Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Small Business

U.S. Economy Adds Another 204,000 Jobs in April

This article appeared online at TheNewAmerican.com on Wednesday, May 2, 2018: 

The booming U.S. economy added another 204,000 jobs in April, down slightly from the (revised) 228,000 jobs it created in March, but still more than forecasters predicted. Those forecasters have consistently underestimated the health of the economy and their record remains unbroken. Economists polled by Econoday expected 190,000 new jobs in April.

This is the sixth straight month of job growth over 200,000 which continues to confound observers. “The labor market continues to maintain a steady pace of strong job growth with little sign of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

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New Unemployment Claims Drop Further, Beating Estimates

This article appeared online at TheNewAmerican.com on Friday, March 30, 2018: 

English: A map of the 12 districts of the Unit...

A map of the 12 districts of the United States Federal Reserve system.

New claims for unemployment insurance dropped last week to the lowest level in 45 years, according to the Department of Labor: “Seasonally adjusted initial claims [for unemployment insurance benefits were] 215,000, a decrease of 12,000 from the previous week’s level [which was revised downward].”

Once again the economy is beating forecasters, who expected new claims to come in at 230,000. Either way, the performance of the economy continues to astound Democrats increasingly worried about the midterms and delight Republicans who voted for tax cuts and tax reform.

The last time new claims were this low was in 1973, when the labor force was much smaller. In 1973, the U.S. labor force was 100 million; today it is more than 160 million. Translation: Unemployment claims are the lowest in U.S. history when compared to the workforce.

It gets better.

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The Coming Avalanche of Repatriated Dollars

This article appeared online at TheNewAmerican.com on Friday, January 19, 2018: 

English: Historical GDP per capita for the Uni...

This is an old chart of US GDP. Get ready for the next leg up

On Thursday The New American speculated about the impact of Apple’s repatriation of its overseas profit hoard of some $250 billion and where Apple intends to invest some of it. It raised questions about the $2.5 trillion in profits that is still held overseas by American companies unwilling to subject those profits to the United States’ outrageously high income tax rates.

With Apple’s decision, and the repatriation tax rate of just 15.5 percent in the new tax law, some of those questions can be addressed.

First,

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Minimum Wage Increases in 2018 Putting People Out of Work

This article was published by The McAlvany Intelligence Advisor on Wednesday, January 3, 2018: 

According to Mic, the left-wing internet and media company that caters to millennials, Seattle “is quickly becoming one of the most interesting cities in the country for political observers.” The city boasts having an avowed socialist on its city council and proved his influence through its $4.8 billion budget in 2014 that is “loaded with a number of initiatives that illustrate how Seattle is making strides toward becoming a testing ground for boldly progressive policies.”

That salute to Seattle’s progressivism was published in 2014, and little has changed in the city council’s ideology. It now boasts a minimum wage of $15.45 an hour, with predictable effects: total wages paid to lower-income people has gone down, not up. A study just released by the National Bureau of Economic Research (NBER) explained:

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The GOP Tax Reform Bill Now Ready for Trump’s Signature

This article appeared online at TheNewAmerican.com on Thursday, December 21, 2017:

Without a single Democrat vote in either the House or the Senate, the tax reform bill headed for President Donald Trump’s desk on Wednesday is likely to cost them dearly in the midterm elections. That is, if the bill works as intended: giving Americans “more take home pay” as the president expressed it, adding. “It will be an incredible Christmas gift for hardworking Americans.”

Most of those hardworking Americans won’t see a thing until

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Trump’s Regulatory Rollback: Not 2 to 1, but 22 to 1!

This article appeared online at TheNewAmerican.com on Monday, December 18, 2017:

In his first 11 months in office, President Donald Trump is keeping another of his campaign promises: reducing regulations so that the economy can breathe again. Speaking in the Roosevelt Room — an irony that may have been intended — Trump summarized brilliantly exactly how the greatest economic miracle in history got bogged down:

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Carbondale, Illinois Seizes Eclipse Opportunity to Boost Its Economy

This article appeared online at TheNewAmerican.com on Monday, August 21, 2017:

Two years ago Carbondale, Illinois’ mayor Mike Henry learned of the epic cosmic event headed his way and decided not to say, “Oh, no!” but instead said, “Oh, yes!”:

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Five Congressmen Demand the DOJ “Repudiate” Operation Choke Point

This article appeared online at TheNewAmerican.com on Tuesday, August 15, 2017: 

Logo of the United States Federal Deposit Insu...

Five Republican Congressmen fired off a letter last week to Attorney General Jeff Sessions, Fed Chair Janet Yellen, and Acting U.S. Comptroller Keith Noreika, demanding that they repudiate the Obama administration’s successful and continuing efforts to strangle financially gun shops and other supposedly “high-risk” and “disreputable” businesses. Called Operation Choke Point, the program continues despite declamations from the Justice Department to the contrary.

Said the letter:

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Trump Takes Credit for Banner Jobs Report

This article appeared online at TheNewAmerican.com on Friday, August 4, 2017:  

Within 15 minutes of Friday morning’s release of the July jobs numbers by the Bureau of Labor Statistics (BLS), President Trump tweeted: “Excellent Jobs Numbers just released — and I have just begun. Many job stifling regulations continue to fall. Movement back to USA!”

He has good reason to cheer:

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At Least Papa John’s Pizza Arrives Fresh, Warm, and Tasty

This article was published by The McAlvany Intelligence Advisor on Wednesday, July 26, 2017:

Democrats are so upset over the Democrat Party’s new slogan that some demanded that its originator be fired immediately. The slogan, unveiled by Democrat Senate Minority Leader Charles Schumer in the New York Times on Monday, is: “A Better Deal: Better Jobs, Better Wages, Better Future.” This was birthed after months of intense mental analysis of last November’s loss to Donald Trump, and it was, according to many, stillborn. The Gateway Pundit massaged Papa John’s Pizza logo on its website, showing Nancy Pelosi beneath the banner, and below, instead of “Papa John’s” was “Dems: Still Pelosi.” It’s worth clicking on it. (See Sources below).

Other Democrats were less charitable.

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Democrats’ New Slogan Channels Papa John’s Pizza

This article appeared online at TheNewAmerican.com on Tuesday, July 24, 2017:

English: Charles Schumer, United States Senato...

Charles Schumer

The Democrat Party’s new slogan, rolled out on Monday by Senate Minority Leader Chuck Schumer (shown, D-N.Y.) in the New York Times, sounds an awful lot like the slogan of Papa John’s Pizza (“Better Ingredients, Better Pizza, Papa John’s.”) The new official slogan of the party, according to Schumer, is “A Better Deal: Better Jobs, Better Wages, Better Future.”

A closer look reveals old, tired, stale, and tasteless ideas of a party that not only has lost its way, but has lost a majority of Americans along the way. A recent Washington Post/ABC News poll revealed that

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Jobs Market Getting Tighter, Says ADP

This article appeared online at TheNewAmerican.com on Thursday, July 6, 2017:

At first blush the jobs report from ADP, the data-processing firm that works with Moody’s Analytics in developing its monthly review, looked disappointing. Economists had expected 185,000 new jobs created in June but instead they got just 158,000. Further, both estimates and ADP were well below the 230,000 new jobs number reported for May.

A closer look behind the headlines reveals a startling fact:

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Illinois Sends “Dear Contractor” Letters Ordering Them to Stop All Road Construction

This article appeared online at TheNewAmerican.com on Thursday, June 15, 2017: 

English: A photograph of the Springfield Capit...

A photograph of the Springfield Capitol Building

Illinois contractors working on the state’s roads just received a “Dear Contractor” letter from the state ordering them to halt work because the state is out of money to pay them:

At this time appropriate funding is not available after June 30, 2017. Thus, work shall cease effective June 30, 2017.

Please bring all projects to a condition that will provide a clear and safely traveled way….

On July 1, 2017, all work shall cease except for maintenance.… The department will notify you when work may resume.

Right now the state has $14.5 billion in unpaid bills, an increase of nearly $4 billion just since the end of December, with no end in sight. When Republican Governor Bruce Rauner took office in January 2015, he promised he would bring order out of chaos by

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Trump, Mexico Settle Sugar Dispute Just in Time for NAFTA Renegotiations

This article appeared online at TheNewAmerican.com on Wednesday, June 7, 2017: 

The sugar settlement between the United States and Mexico, announced on Tuesday by U.S. Commerce Secretary Wilbur Ross, sets the stage for the NAFTA “renegotiation” scheduled to begin in August. And the settlement is going to cost Americans more to satisfy their sweet tooths.

At bottom, it’s all about protecting an inefficient American industry from foreign competition. Sugar is an enormous industry, and economic and political interests want to keep protections in place in order to save it from foreign competition. On one side is Big Sugar:

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May’s Jobs Report Stronger Than It Appears

This article appeared online at TheNewAmerican.com on Friday, June 2, 2017:

The headline number from the Department of Labor’s Bureau of Labor Statistics’ (BLS) May jobs report, released on Friday, appeared weak: Just 138,000 new jobs were created last month compared to expectations of 185,000 by forecasters. But as usual, a peek beneath the headlines shows an economy growing steadily, providing it with more than enough workers to absorb those leaving or retiring.

After revisions were made to March and April numbers, May’s job creation was more than the last three months’ average of 121,000. Taking into account robust numbers reported from ADP, a national human resources and benefits firm, on Wednesday — it reported that 253,000 new jobs were created in May — Mark Zandi, chief economist at Moody’s Analytics remarked,

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Credit Rating of Illinois Cut Again to One Notch Above Junk

This article appeared online at TheNewAmerican.com on Friday, June 2, 2017: 

English: 1987 Illinois license plate

The day after Illinois failed to reach a budget agreement (for the third year in a row), Moody’s Investors Service followed S&P Global Ratings by downgrading the state’s credit rating to just one notch above junk status. The legislature has 30 days to come up with a budget or else the state’s rating will be downgraded further to junk status.

Moody’s was blunt in its assessment of the rolling catastrophe: “Legislative gridlock has sidetracked efforts not only to address pension needs [$129 billion in unfunded liabilities] but also to achieve fiscal balance [the state has $14.5 billion in unpaid bills with $800 million in late fees and penalties adding to the total]. Moody’s analyst Ted Hampton added:

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Trump Floats Trial Balloon on Tax Reform; Wants Feedback

This article appeared online at TheNewAmerican.com on Wednesday, April 26, 2017:

Initially referred to as a statement of general principles, the one-page summary of the Trump administration’s tax reform plan looked more like a trial balloon. Said the White House, the administration “will hold listening sessions with stakeholders to receive their input … [in order to] develop the details of a plan that … can pass both chambers.”

Reiterating Trump’s goals of growing the economy, creating millions of jobs, simplifying the tax code, and providing tax relief to middle-income families, the trial balloon as summarized would

lower the corporate tax rate from 39.6 percent to 15 percent, including Subchapter S or “pass-through” corporations;

 

reduce the number of individual income tax brackets from seven to three: 10%, 25% and 35%, depending on income;

 

double the standard deduction, currently at $6,300 for individuals and $12,600 for married couples filing jointly;

 

expand tax relief to families with child and dependent care expenses;

 

eliminate various tax breaks that apply mainly to the wealthiest taxpayers;

 

keep mortgage interest and charitable deductions while eliminating deductions for state income taxes paid;

 

repeal the Alternative Minimum Tax (AMT);

 

repeal the 3.8% ObamaCare tax that hits small businesses and investment income;

 

allow a one-time “tax holiday” for international corporations holding trillions overseas; and

 

eliminate tax breaks for special interests.

Trump’s Treasury Secretary Steven Mnuchin called it “the biggest tax cut and the largest tax reform in the history of our country,” while his Chief Economic Advisor Gary Cohn said the plan represented a “once-in-a-generation opportunity to do something really big.”

What’s really big is the potential deficits Trump’s plan could cause, with at least one critic estimating that it would result in $6 trillion in deficits over the next 10 years.

The underlying goal of the administration being pushed by Trump is that by cutting these tax rates the economy would awake from its slumber and start generating three percent annual rates of growth of the nation’s GDP. Although the Laffer Curve was not mentioned by Mnuchin or economist Stephen Moore (in his recent critique of the government’s economic outlook), it’s the same principle: lower tax rates to result in higher economic growth which will (in theory) result in higher taxes collected by the government.

The increase in the standard deduction is also designed to allow an estimated 27 million Americans who file a long form listing their mortgage interest and charitable deductions to use a “big postcard” instead. This “simplification” of the tax code has long been a stated goal of Trump as candidate and his administration after he was inaugurated in January.

Wednesday’s announcement is just the opening salvo in what promises to be a long war before anything reaches Trump’s desk. Senate Minority Leader Chuck Schumer is calling it a gift for the already-wealthy Americans who don’t need any more tax breaks. And Mnuchin referred to the Senate strategy of “reconciliation” that is likely to be needed to pass the Senate without Democrat votes. He noted that he hoped that the bill that finally passes Congress and is signed into law by the president will be permanent, but “if we have them for [just] 10 years, that’s better than nothing.”

Reconciliation would allow Republicans to pass it without a single Democrat vote, but would also cause the plan to expire in 10 years if it generates deficits. This is what happened to the tax cuts enacted under President George W. Bush. When the projected revenue growth didn’t meet expectations, his tax cuts for the most part were automatically ended.

The obstacles are substantial, including determined if futile resistance from Democrats and complaints from the energy industry which might see its depletion allowance deductions cut or removed in Trump’s final bill. Those details will be revealed in June and could also negatively impact heavily-indebted public utilities and cable companies that might see some loss of their interest deductions.

On the other hand, winners could include companies that are currently most negatively impacted by high corporate rates in force, including engineering and construction companies, food wholesalers, publishers, and retailers.

The old proverb applies as Trump’s trial balloon gets translated into specific language in the tax reform bill in June: “There’s many a slip ‘twixt the cup and the lip.” A newer one is this from Isaac Boltansky, an analyst at Compass Point Research and Trading, who has been following these events closely:

The sugar high of tax cut headlines could turn into a nagging headache once stakeholders return to the painstaking consideration of process and pay-fors.

Trump’s Strange Reversal on Ex-Im Bank: Names One Opposed to It to Run It?

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

English: Congressman Justin Amash

Congressman Justin Amash

When Representative Justin Amash (R-Mich.) learned on Friday that President Trump intended to resuscitate the Export-Import Bank by naming two people to its board (it has been limping along with just three out of five board members present), he nailed it, tweeting, “ExIm corporate welfare bank is the symbol of D.C. cronyism. It steals from taxpayers to subsidize big corporations. End ExIm. Drain the Swamp.”

For a while it looked as if the Ex-Im Bank was for all intents and purposes dead. In 2015, the House failed to renew its charter for the first time since 1945. However,

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Is Trump Pulling a Pruitt – Putting an Anti-Ex-Im Exec in Charge of the Bank?

This article was published by The McAlvany Intelligence Advisor on Monday, April 17, 2017:

English: Export-Import Bank of the United Stat...

Many were surprised when President Trump named the EPA’s fiercest enemy – Oklahoma Attorney General Scott Pruitt – to head up the agency. For years Pruitt has raged against the agency for overstepping its bounds and writing rules, mandates, and regulations that negatively impacted the fossil fuel industry. He sued the agency more than a dozen times in the last eight years.

What was Trump thinking?

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The Clock is Running Out on Trump’s Use of the CRA

This article was published by The McAlvany Intelligence Advisor on Friday, April 7, 2017:

English: blue scissors Español: tijeras azules

The beauty of the CRA, the Congressional Review Act, is that it provides a process by which an incoming administration can look back at the previous administration’s rules and regulations and repeal, neuter, or abandon those it doesn’t like. In addition, once a rule has been repealed, the CRA prohibits it from growing back again. Call it “Roundup” 2.0 for political weeds and unwanted grasses.

What’s remarkable is that, since its enactment in 1996 as part of the Republicans’ Contract with America, it has only been used once: by George W. Bush. Congress passed five CRA resolutions under Obama but he vetoed them all. For him, no government was too big nor any regulation too outrageous.

When Marc Short, Trump’s Director of Legislative Affairs, was given the mike at the White House press conference on Wednesday, he spoke at length about the president’s aggressive use of the CRA to turn back a few of the many hundreds of burdens applied to businesses by the previous administration. Before taking questions Short said:

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.