amidst sub-par growth). However, while his assumptions were proven wildly incorrect, economic history in a strange way has proven him right for the wrong reasons.

What Thurow misunderstood was a basic truth showing that the best way to raise taxes on the rich, or to get the rich to foot more of the federal government's spending, is to reduce the marginal tax burden on their success. In short, you raise taxes by cutting the marginal rate of taxation, not by increasing it.

Ahead of the Mellon tax cuts of the 1920s, a New York Times editorial put it this way: Treasury Secretary Mellon "wants in reality to get more money out of [the rich] than they are now paying. But he proposes to do it by making their rate of taxation lower."

The next few years greatly vindicated the assumptions made by the editorialists at the New York Times. While the percentage of federal taxes paid by earners in the $100,000-plus category was 28 percent in 1921, by 1928, when the top rate was 25 percent, the $100,000-and-over earners accounted for 61 percent of all federal tax receipts. Conversely, those who earned $10,000 and less saw their share of the federal tax burden decline from 22.5 percent to 4.5 percent. As the late Warren Brookes pointed out, the Mellon tax cuts that set the stage for the Roaring '20s were "the most 'progressive' in history."

Moving to the 1960s, President Lyndon Johnson pushed through tax cuts proposed by President Kennedy that lowered the top tax burden from 90 to 70 percent. Walter Heller (chairman of the Council of Economic Advisors under Kennedy) later admitted that the lower rate on top-earners similarly proved progressive when it came to the "rich" increasing their contribution to federal revenues.

When Thurow's book debuted, the top tax rate was 70 percent and the top 1 percent of earners delivered 15 percent of federal revenues. Fast forward twenty-seven years: With the top rate at 35 percent, the top 1 percent provide 34 percent of federal income-tax receipts.

The simple reality behind wealth creation is that it occurs when society's most
productive members are left to innovate as freely as possible from governmental
roadblocks to growth. With tax rates well down from their 20th century highs, there are far greater incentives today to attempt new ideas that lead to new products and higher paying jobs. On the inflation front, products and jobs, at the core, are money demand — which means growth-stimulating tax cuts are the single best antidote to inflationary pressures.

Thurow, alas, was wrong all over. However, he should be given his due for noting that improvements to society will only occur in an economic environment where the "rich" are paying far more than their fair share. It simply comes down to how they pay it. For one, high incomes rarely reveal themselves when the penalty for doing so is excessive expropriation. And the idea of increasing the tax revenues supplied by America's rich is incomplete absent the basic understanding that marginal tax cuts are the best way of achieving this goal.

— John Tamny is editor of RealClearMarkets. He can be reached at
jtamny@realclearmarkets.com.

Americans need to become:

1) more nationalistic - close all borders, drop NAFTA, stop all free trade agreements, encourage buy-American, criminalize foreign lobbies like AIPAC, stop immigration, impose heavy fines on those who employ illegal labor.

2) become less religious (it would be best if they outlawed religion altogether though they would never do that). Remove the connection between state and religion totally. No mention of "God" anywhere in official publications or speeches etc. Remove any special tax breaks for religious organizations. Remove school prayer and all symbols of religion from the government, and I don't mean only Christian religious symbols but any other, including Jewish symbols.

3) Make corporations illegal. Capitalism = communism for corporations. Because of the close connection between corporations and government, the tax system often ends up being a welfare system for corporations.

4) Get rid of the Fed Reserve and have currency that is backed by something of value and tangibility.

5) Get rid of laws that break the First Amendment: Hate Laws, Patriotic Act, MCA (no torture! - this is medieval! What the powerful used in the past to make those under them confess to things they had not done). Also never have laws that take away a person's Second Amendment's rights. The government should be 'afraid' of the people and be aware that insurrection is always a card that is on the table.

6) Health care. No universal health care system. This punishes the doctors. Why? Because they are forced to work in a framework of socialism when nobody else does except postal workers and public school teachers.

If you want to have socialism, it must be for everybody and for all areas of society and industry.

It is unfair to say for example the food growing system must be socialized but nothing else is. It enslaves the workers of the food-growing industry and makes them losers at the expense of everyone else.

Go for socialism totally or not at all.

Besides the less people see doctors and pop pills, the healthier they are.

Socialized medicine encourages people to abuse the medical system and overmedicate and enriches Big Pharma.

It also removes the rights of doctors to treat their patients as they see fit. At least if you have socialized medicine, put a cap on negligence payments. You can't have a capitalist system (litigation) operating within a socialist system. It is unfair to the medical professionals.

7) Never ever regulate the internet. Leave it as it is in its current state. No act of terrorism (or false flag attack) should change that. The internet is the people's only alternative to Big Media. It is the People's Media. The Great Influencer where ordinary people can have their voice heard. In this era of censorship where books are banned - yes this happens all the time - and where other forms of censorship are practised, the internet is the only avenue to have some degree of freedom of thought. The government has taken down many websites already they have thought 'subversive' (tax website, al Jazeera I think ...) and that is wrong.

We should not cower or delay at pushing Congress to implement Aggressive Tax Recovery Tactics to restore unpaid/underpaid taxes owed by the super wealthy and the "US" corporations back into the US Treeasury.
The suggestion that wealthy Americans will flee and withdraw their funds from the USA or Corporations to leave is a straw man. They enjoy the benefits and protections of the country but skillfully maneuver around the laws to cheat the US Treasury and not pay their fair share in taxes.
Folks this is no threat. It has already happened long ago thanks to international money managers, armies of accountants, tax shelter instruments and the fluidity of the international banking system oiled by the gears of NAFTA, CAFTA and the WTO. The "New World Order is Kings and pawns. The Kings are the Lee Raymonds and Bill Gates and many others. The pawns are the 99.9% of the world's citizens who have been taken unfairly advantage of and exploited.
There are over 600 "American" companies who have moved their headquarters to a Cayman Island mailbox. Problem solved NO taxes! Let the dumb Americans pick up the tab while they ride for free. These same corporation enjoy the prestige, credibilty and protection of the USA,including the military yet they have been cheating the country through exploiting tax loopholes and intentional avoidance of dues owed to society.
Congress occasionally allow "reimportation tax holidays" which rewards cheaters by allowing "smart money" to be reimported into the USA-at a lower tax rate-to keep the US economy from total collapse, yet the poor and middle class do their best to keep the economy afloat.
Wealthy individuals have opportunities and tools to scan the globe for tax havens to park their funds while exploiting the poor and uneducated and cheat Americans of their jobs.
This is the unpleasant Truth. To save America and Democracy and restore financial Justice for the huge majority of American citizens, Congress must act with vigor and strength and use all available means including freezing of assets, military intervention, extradition of corporate/overwealthy individuals to recover the stolen American money from all the corners of the globe.
If we ignore this and take the easy route of ignoring the problem, the United States will collapse under its own insolvency and debt.

To solve the collossal debt problem of the United States debt burden and prevent the USA from imploding, I propose the following emergency measures:
1:Congress must act immediately to increase income taxes. 100% tax on any salary over $1 million dollars is fair given the free ride that the wealthy have enjoyed at the expense of the middle and lower classes.If a minimum wage is fair,so is a maximum wage. No one needs or is worth more than $1 million per year. Hihj salaries drive inflation and hurt America.
2:100% estate tax on any estate after the first $1 million.This is a very generous allowance to families.
3:Nationalize the oil industry.Exxon/Mobil has been cheating the government for years.
http://ExxonSecrets.org
Nationalization is a just measure to compensate the US Treasury for Exxon's tax dodging/cheating strategies.
4: Immediately remove all troops from Afghanistan and Iraq. Foreign Military adventurism is a luxury we cannot afford.
5:Require Congress to balance the budget each and every year.
6:Institute a 99% tax on any revenue from illegal workers wiring money back to foreign nations.
7: Impose a 50% tariff on all/any Chinese goods until they unpeg the yuan.
8:Return to the Gold and Silver standards.
Currently, the US dollar is merely based on Trust. As trust in the US government declines, so does the value of the dollar. Currently the dollar has lost 33% against the Euro.
http://www.xe.com/ucc/
9:Listen to the economists, then follow the exact opposite plan. The same 6 figure economists that sold us NAFTA, CAFTA and WTO have been friving the USA to bankruptcy for corporate receivership.
10: Withdraw your money from banks and stocks. The market is headed for an inevitable crash. This may be the only warning you recieve.