Posts
The Illegal IRS Rule to Expand Tax Credits under the PPACA: A Response to Timothy Jost | Michael F. Cannon and Jonathan H. Adler | Cato Institute: Commentary: "even though some members of Congress and the President might have preferred a law that authorized tax credits in federal Exchanges, they nevertheless enacted a law that did not. "
Maybe they should have read the bill before they passed it. :-p
Friday, September 07, 2012
Thursday, September 06, 2012
Cut Big Business's Corporate Welfare | Tad DeHaven | Cato Institute: Commentary
Cut Big Business's Corporate Welfare | Tad DeHaven | Cato Institute: Commentary: "A new study from the Cato Institute estimates that the federal government will spend almost $100 billion on corporate welfare this year."
"Hundreds of millions of taxpayer dollars have been lost year after year on businesses that were simply not financially viable"
"as the ongoing debacle with clean energy subsidies shows, policymakers do not possess special knowledge that enables them to allocate capital more efficiently than markets."
"The reality is that lawmakers often have base parochial interests in mind when they support subsidy programs. During a Senate committee hearing on the Department of Energy in February, Sen. Al Franken, Minnesota Democrat, spent his allotted time badgering Secretary Steven Chu about a federal loan his department conditionally approved for a company in his state in 2010 but had yet to be finalized. On the other side of the aisle, dozens of congressional Republicans — many critical of the administration's energy subsidy policies — were found to have quietly sent letters to Mr. Chu requesting handouts to businesses in their backyards."
"Hundreds of millions of taxpayer dollars have been lost year after year on businesses that were simply not financially viable"
"as the ongoing debacle with clean energy subsidies shows, policymakers do not possess special knowledge that enables them to allocate capital more efficiently than markets."
"The reality is that lawmakers often have base parochial interests in mind when they support subsidy programs. During a Senate committee hearing on the Department of Energy in February, Sen. Al Franken, Minnesota Democrat, spent his allotted time badgering Secretary Steven Chu about a federal loan his department conditionally approved for a company in his state in 2010 but had yet to be finalized. On the other side of the aisle, dozens of congressional Republicans — many critical of the administration's energy subsidy policies — were found to have quietly sent letters to Mr. Chu requesting handouts to businesses in their backyards."
Wednesday, September 05, 2012
Federal Spending: Killing the Economy with Government Stimulus | Doug Bandow | Cato Institute: Commentary
Federal Spending: Killing the Economy with Government Stimulus | Doug Bandow | Cato Institute: Commentary: "If government could spend America to prosperity, good times would have arrived long ago."
"Economic growth requires good spending, not more spending. After all, Washington could pay every American $10,000 to dig a hole in his or her neighbor's yard and then another $10,000 to fill it in. It would be a ludicrous policy, yet Keynes argued that the unemployed would be better off if paid by the government to "dig holes in the ground."
Most jobs bills are little different than paying people to dig holes."
"Robert Barro reviewed the experience of World War I, World War II, the Korean War, and the Vietnam War, and came up with a multiplier of 0.8, which means that government outlays actually "lowered components of GDP aside from military purchases." "
"roughly $900 billion in federal "stimulus" spending from ARRA probably resulted in only $600 billion in increased growth"
"it appears that a rise in government spending does not stimulate private spending; most estimates suggest that it significantly lowers private spending."
"it was the end of this wartime "stimulus spending"—which Herman figured at $3 trillion in today's dollars—which led to economic growth. At the time people feared that Washington slashing arms production and demobilizing military personnel would lead to another depression. However, he observed, "private investment came roaring back, triggering steady economic growth that pushed the U.S. into a new ear, as the most prosperous society in history." "
"The CBO figured that the president's program would increase GDP through 2012, but there would be no effect in 2013 and 2014 and then the impact would be negative. Last November the agency concluded that ARRA's impact peaked in 2010, while the accumulated debt would "reduce output slightly in the long run—by between 0 and 0.2 percent after 2016." "
"Economic growth requires good spending, not more spending. After all, Washington could pay every American $10,000 to dig a hole in his or her neighbor's yard and then another $10,000 to fill it in. It would be a ludicrous policy, yet Keynes argued that the unemployed would be better off if paid by the government to "dig holes in the ground."
Most jobs bills are little different than paying people to dig holes."
"Robert Barro reviewed the experience of World War I, World War II, the Korean War, and the Vietnam War, and came up with a multiplier of 0.8, which means that government outlays actually "lowered components of GDP aside from military purchases." "
"roughly $900 billion in federal "stimulus" spending from ARRA probably resulted in only $600 billion in increased growth"
"it appears that a rise in government spending does not stimulate private spending; most estimates suggest that it significantly lowers private spending."
"it was the end of this wartime "stimulus spending"—which Herman figured at $3 trillion in today's dollars—which led to economic growth. At the time people feared that Washington slashing arms production and demobilizing military personnel would lead to another depression. However, he observed, "private investment came roaring back, triggering steady economic growth that pushed the U.S. into a new ear, as the most prosperous society in history." "
"The CBO figured that the president's program would increase GDP through 2012, but there would be no effect in 2013 and 2014 and then the impact would be negative. Last November the agency concluded that ARRA's impact peaked in 2010, while the accumulated debt would "reduce output slightly in the long run—by between 0 and 0.2 percent after 2016." "
Online Sales Tax Is a Money Grab by Politicians | Daniel J. Mitchell | Cato Institute: Commentary
Online Sales Tax Is a Money Grab by Politicians | Daniel J. Mitchell | Cato Institute: Commentary: "It can only work by creating a massive database that matches online purchases with the state and local sales tax rates for every consumer.
I don't know about you, but I'm not confident that this type of untested system will be secure."
"And just as you don't cure alcoholics by giving them keys to a liquor store, you don't solve the problem of excessive spending by giving politicians a new tax."
I don't know about you, but I'm not confident that this type of untested system will be secure."
"And just as you don't cure alcoholics by giving them keys to a liquor store, you don't solve the problem of excessive spending by giving politicians a new tax."
Obama Is No Clinton | Michael D. Tanner | Cato Institute: Commentary
Obama Is No Clinton | Michael D. Tanner | Cato Institute: Commentary: "Under President Clinton, federal spending averaged 19.8 percent of GDP and actually hit a low of just 18.3 percent. In contrast, spending under President Obama over the past four years has averaged 24.4 percent of GDP. And going forward, the president's proposed budgets would never spend less than 22 percent of GDP."
Does the U.S. Military Face 'Goofy Meat Axe' Cuts? | Benjamin H. Friedman | Cato Institute: Commentary
Does the U.S. Military Face 'Goofy Meat Axe' Cuts? | Benjamin H. Friedman | Cato Institute: Commentary: ".S. Senator John McCain, for example, claims that sequestration will result in an "inability to defend the nation," without bothering to say which of our minor enemies will suddenly outgun us."
"sequestration would leave the 2021 Pentagon with purchasing power about equal to what it had in 2006, leaving out the wars. That would leave more in real terms than what we spent on the military at the height of the Cold War."
"the Pentagon has authority to transfer or reprogram funds, some with the permission of the chairmen and ranking members of four defense committees. The Pentagon has used those powers to shift $12 billion to $15 billion annually of late. That's potentially half of the outlays that sequestration would take in 2013."
"sequestration would leave the 2021 Pentagon with purchasing power about equal to what it had in 2006, leaving out the wars. That would leave more in real terms than what we spent on the military at the height of the Cold War."
"the Pentagon has authority to transfer or reprogram funds, some with the permission of the chairmen and ranking members of four defense committees. The Pentagon has used those powers to shift $12 billion to $15 billion annually of late. That's potentially half of the outlays that sequestration would take in 2013."
Anarchy in the Aachen - Peter C. Earle - Mises Daily
Anarchy in the Aachen - Peter C. Earle - Mises Daily: "Taxes hadn't changed since the designation of the neutral zone in 1816, and visitors noted that Moresnet was "without the beggars who are [a] sadly familiar sight" across the rest of Europe."
Resist the U.N.'s Disability Convention | Richard W. Rahn | Cato Institute: Commentary
Resist the U.N.'s Disability Convention | Richard W. Rahn | Cato Institute: Commentary: "Article 4(1)(e) demands that "every person, organization, or private enterprise" must eliminate discrimination on the basis of disability. Taken literally, which some lawyers are sure to do, every homeowner might be required to install wheelchair ramps or even elevators in their homes, regardless of the cost."
"Should the United States accede to this treaty, we will be obligated to write a status report every four years regarding our disability laws and receive criticism and recommendations from a committee of representatives from countries that have lower standards for the disabled than our own. We do not know the scope of this report or its financial and labor costs to the American taxpayer."
"Should the United States accede to this treaty, we will be obligated to write a status report every four years regarding our disability laws and receive criticism and recommendations from a committee of representatives from countries that have lower standards for the disabled than our own. We do not know the scope of this report or its financial and labor costs to the American taxpayer."
Tuesday, September 04, 2012
The Statist Propositions of Protectionism - Gary North - Mises Daily
The Statist Propositions of Protectionism - Gary North - Mises Daily: "The further a nation goes on the road toward public regulation and regimentation, the more it is pushed toward economic isolation. International division of labor becomes suspect because it hinders the full use of national sovereignty."
"Free trade is a crucial economic policy in the program to restrict the growth of socialism." "He recognized the threat of all arguments for protectionism: they help to expand the power of the state. They move in the direction of central economic planning."
"the God of the Bible is overwhelmingly the defender of private property rights. This is encapsulated in the commandment: "Thou shalt not steal." I keep contrasting this concept with the assertion of all modern welfare-state economists: "Thou shalt not steal, except by majority vote." "
"Free trade is a crucial economic policy in the program to restrict the growth of socialism." "He recognized the threat of all arguments for protectionism: they help to expand the power of the state. They move in the direction of central economic planning."
"the God of the Bible is overwhelmingly the defender of private property rights. This is encapsulated in the commandment: "Thou shalt not steal." I keep contrasting this concept with the assertion of all modern welfare-state economists: "Thou shalt not steal, except by majority vote." "
Friday, August 31, 2012
Why Citizens United Has Nothing to Do with What Ails American Politics | Ilya Shapiro | Cato Institute: Commentary
Why Citizens United Has Nothing to Do with What Ails American Politics | Ilya Shapiro | Cato Institute: Commentary: "President Obama’s famous statement that the decision “reversed a century of law that I believe will open the floodgates for special interests—including foreign corporations—to spend without limit in our elections.”"
"the overturned precedent was a 1990 case"
"there’s no significant change in corporate spending this cycle"
"the rights of foreigners—corporate or otherwise—is another issue about which Citizens United said nothing"
"[all these “evil” companies] spend little money on political advertising, partly because it’s more effective to lobby, but mostly because they wouldn’t want to alienate half of their customers."
"Political money is like water: It’ll flow somewhere because what government does matters and people want to speak about their concerns. To the extent that “money in politics” is a problem, the solution is to reduce the political scope that the money can influence. Shrink government, and you’ll shrink the amount people spend trying to get a piece of the pie."
"By rewriting the Watergate-era Federal Election Campaign Act to remove spending limits but not contribution caps, Buckley upset Congress’s balanced reform. That’s why politicians spend all their time fundraising. Moreover, the regulations have pushed money away from candidates and toward advocacy groups—undermining the worthy goal of government accountability."
"Get rid of limits on individual contributions and then require disclosures for those who donate amounts big enough for the interest in preventing corruption to outweigh the potential for harassment. Then the big boys will have to put their reputations on the line, but not the average person. Let voters weigh what a donation’s source means to them, rather than allowing politicians to write rules benefiting themselves."
"the overturned precedent was a 1990 case"
"there’s no significant change in corporate spending this cycle"
"the rights of foreigners—corporate or otherwise—is another issue about which Citizens United said nothing"
"[all these “evil” companies] spend little money on political advertising, partly because it’s more effective to lobby, but mostly because they wouldn’t want to alienate half of their customers."
"Political money is like water: It’ll flow somewhere because what government does matters and people want to speak about their concerns. To the extent that “money in politics” is a problem, the solution is to reduce the political scope that the money can influence. Shrink government, and you’ll shrink the amount people spend trying to get a piece of the pie."
"By rewriting the Watergate-era Federal Election Campaign Act to remove spending limits but not contribution caps, Buckley upset Congress’s balanced reform. That’s why politicians spend all their time fundraising. Moreover, the regulations have pushed money away from candidates and toward advocacy groups—undermining the worthy goal of government accountability."
"Get rid of limits on individual contributions and then require disclosures for those who donate amounts big enough for the interest in preventing corruption to outweigh the potential for harassment. Then the big boys will have to put their reputations on the line, but not the average person. Let voters weigh what a donation’s source means to them, rather than allowing politicians to write rules benefiting themselves."
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