Categories
national politics & policies tax policy too much government

A Plague Upon Small Business

Those who like Big Government tend to dislike Big Business. So it must be just an unintended effect that shiny, new government programs invariably harm small businesses, aiding big ones. 

There are many examples of this. Today’s comes from the biggest new kid on the block, the new health care reform.

Who wins with it? Sure isn’t small business.

The increased paperwork and added regulations especially burden smaller operations. Big corporations can more easily eat the additional costs. Small businesses, on the other hand, have to expend a greater percentage of their gross incomes to meet new requirements, and this drain on their resources means that they can’t compete as well against the big guys, toe-​to-​toe in the marketplace.

Worse yet, even the special tax credits tossed in small businesses’ direction serve up a thorny mess of complexity and arcane paperwork. And while the credits are scheduled to evaporate, there appears no end to soaring costs.

Finally, the new IRS 1099 reporting requirements on business-​to-​business transactions of $600 or more will hit small businesses hard. These new required forms are in effect a tax themselves, because the extra paperwork will cost real money.

Is this any way to improve health care? No. It’s got nothing to do with health care. It’s just a way to increase the tax take and another way Big Government helps Big Business at the expense of the little guys.

And that’s sick.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies tax policy

But He Promised

Like the rest of us, politicians can honestly change their mind about an issue.

But when a presidential candidate “firmly” pledges to, say, never act to raise taxes of any kind on families earning less than $250,000 a year, and then reneges, that doesn’t quite count. And then when, soon after being elected, the politician pretends that his earlier pledge doesn’t mean what it plainly meant — or even pretends that he never made the pledge at all — one suspects that the original promise was really a fib, a falsehood. From the get-go.

In an interview with George Stephanopoulos given last September during the health care debate, Barack Obama tried to escape his no-​new-​taxes pledge by asserting that the new taxes that would be imposed on Americans declining to buy health insurance under his health care plan would not in fact be taxes. With a straight face, Obama even disputed the dictionary definition of “tax” that Stephanopoulos recited to him.

Now we’re hearing from an administration official that the president never even made the pledge. According to White House Budget Director Peter Orszag, it was merely an expression of a “preference.” We’ll have to wait until a bipartisan commission (on how to tax us more) finishes its work before we learn whether it will be viable for Obama to hew to that “preference.”

Meanwhile, those who prefer truth can view the video proof of an actual pledge on YouTube.

This is Common Sense. I’m Paul Jacob.

Categories
political challengers

Incumbents and Upstarts

Guess who said this: “My gosh, these people in Washington are running the country right into the ground.”

According to the New York Times, it was Senator Orrin Hatch who voiced that lament — “despite having lived and worked [in Washington DC] for the last 34 years.”

Those old-​timers! They retain all the advantages of incumbency, but pretend to be exempt from criticism when the results of their habits become clear.

That’s why last week’s primaries auger well: Seems that being the establishment’s favored candidate — or a longtime incumbent — does not even guarantee winning a nomination.

In Pennsylvania, the unprincipled Democrat-​turned-​Republican-​turned-​Democrat Arlen Specter sought to avoid getting clobbered in the GOP primary. Instead, he got clobbered in the Democratic primary — despite the support of the Democratic Party establishment.

Likewise, in Kentucky, Rand Paul wrested the GOP nomination for the U.S. Senate from Secretary of State Trey Grayson, the party-​backed candidate, with a 23 percent margin. 

Paul, who explicitly allies himself with the Tea Party movement, was soon engulfed in controversy over the 46-​year old Civil Rights Act, which outlawed racial discrimination in public accommodations. Meanwhile, Congressman Sestak’s charge that the Obama White House offered him a federal job in an attempt to keep him out of the race, possibly a federal crime, dampened the news of his triumph.

Still, it seems clear: the voters don’t want “Those people in Washington” running the country into the ground.

This is Common Sense. I’m Paul Jacob.

Categories
First Amendment rights

Free Speech Assault Dropped

America has a relatively robust tradition of respecting freedom of speech. Nevertheless, our government officials often find criticism not only annoying but actionable.

But actionable how? 

Campaign finance regulation offers officials one avenue to go after political critics. The CFR regime is so ambiguous and complex that it often seems to cover anything anybody might say at any time about anybody running for office. But the ever-​metastasizing repressive power of campaign finance regulation was probably not what Pennsylvania Attorney General Tom Corbett was relying on when he subpoenaed Twitter, the micro-​blogging company, to try to learn who was savaging his conduct as attorney general.

Corbett demanded names, street addresses and IP addresses of two Twitter subscribers who have been claiming that his investigation into public corruption was politically motivated. Twitter representatives were threatened with arrest if they failed to appear before a grand jury to “give evidence regarding alleged violations of the laws of the Commonwealth of Pennsylvania.”

Corbett’s office claims that the subpoena had nothing to do with aversion to political criticism but was related to a particular prosecution. Perhaps the angry tweeters were really a single disgruntled defendant, only pretending to be contrite in court? 

Regardless, the attorney general was obviously on a fishing expedition, one that targeted First Amendment rights. The outcry from Twitter users, the ACLU, and others was swift and vehement, so Corbett has dropped his abusive subpoena.

Perhaps he should also drop his gubernatorial campaign.

This is Common Sense. I’m Paul Jacob.

Categories
political challengers

Anything Wrong With That?

Did President Barack Obama offer Pennsylvania Congressman Joe Sestak, now the Democratic nominee for U.S. Senate, a high position in our federal government in exchange for not running against Arlen Specter?

Sestak didn’t take the deal, if indeed one was offered. But months ago, Sestak said, unequivocally, that a job had been offered. He has since clammed up, especially after defeating Specter last Tuesday.

Back in February, a White House spokesman denied any such deal was proffered. But, Sunday, on CBS’s Face the Nation, chief White House spokesman Robert Gibb’s declared, “I’m not going to get into it, but people who have looked into it assure me the conversations were not inappropriate in any way.”

A ringing defense! And after such an exhaustive search for the truth …

On ABC’s This Week, George Will offered context. “Politics is a transactional business,” he said, and offered his judgement: “I don’t see a thing wrong with it.”

Yes, well, Will has a point. Many businesses are “transactional” — banking comes first to mind. But there are honest transactions … and less-​than-​honest ones. I wouldn’t want the president of my bank hiring or promoting his girlfriend to, say, prevent her from finking on him to his wife.

Government employees have jobs to do — jobs that carry out legitimate governmental functions. If not, those jobs shouldn’t exist. If so, they should be staffed on the basis of merit, not political expediency.

I thought that was very simple, basic common sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Let the Bedbugs Bite

Whenever governments interfere in the basic operation of markets, trying to “help” in some way, pretty soon an unintended effect emerges, and government must step in, again, to correct for that. And that second, corrective intervention then causes another problem, requiring yet another intervention. And so on.

This process of intervention-​upon-​intervention was detailed by economist Ludwig von Mises, and explained with elaborate reasoning. Since Mises’ day, the history of economic interventionism is littered with examples that reinforce Mises’ point.

Take bedbugs.

In 2008, I noted that bedbug infestations were on the rise. And that Congress was working to combat the problem with a special program.

I suggested that Congress should stay out of it.

What I didn’t know was that the Environmental Protection Agency (EPA) was hard at work … in effect defending bedbugs. The EPA regulates pesticides. The cheapest and most effective anti-​bedbug pesticide had come up for re-​registration for home use. But the company that makes it decided not to re-​register. The cumbersome, bureaucratic re-​testing process cost too much, taking away the company’s incentive to sell the chemical. 

So now in Ohio — an apparently bedbug-​conscious state — the State Senate is petitioning the EPA to get a special exemption for this one product. No word from the EPA yet.

So, if a bedbug infestation breaks out big time, don’t blame Congress for not spending enough. Blame the EPA. Or blame the body responsible for the EPA. Yup, Congress. 

This is Common Sense. I’m Paul Jacob.