The United States: Home of the "Mostly Free"?

The greatest threat to US economic power isn't China, it's from within. The irony? The US has fallen below Canada in the Heritage Institute's Economic Freedom Index. From Investor's Business Daily:

A nation's corporate tax rate is important. Its effect on a country's competitiveness and its ability to draw or repel investment has a direct impact on economic health.

Companies are being driven offshore by a combined 39.1% federal and state tax rate that is second only to Japan's. In some states, the combination leads the world. California, which would have the world's eighth largest economy as an independent country, teeters on bankruptcy. If you were a CEO, would you headquarter there or in Switzerland or Ireland, which also rank above us?

And with today's budget, the size of government in the US is only set to get bigger (Greg Mankiw). President Obama's exhortations of concern over spending amidst near unprecedented levels of spending (not even taking into account unfunded liabilities like Social Security + Medicare that are set to skyrocket) are like Augustine of Hippo's famous plea (Wikipedia): "Grant me chastity and continence, but not yet".

Update (Feb 13): Welcome Back, Jimmy Carter? (Chicago Daily Observer)

Update #2 (Feb 14): Crony Capitalism returns (Washington Examiner). One of the puzzling strawmen liberals often build is that crony capitalism is the logical conclusion of capitalism and markets when the reality is quite the opposite.