Tick Talk

You’ve read the news, now here is how it works: The government gives money to FRE & FNM. Then, to reimburse themselves for this generosity, the government takes money from you or your employer or both. In return, your employer leaves the U.S. while you stay and suffer. Get more details in the next two paragraphs.

When state governments overzealously tax corporations (entities without a pulse), those states suffer economic declines of nearly 50%.  When state governments overzealously tax individuals (entities with a pulse), then those individuals vote with their feet and move to where the corporations set up shop (usually a neighboring state).

Now, what do you suppose happens when a national government overzealously taxes corporations? Yes, those companies quietly exit the greedy nation (click this link to see how the U.S. compares).  Last question, what do you think the citizens tend to do? They might leave the country as well.  Or, in the wake of the tax mistake, as the nation is plagued by harsh unemployment rates, falling property values, lower tax revenue (individual and corporate), general capital flight, a weakened currency, all of which translate into less money for schools, welfare, infrastructure, defense, etc., the citizens may develop other strategies for survival. Without some kind of New Deal, they have been known to revolt. 

Disclosure re: FRE, FNM; Not long. Not short. Not neutral. And definately not happy.
seekingalpha link: http://seekingalpha.com/article/94243-fannie-freddie-uncle-sam-and-you?source=mb