28% Corporate Tax Rate, Republicans, Obama

The base corporate tax rate in the US is 35% with most companies paying an effective rate of 1.3% in 2011.

The republican nominees and the President are both proposing a move to 28% and all have said it will, of course, not add to the deficit (which is the issue of our time).

I hope some of the proposals come with some actual substance, ie.  what types of corporate subsidies or tax loop holes will be cut in lieu of the new 28% deal.

My guess none will be forthcoming and of course, neither side will allow the other to pass this legislation through congress so its an election year promise that no future President will ever have to deliver.


Higher Gas Prices Is Great News

Most people understand the relationship between oil prices and gas prices.  As oil increases in price, so does gas which is refined oil.  Sometimes a convenient refinery shutdown will temporarily increase prices even further.

What most people do not understand is that higher gas prices is great news.  

Demand for the commodity that is oil goes up when the economy is doing better and vice versa.

Understand, when the economy good, oil demand goes up and so do gas prices.

I heard some ridiculous conservative talk show guy mention that President Obama doesn't get it when he mentions that increase in gas prices is actually good news for the economy.

Its idiots like that buffoon who don't get it or probably do but would just rather find something negative to say about the President or the economy when things are indeed turning around and getting better.


Mortgage Settlement Deal with Banks

Well it looks like the banks, the feds and the states have all come out with a mortgage settlement to the tune of $26 Billion.

This is a good deal for most.  It's good for the banks because this mess is largely behind them now and $5 Billion for a big bank (the settlement was with five banks) is a rounding error and in my opinion, the banks weren't to blame for people taking out loans they couldn't afford but they were complicit.

This is a good deal for President Obama as well as he has promised to do something for homeowners.

Ultimately, this may help the economy as well since mortgage principle reduction is part of the deal as well as probably allowing banks the freedom now to refinance more mortgages which ultimately ends up as spent money in the economy.