Business forum: Regulation and tax equity protect free markets StarTribune.com
Congressional and industry opponents of financial reform and tax reform make two curious arguments.
They insist that the mere spectre of financial re-regulation and greater tax burdens for the wealthy have reduced business profits and created a climate of uncertainty that discourages hiring.
So far they have succeeded in delaying implementation of the Dodd-Frank financial reforms and stymied reasoned discussion about making taxation fair to the broad middle class of Americans.
The profits degradation argument is demonstrably false. Business profits boomed in 2010 and 2011. While it is true that the bottom-line results of banks have settled down from their feverish pace earlier in the decade, this hasn't been due to the reality (or threat) of regulation or taxation, but to a wide range of domestic and international economic problems.