While most critics of government spending focus on entitlements, regular appropriations, and earmarks, there is a category of spending that not many have paid much attention. This spending is called “tax expenditures.” This year as part of the debate or controversy over raising the federal debt ceiling, attention is being paid to the cost of these tax expenditures, although the term commonly used is “loophole.” | Read More »
“Nothing is so permanent as a temporary government program.” — Nobel Laureate Milton Friedman Is this true? Do federal grants cause state and/or local tax increases in the future after the government grant ends? Economists Russell S. Sobel and George R. Crowley have examined the evidence, and they find the answer is yes. Their research paper is titled Do Intergovernmental Grants Create Ratchets in State | Read More »
As our nation’s leaders consider the possibility of raising income tax rates, we need to be aware of the negative impact of higher marginal tax rates on the economy and make sure we resist the lure of higher taxes. This is especially important even if the new higher tax rates are confined to to the rich. The concept of marginal tax rates is important to | Read More »
This column is cross-posted from Voice for Liberty in Wichita. The fact that the Overland Park Chamber of Commerce supports a tax increase reminded me of a piece in the Wall Street Journal by Stephen Moore that shows how very often, local chambers of commerce support principles of crony capitalism instead of pro-growth policies that support free enterprise and genuine capitalism. We may soon have | Read More »
This column is cross-posted from Voice for Liberty in Wichita. Regardless of one’s attitude towards the Social Security system, the refusal by liberals to admit the fraud of the system’s trust fund remains an obstacle to honest discussion of the system’s future. Here’s an example from a prominent defender of the myth of the Social Security Trust Fund, Sen. Bernie Sanders of Vermont. In an | Read More »
This column is cross-posted from Voice for Liberty in Wichita. While the economic future of the United States seems grim, the encouraging news is that large swaths of Americans are starting to understand the reality of the situation and what must be done to place our economic house in order. This is my conclusion after viewing a new video by Bankrupting America. The two-minute video | Read More »
Yesterday President Barack Obama denounced the tax breaks given to owners of corporate jets. Described by MSNBC Television program host Rachel Maddow as a “corporate tax loophole” that allows “giant corporations to dodge their taxes,” Obama cast the issue as corporate fats cat vs. kids: “You go talk to your constituents — the Republican constituents — and ask them, are they willing to compromise their | Read More »
This column is cross-posted from Voice for Liberty in Wichita. Last week the American Legislative Exchange Council released the fourth edition of Rich States, Poor States: The ALEC-Laffer Economic Competitiveness Index. This is an important study by authors Arthur B. Laffer, Stephen Moore, and Jonathan Williams that identifies states that use “best practices to enable states to drive economic growth, create jobs, and improve the | Read More »
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