'Dual Capacity': The Straw that Broke the Economy's Back

Easy-to-follow instructions: how to kill the economy in four easy steps -- and touch off the Dempression of 2011:

Step 1: Create an unbelievably onerous new regulation that hits small businesses particularly hard.

To partly fund ObamaCare, Democrats altered 1099 reporting requirements for small businesses beginning in 2012. Via a Google search, you can see the backlash from small business here. For a specific reaction, from one of many industries with serious concerns, see the National Restaurant Association. The move would saddle small businesses everywhere with a huge new administrative burden, as well as raise their taxes at a time when we need job growth from them.

Step 2: After weathering the outcry, pretend to listen to the American people and reconsider the new 1099 reporting regulations.

Late yesterday Majority Leader Reid re-filed a substitute to the small business jobs bill [which modifies] the expanded 1099 reporting provision enacted as part of the health reform bill.

Rather than simply repeal the regulation (as the GOP had attempted to do), the Democrat alternative will raise taxes on oil and gas companies in the U.S. only.

Step 3: Enact new taxes on domestic energy companies by taxing their foreign profits -- which are already heavily taxed in each foreign country in which the companies operate.

In the Obama administration’s 2011 budget proposal, included are provisions to change existing “dual capacity” rules, which are laws that grant tax breaks to American companies who generate income in foreign countries. These tax credits are used to offset the U.S. income tax on foreign income. Plans to change this policy would result in double-taxation on domestic oil and gas producers... [Foreign energy companies] carry on ...free of this added expense. State-controlled competitors in countries like Russia, Venezuela and China will secure energy sources at our expense.

In short, this will make domestic energy production completely unprofitable and will kill American jobs deader than Benito Mussolini.

Step 4: Profit! Well, the public sector profits, but Joe and Jane taxpayer take it on the chin, again.

It's a triple-whammy: energy prices will definitely increase (because there's less competition); Americans will lose jobs (as domestic energy companies cut unprofitable staff); and America will become even less secure (as more of our plentiful domestic energy sources lie fallow).

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Add in the expiration of the evil Bush tax cuts on January 1st, 2011, and we have the recipe for a stake in the heart of the economy.

And should it be allowed to proceed unchecked, the "Great Recession" will henceforth be known as the "Dempression".

You've got to act in November, folks. That really is our last chance to set things right for our children. I'm not kidding -- it's happened throughout history and it can definitely happen again. That's not fear-mongering -- that's a fact.