THE FORGOTTEN MAN
As soon as A observes which seems to him to be wrong, from which X is suffering, A talks it over with B and they propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what C shall do for X or what A, B and C can do for X. I want to look up C to show you the manner of a man he is. I call him the Forgotten Man. Perhaps the appellation is not strictly correct. He is the man who is never thought of....He works, he votes, generally he prays - but he always pays...."
William Graham Sumner
Yale 1883
What is really interesting in this article is the reference to the 2009 GAO report that says, "new high-speed rail projects in France, Spain and Japan average $51 million per mile". You read that right—$51 million per mile. That would put the cost of the Tampa-Orlando line at $4.28 billion or $3 billion more than the estimate. How does this tie Florida to Minnesota? Well the state of Minnesota got their cut of stimulus money to support MNDOT's "sweeping plan for passenger rail development that envisions a train running to Chicago within five years and a network of passenger trains someday connecting the Twin Cities with Rochester, Duluth and several other cities...at a price tag of as much as $9.5 billion over the next 20 years" If my math is correct, that means MNDOT can do 186 miles of this network. A quick check of Mapquest shows that it is 154 miles from Duluth to Minneapolis and another 314 miles to Chicago. That means at $51 million per mile, that portion of the network will cost closer to $25 billion or nearly 3 times the current estimate.
Uncertainties caused by ongoing regulatory changes and politically influenced stimulus spending have discouraged entrepreneurship and job creation, slowing recovery. Leadership in free trade has been undercut by “Buy American” provisions in stimulus legislation and failure to pursue previously agreed free trade agreements with Panama, Colombia, and South Korea. Tax rates are increasingly uncompetitive, and massive stimulus spending is creating unprecedented deficits. Bailouts of financial and automotive firms have generated concerns about property rights."
So what has Mexico done? The Index summarizes their tax policy; "The top income and corporate tax rates are 28 percent. A 17 percent flat-rate business tax (known as the IETU) operates as an alternative to the corporate income tax for some companies. Other taxes include a value-added tax (VAT) and a real estate transfer tax. In the most recent year, overall tax revenue as a percentage of GDP was 9.0 percent." Compare that to our top income and corporate tax rates at 35 percent.