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crime and punishment ideological culture subsidy too much government

Tip of the Socialism-berg 

“In 2024 alone, state Medicaid Fraud Control Units reported more than 1,151 convictions and more than $1.4 billion in civil and criminal recoveries,” writes Veronique de Rugy at Reason. “Federal enforcement recovers a tiny share of what is stolen. Fraud that goes undetected never appears in the data.”

And then she makes a claim that increasing numbers of astute observers make: “That’s only the tip of the iceberg.” She goes on to suggest that Medicare, the Supplemental Nutrition Assistance Program (SNAP), and “many other welfare programs” constitute a huge hunk of fraud.

The solution? “If we want less fraud,” she argues, “we need less government.”

Fraud and big government seem to go hand in hand. At least this kind of big government, which resembles the biggest kind of government imaginable. For taking wealth from many productive American citizens and giving it to a small but growing population of refugees from distant lands, that’s not necessarily fraud, I suppose, but it is something close to socialism.

We see in Venezuela just how devastating rule by thieving socialists can be. (Hugo Chavez nationalized oil industry infrastructure and then ran it into the ground.) In Minnesota and in other states of the union, we see a similar ethic. When done on a limited basis, we could call it “helping the poor,” the folks who just cannot produce what they need. That’s how transfer socialism was sold to us.

And they could say, truthfully, that’s not full socialism.

But extending the beneficiary class from our most needy friends and neighbors to the less-and-less needy, and then to waves of refugees from other countries, that’s a recipe for disaster. Like socialism when “full.”

How far should Americans go to help “others”? To our own ruin?

This is Common Sense. I’m Paul Jacob.


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ideological culture media and media people tax policy

Post California Soaking

Rumors that Washington Post owner Jeff Bezos has been pushing the Post in a more commonsensical editorial direction could very well be true.

A recent Post editorial slams progressives who “think of taxation the way teenage boys think about cologne: if some is good, more must be great.”

I’m no fan of even a moderate amount of that brand of cologne. But anyway. The Post is discussing a proposed ballot measure backed by the ultra-lefty Service Employees International Union.

SEIU troops are currently collecting signatures. And before they’ve even gotten enough to post it to ballot, the people being targeted have started moving. 

Out of state.

The measure would impose a new 5 percent tax on billionaires. Some of the state’s billionaires, including Google cofounder Larry Page and Palantir cofounder Peter Thiel, aren’t willing to wait and see whether it actually reaches the ballot and passes in November. Why? The measure would apply retroactively “to those who were California residents on January 1, 2026.”

Some Democratic lawmakers are saying “good riddance,” as if it’s possible to loot billionaires who don’t wait around to be looted. Or that it’s good for state coffers to lose their billionaire entrepreneur “contributors.”

The Post says the retroactivity would open the measure to legal challenges, but that if it gets passed and survives litigation, “it’s a safe bet this won’t be a one-off. Funding ongoing expenses like health care with one-time taxes isn’t sustainable. Progressives will want to return to the well until they’ve sucked it dry.”

And no one should know better than Californians how dangerous dry wells are.

This is Common Sense. I’m Paul Jacob.

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insider corruption subsidy too much government

Ax Tax-Funded Tax-Grubbing

Some people in pursuing their business or charitable projects rely only on the voluntary support of customers or patrons. Other people rely on government funding, perhaps by default because it’s “always been that way.”

Still others not only feel entitled to government funding but are quite importunate about it, going so far as to use taxpayer dollars to pay for lobbying the government for even more taxpayer dollars. 

My theory? If taxpayers weren’t so routinely robbed to fund lobbyists, fewer dollars in general would be siphoned from taxpayers’ pockets to the demanders’ pockets.

Lone Star state officials are making some progress toward ending taxpayer-funded tax-grubbing. The state attorney general, Ken Paxton, has reached an agreement with several Texas school districts guilty of taxpayer-funded campaigning against a school choice bill. They have agreed to institute safeguards to prevent themselves from doing it anymore. We’ll see.

Texas Governor Greg Abbott “has also had enough,” writes John Fund. Abbott is promoting a bill being considered in the legislature that would prevent cities, counties, and school districts from using tax dollars to hire lobbyists. Officials and teachers would still be able to talk to their representatives themselves.

“Texans are being taxed twice,” State Senator Paul Bettencourt, a supporter of the bill, explains, “once to fund local services and again to fund political lobbying they may not support.”

Yes, that’s the costly and corrupting problem all right. One that Texas is hardly alone in suffering but perhaps a ‘lone star’ in fighting.

This is Common Sense. I’m Paul Jacob.


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ideological culture

Socialist Intifada

“Do you think that billionaires have a right to exist?” Meet the Press host Kristen Welker asked Zohran Mamdani, the likely winner of last week’s still undecided Democratic Party mayoral primary in New York City. 

“I don’t think that we should have billionaires,” was the democratic socialist’s reply. 

So, his answer to whether they have a “right to exist” was . . . NO! 

“Because, frankly, it is so much money in a moment of such inequality,” continued Mamdani, “and ultimately what we need more of is equality across our city and across our state and across our country.” 

Even equality at lower levels of wealth. By design and decree. 

But don’t worry your pretty little billionaire heads about being pilloried, prohibited, prevented from existing, because Mamdani generously offered: “I look forward to work with everyone, including billionaires, to make a city that is fairer for all of us.”

Ah, the rest of us . . . what does it all mean for us? Hmmm, could politicians aiming to tax, exploit, and totally end any such thing as “the rich” ever miss the mark and wind up hitting us of lesser wealth? And what if billionaires’ success is intimately tied to ours?

Still, New York City’s undesirables do not end with billionaires. Zohran Mamdani sees white people. (They’re everywhere.)

Welker confronted the Democrat state rep with a racially charged statement on his website: “Shift the tax burden from overtaxed homeowners in the outer boroughs to more expensive homes in richer and whiter neighborhoods.”

Why bring up skin color?

The democratic socialist assured his policy is “not driven by race,” adding, “It is not to work backwards from a racial assessment of neighborhoods or our city.”

Of course, that “racial assessment” appears to be precisely what he’s working from.

Mamdani was also questioned about the slogan “globalize the intifada,” which he declined to condemn. It looks like his intifada will be against billionaires and white people.

This is Common Sense. I’m Paul Jacob.


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too much government

Somebody Different, Chicago?

It’s good when the latest horrific loot-and-pillage ideas of the latest horrific mayor of your city keep getting shot down. 

The people of Chicago must hope that this continues.

But it would be better to have a mayor who doesn’t make it necessary.

Chicago’s city council recently met in a special session to consider Mayor Brandon Johnson’s proposal to hike property taxes by $300 million to help balance the budget. Councilmen defeated the idea 50-0.

In pitching his plan, Johnson had said that the only alternative was major cuts to the numbers of police officers and fire fighters. There would also be fewer trash pickups, less tree trimming, more rats.

Off the table? Any reductions in public school spending. 

But, as The Wall Street Journal observes, Chicago’s city budget has grown from $11 billion in 2019 to $17 billion in 2023. Meanwhile, “the Chicago Public Schools added almost 7,000 employees while CPS enrollment declined by more than 30,000 students” — as “temporary” pandemic-era jumps in spending became permanent.

Teachers-union-backed Brandon Johnson was elected in 2023 with about 52 percent of the vote; his leftist campaign platform included proposals to hike taxes.

Johnson’s main opponent, Paul Vallas, also a Democrat but of sounder policy mind, campaigned mostly on a tough-on-crime platform. But he also made clear his opposition to the “high-tax and high-regulation environment” in which many Chicago businesses find themselves.

Turnout in Chicago’s April 2023 runoff campaign was only 35 percent.

Try again, Chicago?

This is Common Sense. I’m Paul Jacob.


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national politics & policies subsidy tax policy

Kamala Hood

American politics is largely devoted to the grand task of taking from some and giving to others, a sort of Robin Hood mania that has nothing to do with giving back to taxpayers what was taken from taxpayers (as in the legend) — or doing much of anything for the poor — but, instead, to ostentatiously give to some and quietly take from as many people as possible.

Nevertheless, that giving is not always ostentatious. Sometimes it is surreptitious

Or at least not ballyhooed.

Kamala Harris has taken up an old Democratic Party stalking point: soak the rich! Though she tries not to mention just how much money she and her fellow Biden Administration insiders have been giving to a few big corporations.

“Despite Harris’ rhetoric of fighting for the middle class,” writes Jack Salmon at Reason, “her policies have disproportionately benefited the wealthy and large corporations while leaving middle- and lower-income Americans behind. Far from soaking the rich, Harris’ legacy has been one of feeding them.”

Corporate subsidies have “exploded,” explains Mr. Salmon, going from a ten-year budget allocation of $1.2 trillion in 2021 to now surpassing $2 trillion.

Nearly doubled!

“The beneficiaries of this largesse are extremely concentrated,” Salmon notes, most of it going to “just 15 large corporations, seven of which are foreign.” Of course, a lot of this is under cover of “saving the planet” and fighting “climate change”: “Wind turbine manufacturers like General Electric, Vestas, and Siemens/Gamesa — who collectively produce 79 percent of all turbines — are among the biggest winners.”

Robbing from the few and giving to the many makes neither for good mathematics or a winning political strategy. Robbing from the many and giving to the few is what usually works. But if your appeal is to “the left,” you have to pretend to grab most from the super-rich few.

Your pals.

This is Common Sense. I’m Paul Jacob.


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education and schooling national politics & policies tax policy

Trump to Ax Tip Tax

When Biden panders to his lower-income supporters, he targets zeroing out their student debt and regulating credit card companies with further restrictions on their ability to charge for overdrafts and the like.

When Trump panders to his lower-income supporters, he promises to exempt tips from income taxation, as he did recently in Las Vegas.

This may be the most obvious difference between left- and right-styles in politicking to the masses, good-ol’-fashioned vote-buying or its twin: leftists forgive debts and add regulations, rightists reduce taxes.

Like me, you may, at first blanch, prefer the latter form of pandering, but Eric Boehm, at Reason, offers some reasons not to look so kindly on Trump’s pandering. First, and most obviously: “Reducing revenue without identifying offsetting spending cuts means Trump is merely promising to borrow more heavily.”

A bigger challenge comes later: “On the surface, that sounds great. But there’s already one likely unintended consequence: A lot more income will suddenly be reported as tips. Any time a government gives preferential tax treatment to one type of economic activity, you tend to get a lot more of that type of economic activity. Does that mean we’ll have an entirely tip-based economy?” The answer is a likely No.

Oddly, Mr. Boehm doesn’t address one obvious element: Tips aren’t wages and they aren’t profits. Tips are gifts. They aren’t determined by employers and they aren’t specified by employees. And gifts aren’t taxed as income like other income is.

So letting people who accept tips in the course of their labors not pay taxes on them is really, really hard to object to.

In fact, I don’t object.

This is Common Sense. I’m Paul Jacob.


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Accountability general freedom government transparency

Less Oversight?

There are long-standing debates among those who oppose big government. One is whether we should promote every budget cut and any tax cut, or whether we should more-or-less carefully support only some cuts — on the grounds that some possible cuts might scuttle future reforms.

This came to mind upon hearing Michigan Governor Gretch Whitmer’s plan to reduce the budget of one of her state’s bureaucracies by 28 percent.

Hooray!

But wait a moment: the department to be cut is the Office of the Auditor General!

Whitmer’s proposal is to take the $30 million budget and bring it down to a lean $21.7 million.

The point of an auditor is to make sure that government does not misuse the money taken from taxpayers, allegedly for the public benefit. Take that away, and what do you have? 

Waste. Corruption — a recipe for it, anyway. Maybe an engraved invitation for it.

Is there any merit to this reduction? Democrats are not known to love budget cuts. 

They say Michigan’s auditor’s office has been “too partisan” — and certainly said things about Democrat programs that don’t make those programs look good!

“If there is ever a place in Lansing where we should rise above petty partisan politics, it should be oversight and ethics,” Rep. Tom Kunse (R-Clare) said, expressing a perspective I share.

So what’s really going on here? Well, the state is facing a $418 million surplus. That’s a lot of money to play with. What’s the likelihood that the party in charge wants to reduce the Auditor’s Office for any other reason than to reduce scrutiny of how they plan to spend that money?

This is Common Sense. I’m Paul Jacob.


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crime and punishment free trade & free markets tax policy

What Pfizer Pfolks Got

Yesterday, a whole lot of people paid a whole lot of taxes. It was Tax Day — filing day — for most Americans.

Truth is, American workers pay income tax with every paycheck. And they pay other taxes too.

Somehow, though, Pfizer — one of the world’s most profitable companies — did much better than we did. “Drugmakers make big profits in the U.S.,” explains Sydney Lupkin at NPR. “But many pay taxes far below the 21% corporate tax rate. Pfizer’s effective tax rate is so low it’s getting a big refund despite booking $59 billion in revenue.”

Did you get a big refund on top of a huge wage hike? No?

Well, you should lobby Congress more.

Now, Pfizer’s long had a cushy/pushy relationship with the U.S. Government. The company’s had to pay loads of legal penalties for malfeasance, but it’s also received subsidies, immunities, and government-forced clientele — in the rollout of its most famous product. But through thick and thin it faces our byzantine tax code with ease, for it’s that tax complexity that really gives Big Pharma the advantage, compared to smaller companies.

I have never argued for more taxes. I wonder if corporations should even be taxed based on income, which gets complicated to figure since it’s based on profits and losses and investments etc., thus opening the door to corrupt insider politics. Plus, those taxes simply get passed on to us. 

But if corporations are taxed, how indecent that small companies tend not to get huge refunds on years in which they make stellar returns.

Though I suppose if Congress keeps on awarding more to the bigger, that’s a problem that sort of solves itself. 

With the smaller companies just dying out.

This is Common Sense. I’m Paul Jacob.


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general freedom media and media people national politics & policies

Awkward for Ideologues?

There’s good news about inequality?

In late March, George F. Will argued that the truth about inequality in America, according to his op-ed title, is “awkward for the left and right.”

He points to the reality of transfer payments in the United States. 

Ignoring that reality is what leads to awkwardness.

On the left, critics of capitalism portray low-income earners as a growing class of the impoverished . . . and high-income earners as a growing class of filthy rich. 

But by “not counting about 88 percent of government transfer payments that enlarge the buying power of lower-income households, and not counting taxes that lower the wealth of higher-income households, government statistics purport to prove that the average income in the top quintile of earners is 16.7 times that of the average in the bottom quintile. Counting transfers and taxes, however, the actual ratio is 4 to 1.”

So leftists ignore the “successes” of the very system they set up, the better to complain and demand more of what has already been done.

But what do rightists ignore?

That’s where Mr. Wills’s Washington Post editors (a class of professionals who usually determine titles and blurbs) may have given us the wrong impression. Most of his column explodes leftist interpretations of contemporary reality. But he does talk about “the populist right,”: the “national conservatives” who mimic the progressive left in favoring “industrial policy” that, he notices (as I’ve noticed here at Common Sense) “regressively funnels money upward to corporations.

“The populist right advocates protectionism (tariffs to shield corporations from competition), and the populist left advocates hundreds of billions of dollars of subsidies (for semiconductors, electric vehicles, solar panels, etc.).” Both favor the rich when it comes to regulations, while complaining about the rich in other contexts.

A poor way to help the poor.

This is Common Sense. I’m Paul Jacob.


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