Tag: entrepreneurs

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Accountability folly free trade & free markets general freedom moral hazard national politics & policies responsibility tax policy too much government

Billionaire Theater

Bill Gates, taxes, tax, government, entrepreneurs, responsibility

“I need to pay higher taxes,” Bill Gates told CNN’s Fareed Zakaria on Sunday.

He was making a case against Republican tax cuts, but his actual argument? Insignificant. It’s just another unlearned, narrow-​perspective “growing inequality” farrago. But his conclusion intrigues … as a man-​bites-​dog story, because people have this goofy idea that rich people are somehow against government and for reduced taxes. 

They aren’t. Not even most of the richest.

“I’ve paid more taxes, over $10 billion, than anyone else,” says the man worth $90 billion, “but the government should require the people in my position to pay significantly higher taxes.”

Why? To spend his money better than he could? 

Were all the wealth of America’s billionaires confiscated whole and that sum would actually pay off the federal debt (which I doubt), what do you think Washington politicians would do? Go on the straight and narrow and never over-​spend again?

No. Politicians would take the new influx of funds as a signal to go on an even bigger spending binge.

But what about his mere income tax increase notion? What then? As sure as the Blue Screen of Death it would be applied down to millionaires, too. And then rates for less-​than-​millionaires would likely go up. We have a history with this. And what would that do?

It would hit up-​and-​coming entrepreneurs the hardest. It would nip Bill Gates’s company’s competition in the bud. 

But surely Gates wouldn’t be mercenary in his theatrical play for media adoration, would he? 

Not Saint Bill!

This is Common Sense. I’m Paul Jacob.

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crime and punishment folly free trade & free markets ideological culture national politics & policies too much government

Subsidizing Illegal Aliens

Rand Paul, subsidy, aliens, illegals

In The Mouse That Roared, a 1955 comic novel by Leonard Wibberley, a tiny English-​speaking country in Europe loses market share for its only export, a wine label, to a cheap American knock-​off. Seeking compensation for the loss, the duchy decides to do the only rational thing: declare war on America, and then, after the inevitable defeat, reap the rewards of reconstruction financing.

I was reminded of the book when reading about another of the Obama Administration’s subsidy programs, uncovered by Sen. Rand Paul. The program gives money to illegal aliens deported to their country of origin, El Salvador, to start small businesses.

Sort of a Small Business Administration program for deportees.

But Congress’s involvement is nil, and the SBA has nothing to do with it, either. The program, according to the Rand Paul press release, “is administered by the non-​profit Instituto Salvadorno Del Migrante (INSMI — translated to Institute of Salvadorian Migrants) and funded through a $50,000 grant from the taxpayer-​backed Inter-​American Foundation.”

It is not big money, certainly not by profligate Washington standards. Nor is the premise of the program likely to win it praise from anyone looking for a solution to illegal immigration. Indeed, the best way to describe the program is how Rand Paul’s team did describe it: “absurd.”

In The Mouse That Roared, the Duchy of Grand Fenwick makes a crucial mistake in its plan to profit from American largesse: it wins the war.

But some things haven’t changed since then. The American government throws around money absurdly.

And little countries make fools of Big America.

This is Common Sense. I’m Paul Jacob.

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Rand Paul, subsidy, aliens, illegals

 

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free trade & free markets insider corruption nannyism too much government

The Boomers’ Bust

Remember when Bill Clinton ascended to the presidency? There were hurrahs. At last the Baby Boom generation had its own president!

We’ve gone through another Baby Boom president, and now we — and I’m talkin’ ’bout my generation, here — have our very own economic bust. Call it the Boomers’ Bust.

John Kass, writing in the Chicago Tribune, notes how different things look for Boomers, now. “In the ’70s,” Kass writes, “the slogan was ‘Do your own thing.” But today’s slogan might be ‘Washington, please save us.’”

Kass attributes some of the difference merely to age. When we were young, we took risks. Now that we’re older, we simply want to keep our houses and our cars and our TV sets, and our retirement plans.

The ominous marker in all this is the transfer of power. In our desires, demands, for security, we’ve given up a lot. Kass says we are giving up “liberty for all” and exchanging it with “power in the hands of a few.”

We can see it is who gains most: people and corporations on the inside track. But, as Kass points out, look who loses: “The casualty will be the entrepreneurs, those on the outside.… Such men and women will be on the outside for decades now.”

Since it was entrepreneurs who accomplished the most enduring good during the last 40 years, this will be tragic.

This is Common Sense. I’m Paul Jacob.