Commentary

Obama Gets It In Africa

This is pretty stunning. GMU Professor Bourdreaux, always good for a letter to the editor, wrote Tuesday to The Washington Post:

Seeking to encourage African governments to embrace institutions that promote economic growth, President Obama said yesterday in Accra that “No business wants to invest in a place where the government skims 20 percent off the top” (“Text of Obama’s speech in Ghana,” July 11).

He’s absolutely correct. So I trust that he’ll offer the same advice to the U.S. Congress, for this body taxes every dollar of corporate income above $50,000 at a rate of 25 percent – and raises this rate to 39 percent on corporate incomes between $100,000 and $335,000. The average tax rate on corporate incomes higher than $335,000 is greater than 35 percent.

Surely Mr. Obama’s understanding of the destructiveness of government confiscation ought not be lost on Rep. Pelosi, Sen. Reid, and Co.

Pretty simple concept to understand.