Category: tax policy

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Accountability general freedom ideological culture media and media people national politics & policies political challengers porkbarrel politics Regulating Protest responsibility tax policy too much government

“Our Agenda Was Common Sense”

tea party, nail, coffin, spending, debt, responsibility, dead

The Republican Party doesn’t need to bury the corpse. Its victim has been assimilated, like the Borg did with alien peoples in the Star Trek universe, or maybe it was just soaked up as if the GOP were a giant fungus amongus.

So, what’s dead? The Tea Party, which was killed by partisanship, says Matt Kibbe, President and Chief Community Organizer at Free the People. He admits that the movement’s obituary has been written many times, but, he argues, “this time is different. Republicans, now controlling both the legislative and executive branches, jammed through a ‘CRomnibus’ spending bill that strips any last vestiges of spending restraint from the budget process.”

Kibbe identifies the Tea Party’s central theme simply: “Our agenda was common sense: We demanded that Washington politicians stop spending our money like it was theirs, and keep out of our health care. But in Washington, common sense is often seen as radical.”

This, he insists, was not a partisan movement.

But only Republicans played to it. Kibbe calls Sarah Palin a “political huckster” who “helped hijack our purpose,” and fingers Mitt Romney as the man who scuttled Tea Party “political momentum” in 2012. “And then Donald Trump split the Tea Party right down the middle, and that was the end.”

Nail in the coffin? The recent budget deal.

Kibbe signs the autopsy, but assures us: “American principles of individual freedom, fiscal responsibility, and constitutionally limited government, are all still very much alive.”

I sure hope so. But it takes more than a handful of Freedom Caucus members on Capitol Hill to realize it in practice.

Like a new citizen movement.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment general freedom government transparency ideological culture moral hazard national politics & policies Regulating Protest tax policy too much government

Still at Large

IRS, drain the swamp, Trump, Lois Lerner, tax, tax man

Blogger Paul Caron, dean of Pepperdine Law School, still counts the days since we learned that the IRS was blocking applications for nonprofit status from right-leaning groups at the behest of former IRS honcho Lois Lerner.

Now years later, the agency can still arbitrarily victimize any one of us. Nor have Lerner and other bad guys been brought to justice. Lerner collects a six-figure pension, instead.

And so, on Day 1699, Caron highlighted Kimberly Strassel’s proposal that President Trump make 2018 “the year of civil-service reform — a root-and-branch overhaul of the government itself. Call it Operation Drain the Swamp.” Exhibit A? The IRS and civil “servants” like “Lois Lerner, the IRS official who used her powers to silence conservative nonprofits.”  

And on Day 1709, Caron called our attention to Lerner’s attempt to suppress a deposition she gave in June “for a civil suit that victims [of IRS targeting] brought in 2013.” Lerner thinks we have no right to know why she felt justified in discriminating against applicants for tax-exempt status based on their political viewpoint.

Unfortunately, not everyone cares about justice as much as Caron.

Consider an obtuse Washington Post editorial pretending that the IRS didn’t really target conservative groups. Instead, “conservative groups, their allies in Congress and the IRS itself all bear responsibility” for the appearance otherwise.

And the aftermath.

Uh huh. If only victims of the abuse of power would stop being so indelicate as to object!

This is Common Sense. I’m Paul Jacob.

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Accountability general freedom moral hazard nannyism national politics & policies privacy tax policy

Hey, It’s Your Money

tax cut, trickle down, supply side, taxes, jobs, employment

I leave it up to you how to spend your own money. You decide, based on your own circumstances and priorities.

Oh, you don’t need my permission?

Of course not.

But some people think that if you spend your own money on your own priorities in accordance with your own judgment, it is indeed a problem. At least when you get to keep more of your own money because of tax cuts.

President Trump has often suggested that recipients of new corporate tax cuts will spend the additional money mostly on increasing wages and hiring new workers. Yet some major corporations reportedly say that they will spend the additional money on paying dividends or buying back shares. Maybe others will buy more advertising, storage space or tools. Various commentators fret. But why should a firm hire new workers if other expenditures would be more productive at the moment?

Of course, in the long run, a company that is more profitable and successful can hire more people and can pay them more.

But wages are not the only expense that companies must cover in order to be successful in the long run. Managers do, and should, devote resources first to the improvements that they conclude are most urgent. That a company’s resources increase because of a tax cut doesn’t alter the necessity or reasonableness of pursuing economic goals in accordance with one’s best judgment.

An approach that, to be sure, also benefits present employees as well as future ones.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment folly general freedom government transparency ideological culture moral hazard Regulating Protest tax policy

Been Burned

IRS, I.R.S., corruption, taxes, budget, tears

“They’ve been burned. They’ve been hammered. They’ve been bludgeoned,” George Washington University law professor Miriam Galston explained to the Washington Post. “They’re trying to survive.”

In this heartbreaking discussion at this special time of year, the “they” are the poor, long-suffering folks . . . at the Internal Revenue Service.

According to the Post analysis, “conservatives” have schemed to “scale back the IRS and shrink the federal government.” (I guess this is supposed to tear at every American’s heartstrings.) Notably, they “capitalized on revelations in 2013 that IRS officials focused inappropriately on tea party and other conservative groups based . . . Among conservatives, the episode has come to be known as the ‘IRS targeting scandal.’”

Note that term of art: episode.

The Post saw no scandal, however — despite the IRS having admitted to harassing, blocking and delaying Tea Party and conservative groups from exercising their most fundamental First Amendment rights to freedom of association and freedom of speech, in some cases for four years.

Instead, the Post decries the response to this gross violation of citizens, a congressional check on the power — and budget — of the agency responsible: reducing the budget for the Exempt Organizations division of the IRS from $102 million in 2011 to $82 million in 2016.

Heavens, Washington is never supposed to work like that! It actually approaches . . . accountability.

The budget cuts, along with hefty settlements the IRS is now paying to victimized groups that sued, make it less likely the IRS will repeat this scandalous . . . episode.

“To many, the IRS targeting of Tea Party and conservative and even some progressive groups is not a scandal,” my Sunday Townhall.com column concluded. “To me, that’s the biggest scandal of all.”

This is Common Sense. I’m Paul Jacob.

 

N.B. The title reference is to Neil Young’s song, Burned, which begins, “Been burned, and with both feet on the ground . . .”

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IRS, I.R.S., corruption, taxes, budget, tears

 

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Accountability folly ideological culture media and media people national politics & policies tax policy too much government

The Hyperbole Is Falling

Trump Derangement Syndrome, hysteria, Donald Trump, progressives, leftists, Democrats, taxes, tax bill

A mad killer is on the loose!

That is one way to get attention . . .

The sky is falling!

You are getting the idea . . .

Trump is literally Hitler!

Extravagant hyperbole is not necessary to criticize the current President. Indeed, as Chicken Licken and the Boy Who Cried Wolf demonstrate, that can backfire. Especially when you are complaining about something on which Trump has proved to be pretty darn good — the tax bill, for instance.

Nevertheless, as it passed through Congress, Democrat pols and the major media dinosaurs have doubled down on overstatement: A “middle-class con job” was Sen. Ron Wyden’s characterization; singer-actress Barbra Streisand (presumably now living in Australia or Canada), re-tweeting a New York Times piece on “the Great American Tax Heist,” accused Trump of pushing the bill for “personal gain”; Bernie Sanders calls it a “tax cut for billionaires” who, instead of being helped, he says, should be “asked to pay more in taxes.”

Yes, the richest (by and large) will get the most reductions, since they pay the most taxes already. Bernie should be reminded that it is the very nature of taxes that “ask” is the wrong active verb. And calling a cut in what’s taken from taxpayers a “heist” is too absurd for commentary.

It does look like most taxpayers will get tax relief. That’s good. Alas, the debt may grow larger, depending on the economic growth spurred by the tax reform. But I notice that the Democrats tend to complain about deficits only when Republicans are in charge. And vice-versa.

Partisan Derangement Syndrome at work.

This is Common Sense. I’m Paul Jacob.

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Accountability ballot access general freedom government transparency initiative, referendum, and recall local leaders national politics & policies political challengers responsibility tax policy term limits too much government

What Unlimited Government Costs Us

Tim Eyman, doll, petition, taxes, Washington, initiative, democracy, voters

“Olympia can’t restrain itself,” Tim Eyman wrote the other day, a judgment on legislative irresponsibility hardly unique to the Evergreen State. Citizens around the country have cause to lament the difficulty of obtaining anything close to a good legislature.

Too often the merely “bad” would constitute a significant improvement.

Which is why legislators need to be put on a short leash. Limits on government must be written into law, where possible into either the U.S. Constitution or state constitutions, so the limits cannot be tampered with by legislators, good or bad.

Washington State initiative guru Tim Eyman, cited above, has made a career of working for just those kinds of limits. In 2007, Eyman and the citizen group Voters Want More Choices petitioned onto the statewide ballot a requirement that any tax increase must receive a two-thirds vote from both legislative chambers.

Voters passed the measure* in 2007, 2011 and 2012.

In an email to supporters this month, Eyman presents data — an “amazing real-world comparison” — to help us understand how effective the limits were . . . while they lasted.

He notes that “with the 2/3 rule in effect from 2008-2012, those 5 legislative sessions cost the taxpayers $6.894 billion” in increased taxes.

And he compares that to the five years (2013-2017) since the state’s highest court struck down the voters’ two-thirds mandate: “WITHOUT the 2/3 rule, those 5 legislative sessions cost the taxpayers $23.679 billion.”

“Without the fiscal discipline imposed by citizen initiatives,” Eyman concludes, “politicians cannot hold back.”

Now we have hard evidence for what unlimited government costs us: more than three times more!

This is Common Sense. I’m Paul Jacob.

 

* Washington State’s ballot initiative process allows voters to pass simple statutes but not constitutional amendments. For two years after passage, legislators must garner a two-thirds vote to override a ballot initiative. After those two years, only a simple majority is required.

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general freedom initiative, referendum, and recall national politics & policies responsibility tax policy term limits U.S. Constitution

Brexit 1776-2017

Independence Day, 1776, July 2, July 4, Brexit, British, freedom

These united States* got their start, officially, on July 2, 1776.

That’s when the Second Continental Congress voted to separate from King George’s government across the water. But it was two days later when that same Congress approved its formal Declaration, and it was the wording of that Declaration that impressed everybody — including folks back in England.

July Fourth, not the Second, became “Independence Day.”

Today, the English are insisting on independence. Last year’s referendum to exit the European Union was a major step in throwing off the abusive relationship from Brussels and the central government there.

The Brits have every right to their “Brexit,” since, as our Congress argued so persuasively, governments “deriv[e] their just powers from the consent of the governed,” which entails that “whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it.”

Americans have never had more cause for fellow-feeling with the British. Not only are they copying us, we are copying us.

To gain anything like control over what has become a runaway central government in Washington, D.C., Americans in the states will have to continue to (in effect) nullify federal law regarding marijuana and take the lead on criminal justice reforms and improving government ethics and accountability. More work must be done, fighting for free speech and against corruption. And overbearing taxation and regulation and cronyism And insane debt accumulation.

Across the pond, it’s Brexit. Here, it’s just our continuing Revolution.

This is Common Sense. I’m Paul Jacob.

 

* For just today I’ll use the odd, old capitalization, just as it was used in the Declaration of July 4, 1776.

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Accountability free trade & free markets general freedom local leaders media and media people nannyism national politics & policies porkbarrel politics responsibility tax policy too much government

Ballots & Books

New York Times, taxes, tax, libraries, tax cuts, big government, public services, free markets

The people of Roseburg, Oregon, aren’t paying enough in taxes. That’s the upshot of Kirk Johnson’s recent New York Times article, “Where Anti-Tax Fervor Means ‘All Services Will Cease.’”

“For generations in America,” readers are informed, “small cities . . . declared their optimism and civic purpose with grand libraries that rose above the clutter of daily life and commerce.”

And then, the unthinkable: “last fall, Douglas County residents voted down a ballot measure that would have added about $6 a month to the tax bill on a median-priced home and saved the libraries from a funding crisis.”

How dare voters so vote? Didn’t they know the Times wanted those libraries fully funded? Where was the “optimism and civic purpose” of Roseburgians?

“We pay enough taxes,” said auto mechanic Zach Holly.

“The trust is gone from people who are paying the bills,” acknowledged an elected commissioner one county over.

Even Jerry Wyatt, who voted for the library tax, decried that, “There’s no end of waste” in government, adding, “We need less people on the county payroll.”

Meanwhile, the Times reporter explained that “few places” are confronting “the tangled implications . . . more vividly than in southwest Oregon.” It’s not merely “lights out, one by one, for the [library] system’s 11 branches.” There have also been “cuts to the sheriff’s budget . . . [ending] round-the-clock staffing.”

“If a crime is reported after midnight there,” Johnson wrote, “best not hold your breath for a response.”

This is “what happens when citizens push the logic of shrinking government to its extremes.”

To the extreme, eh? Hmmm. Doesn’t seem bad at all.

Douglas County voters made a free choice about libraries and taxes.

Close the book on it.

This is Common Sense. I’m Paul Jacob.

 

* There have also been worthwhile innovations in county government due to the budget cuts. Nearby Curry County combined its juvenile justice department with its parks department to save scarce funds. Then, the parks department began using juvenile offenders to clean up the parks. By engaging teenagers in meaningful work, the policy pushed recidivism rates way down and now Curry County has one of the lowest rates of youths committing a second offense.

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Accountability folly general freedom moral hazard porkbarrel politics property rights responsibility tax policy too much government

No Rich No More

Connecticut, taxes, revenue, budget, tax and spend, wealth, common sense

Connecticut has a budget problem. There’s not enough money to spend.

WTNH-TV in New Haven paraphrased the situation along with the response of Connecticut’s very progressive governor: “Income tax revenue collapses; Malloy says taxing the rich doesn’t work.”

The news story explains, “Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years.”

Hmmm. Despite the tax increases? Or . . . “because the state of Connecticut depends too much on its wealthy residents,” as the report continued, “and wealthy residents are leaving . . .”

A Yankee Institute report notes that “the exodus of wealth from the state as top earners and businesses relocate to more tax-friendly states” is a major problem. Institute President Carol Platt Liebau calls it a “terrible cycle of tax increases followed by deficits followed by even more tax increases.”

Yet, state legislative Democrats are back pushing more tax hikes on “the rich.” Senate legislation would jack up the tax rate — retroactively — on those with income of $500,000 or more. House legislation would slap a 19 percent surcharge on some hedge fund earnings. In response, the head of the Connecticut Hedge Fund Association testified that his “industry is populated by exactly that type of person that will move based on tax policy.”*

A song by Ten Years After comes to mind:  

Tax the rich, feed the poor
Till there are no rich no more

Doesn’t sound like a good idea even in song.

This is Common Sense. I’m Paul Jacob.

 

* It’s worth noting that Gov. Malloy is now “against raising taxes again to fill the deficits and is instead focusing on spending cuts . . .”

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Accountability free trade & free markets general freedom national politics & policies tax policy

Death and . . .

taxes, tax cut, Trump, gift, give away, rights, growth, economics

It’s a sure thing — that most folks will like President Trump’s tax cuts. Though we don’t yet know all the details.

When it comes to taxes, less is more. 

That is, if you’re paying taxes. It is no great mystery that people like it when their own taxes are reduced.

But what about reducing other people’s taxes?

“The core economic case for tax cuts is that they reduce the obstacles to creative and productive activities,” economist Don Boudreaux explained yesterday at the Café Hayek blog.

Cutting the corporate tax rate — which even former President Bill Clinton supported during last year’s campaign — won’t immediately appear in people’s paychecks, but can stimulate economic growth helping everyone. Recent experiences in both Britain and Canada bear this out.

Cutting taxes, of which “the rich” pay more, can also spur growth.

Yet, these ideas do not dominate popular discussions of tax cuts. Boudreaux lamented media reporting that treats any tax reduction as simply a “‘gift’ to high-income earners,” dubbing the coverage: “Biased. Benighted. Blind.”

“Suppose that freedom of the press were reported in the same way as . . . a ‘giveaway to the press’?” he asked. “Most people, of course, do not own newspapers or other media outlets.”

Boudreaux concluded, “When the press is free, the chief beneficiaries are the general public.”

Freedom — of both the press and to keep more of the fruits of our labors — helps the common man. As well as the uncommon man. A tax cut for me helps me directly, and you indirectly. And vice versa. Just as a free press is great for those in journalism as well as those of us not in journalism.

That is not blind, but eyes open; not benighted, but enlightened; not biased, but . . .

. . . Common Sense. I’m Paul Jacob. 

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