To The Daily Sun,
The United States used to be the home of manufacturing, innovation and technology. The best universities were here, the most patents, trademarks and copyrights came from America. Attainments in university education, basic research and intellectual property in America are now slightly less than on par with those of the EU ... and China is gaining ground. Something has changed and it is time to wake up and smell the coffee.
America has driven much manufacturing from our shores. We were sold the idea that the next thing coming was intellectual property, where we would lead the way ... so we did not need all that dirty manufacturing. Well, intellectual property does drive economic growth. But it drives economic growth only to the extent that business can use it to create value-added products. That means being brilliant is wonderful, but if you don't build something others will buy because it saves them time, makes life easier or better, or allows them to make more money ... you are brilliant but you are also very, very hungry.
One factor that is important to business's ability to drive productivity through innovation is a low corporate tax rate. In Europe the corporate tax rate is about 21 percent compared to about 40 percent in the United States. And then there's New Hampshire, where the governor has vetoed the state budget because even though the corporate tax burden is well in excess of the national average, she believes it is only fair to have that much or more taxation on business because ...
Want to know why the population of those under 18 in New Hampshire declined 5 percent last year? Want to know why the working age population in New Hampshire declined 1 percent last year? Here's a clue. If there aren't enough good-paying jobs to attract and retain people good people ... the population is going to go down. It is a basic rule of economies everywhere. People like to eat, they like nice homes, vacations, benefits and comfortable thoughts about their children's futures.
You know what happens when the population goes down? There is less spending, and tax revenues go down. If you just keep raising the tax rate to keep government revenues level or rising what happens is you continue driving away more businesses and you prevent new businesses from starting or coming here ... which continues the downward population spiral. And we elected this economic Bozo to be the chief executive of the state. Maggie Hassan a the perfect illustration of the Peter Principle.
- Category: Letters
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