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Posts Tagged ‘Kent Conrad’

Actually, the answer is all of the above.

He pontificates about debt, but he voted for the fake stimulus and budget-busting Obamacare legislation.

He’s a preening self-styled deficit hawk, but the nation’s four largest deficits have occurred since he became Chairman of the Senate Budget Committee.

As Chairman of the Budget Committee, with a bloated staff and a budget of millions of dollars, his only responsibility – under law – is to produce a budget resolution every year, yet it’s now been more than 800 days since he’s bothered to fulfill this obligation.

You may be asking why I’m going after Senator Conrad. Is it because I’m upset that he has played a key role in tricking some gullible Republicans into supporting tax increases, based on a laughably vague set of talking points?

Sure, that galls me, but I’m used to Republicans engaging in self-immolation. I can’t really get too upset with Conrad for taking advantage of GOP naiveté.

What irks me is that this buffoon went to the Senate floor last night to make an impassioned plea for higher taxes. But rather than honestly say that he wants to take more of our money, he demagogued about a building in the Cayman Islands.

According to our financial-wizard friend from North Dakota, there is something inherently criminal about this structure (offices of a top-flight international law firm) because it is the home of more than 18,000 companies.

Here’s an image I captured from one of Conrad’s earlier speeches, where he made the same accusation.

So why am I irritated about his speech? Is it because Senator Conrad lied about the number of companies at Ugland House? No, the Senator is correct (unlike Obama, who demagogued about the same building during the 2008 campaign, but said there were 12,000 companies).

What bothers me is that Conrad presumably is educated enough to understand that he is being disingenuous. While he’s been sucking on the public teat his entire life, surely he knows that a company’s home is merely the place where it is chartered for legal purposes. A firm’s legal domicile has nothing to do with where it does business or where it is headquartered.

But just to make things clear, here’s a picture of another building. This building is smaller than Ugland House, yet it is the home of more than 200,000 companies.

So why isn’t the empty suit from North Dakota attacking this building? Maybe we should ask the Vice President. After all, this building is in Wilmington, Delaware.

The moral of the story is that companies like to make their legal homes in jurisdictions that have honest courts, sensibly light levels or red tape, and business-friendly reputations. The Cayman Islands is such a place, as is Delaware.

To Kent Conrad, that’s de facto evidence of criminal activity. To normal and honest people, that’s evidence that good policy generates more economic activity.

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Legislation being considered on Capitol Hill would create a supposed deficit reduction commission. If politicians were bound by truth-in-advertising, this proposal would be called a tax increase commission. It creates a mechanism that will – at best – replicate the 1982 and 1990 budget summits, both of which were fiscal disasters from the perspective of those who favor limited government. The inevitable result of a “bipartisan” process is a 50/50 deal of “spending cuts” and “tax increases,” but the spending cuts are off the “baseline” (which assumes spending goes up), so even if the changes are real (and they rarely are), they are merely reductions in increases. The tax increases, meanwhile, are real and come on top of all the revenue growth built into current law. Moreover, many of the so-called spending cuts are actually increases in revenue (the “offsetting receipts” charade). Last but not least, this legislation is a stalking horse for VAT (that’s what all the talk about an “antiquated” tax system that needs to be “modernized” is all about). What’s remarkable about this proposal is how Democrats are almost transparent in their desire to lure Republicans into committing political suicide. As demonstrated by the 1982 and 1990 budget deals, everything is examined through the prism of distribution tables once a budget summit or commission commences and the GOP inevitably comes across as the bad guys who try to protect the rich at the expense of the poor. Of course, if Republicans are really stupid enough to travel down this path, they’ll deserve exactly what happens. But some people in Washington are aware that the proposed commission is a recipe for a major tax hike. The Financial Times cites Cato’s Chris Edwards in its report:

The push for a bipartisan commission to deal with the fiscal challenges facing the US gained momentum on Wednesday as 27 senators sponsored revised legislation that would create such a task force. The bill, introduced by Democrat Kent Conrad and Republican Judd Gregg, both fiscal hawks, would charge an 18-member group of serving legislators and administration officials with coming up with a plan to solve what they called “the nation’s long-term fiscal imbalance”. …In a sign that the concept of such a commission is gaining ground politically, anti-tax activists immediately attacked the proposal, saying it would lead to tax increases. Grover Norquist, head of Americans for Tax Reform, published an open letter saying the “commission is unacceptable from a taxpayer perspective” because “it would lead to a guaranteed tax increase”. …Chris Edwards, director of tax policy at the small-government Cato Institute, said a commission was likely to put too much emphasis on tax increases when “long-term projections reveal a spending catastrophe, not a revenue challenge”.

One final comment. It is utterly absurd to categorize Senator Kent Conrad as a fisal hawk. This term supposedly suggests a member who actively pursues deficit reduction. Yet according to the vote rating of the National Taxpayers Union, Conrad’s most recent rating is an F. Which is the same grade he got the previous year, and the year before that, and the year before that. Indeed, Conrad “earned” failing grades in 14 out of 17 years, and got a D in the other three years.

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