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November 10, 2008 - Phil Hodgen

Swiss bankers cave in and rat out their customers

From the Washington Post.

While this may look like good news to the average Member of Congress, it is likely to have unfortunate future effects. Foreign investment into the U.S. will be deterred. You heard it here first.

Not that I need to be a big brain to figure this out. All I have to do is listen to my clients. People who choose to NOT put money into the U.S. because of tax policy. Note–they avoid U.S. investments because of the compliance and disclosure, NOT because of the tax itself.

And so investments don’t come to the U.S. It’s the job that wasn’t created. The factory that wasn’t built.

Smoot-Hawley. You can get there just as easily with bad tax policies. Tariffs are so 1930’s.

Which Members of Congress will have their names attached to a law passed in 2009 that is remembered in 2079 — and remembered in a bad way?? I don’t know who Messrs. Smoot and Hawley were, but I guarantee you they hadn’t taken Introduction to Macroeconomics. Nor, I suspect, have our current crop of geniuses.

UPDATE (because there’s no excuse to be lazy and uninformed while the interweb is open for business): Smoot-Hawley Tariff Act (Caution: Wikipedia).

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