Wednesday, January 11, 2017

Koch Industries Study - Get Ready for Great Recession Redux!

Koch Industries, one of the most vociferous and early opponents of the noxious Border Adjustment Tax (BAT) in the so-called Brady Plan released its long-awaited study on the effects of this proposed law.  Not surprisingly, the study shows that unemployment will spike to 11%.  I have no problem believing this result, given that our analysis shows that little Learning Resources will enjoy paying a Federal tax bill equal to 165% of its annual income.  Yes, for you the math impaired, that's more than we make.

In ordinary times, back when people had working calculators, that would be unthinkable.  But with Kevin Brady at the helm, we have finally thought of it.

Thank you, Koch Industries, for spending the money to run the numbers and share the not-especially-surprising results with us.  I'm scared, too.

A couple asides -

First, for those of you who believe in black hats and white hats, I would encourage you to use your noggin' rather than discount this study because Koch paid for it.  I think it's a service they provided our community free of charge.  Consider the possibility that they are right, and that they are motivated by concern for our community.  That's not a far throw for me.  I am motivated to both save our company and to preserve the great standard of living and economy we enjoy here.

Second, the BAT is a complex issue, and needs lots more explanation. There are so many untruths being circulated, some by our duly-elected leaders on the House Ways and Means Committee.  Stick with me, I will debunk them all in due course.  If you are not yet persuaded, please keep reading my blog.

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