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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

“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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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

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 initiative, referendum, and recall local leaders political challengers Regulating Protest too much government

Know Your BS

“Help me get my B.S. in the voters pamphlet,” read the subject-​line of Tim Eyman’s email

Eyman is a practitioner of the art of the voter initiative, foremost in his state, Washington, and one of the most effective nationwide.*

This particular call to action concerns the voter pamphlet statements about a tax increase placed on Washington State’s November ballot by the mayor and city council in Tim’s hometown of Mukilteo.

“In the pro statement,” Eyman explained, “they wrote that the need for the tax increase was ‘indisputable.’” Which his rebuttal countered with: “Politicians always say the need for higher taxes is ‘indisputable.’ We call B.S. on that.”

It is rather to the point.

But soon he received word from the city that, “The Auditor feels the language is inappropriate and would like you to choose different wording.” Rather than “We call B.S. on that,” it was suggested that he might use: “We call foul.”

Eyman objected. He pointed out that B.S. is used ubiquitously; he sent the city examples.

“I called the ACLU,” his email noted, and “they thought it was B.S. for the government to say you can’t say B.S.”

Eyman’s own attorney, Stephen Pidgeon, sent the city a detailed letter pointing out that this is exactly the speech protected under the First Amendment.**

The City of Mukilteo has yet to announce a final decision. Tim Eyman invites all of us to send an email to encourage the city to Let Eyman Keep his B.S. in the Voters Pamphlet.

This is Common Sense. I’m Paul Jacob.

 

* He was once even dubbed “America’s No. 1 freedom fighter” — by me.

** Pidgeon also offered, “While the pious may construe the inference of these two alphabetic avatars as meaning something crude, my client may very well have been referencing an ancient Latin phrase ‘Bubulum Stercus’ which no average voter would ever find inappropriate.”


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crime and punishment free trade & free markets general freedom moral hazard nannyism too much government

Sin, Soda and Say

Government policy in Seattle, Washington, is being driven by an outright socialist on the city council. The mayor, apparently starving for attention, proposed a goofy new sin tax last year. 

Now, writes Reason’s Baylen Linnekin, “Seattle lawmakers are expected to vote early next week on a citywide soda tax that would add more than $2.50 to the cost of a twelve-​pack of soda.” 

The tax’s proponents’ rationale is too familiar: sugary sodas are bad for us, so we must be discouraged from drinking them. 

Besides, politicians want to spend our money. 

The problem, of course, is that the more successful they are at the first task, discouraging the ‘sin’ itself, the less revenue for them to throw at voters to prove their ‘caring’ nature … and buy votes.

But it is not as if those are the only competing factors involved. “The tax would undoubtedly drive consumers,” writes Linnekin, “to buy more groceries in the city’s suburbs.” Bellevue and Kirkland are nice towns. And nearby.

Arguing for a tax like this — as a social engineering mechanism — is not only crude, but flies in the face of the very best wisdom, that of Jean-​Baptiste Say:

A tax can never be favorable to the public welfare, except by the good use that is made of its proceeds.

But elitist nannyism corrupts politicians, who make it their job to steer our consumption.* And they tend to be resistant to the “best scheme of finance,” which is, as J.-B. Say put it, “to spend as little as possible; and the best tax is always the lightest.”

If the tax goes in, Seattleites, drive to out-​of-​town Costco or Walmart. 

Then drive your greedy nannies out of office.

This is Common Sense. I’m Paul Jacob.

 

* Considering the mayor’s push to include diet sodas in the sin tax, how competent at this are they? It’s the sugary drinks that are known killers, but the diet drinks are mainly imbibed by wealthier folks. The mayor wants to appease the socialist on the council, and pointedly not favor the “privileged.”


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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

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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Common Sense general freedom ideological culture initiative, referendum, and recall political challengers responsibility term limits too much government U.S. Constitution

Duck/​Rabbit, Maiden/​Crone, and Taxes

Revolution! Must we?

Can’t we reform at a reasonable pace?

Well, whether we change slowly or quickly, change must occur. Today’s in-​place policies are not stable.

But a better future itself must be stable. Or else it will not be better.

And a key to successful change is change in the hearts and minds of the people. The vast majority, East and West, need to shift mental gears and shift their ideological paradigms. (That is the term most famously used by Thomas Kuhn.)

Take yesterday’s story. I first heard about it from proponents of Oregon’s big business excise tax hike. They were saying that Oregon had the lowest business taxes in the union, and took that as a cue to raise taxes. I looked at it as a great political success, and one that had contributed mightily to Oregon’s remarkable economic resilience in these trying economic times.

The difference between the Higher Taxes reaction (which views low taxes as an opportunity only to raise them, and the consequences mainly as who gets the tax funds) and my reaction (which concentrates on the consequences of the expropriation, and looks to a longer period of time to gauge results) is a paradigm shift. To go from one to the other (preferably from the pro-​tax to the low tax position) requires a shift in vision.

It is like what happens when you refocus on the Duck/​Rabbit image, or the Maiden/​Crone. Give a person some time. Be patient. And hint that a shift in perspective is warranted to see both.

And that we might gain something from a paradigm shift.

This is Common Sense. I’m Paul Jacob.


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maiden/crone, illusion, paradigm shift