The government can cut roughly $343 billion from the federal budget and they can do so immediately.
__________
April 2, 2021
President Biden c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear Mr. President,
The stimulus program did not help, but getting government out of the way would!!!! Take a look at this great article that goes over several examples through history.
The great Ronald Reagan famously said (and I am paraphrasing, since I do not remember the exact phrase) that the most dangerous words in the English language were “I am from Washington and I am here to help you.”
Those are very wise words, especially when we think of the damage politicians have done because of their impulse to “do something” when the economy stumbles. The problem is not that there is nothing that needs to be fixed. The problem is that the crowd in Washington is far more likely to make things worse rather than better.
And who better to explain this than Thomas Sowell.
Sowell starts his most recent column by explaining that politicians who want to “do something” almost always want to expand the burden of government spending, but he notes that this approach has meant deeper recessions and more economic suffering. And he cites Warren Harding as an example of a President who rejected the notion that bigger government was some sort of economic elixir.
…you might think that the economy requires government intervention to revive and create jobs. It is Beltway dogma that the government has to “do something.” History tells a different story. For the first 150 years of this country’s existence, the federal government felt no great need to “do something” when the economy turned down. Over that long span of time, the economic downturns were neither as deep nor as long lasting as they have been since the federal government decided that it had to “do something” in the wake of the stock market crash of 1929, which set a new precedent. One of the last of the “do nothing” presidents was Warren G. Harding. In 1921, under President Harding, unemployment hit 11.7 percent — higher than it has been under President Obama. Harding did nothing to get the economy stimulated. Far from spending more money to try to “jump start” the economy, President Harding actually reduced government spending.
Can we learn any lessons from Harding’s anti-Keynesian approach? Assuming we want more growth and less unemployment, the answer is yes (and we can also learn the lesson that Hoover was a moronic statist from the very beginning).
President Harding deliberately rejected the urging of his own Secretary of Commerce, Herbert Hoover, to intervene. The 11.7 percent unemployment rate in 1921 fell to 6.7 percent in 1922, and then to 2.4 percent in 1923. It is hard to think of any government intervention in the economy that produced such a sharp and swift reduction in unemployment as was produced by just staying out of the way and letting the economy rebound on its own. Bill Clinton loudly proclaimed to the delegates to the Democratic National Convention that no president could have gotten us out of the recession in just one term. But history shows that the economy rebounded out of a worse unemployment situation in just two years under Harding, who simply let the market revive on its own, as it had done before, time and time again for more than a century.
Allow me to actually quibble with what Sowell wrote. Harding didn’t “let the market revive on its own.” He helped the economy grow faster by shrinking the federal budget. As Jim Powell explained in National Review, “Federal spending was cut from $6.3 billion in 1920 to $5 billion in 1921 and $3.2 billion in 1922.”
That’s a stunning statistic, akin to cutting more than $1.5 trillion from today’s bloated federal budget.
Something similar happened under Ronald Reagan. Unemployment peaked at 9.7 percent early in the Reagan administration. Like Harding and earlier presidents, Reagan did nothing, despite outraged outcries in the media. The economy once again revived on its own. Three years later, unemployment was down to 7.2 percent — and it kept on falling, as the country experienced twenty years of economic growth with low inflation and low unemployment. The Obama party line is that all the bad things are due to what he inherited from Bush, and the few signs of recovery are due to Obama’s policies beginning to pay off. But, if the economy has been rebounding on its own for more than 150 years, the question is why it has been so slow to recover under the Obama administration.
By the way, Sowell also could have mentioned what happened in the United States immediately after World War II. The Keynesians were predicting a return to depression because of big reductions in government spending and the demobilization of millions of troops. But as Richard Vedder and Jason Taylor explained for the Cato Institute, the economy quickly adjusted and rebounded precisely because politicians didn’t revive the New Deal (and, as you can see from this video, President Reagan understood this bit of economic history).
Sowell also explains how FDR made a bad situation worse in the 1930s.
A great myth has grown up that President Franklin D. Roosevelt saved the American economy with his interventions during the Great Depression of the 1930s. But a 2004 economic study concluded that government interventions had prolonged the Great Depression by several years. Obama is repeating policies that failed under FDR.
Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733
But I’m getting a lot of requests to comment about Trump, especially in light of the recent protest/riot/insurrection and the ongoing political fallout (impeachment, etc).
So here are 10 observations (full disclosure: I didn’t vote for Trump in 2016 or 2020, but have never been part of the Never-Trump community).
Trump’s style is bluster and bullying – As I wrote way back before the 2016 election, Trump’s personal style is akin to a temperamental child. This can be entertaining (which is why CNN and other networks gave him so much attention during his initial campaign), but it also has limitations as an approach to governance (for instance, you don’t stop a virus by merely asserting it won’t come to the United States).
Trump is America’s “Crazy Uncle” – Early in his presidency, I happened to be in New Zealand and was asked about Trump in a TV interview. I basically said he’s like a grouchy and opinionated uncle who shows up on holidays and dominates the conversation with controversial statements. Given what’s happened over the past few years, that observation holds up well.
Republicans lawmakewrs in Washington never liked Trump – GOPers in the House and Senate like some of the things Trump has accomplished (tax reform and conservative judges), but they’ve never liked having him as president because he is too erratic and too self-centered. But most important, they’ve been afraid his simultaneous popularity (with core GOP primary voters) and unpopularity (with, say, suburbanites) is a threat to their ability to stay in power. In other words, it’s hard to win general elections in some places as a Trumpian populist but also hard to win GOP primaries in many places as a Never-Trumper.
Republican voters, by contrast, like Trump – One thing that surprised me over the past four yeas is that I found strong support for Trump from grassroots conservative Republicans. Yes, they didn’t like his fiscal profligacy and they mostly didn’t like his protectionism, but they did like the fact that he was a “fighter,” unlike so many (but not all) Republican politicians who get cozy with the DC establishment. They also figured he was worth supporting because he was so reviled by the establishment media (i.e., the enemy of my enemy is my friend).
Republican lawmakers generally have been in a no-win situation – Because of Trump’s popularity with GOP voters, Republican lawmakers have felt a lot of pressure to act as Trump loyalists even though many of them don’t like his behavior and disagree with some of his policies.
Be glad there were normal GOPers in the Trump Administration – Some people in the Never-Trump community want to create a blacklist of people who worked for Trump. This is misguided in the vast majority of cases. Most Trump appointees had nothing to do with Trump’s excesses and instead did good things (deregulation, for instance) in the various agencies and departments where they worked.
There are three GOP wings: Populist Trumpies, conservative Reaganites, and the establishment – Most pundits portray GOP infighting as a battles between Trumpist conservatives and the Republican establishment (symbolized, perhaps, by Sen. Romney). But that’s an insufficient description of what’s happening because it overlooks the fact that there are plenty of Reagan-style conservatives who definitely are not part of the establishment, yet don’t fit in with Trump’s big-government populism. It will be very interesting to see which anti-establishment strain wields more influence in the next few years.
Trump’s legacy to GOP: Total Democratic control of DC – On January 21, 2017, Republicans controlled the House, the Senate, and the White House. Four years later (a few days from now), Democrats will control the House, the Senate, and the White House. By way of background, one of the reasons I don’t like George W. Bush is that his failed polices paved the way for the left to have total control of Washington in 2009 and 2010. Shouldn’t Trump be judged similarly?
In spite of his many flaws, why did Trump win normally Democratic states? – While I just explained that Trump set the stage for the left to have total power in Washington, Republicans need to figure out how Trump managed to win some states in 2016 that historically have been unwinnable when contested by establishment Republicans (though he lost some traditionally GOP-leaning states in 2020).
In spite of his many flaws, why did Trump get more minority votes? – Similarly, Republicans need to figure out how a supposedly racist Trump managed to win a higher percentage of minority voters than recent GOP nominees such as John McCain and Mitt Romney. The bottom line is Republicans need to figure out if there are good parts of Trumpism once Trump is out of the picture.
I’ll close with a few statements:
It is perfectly okay to have voted for Trump because you liked some of his policies (whether they are ones I like, such as tax cuts, or ones I don’t like, such as protectionism).
It is perfectly okay to have voted against Trump for the same reason.
It is perfectly okay to have voted for Trump because you wanted to shake up the Washington establishment with unconventional behavior.
It is perfectly okay to have voted against Trump because his unconventional behavior was offensive.
It is perfectly okay to have been a Never-Trumper or a Trumpian populist.
What’s not okay, though, is to engage in political violence.
And what’s utterly awful is lying to supporters and creating the conditions for political violence.
P.S. While it’s worth spending some time to dissect and analyze the past four years, I hope that libertarians, Reagan conservatives, Trump populists, Never-Trumpers, establishment Republicans, etc, all join together to fight some of Biden’s awful ideas (the “public option” threat to private health insurance, class-warfare taxes, gun control, a blue-state bailout, etc).
But I doubt anyone cares about that. Let’s instead look at what happened last night (and, in some cases, what is still happening).
President
It appears that Biden will prevail in the battle for the White House when the dust settles, but you can see from this Washington Post map that the race was much closer than most people expected (Pennsylvania is expected to shift to Biden as mail-in votes are counted, and perhaps Georgia as well).
If that’s the final result, here are two obvious takeaways based on where a president has a lot of unilateral power.
Other policy areas generally require agreement between the executive branch and the legislative branch, so we can’t know the impact of a Biden presidency without perusing congressional results.
Senate
In my humble opinion, the big news of the night is that Republicans appear to have retained control of the Senate.
If true, that means some left-wing goals are now very unlikely.
There won’t be any court packing. There won’t be any serious effort to increase the number of Democratic senators by granting statehood to Washington, DC, and Puerto Rico.
But let’s focus on the economic issues. Here are some quick takeaways.
There will be another “stimulus,” but it won’t be nearly as profligate as would have been the case if Democrats had total control of Congress and the White House.
There won’t be any serious effort for forced unionization in right-to-work states.
The corporate tax rate will stay 21 percent (the best fiscal achievement of Trump’s presidency).
House of Representatives
It appears that Republicans will gain seats, which is contrary to all expectations.
That being said, there’s zero possibility of a GOP takeover, so Nancy Pelosi will remain in charge.
Ballot Initiatives
I wrote two weeks ago about this election’s six most important ballot initiatives.
The great news is that taxpayers scored a big victory by defeating the effort to get rid of the flat tax in Illinois an replace it with a so-called progressive tax. Winning that battle probably won’t rescue the Prairie State, but at least it will slow down its march to bankruptcy.
The other five battles mostly were decided correctly – at least based on the latest vote margins.
California voters rejected an initiative that would allow the state to engage in racial discrimination.
The California initiative to weaken limits on property taxes is trailing.
The Colorado initiative to lower the state’s flat tax appears prevailed.
The Colorado initiative to strengthen TABOR (the state’s spending cap) is leading.
The one clear piece of bad news is that an Arizona initiative to impose a big increase in the top income tax rate appears likely to prevail.
What’s the future for Trump and Trumpism?
Regular readers know I want the GOP to be the Party of Reaganrather than the Party of Trump.
So I will be very interested to see whether Trump’s apparent defeat means Republicans go back to (at least pretending to favor) conventional small-government conservatism.
That will have the be the topic of a future column.
A Silver Lining for Republicans
The party controlling the White House usually loses mid-term elections. For recent examples, Democrats won the House in 2018 and there were big victories for the GOP in 2010 and 2014during the Obama years.
In all likelihood, Republicans will now do much better in the 2022 midterm election with Biden in the White House instead of Trump.
A Silver Lining for Taxpayers
It’s not something that can be quantified, but congressional Republicans will now become much better on spending issues. They’ll no longer face pressure to go along with Trump’s profligacy and they’ll have a partisan incentive to oppose Biden’s profligate agenda.
P.S. Whether you’re happy or sad about the election results, remember that it’s always appropriate to laugh at the clowns and crooks in Washington.
President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.
Below is a fine article and video from Dan Mitchell.
(R Row, from front to rear) Milton Friedman, George Shultz, Pres. Ronald Reagan, Arthur Burns, William Simon and Walter Wriston & unknown at a meeting of White House economic
But that video is only six minutes long, so I only skim the surface. For those of you who feel that you’re missing out, you can listen to me pontificate on public policy and growth for more than sixty minutes in this video of a class I taught at the Citadel in South Carolina (and if you’re a glutton for punishment, there’s also nearly an hour of Q&A).
Cato Institute Senior Fellow Daniel J. Mitchell
Published on Apr 2, 2012
Cato Institute Senior Fellow Daniel J. Mitchell speaks to cadets economics and conservatism. This is the 10th lecture in the seminar series titled “The Conservative Intellectual Tradition in America.”
_______________
There are two points that are worth some additional attention.
1. In my discussion of regulation, I mention that health and safety rules can actually cause needless deaths by undermining economic performance. Ielaborated on this topic when I waded into the election-season debateabout whether Obama supporters were right to accuse Romney of causing a worker’s premature death.
2. In my discussion of deficits and debt, I criticize the Congressional Budget Office for assuming that government fiscal balance is the key determinant of economic growth. And since CBO assumes you maximize growth by somehow having large surpluses, the bureaucrats actually argue that higher taxes are good for growth andtheir analysis implies that the growth-maximizing tax rate is 100 percent.
P.S. If you prefer much shorter doses of Dan Mitchell, you can watch myone-minute videos on tax reformthat were produced by the Heartland Institute.
What did we learn from the Laffer Curve in the 1980′s? Lowering top tax rate from 70% to 28% from 1980 to 1988 and those earning over $200,000 paid 99 billion in taxes instead of 19 billion!!!! A Lesson on the Laffer Curve for Barack Obama November 6, 2011 by Dan Mitchell One of my frustrating missions […]
Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) p. 20.) Dan Mitchell praises Calvin Coolidge for keeping the federal government small. […]
President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. The way […]
Dan Mitchell does a great job explaining the Laffer Curve President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Today’s cartoon deals with the Laffer curve. Revenge of the Laffer Curve…Again and Again and Again March 27, 2013 […]
Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes? Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? December 31, 2012 by Dan Mitchell Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising […]
The Laffer Curve – Explained Uploaded by Eddie Stannard on Nov 14, 2011 This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” […]
I enjoyed this article below because it demonstrates that the Laffer Curve has been working for almost 100 years now when it is put to the test in the USA. I actually got to hear Arthur Laffer speak in person in 1981 and he told us in advance what was going to happen the 1980′s […]
I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]
Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]
Joe Biden said Thursday that paying more in taxes is the patriotic thing to do for wealthier Americans. …Biden said: “It’s time to be patriotic … time to jump in, time to be part of the deal, time to help get America out of the rut.”
I’m not sure how America’s Founding Fathers would have reacted to that statement, but I suspect that Washington, Jefferson, Franklin, Mason, and Paine would have had a different perspective.
But I’m not surprised that the Socialist candidate for President in France has the same mentality (and I’m referring to the official candidate of the Socialist Party, not the socialist currently running the country). Here’s a blurb from the BBC.
The Socialist favourite in France’s presidential election, Francois Hollande, has said top earners should pay 75% of their income in tax. …Mr Hollande himself renewed his call on Tuesday, saying the 75% rate on people earning more than one million euros a year was “a patriotic act”. …”It is patriotic to agree to pay a supplementary tax to get the country back on its feet.”
Isn’t this wonderful that politicians of different nationalities and from different continents can be united in the idea that it is “patriotic” to give the world’s least competent people more money?
Given their overt statism, I’ve mostly focused on the misguided policies being advocated by Bernie Sanders and Elizabeth Warren.
But that doesn’t mean Joe Biden’s platform is reasonable or moderate.
Ezra Klein of Vox unabashedly states that the former Vice President’s policies are “far to Obama’s left.”
This is an issue where folks on both ends of the spectrum agree.
In a column for the right-leaning American Spectator, George Neumayr also says Biden is not a moderate.
Biden likes to feed the mythology that he is still a moderate. …This is, after all, a pol who giddily whispered in Barack Obama’s ear that a massive government takeover of health care “was a big f—ing deal,”…and now pronouncing Obamacare only a baby step toward a more progressive future. It can’t be repeated enough that “Climate Change” Joe doesn’t give a damn about the ruinous consequences of extreme environmentalism for Rust Belt industries. His Climate Change plans read like something Al Gore might have scribbled to him in a note. …On issue after issue, Biden is taking hardline liberal stances. …“I have the most progressive record of anybody running.” …He is far more comfortable on the Ellen show than on the streets of Scranton. He has given up Amtrak for private jets, and, like his lobbyist brother and grifter son, has cashed in on his last name.
If you want policy details, the Wall Street Journalopined on his fiscal plan.
Mr. Biden has previously promised to spend $1.7 trillion over 10 years on a Green New Deal, $750 billion on health care, and $750 billion on higher education. To pay for it all, he’s set out $3.4 trillion in tax increases. This is more aggressive, for the record, than Hillary Clinton’s proposed tax increases in 2016, which totaled $1.4 trillion, per an analysis at the time from the left-of-center Tax Policy Center. In 2008 Barack Obama pledged to raise taxes on the rich while cutting them on net by $2.9 trillion. Twice as many tax increases as the last presidential nominee: That’s now the “moderate” Democratic position. …raising the top rate for residents of all states. …a huge increase on today’s top capital-gains rate of 23.8%… This would put rates on long-term capital gains at their highest since the 1970s. …Raise the corporate tax rate to 28% from 21%. This would…vault the U.S. corporate rate back to near the top in the developed world. …the bottom line is big tax increases on people, capital and businesses. There’s nothing pro-growth in the mix.
And the ever-rigorous Peter Suderman of Reason wrote about Biden’s statist agenda.
Biden released a proposal to raise a slew of new taxes, mostly on corporations and high earners. He would increase tax rates on capital gains, increase the tax rate for households earning more than $510,000 annually, double the minimum tax rate for multinational corporations,impose a minimum tax on large companies whose tax filings don’t show them paying a certain percentage of their earnings, and undo many of the tax cuts included in the 2017 tax law. …as The New York Times reports, Biden’s proposed tax hikes are more than double what Hillary Clinton called for during the 2016 campaign. …Hillary Clinton…pushed the party gently to the left. Four years later, before the campaign is even over, the party’s supposed moderates are proposing double or even quadruple the new taxes she proposed.
The former Veep isn’t just a fan of higher taxes and more spending.
Joe Biden says he is 100% in favor of banning plastic bags in the U.S. …let’s take a quick walk through the facts about single-use plastic bags at the retail level. …the plastic bags typically handed out by retailers make up only 0.6% of visible litter. Or put another way, for every 1,000 pieces of litter, only six are plastic bags. …They make up less than 1% of landfills by weight… 90% of the plastic bags found at sea streamed in from eight rivers in Asia and two in Africa. Only about 1% of all plastic in the ocean is from America. …Thicker plastic bags have to be used at least 11 times before they yield any environmental benefits. This is much longer than their typical lifespans. …Though it might seem almost innocuous, Biden’s support for a bag ban is symptom of a greater sickness in the Democratic Party. It craves unfettered political power.
Here are some excerpts from a Peter Schweizer column in the New York Post.
Political figures have long used their families to route power and benefits for their own self-enrichment. …one particular politician — Joe Biden — emerges as the king of the sweetheart deal, with no less than five family members benefiting from his largesse, favorable access and powerful position for commercial gain. …Joe Biden’s younger brother, James, has been an integral part of the family political machine…HillStone announced that James Biden would be joining the firm as an executive vice president. James appeared to have little or no background in housing construction, but…the firm was starting negotiations to win a massive contract in war-torn Iraq. Six months later, the firm announced a contract to build 100,000 homes. …A group of minority partners, including James Biden, stood to split about $735 million. …With the election of his father as vice president, Hunter Biden launched businesses fused to his father’s power that led him to lucrative deals with a rogue’s gallery of governments and oligarchs around the world. …Hunter’s involvement with an entity called Burnham Financial Group…Burnham became the center of a federal investigation involving a $60 million fraud scheme against one of the poorest Indian tribes in America, the Oglala Sioux. …the firm relied on his father’s name and political status as a means of both recruiting pension money into the scheme.
I only excerpted sections about Biden’s brother and son. You should read the entire article.
And even the left-leaning U.K.-based Guardian has the same perspective on Biden’s oleaginous behavior.
Biden has a big corruption problem and it makes him a weak candidate. …I can already hear the howls: But look at Trump! Trump is 1,000 times worse! You don’t need to convince me. …But here’s the thing: nominating a candidate like Biden will make it far more difficult to defeat Trump. It will allow Trump to muddy the water, to once again pretend he is the one “draining the swamp”, running against Washington culture. …With Biden, we are basically handing Trump a whataboutism playbook. …his record represents the transactional, grossly corrupt culture in Washington that long precedes Trump.
I’ll close by simply sharing some objective data about Biden’s voting behavior when he was a Senator.
According to the National Taxpayers Union, he finished his time on Capitol Hill with eleven-consecutive “F” scores (hey, at least he was consistent!).
And he also was the only Senator who got a lifetime rating of zero from the Club for Growth.
Though if you want to be generous, his lifetime rating was actually 0.025 percent.
Regardless, that was still worse than Barack Obama, Bernie Sanders, and Elizabeth Warren.
But I doubt anyone cares about that. Let’s instead look at what happened last night (and, in some cases, what is still happening).
President
It appears that Biden will prevail in the battle for the White House when the dust settles, but you can see from this Washington Post map that the race was much closer than most people expected (Pennsylvania is expected to shift to Biden as mail-in votes are counted, and perhaps Georgia as well).
If that’s the final result, here are two obvious takeaways based on where a president has a lot of unilateral power.
Other policy areas generally require agreement between the executive branch and the legislative branch, so we can’t know the impact of a Biden presidency without perusing congressional results.
Senate
In my humble opinion, the big news of the night is that Republicans appear to have retained control of the Senate.
If true, that means some left-wing goals are now very unlikely.
There won’t be any court packing. There won’t be any serious effort to increase the number of Democratic senators by granting statehood to Washington, DC, and Puerto Rico.
But let’s focus on the economic issues. Here are some quick takeaways.
There will be another “stimulus,” but it won’t be nearly as profligate as would have been the case if Democrats had total control of Congress and the White House.
There won’t be any serious effort for forced unionization in right-to-work states.
The corporate tax rate will stay 21 percent (the best fiscal achievement of Trump’s presidency).
House of Representatives
It appears that Republicans will gain seats, which is contrary to all expectations.
That being said, there’s zero possibility of a GOP takeover, so Nancy Pelosi will remain in charge.
Ballot Initiatives
I wrote two weeks ago about this election’s six most important ballot initiatives.
The great news is that taxpayers scored a big victory by defeating the effort to get rid of the flat tax in Illinois an replace it with a so-called progressive tax. Winning that battle probably won’t rescue the Prairie State, but at least it will slow down its march to bankruptcy.
The other five battles mostly were decided correctly – at least based on the latest vote margins.
California voters rejected an initiative that would allow the state to engage in racial discrimination.
The California initiative to weaken limits on property taxes is trailing.
The Colorado initiative to lower the state’s flat tax appears prevailed.
The Colorado initiative to strengthen TABOR (the state’s spending cap) is leading.
The one clear piece of bad news is that an Arizona initiative to impose a big increase in the top income tax rate appears likely to prevail.
What’s the future for Trump and Trumpism?
Regular readers know I want the GOP to be the Party of Reaganrather than the Party of Trump.
So I will be very interested to see whether Trump’s apparent defeat means Republicans go back to (at least pretending to favor) conventional small-government conservatism.
That will have the be the topic of a future column.
A Silver Lining for Republicans
The party controlling the White House usually loses mid-term elections. For recent examples, Democrats won the House in 2018 and there were big victories for the GOP in 2010 and 2014during the Obama years.
In all likelihood, Republicans will now do much better in the 2022 midterm election with Biden in the White House instead of Trump.
A Silver Lining for Taxpayers
It’s not something that can be quantified, but congressional Republicans will now become much better on spending issues. They’ll no longer face pressure to go along with Trump’s profligacy and they’ll have a partisan incentive to oppose Biden’s profligate agenda.
P.S. Whether you’re happy or sad about the election results, remember that it’s always appropriate to laugh at the clowns and crooks in Washington.
President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.
Below is a fine article and video from Dan Mitchell.
(R Row, from front to rear) Milton Friedman, George Shultz, Pres. Ronald Reagan, Arthur Burns, William Simon and Walter Wriston & unknown at a meeting of White House economic
But that video is only six minutes long, so I only skim the surface. For those of you who feel that you’re missing out, you can listen to me pontificate on public policy and growth for more than sixty minutes in this video of a class I taught at the Citadel in South Carolina (and if you’re a glutton for punishment, there’s also nearly an hour of Q&A).
Cato Institute Senior Fellow Daniel J. Mitchell
Published on Apr 2, 2012
Cato Institute Senior Fellow Daniel J. Mitchell speaks to cadets economics and conservatism. This is the 10th lecture in the seminar series titled “The Conservative Intellectual Tradition in America.”
_______________
There are two points that are worth some additional attention.
1. In my discussion of regulation, I mention that health and safety rules can actually cause needless deaths by undermining economic performance. Ielaborated on this topic when I waded into the election-season debateabout whether Obama supporters were right to accuse Romney of causing a worker’s premature death.
2. In my discussion of deficits and debt, I criticize the Congressional Budget Office for assuming that government fiscal balance is the key determinant of economic growth. And since CBO assumes you maximize growth by somehow having large surpluses, the bureaucrats actually argue that higher taxes are good for growth andtheir analysis implies that the growth-maximizing tax rate is 100 percent.
P.S. If you prefer much shorter doses of Dan Mitchell, you can watch myone-minute videos on tax reformthat were produced by the Heartland Institute.
What did we learn from the Laffer Curve in the 1980′s? Lowering top tax rate from 70% to 28% from 1980 to 1988 and those earning over $200,000 paid 99 billion in taxes instead of 19 billion!!!! A Lesson on the Laffer Curve for Barack Obama November 6, 2011 by Dan Mitchell One of my frustrating missions […]
Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) p. 20.) Dan Mitchell praises Calvin Coolidge for keeping the federal government small. […]
President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. The way […]
Dan Mitchell does a great job explaining the Laffer Curve President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Today’s cartoon deals with the Laffer curve. Revenge of the Laffer Curve…Again and Again and Again March 27, 2013 […]
Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes? Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? December 31, 2012 by Dan Mitchell Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising […]
The Laffer Curve – Explained Uploaded by Eddie Stannard on Nov 14, 2011 This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” […]
I enjoyed this article below because it demonstrates that the Laffer Curve has been working for almost 100 years now when it is put to the test in the USA. I actually got to hear Arthur Laffer speak in person in 1981 and he told us in advance what was going to happen the 1980′s […]
I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]
Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]
Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare reform law of 1996. The new policy guts the federal work requirements that were the foundation of the reform law. The Obama directive bludgeons the letter and intent of the actual reform legislation.
Welfare Reform under Clinton
Welfare reform replaced the old Aid to Families with Dependent Children with a new program, Temporary Assistance for Needy Families (TANF). The underlying concept of welfare reform was that able-bodied adults should be required to work or prepare for work as a condition of receiving welfare aid.
The welfare reform law is often characterized as simply giving state governments more flexibility in operating welfare programs. This is a serious misunderstanding. While new law (the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) did grants states more flexibility in some respects, the core of the act was the creation of rigorous new federal work standards that state governments were required to implement.
The welfare reform law was very successful. In the four decades prior to welfare reform, the welfare caseload never experienced a significant decline. But, in the four years after welfare reform, the caseload dropped by nearly half. Employment surged and child poverty among affected groups plummeted. The driving force behind these improvements was the rigorous new federal work requirements contained in the TANF law.
Obama’s Trick to Get Around Work Requirements
Today the Obama Administration issued a new directive stating that the traditional TANF work requirements can be waived or overridden by a legal device called the section 1115 waiver authority under the Social Security law (42 U.S.C. 1315).
Section 1115 states that “the Secretary may waive compliance with any of the requirements” of specified parts of various laws. But this is not an open-ended authority: Any provision of law that can be waived under section 1115 must be listed in section 1115 itself. The work provisions of the TANF program are contained in section 407 (entitled, appropriately, “mandatory work requirements”). Critically, this section, as well as most other TANF requirements, are deliberately not listed in section 1115; they are not waiveable.
In establishing TANF, Congress deliberately exempted or shielded nearly all of the TANF program from the section 1115 waiver authority. They did not want the law to be rewritten at the whim of Health and Human Services (HHS) bureaucrats. Of the roughly 35 sections of the TANF law, only one is listed as waiveable under section 1115. This is section 402.
Section 402 describes state plans—reports that state governments must file to HHS describing the actions they will undertake to comply with the many requirements established in the other sections of the TANF law. The authority to waive section 402 provides the option to waive state reporting requirements only, not to overturn the core requirements of the TANF program contained in the other sections of the TANF law.
The new Obama dictate asserts that because the work requirements, established in section 407, are mentioned as an item that state governments must report about in section 402, all the work requirements can be waived. This removes the core of the TANF program; TANF becomes a blank slate that HHS bureaucrats and liberal state bureaucrats can rewrite at will.
Congressional Research Service: “There Are No TANF Waivers”
In a December 2001 document, “Welfare Reform Waivers and TANF,” the non-partisan Congressional Research Service clarified that the limited authority to waive state reporting requirement in section 402 does not grant authority to override work and other major requirements in the other sections of the TANF law (sections that were deliberately not listed under the section 1115 waiver authority):
Technically, there is waiver authority for TANF state plan requirement; however, [the] major TANF requirements are not in state plans. Effectively, there are no TANF waivers.
Obviously, if the Congress had wanted HHS to be able to waive the TANF work requirements laid out in section 407, it would have listed that section as waiveable under section 1115. It did not do that.
Define “Work”…
In the past, state bureaucrats have attempted to define activities such as hula dancing, attending Weight Watchers, and bed rest as “work.” These dodges were blocked by the federal work standards. Now that the Obama Administration has abolished those standards, we can expect “work” in the TANF program to mean anything but work.
The new welfare dictate issued by the Obama Administration clearly guts the law. The Administration tramples on the actual legislation passed by Congress and seeks to impose its own policy choices—a pattern that has become all too common in this Administration.
The result is the end of welfare reform.
_______________
Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733
Given their overt statism, I’ve mostly focused on the misguided policies being advocated by Bernie Sanders and Elizabeth Warren.
But that doesn’t mean Joe Biden’s platform is reasonable or moderate.
Ezra Klein of Vox unabashedly states that the former Vice President’s policies are “far to Obama’s left.”
This is an issue where folks on both ends of the spectrum agree.
In a column for the right-leaning American Spectator, George Neumayr also says Biden is not a moderate.
Biden likes to feed the mythology that he is still a moderate. …This is, after all, a pol who giddily whispered in Barack Obama’s ear that a massive government takeover of health care “was a big f—ing deal,”…and now pronouncing Obamacare only a baby step toward a more progressive future. It can’t be repeated enough that “Climate Change” Joe doesn’t give a damn about the ruinous consequences of extreme environmentalism for Rust Belt industries. His Climate Change plans read like something Al Gore might have scribbled to him in a note. …On issue after issue, Biden is taking hardline liberal stances. …“I have the most progressive record of anybody running.” …He is far more comfortable on the Ellen show than on the streets of Scranton. He has given up Amtrak for private jets, and, like his lobbyist brother and grifter son, has cashed in on his last name.
If you want policy details, the Wall Street Journalopined on his fiscal plan.
Mr. Biden has previously promised to spend $1.7 trillion over 10 years on a Green New Deal, $750 billion on health care, and $750 billion on higher education. To pay for it all, he’s set out $3.4 trillion in tax increases. This is more aggressive, for the record, than Hillary Clinton’s proposed tax increases in 2016, which totaled $1.4 trillion, per an analysis at the time from the left-of-center Tax Policy Center. In 2008 Barack Obama pledged to raise taxes on the rich while cutting them on net by $2.9 trillion. Twice as many tax increases as the last presidential nominee: That’s now the “moderate” Democratic position. …raising the top rate for residents of all states. …a huge increase on today’s top capital-gains rate of 23.8%… This would put rates on long-term capital gains at their highest since the 1970s. …Raise the corporate tax rate to 28% from 21%. This would…vault the U.S. corporate rate back to near the top in the developed world. …the bottom line is big tax increases on people, capital and businesses. There’s nothing pro-growth in the mix.
And the ever-rigorous Peter Suderman of Reason wrote about Biden’s statist agenda.
Biden released a proposal to raise a slew of new taxes, mostly on corporations and high earners. He would increase tax rates on capital gains, increase the tax rate for households earning more than $510,000 annually, double the minimum tax rate for multinational corporations,impose a minimum tax on large companies whose tax filings don’t show them paying a certain percentage of their earnings, and undo many of the tax cuts included in the 2017 tax law. …as The New York Times reports, Biden’s proposed tax hikes are more than double what Hillary Clinton called for during the 2016 campaign. …Hillary Clinton…pushed the party gently to the left. Four years later, before the campaign is even over, the party’s supposed moderates are proposing double or even quadruple the new taxes she proposed.
The former Veep isn’t just a fan of higher taxes and more spending.
Joe Biden says he is 100% in favor of banning plastic bags in the U.S. …let’s take a quick walk through the facts about single-use plastic bags at the retail level. …the plastic bags typically handed out by retailers make up only 0.6% of visible litter. Or put another way, for every 1,000 pieces of litter, only six are plastic bags. …They make up less than 1% of landfills by weight… 90% of the plastic bags found at sea streamed in from eight rivers in Asia and two in Africa. Only about 1% of all plastic in the ocean is from America. …Thicker plastic bags have to be used at least 11 times before they yield any environmental benefits. This is much longer than their typical lifespans. …Though it might seem almost innocuous, Biden’s support for a bag ban is symptom of a greater sickness in the Democratic Party. It craves unfettered political power.
Here are some excerpts from a Peter Schweizer column in the New York Post.
Political figures have long used their families to route power and benefits for their own self-enrichment. …one particular politician — Joe Biden — emerges as the king of the sweetheart deal, with no less than five family members benefiting from his largesse, favorable access and powerful position for commercial gain. …Joe Biden’s younger brother, James, has been an integral part of the family political machine…HillStone announced that James Biden would be joining the firm as an executive vice president. James appeared to have little or no background in housing construction, but…the firm was starting negotiations to win a massive contract in war-torn Iraq. Six months later, the firm announced a contract to build 100,000 homes. …A group of minority partners, including James Biden, stood to split about $735 million. …With the election of his father as vice president, Hunter Biden launched businesses fused to his father’s power that led him to lucrative deals with a rogue’s gallery of governments and oligarchs around the world. …Hunter’s involvement with an entity called Burnham Financial Group…Burnham became the center of a federal investigation involving a $60 million fraud scheme against one of the poorest Indian tribes in America, the Oglala Sioux. …the firm relied on his father’s name and political status as a means of both recruiting pension money into the scheme.
I only excerpted sections about Biden’s brother and son. You should read the entire article.
And even the left-leaning U.K.-based Guardian has the same perspective on Biden’s oleaginous behavior.
Biden has a big corruption problem and it makes him a weak candidate. …I can already hear the howls: But look at Trump! Trump is 1,000 times worse! You don’t need to convince me. …But here’s the thing: nominating a candidate like Biden will make it far more difficult to defeat Trump. It will allow Trump to muddy the water, to once again pretend he is the one “draining the swamp”, running against Washington culture. …With Biden, we are basically handing Trump a whataboutism playbook. …his record represents the transactional, grossly corrupt culture in Washington that long precedes Trump.
I’ll close by simply sharing some objective data about Biden’s voting behavior when he was a Senator.
According to the National Taxpayers Union, he finished his time on Capitol Hill with eleven-consecutive “F” scores (hey, at least he was consistent!).
And he also was the only Senator who got a lifetime rating of zero from the Club for Growth.
Though if you want to be generous, his lifetime rating was actually 0.025 percent.
Regardless, that was still worse than Barack Obama, Bernie Sanders, and Elizabeth Warren.
But I doubt anyone cares about that. Let’s instead look at what happened last night (and, in some cases, what is still happening).
President
It appears that Biden will prevail in the battle for the White House when the dust settles, but you can see from this Washington Post map that the race was much closer than most people expected (Pennsylvania is expected to shift to Biden as mail-in votes are counted, and perhaps Georgia as well).
If that’s the final result, here are two obvious takeaways based on where a president has a lot of unilateral power.
Other policy areas generally require agreement between the executive branch and the legislative branch, so we can’t know the impact of a Biden presidency without perusing congressional results.
Senate
In my humble opinion, the big news of the night is that Republicans appear to have retained control of the Senate.
If true, that means some left-wing goals are now very unlikely.
There won’t be any court packing. There won’t be any serious effort to increase the number of Democratic senators by granting statehood to Washington, DC, and Puerto Rico.
But let’s focus on the economic issues. Here are some quick takeaways.
There will be another “stimulus,” but it won’t be nearly as profligate as would have been the case if Democrats had total control of Congress and the White House.
There won’t be any serious effort for forced unionization in right-to-work states.
The corporate tax rate will stay 21 percent (the best fiscal achievement of Trump’s presidency).
House of Representatives
It appears that Republicans will gain seats, which is contrary to all expectations.
That being said, there’s zero possibility of a GOP takeover, so Nancy Pelosi will remain in charge.
Ballot Initiatives
I wrote two weeks ago about this election’s six most important ballot initiatives.
The great news is that taxpayers scored a big victory by defeating the effort to get rid of the flat tax in Illinois an replace it with a so-called progressive tax. Winning that battle probably won’t rescue the Prairie State, but at least it will slow down its march to bankruptcy.
The other five battles mostly were decided correctly – at least based on the latest vote margins.
California voters rejected an initiative that would allow the state to engage in racial discrimination.
The California initiative to weaken limits on property taxes is trailing.
The Colorado initiative to lower the state’s flat tax appears prevailed.
The Colorado initiative to strengthen TABOR (the state’s spending cap) is leading.
The one clear piece of bad news is that an Arizona initiative to impose a big increase in the top income tax rate appears likely to prevail.
What’s the future for Trump and Trumpism?
Regular readers know I want the GOP to be the Party of Reaganrather than the Party of Trump.
So I will be very interested to see whether Trump’s apparent defeat means Republicans go back to (at least pretending to favor) conventional small-government conservatism.
That will have the be the topic of a future column.
A Silver Lining for Republicans
The party controlling the White House usually loses mid-term elections. For recent examples, Democrats won the House in 2018 and there were big victories for the GOP in 2010 and 2014during the Obama years.
In all likelihood, Republicans will now do much better in the 2022 midterm election with Biden in the White House instead of Trump.
A Silver Lining for Taxpayers
It’s not something that can be quantified, but congressional Republicans will now become much better on spending issues. They’ll no longer face pressure to go along with Trump’s profligacy and they’ll have a partisan incentive to oppose Biden’s profligate agenda.
P.S. Whether you’re happy or sad about the election results, remember that it’s always appropriate to laugh at the clowns and crooks in Washington.
President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.
Below is a fine article and video from Dan Mitchell.
(R Row, from front to rear) Milton Friedman, George Shultz, Pres. Ronald Reagan, Arthur Burns, William Simon and Walter Wriston & unknown at a meeting of White House economic
But that video is only six minutes long, so I only skim the surface. For those of you who feel that you’re missing out, you can listen to me pontificate on public policy and growth for more than sixty minutes in this video of a class I taught at the Citadel in South Carolina (and if you’re a glutton for punishment, there’s also nearly an hour of Q&A).
Cato Institute Senior Fellow Daniel J. Mitchell
Published on Apr 2, 2012
Cato Institute Senior Fellow Daniel J. Mitchell speaks to cadets economics and conservatism. This is the 10th lecture in the seminar series titled “The Conservative Intellectual Tradition in America.”
_______________
There are two points that are worth some additional attention.
1. In my discussion of regulation, I mention that health and safety rules can actually cause needless deaths by undermining economic performance. Ielaborated on this topic when I waded into the election-season debateabout whether Obama supporters were right to accuse Romney of causing a worker’s premature death.
2. In my discussion of deficits and debt, I criticize the Congressional Budget Office for assuming that government fiscal balance is the key determinant of economic growth. And since CBO assumes you maximize growth by somehow having large surpluses, the bureaucrats actually argue that higher taxes are good for growth andtheir analysis implies that the growth-maximizing tax rate is 100 percent.
P.S. If you prefer much shorter doses of Dan Mitchell, you can watch myone-minute videos on tax reformthat were produced by the Heartland Institute.
What did we learn from the Laffer Curve in the 1980′s? Lowering top tax rate from 70% to 28% from 1980 to 1988 and those earning over $200,000 paid 99 billion in taxes instead of 19 billion!!!! A Lesson on the Laffer Curve for Barack Obama November 6, 2011 by Dan Mitchell One of my frustrating missions […]
Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) p. 20.) Dan Mitchell praises Calvin Coolidge for keeping the federal government small. […]
President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. The way […]
Dan Mitchell does a great job explaining the Laffer Curve President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Today’s cartoon deals with the Laffer curve. Revenge of the Laffer Curve…Again and Again and Again March 27, 2013 […]
Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes? Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? December 31, 2012 by Dan Mitchell Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising […]
The Laffer Curve – Explained Uploaded by Eddie Stannard on Nov 14, 2011 This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” […]
I enjoyed this article below because it demonstrates that the Laffer Curve has been working for almost 100 years now when it is put to the test in the USA. I actually got to hear Arthur Laffer speak in person in 1981 and he told us in advance what was going to happen the 1980′s […]
I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]
Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]
The Texas State Capitol remains under tight Republican control.Photo: Joe Ybarra/EyeEm/Getty Images
Often the returns for state legislative races are slow to come in, and they are understandably overshadowed by presidential and congressional results. But of all the disappointments Democrats suffered on and immediately after November 3, a pattern of failure in expensive and ambitious efforts to flip state legislative chambers may have the most long-lasting effects. As Politico reports, it seems to have gone pretty badly for the Donkey Party way down ballot:
An abysmal showing by Democrats in state legislative races on Tuesday not only denied them victories in Sun Belt and Rust Belt states that would have positioned them to advance their policy agenda — it also put the party at a disadvantage ahead of the redistricting that will determine the balance of power for the next decade …
By Wednesday night, Democrats had not flipped a single statehouse chamber in its favor. And it remained completely blocked from the map-making process in several key states — including Texas, North Carolina and Florida, which could have a combined 82 congressional seats by 2022 — where the GOP retained control of the state legislatures.
After months of record-breaking fundraising by their candidates and a constellation of outside groups, Democrats fell far short of their goals and failed to build upon their 2018 successes to capture state chambers they had been targeting for years.
It will take a while to sort through the debris, but it appears that the same disappointing suburban results that hurt Democrats in U.S. House races kept them from making the expected gains in state legislative contests as well. Indeed, as the National Conference of State Legislatures reports, the power dynamics in state governments in 2021 are likely to be the same as those in place right now:
[O]f the chambers we can call, we have zero changes so far. In other words, this appears to be a remarkably status quo election in the U.S. states.
It looks like this will be the least party control changes on Election Day since at least 1944 when only four chambers changed hands. It’s still possible that there could be even fewer than four flips as a result of Tuesday’s voting. In the 1926 and 1928 elections, only one chamber changed hands. And 2020 could conceivably match that.
There were only 11 gubernatorial elections this year, and most of them were completely noncompetitive. Just one state changed hands: Montana, where Republican congressman Greg Gianforte easily defeated Lieutenant Governor Mike Cooney for the position of two-term Democratic governor Steve Bullock (who himself ran unsuccessfully for the U.S. Senate).
But the really bitter setbacks for Democrats were in state legislative races in states where redistricting could have a significant impact on drawing new and favorable congressional districts with the 2020 Census results, as Politico notes:
Votes are still being tallied, but it appears Democrats missed nearly all of their top targets — though there’s a slight chance they could gain control in the Arizona House and Senate. Party operatives concede they are not on track to win the Michigan or the Iowa houses, either chamber in Pennsylvania or the Minnesota state Senate, which was their most promising target this cycle.
Democrats did not flip the two seats needed to claim the majority in Minnesota’s upper chamber, which would have given them trifecta control of both chambers and the governor’s office. That outcome gives them less of an opening to protect some of the Democratic incumbents clustered around the Twin Cities next year when Minnesota is likely to lose a seat in the next redistricting.
The biggest disappointment came in the seat-rich state of Texas, Democrats needed nine seats to reclaim the majority after flipping a dozen in the midterms. Though some races remain uncalled, so far Democrats were able to unseat one incumbent and Republicans offset that with another pickup.
Georgia and North Carolina were additional states with large U.S. House delegations where Democrats had high hopes of busting up Republican control. It’s true that a trend toward bipartisan or nonpartisan redistricting commissions will curb gerrymandering in this next decennial cycle, but not in most Republican-controlled states. And it’s worth remembering that last year, the U.S. Supreme Court made it clear federal courts would no longer even consider interfering with state legislatures engaged in partisan gerrymandering.
Demographic trends will help Democrats in some of their target states in the future. But in many, for the next decade, they will be struggling uphill as Republicans succeed in retrenching their power in the crucial state legislative election years ending in zeroes.
But I doubt anyone cares about that. Let’s instead look at what happened last night (and, in some cases, what is still happening).
President
It appears that Biden will prevail in the battle for the White House when the dust settles, but you can see from this Washington Post map that the race was much closer than most people expected (Pennsylvania is expected to shift to Biden as mail-in votes are counted, and perhaps Georgia as well).
If that’s the final result, here are two obvious takeaways based on where a president has a lot of unilateral power.
Other policy areas generally require agreement between the executive branch and the legislative branch, so we can’t know the impact of a Biden presidency without perusing congressional results.
Senate
In my humble opinion, the big news of the night is that Republicans appear to have retained control of the Senate.
If true, that means some left-wing goals are now very unlikely.
There won’t be any court packing. There won’t be any serious effort to increase the number of Democratic senators by granting statehood to Washington, DC, and Puerto Rico.
But let’s focus on the economic issues. Here are some quick takeaways.
There will be another “stimulus,” but it won’t be nearly as profligate as would have been the case if Democrats had total control of Congress and the White House.
There won’t be any serious effort for forced unionization in right-to-work states.
The corporate tax rate will stay 21 percent (the best fiscal achievement of Trump’s presidency).
House of Representatives
It appears that Republicans will gain seats, which is contrary to all expectations.
That being said, there’s zero possibility of a GOP takeover, so Nancy Pelosi will remain in charge.
Ballot Initiatives
I wrote two weeks ago about this election’s six most important ballot initiatives.
The great news is that taxpayers scored a big victory by defeating the effort to get rid of the flat tax in Illinois an replace it with a so-called progressive tax. Winning that battle probably won’t rescue the Prairie State, but at least it will slow down its march to bankruptcy.
The other five battles mostly were decided correctly – at least based on the latest vote margins.
California voters rejected an initiative that would allow the state to engage in racial discrimination.
The California initiative to weaken limits on property taxes is trailing.
The Colorado initiative to lower the state’s flat tax appears prevailed.
The Colorado initiative to strengthen TABOR (the state’s spending cap) is leading.
The one clear piece of bad news is that an Arizona initiative to impose a big increase in the top income tax rate appears likely to prevail.
What’s the future for Trump and Trumpism?
Regular readers know I want the GOP to be the Party of Reaganrather than the Party of Trump.
So I will be very interested to see whether Trump’s apparent defeat means Republicans go back to (at least pretending to favor) conventional small-government conservatism.
That will have the be the topic of a future column.
A Silver Lining for Republicans
The party controlling the White House usually loses mid-term elections. For recent examples, Democrats won the House in 2018 and there were big victories for the GOP in 2010 and 2014during the Obama years.
In all likelihood, Republicans will now do much better in the 2022 midterm election with Biden in the White House instead of Trump.
A Silver Lining for Taxpayers
It’s not something that can be quantified, but congressional Republicans will now become much better on spending issues. They’ll no longer face pressure to go along with Trump’s profligacy and they’ll have a partisan incentive to oppose Biden’s profligate agenda.
P.S. Whether you’re happy or sad about the election results, remember that it’s always appropriate to laugh at the clowns and crooks in Washington.
President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.
Below is a fine article and video from Dan Mitchell.
(R Row, from front to rear) Milton Friedman, George Shultz, Pres. Ronald Reagan, Arthur Burns, William Simon and Walter Wriston & unknown at a meeting of White House economic
But that video is only six minutes long, so I only skim the surface. For those of you who feel that you’re missing out, you can listen to me pontificate on public policy and growth for more than sixty minutes in this video of a class I taught at the Citadel in South Carolina (and if you’re a glutton for punishment, there’s also nearly an hour of Q&A).
Cato Institute Senior Fellow Daniel J. Mitchell
Published on Apr 2, 2012
Cato Institute Senior Fellow Daniel J. Mitchell speaks to cadets economics and conservatism. This is the 10th lecture in the seminar series titled “The Conservative Intellectual Tradition in America.”
_______________
There are two points that are worth some additional attention.
1. In my discussion of regulation, I mention that health and safety rules can actually cause needless deaths by undermining economic performance. Ielaborated on this topic when I waded into the election-season debateabout whether Obama supporters were right to accuse Romney of causing a worker’s premature death.
2. In my discussion of deficits and debt, I criticize the Congressional Budget Office for assuming that government fiscal balance is the key determinant of economic growth. And since CBO assumes you maximize growth by somehow having large surpluses, the bureaucrats actually argue that higher taxes are good for growth andtheir analysis implies that the growth-maximizing tax rate is 100 percent.
P.S. If you prefer much shorter doses of Dan Mitchell, you can watch myone-minute videos on tax reformthat were produced by the Heartland Institute.
What did we learn from the Laffer Curve in the 1980′s? Lowering top tax rate from 70% to 28% from 1980 to 1988 and those earning over $200,000 paid 99 billion in taxes instead of 19 billion!!!! A Lesson on the Laffer Curve for Barack Obama November 6, 2011 by Dan Mitchell One of my frustrating missions […]
Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) p. 20.) Dan Mitchell praises Calvin Coolidge for keeping the federal government small. […]
President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. The way […]
Dan Mitchell does a great job explaining the Laffer Curve President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Today’s cartoon deals with the Laffer curve. Revenge of the Laffer Curve…Again and Again and Again March 27, 2013 […]
Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes? Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? December 31, 2012 by Dan Mitchell Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising […]
The Laffer Curve – Explained Uploaded by Eddie Stannard on Nov 14, 2011 This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” […]
I enjoyed this article below because it demonstrates that the Laffer Curve has been working for almost 100 years now when it is put to the test in the USA. I actually got to hear Arthur Laffer speak in person in 1981 and he told us in advance what was going to happen the 1980′s […]
I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]
Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]
But I doubt anyone cares about that. Let’s instead look at what happened last night (and, in some cases, what is still happening).
President
It appears that Biden will prevail in the battle for the White House when the dust settles, but you can see from this Washington Post map that the race was much closer than most people expected (Pennsylvania is expected to shift to Biden as mail-in votes are counted, and perhaps Georgia as well).
If that’s the final result, here are two obvious takeaways based on where a president has a lot of unilateral power.
Other policy areas generally require agreement between the executive branch and the legislative branch, so we can’t know the impact of a Biden presidency without perusing congressional results.
Senate
In my humble opinion, the big news of the night is that Republicans appear to have retained control of the Senate.
If true, that means some left-wing goals are now very unlikely.
There won’t be any court packing. There won’t be any serious effort to increase the number of Democratic senators by granting statehood to Washington, DC, and Puerto Rico.
But let’s focus on the economic issues. Here are some quick takeaways.
There will be another “stimulus,” but it won’t be nearly as profligate as would have been the case if Democrats had total control of Congress and the White House.
There won’t be any serious effort for forced unionization in right-to-work states.
The corporate tax rate will stay 21 percent (the best fiscal achievement of Trump’s presidency).
House of Representatives
It appears that Republicans will gain seats, which is contrary to all expectations.
That being said, there’s zero possibility of a GOP takeover, so Nancy Pelosi will remain in charge.
Ballot Initiatives
I wrote two weeks ago about this election’s six most important ballot initiatives.
The great news is that taxpayers scored a big victory by defeating the effort to get rid of the flat tax in Illinois an replace it with a so-called progressive tax. Winning that battle probably won’t rescue the Prairie State, but at least it will slow down its march to bankruptcy.
The other five battles mostly were decided correctly – at least based on the latest vote margins.
California voters rejected an initiative that would allow the state to engage in racial discrimination.
The California initiative to weaken limits on property taxes is trailing.
The Colorado initiative to lower the state’s flat tax appears prevailed.
The Colorado initiative to strengthen TABOR (the state’s spending cap) is leading.
The one clear piece of bad news is that an Arizona initiative to impose a big increase in the top income tax rate appears likely to prevail.
What’s the future for Trump and Trumpism?
Regular readers know I want the GOP to be the Party of Reaganrather than the Party of Trump.
So I will be very interested to see whether Trump’s apparent defeat means Republicans go back to (at least pretending to favor) conventional small-government conservatism.
That will have the be the topic of a future column.
A Silver Lining for Republicans
The party controlling the White House usually loses mid-term elections. For recent examples, Democrats won the House in 2018 and there were big victories for the GOP in 2010 and 2014during the Obama years.
In all likelihood, Republicans will now do much better in the 2022 midterm election with Biden in the White House instead of Trump.
A Silver Lining for Taxpayers
It’s not something that can be quantified, but congressional Republicans will now become much better on spending issues. They’ll no longer face pressure to go along with Trump’s profligacy and they’ll have a partisan incentive to oppose Biden’s profligate agenda.
P.S. Whether you’re happy or sad about the election results, remember that it’s always appropriate to laugh at the clowns and crooks in Washington.
President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.
Below is a fine article and video from Dan Mitchell.
(R Row, from front to rear) Milton Friedman, George Shultz, Pres. Ronald Reagan, Arthur Burns, William Simon and Walter Wriston & unknown at a meeting of White House economic
But that video is only six minutes long, so I only skim the surface. For those of you who feel that you’re missing out, you can listen to me pontificate on public policy and growth for more than sixty minutes in this video of a class I taught at the Citadel in South Carolina (and if you’re a glutton for punishment, there’s also nearly an hour of Q&A).
Cato Institute Senior Fellow Daniel J. Mitchell
Published on Apr 2, 2012
Cato Institute Senior Fellow Daniel J. Mitchell speaks to cadets economics and conservatism. This is the 10th lecture in the seminar series titled “The Conservative Intellectual Tradition in America.”
_______________
There are two points that are worth some additional attention.
1. In my discussion of regulation, I mention that health and safety rules can actually cause needless deaths by undermining economic performance. Ielaborated on this topic when I waded into the election-season debateabout whether Obama supporters were right to accuse Romney of causing a worker’s premature death.
2. In my discussion of deficits and debt, I criticize the Congressional Budget Office for assuming that government fiscal balance is the key determinant of economic growth. And since CBO assumes you maximize growth by somehow having large surpluses, the bureaucrats actually argue that higher taxes are good for growth andtheir analysis implies that the growth-maximizing tax rate is 100 percent.
P.S. If you prefer much shorter doses of Dan Mitchell, you can watch myone-minute videos on tax reformthat were produced by the Heartland Institute.
What did we learn from the Laffer Curve in the 1980′s? Lowering top tax rate from 70% to 28% from 1980 to 1988 and those earning over $200,000 paid 99 billion in taxes instead of 19 billion!!!! A Lesson on the Laffer Curve for Barack Obama November 6, 2011 by Dan Mitchell One of my frustrating missions […]
Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) p. 20.) Dan Mitchell praises Calvin Coolidge for keeping the federal government small. […]
President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. The way […]
Dan Mitchell does a great job explaining the Laffer Curve President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Today’s cartoon deals with the Laffer curve. Revenge of the Laffer Curve…Again and Again and Again March 27, 2013 […]
Class Warfare just don’t pay it seems. Why can’t we learn from other countries’ mistakes? Class Warfare Tax Policy Causes Portugal to Crash on the Laffer Curve, but Will Obama Learn from this Mistake? December 31, 2012 by Dan Mitchell Back in mid-2010, I wrote that Portugal was going to exacerbate its fiscal problems by raising […]
The Laffer Curve – Explained Uploaded by Eddie Stannard on Nov 14, 2011 This video explains the relationship between tax rates, taxable income, and tax revenue. The key lesson is that the Laffer Curve is not an all-or-nothing proposition, where we have to choose between the exaggerated claim that “all tax cuts pay for themselves” […]
I enjoyed this article below because it demonstrates that the Laffer Curve has been working for almost 100 years now when it is put to the test in the USA. I actually got to hear Arthur Laffer speak in person in 1981 and he told us in advance what was going to happen the 1980′s […]
I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]
Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]
Legendary fashion designed Oscar de la Renta, famous for dressing first ladies ranging from Jackie Kennedy to Laura Bush, died last night at age 82.
His death was confirmed by his wife Annette de la Renta, and attributed to complications of an eight-year battle with cancer.
De la Renta will go down as one of the most famous first lady designers in American history. He will be remembered for designs from Hillary Clinton’s trademark pantsuits to Laura Bush’s glamorous inaugural gown.
For most of her tenure as first lady, Michelle Obama notably never donned any of de la Renta’s designs. Yet, earlier this month on Oct. 8—less than two weeks before his passing—Obama arrived to a cocktail party in a stunning de la Renta creation.
The moment, whether accidental or on purpose, was a fitting tribute to a historic career.
In honor of the late designer, here is a look back at some of his most famous first lady designs.
First lady Nancy Reagan watches as her husband President Ronald Reagan announces his support of George Bush’s 1988 presidential bid at a dinner at Maison Blanche in Tulsa, Okla. (Oct. 24, 1986.)
President Bill Clinton dances with first lady Hillary Clinton at the Midwest Inaugural Ball at the National Air and Space museum in Washington, D.C. The ball is part of the festivities surrounding Clinton’s second term as president of the United States. (Jan. 20, 1997.)
Hillary Rodham Clinton is sworn in as the new Democratic senator from New York, as her husband President Bill Clinton and their daughter Chelsea hold the bible, during a re-enactment ceremony in the Capitol’s Old Senate Chamber in Washington, D.C. (Jan. 3, 2001.)
Hillary Clinton and designer Oscar De La Renta attend the 2002 CFDA Fashion Awards held at the New York Public Library in New York City. (June 2, 2002.)
HM Sofia of Spain, Hillary Rodham Clinton, Oscar de la Renta and Henry Kissinger attend the Queen Sofia Spanish Institute 2013 Gold Medal Gala in New York City. (Nov. 19, 2013.)
President George W. Bush and first lady Laura Bush dance while attending the Inauguration Freedom Ball at Union Station in Washington, D.C. (Jan. 20, 2005.)
President George W. Bush and Laura Bush stand with the Kennedy Center honorees in the Blue Room of the White House during a reception in Washington, D.C. (Dec. 3, 2006.)
First Lady Laura Bush and Cindy McCain, wife of Republican Presidential candidate Sen. John McCain (R-Ariz.), take the stage to speak on the first day of the Republican National Convention at the Xcel Energy Center in St. Paul, Minnesota. (Sept. 1, 2008.)
Open letter to President Obama (Part 683) Milton Friedman (Emailed to White House on 6-25-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to […]
___________ President Bush Will Leave Strong Pro-Life Legacy on Abortion, Bioethics Issues by Steven Ertelt | WASHINGTON, DC | LIFENEWS.COM | 1/16/09 9:00 AM President Bush Will Leave Strong Pro-Life Legacy on Abortion, Bioethics Issues by Steven Ertelt LifeNews.com Editor January 16, 2009 Washington, DC (LifeNews.com) – Americans may have their dispute with President Bush […]
Open letter to President Obama (Part 673) (Emailed to White House on 6-12-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
Open letter to President Obama (Part 671) (Emailed to White House on 6-5-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
Pro-life Atheist Nat Hentoff: Mr. President, did you mean what you said at Notre Dame about “working together to reduce the number of women seeking abortions”? Nat Hentoff is an atheist, but he became a pro-life activist because of the scientific evidence that shows that the unborn child is a distinct and separate human being […]
Open letter to President Obama (Part 653) (Emailed to White House on 6-5-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
____________ Reaganomics generated much better results than Obamanomics. Milton Friedman had a lot to do with the success of Reagan. The No-Comparison Comparison of Reagan v Obama August 7, 2014 by Dan Mitchell Have you ever wondered why, in a hypothetical match-up, the American people would elect Ronald Reagan over Barack Obama in a landslide? […]
Open letter to President Obama (Part 631) (Emailed to White House on 5-17-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
Open letter to President Obama (Part 613) (Emailed to White House on 6-12-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
Open letter to President Obama (Part 606) (Emailed to White House on 6-6-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get […]
Dan Mitchell of the Cato Institute has noted, “I’m all in favor of bringing federal government spending back down to about 18 percent of GDP, which is where it was when Bill Clinton left office.”
My message is that we need to reduce the size of the public sector, even if we do it in a very gradual way by imposing some sort of spending cap that fulfills the Golden Rule requirement of having government grow slower than the productive sector of the economy.
That being said, a modest short-run agenda doesn’t mean we shouldn’t have bold long-run goals.
And I’m all in favor of bringing federal government spending back down to about 18 percent of GDP, which is where it was when Bill Clinton left office.
I shared some remarkable data last year showing that the public sector used to be very small. Not just in the United States, but other nations as well.
Indeed, government spending (at all levels) consumed less than 10 percent of economic output in the world’s leading nations in 1870. And even as late as 1913, the public sector only consumed an average of about 12 percent of GDP in those major western nations.
So why has government become much larger in the past 100 years? The answer, as shown by this remarkable chart prepared by Vito Tanzi, the former Director of Fiscal Affairs at the International Monetary Fund, is that the welfare state has exploded.
As you can see from the table, there was almost no welfare state at the beginning of the 1900s, and redistribution spending was minimal even as late as 1930.
But welfare-state outlays, referred to as “social transfers” in the table, have ballooned over the past eight decades. And if you’re a glutton for bad news, you should also understand that BIS, OECD, and IMF data predict major long-run troubles because entitlement programs are going to become an even bigger burden in the future.
Fortunately, we can make progress. Perhaps not in the next couple of years with Obama in the White House, but spending caps and entitlement reform are possible at some point in the near future.
Simply stated, the ongoing fiscal crisis in Europe is causing more and more people to understand that we can’t remain on the current path.
Our ultimate goal, however, should be shrinking government even further by restoring the Constitution’s limit on the size and scope of the federal government.
Maybe I’m a Pollyanna, but I’m glad to be at the Cato Institute where I can strive every day for this vision of a freer and more prosperous America.
(Emailed to White House on 3-15-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
(Emailed to White House on 3-15-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is […]
The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout). If […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
If you want to cut wasteful spending then the disability program must be reformed radically!!! October 7, 2013 1:19PM 60 Minutes Disability Investigation By Chris Edwards Share The abuse and overspending in government disability programs is so bad that even National Public Radio and 60 Minutes have taken notice. On the heels of this excellent […]
If you really want to cut wasteful spending then why not shut down Dept of Housing and Urban Development, Dept of Education and SBA? There are many other areas that should be cut but these should be shut down!!! October 7, 2013 4:57PM Close Washington to Dismantle the Welfare-Warfare State By Doug Bandow Share […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]
We need to stop the stupid spending by Bureaucrats!!! Bureaucrats Gone Wild: Government Spends Recklessly as Fiscal Year Ends Rob Bluey September 29, 2013 at 1:55 pm Credit: Tetra Images/Newscom Washington’s reckless spending is driving America into debt — and yet federal bureaucrats continue their wasteful and frivolous ways. The latest example comes courtesy […]
Partisans can argue whether Clinton actually deserves the credit for these good results, but I’m just happy we got better policy. Heck, Clinton was a lot more akin to Reagan that Obama, as this Michael Ramirez cartoon suggests.
Moreover, Clinton also has been the source of some very good political humor, some of which you can enjoy here, here, here, here, and here.
Most recently, he even made some constructive comments about corporate taxation and fiscal sovereignty.
It is up to the US government to reform the country’s corporate tax system because the international trend is moving to the Irish model of low corporate rate with the burden on consumption taxes, said the former US president Bill Clinton. Moreover, …he said. “Ireland has the right to set whatever taxes you want.” …The international average is now 23% but the US tax rate has not changed. “…We need to reform our corporate tax rate, not to the same level as Ireland but it needs to come down.”
All that being said – and before anyone accuses me of having a man-crush on Bill and/or of being delusional – let me now issue some very important caveats.
When Clinton says we should increase “the burden on consumption taxes,” that almost surely means he would like to see a value-added tax.
This would be a terrible idea, even if at first the revenue was used to finance a lower corporate tax rate. Simply stated, it would just be a matter of time before the politicians figured out how to use the VAT as a money machine to finance bigger government.
Indeed, it’s no coincidence that the welfare state in Europe exploded in the late 1960s/early 1970s, which was also the time when the VAT was being implemented. And it’s also worth noting that VAT rates in recent years have jumped significantly in both Europe and Japan.
Moreover, Clinton’s position on fiscal sovereignty has been very weak in the past. It was during his tenure, after all, that the OECD – with active support from the Clinton Treasury Department – launched its “harmful tax competition” attack against so-called tax havens.
In other words, he still has a long way to go if he wants to become an Adjunct Fellow at the Cato Institute.
P.S. Just in case anyone want to claim that the 1993 Clinton tax hike deserves credit for any of the good things that happened in the 1990s, look at this evidence before embarrassing yourself.
(Emailed to White House on 3-15-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
(Emailed to White House on 3-15-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is […]
The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout). If […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
If you want to cut wasteful spending then the disability program must be reformed radically!!! October 7, 2013 1:19PM 60 Minutes Disability Investigation By Chris Edwards Share The abuse and overspending in government disability programs is so bad that even National Public Radio and 60 Minutes have taken notice. On the heels of this excellent […]
If you really want to cut wasteful spending then why not shut down Dept of Housing and Urban Development, Dept of Education and SBA? There are many other areas that should be cut but these should be shut down!!! October 7, 2013 4:57PM Close Washington to Dismantle the Welfare-Warfare State By Doug Bandow Share […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, and here, and they […]
We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]
We need to stop the stupid spending by Bureaucrats!!! Bureaucrats Gone Wild: Government Spends Recklessly as Fiscal Year Ends Rob Bluey September 29, 2013 at 1:55 pm Credit: Tetra Images/Newscom Washington’s reckless spending is driving America into debt — and yet federal bureaucrats continue their wasteful and frivolous ways. The latest example comes courtesy […]
