I want a smallerburden of government spending, so you can only imagine how frustrating it is for me to observe the fight in Europe.
On one side of the debate you have pro-spenders, who call themselves “growth” advocates, but are really just Keynesians. On the other side of the debate, you have pro-taxers, who claim to favor “austerity,” but actually just want big government financed by taxes rather than borrowing.
Last but not least, I express some optimism about the possibility ofgenuine entitlement reform, though I should have acknowledged that nothing good will happen while Obama is in office.
USTV-GOP Address: Spending Crisis Still Looms Uploaded by AssociatedPress on Apr 9, 2011 In the Saturday Republican radio address, House Budget Committee Chairman Paul Ryan, R-Wis., warns of a coming crisis. (April 9) __________- Raising taxes is not the answer but cutting spending is. Looking at Austerity in Portugal Posted by Juan Carlos Hidalgo Portugal […]
Senator Marco Rubio Talks Cuba, Budget and Obamacare Published on Mar 22, 2012 by HeritageFoundation http://blog.heritage.org/2012/03/22/exclusive-interview-sen-marco-rubio-talks… | Pope Benedict XVI will visit the communist island of Cuba next week. But while there, the Catholic leader has no plans to visit Cuban dissidents who are fighting for freedom from the Castro regime. Sen. Marco Rubio (R-FL), […]
Max Brantley and Paul Krugman are constantly being critical of the austerity in Europe but in most cases in Europe what we have is tax increases and fake spending cuts. Instead of destroying economic growth with tax increases the right method would be real spending cuts. We need some austerity in the USA and I […]
Uploaded by danmitchellcato on Feb 26, 2012 I wish we would put in real spending cuts in the USA instead of fake ones like the ones in the United Kingdom. Looking at ‘Austerity’ in Britain Posted by Juan Carlos Hidalgo I’m going to jump into the debate about austerity in Europe because it is being […]
The medicine for the sickness of spending is real budget cuts but no one in liberal europe wants to hear that. Sadly we are on the same road in the USA. Liberals (like my blogger opponent “the Outlier” and others) love to say that austerity has been tried in Europe and it doesn’t work but the truth […]
Max Brantley on the Arkansas Times Blog today asserted: Politico notes that Democratic Sen. Harry Reid’s budget plan cuts spending more than Republican John Boehner’s plan. Boehner’s two-step plan is calculated on providing a highly politicized two-step plan for raising the debt ceiling. ____________________ After a closer look at Harry Reid’s plan, it is evident […]
Since Europe is struggling more than the USA then why are we copying European Socialism? Helping Workers…to the Unemployment Line May 24, 2013 by Dan Mitchell Several European nations are suffering from a fiscal crisis. But that’s just part of the story. They also have significantly lower incomes than the United States, with living standards about […]
I have blogged about Dr. Kevorkian many times in the past and today I have included another post about him. Most of the articles dealt with moral issues and included the works of Dr. C. Everett Koop and Francis Schaeffer and the film series “Whatever happened to the Human Race?” However, I have mentioned in […]
No surprise but the world has now discovered what we conservatives knew all along: Government spending undermines economic growth. New European Central Bank Study Finds that Government Spending Undermines Growth April 25, 2013 by Dan Mitchell The fiscal policy debate often drives me crazy because far too many people focus on deficits. The Keynesians argue that deficits […]
The Role of Economic Freedom Uploaded by HeritageFoundation on Jan 6, 2012 According to the 2012 Index of Economic Freedom, a joint publication of The Heritage Foundation and The Wall Street Journal, global economic freedom has declined over the past year. But what does this mean for America and the world? Economic freedom empowers ordinary […]
We’ve gotten to the point where you need a guide-book to keep track of all the scandals in Washington.
As a fiscal policy wonk, I focus mostly onthe sleaze at the IRS, but I also recognize that the other scandals are equally troubling.
So I’m amused by Lisa Benson’s portrayal of the…um…plumbing problems at the White House.
But there’s a theme to all the scandals, regardless of whether they’re happening now under Obama or whether they happened under Bush or during the reign of previous Presidents: Many of them take place solely because government is large, bloated, and involved in areas where it doesn’t belong.
Here’s my video explaining why corruption is much more common when government is bigger.
Want Less Corruption? Shrink the Size of Government
Uploaded onApr 21, 2009
Washington is riddled with corruption, much of which actually is legal. The politicians and other insiders claim that more ethics laws and lobbying rules are the solution. Some even say the only answer is campaign finance laws that restrict 1st Amendment rights to fully participate in the political process. This Center for Freedom and Prosperity video explores a different hypothesis and concludes that big government is inherently corrupting. http://www.freedomandprosperity.org
There is no free money out there. Somebody has to always pay. Bailout Nation January 13, 2013 by Dan Mitchell I have a serious question for readers. What’s worse, bailouts for government or bailouts for the private sector? Yes, both are bad, but is it worse to bail out a bankrupt entitlement program, such as Social […]
Obamanomics: A Legacy of Wasteful Spending Published on Aug 12, 2012 by CFPEcon101 This mini-documentary from the Center for Freedom and Prosperity Foundation highlights egregious examples of wasteful spending from the so-called stimulus legislation and explains why government spending hurts economic performance. **Links to additional reading material** Thomas Sowell, “Stimulus or Sedative?” http://www.realclearpolitics.com/articles/2010/03/09/stimulus_or_sedative_104… Veronique de […]
Federal Spending by the Numbers Uploaded by HeritageFoundation on Jun 10, 2010 http://blog.heritage.org/2010/06/10/new-video-federal-spending-by-the-numbers The Federal Government is addicted to spending. Watch this video from the Heritage Foundation to learn about the trouble we are in and where to find solutions. _______ President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 […]
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. Not […]
Federal Spending by the Numbers Uploaded by HeritageFoundation on Jun 10, 2010 http://blog.heritage.org/2010/06/10/new-video-federal-spending-by-the-numbers The Federal Government is addicted to spending. Watch this video from the Heritage Foundation to learn about the trouble we are in and where to find solutions. _______ Greece going broke before the USA? We got to control the entitlement mentality. Almost […]
Obamanomics: A Legacy of Wasteful Spending Published on Aug 12, 2012 by CFPEcon101 This mini-documentary from the Center for Freedom and Prosperity Foundation highlights egregious examples of wasteful spending from the so-called stimulus legislation and explains why government spending hurts economic performance. **Links to additional reading material** Thomas Sowell, “Stimulus or Sedative?” http://www.realclearpolitics.com/articles/2010/03/09/stimulus_or_sedative_104… Veronique de […]
Not many people know the truth about Robin Hood. Robin Hood was not a left-wing hero who stole from the rich and redistributed to the poor. Stop Maligning Robin Hood! August 20, 2012 by Dan Mitchell When I was a kid, I was a big fan of Robin Hood. I remember reading at least two books […]
Nassim Taleb: Time to Nationalize US Banking System? 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 […]
Nassim Taleb: Time to Nationalize US Banking System? President Obama’s liberal agenda has not worked out too good in the last four years. Next Career Move for President Obama: Becoming a Movie Star! May 9, 2012 by Dan Mitchell Most people know that Ronald Reagan was an actor before he became a great President. So I […]
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!!!!
This means teaching folks on the left that tax policy affects incentives to earn and report taxable income. As such, I try to explain, this means it is wrong to assume a simplistic linear relationship between tax rates and tax revenue. If you double tax rates, for instance, you won’t double tax revenue.
But it also means teaching folks on the right that it is wildly wrong to claim that “all tax cuts pay for themselves” or that “tax increases always mean less revenue.” Those results occur in rare circumstances, but the real lesson of the Laffer Curve is that some types of tax policy changes will result in changes to taxable income, and those shifts in taxable income will partially offset the impact of changes in tax rates.
However, even though both sides may need some education, it seems that the folks on the left are harder to teach – probably because the Laffer Curve is more of a threat to their core beliefs.
If you explain to a conservative politician that a goofy tax cut (such as a new loophole to help housing) won’t boost the economy and that the static revenue estimate from the bureaucrats at the Joint Committee on Taxation is probably right, they usually understand.
But liberal politicians get very agitated if you tell them that higher marginal tax rates on investors, entrepreneurs, and small business owners probably won’t generate much tax revenue because of incentives (and ability) to reduce taxable income.
To be fair, though, some folks on the left are open to real-world evidence. And this IRS data from the 1980s is particularly effective at helping them understand the high cost of class-warfare taxation.
There’s lots of data here, but pay close attention to the columns on the right and see how much income tax was collected from the rich in 1980, when the top tax rate was 70 percent, and how much was collected from the rich in 1988, when the top tax rate was 28 percent.
The key takeaway is that the IRS collected fives times as much income tax from the rich when the tax rate was far lower. This isn’t just an example of the Laffer Curve. It’s the Laffer Curve on steroids and it’s one of those rare examples of a tax cut paying for itself.
Folks on the right, however, should be careful about over-interpreting this data. There were lots of factors that presumably helped generate these results, including inflation, population growth, and some of Reagan’s other policies. So we don’t know whether the lower tax rates on the rich caused revenues to double, triple, or quadruple. Ask five economists and you’ll get nine answers.
But we do know that the rich paid much more when the tax rate was much lower.
This is an important lesson because Obama wants to run this experiment in reverse. He hasn’t proposed to push the top tax rate up to 70 percent, thank goodness, but the combined effect of his class-warfare policies would mean a substantial increase in marginal tax rates.
To broaden the understanding of the Laffer Curve, share these three videos with your friends and colleagues.
This first video explains the theory of the Laffer Curve.
The Laffer Curve, Part I: Understanding the Theory
Uploaded on Jan 28, 2008
The Laffer Curve charts a relationship between tax rates and tax revenue. While the theory behind the Laffer Curve is widely accepted, the concept has become very controversial because politicians on both sides of the debate exaggerate. This video shows the middle ground between those who claim “all tax cuts pay for themselves” and those who claim tax policy has no impact on economic performance. This video, focusing on the theory of the Laffer Curve, is Part I of a three-part series. Part II reviews evidence of Laffer-Curve responses. Part III discusses how the revenue-estimating process in Washington can be improved. For more information please visit the Center for Freedom and Prosperity’s web site: http://www.freedomandprosperity.org
This second video reviews some of the real-world evidence.
The Laffer Curve, Part II: Reviewing the Evidence
Uploaded on Feb 24, 2008
This video reviews real-world evidence showing that changes in marginal tax rates can have a significant impact on taxable income, thus leading to substantial amounts of revenue feedback. In a few cases, tax-rate reductions even “pay for themselves,” though the key lesson is the more modest point that pro-growth changes in tax policy will have a positive impact on economic performance and that good tax cuts therefore do not “cost” the government much in terms of foregone tax revenue.
This video is second installment of a three-part series. Part I reviews theoretical relationship between tax rates, taxable income, and tax revenue. Part III discusses how the revenue-estimating process in Washington can be improved. For more information please visit the Center for Freedom and Prosperity’s web site: http://www.freedomandprosperity.org.
___________________
And this video exposes the biased an inaccurate “static scoring” of the Joint Committee on Taxation.
The Laffer Curve, Part III: Dynamic Scoring
Uploaded on May 28, 2008
A video by CF&P Foundation that builds on the discussion of theory in Part I and evidence in Part II, this concluding video in the series on the Laffer Curve explains how the Joint Committee on Taxation’s revenue-estimating process is based on the absurd theory that changes in tax policy – even dramatic reforms such as a flat tax – do not effect economic growth. In other words, the current system assumes the Laffer Curve does not exist. Because of congressional budget rules, this leads to a bias for tax increases and against tax cuts. The video explains that “static scoring” should be replaced with “dynamic scoring” so that lawmakers will have more accurate information when making decisions about tax policy. For more information please visit the Center for Freedom and Prosperity’s web site: http://www.freedomandprosperity.org.
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 […]
(This letter was emailed to White House on 11-21-11.) 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 […]
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. […]
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” and the equally silly assumption that tax policy doesn’t effect the economy and there is never any revenue feedback. From http://www.freedomandprosperity.org 202-285-0244
Now let’s add two more cartoons to the mix, both with a Thanksgiving theme.
The first one makes fun of Obama for his deliberate ignorance about the budget. Honest leftists admit that we need real entitlement reform, but Obama wants us to believe that the nation’s fiscal problems can be solved by targeting the rich.
The next cartoon comes from the irreplaceable Michael Ramirez.
I like the multiple messages. He’s nailing Obama for engaging in envy, but I also think he’s helping people understand that it doesn’t make sense to rape and pillage the so-called rich if that means less future production.
Max Brantley is wrong about Tom Cotton’s accusation concerning the rise of welfare spending under President Obama. Actually welfare spending has been increasing for the last 12 years and Obama did nothing during his first four years to slow down the rate of increase of welfare spending. Rachel Sheffield of the Heritage Foundation has noted: […]
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. I think Max Brantley of the Arkansas Times Blog was right to point out on 2-6-13 that Hillary […]
I thought it was great when the Republican Congress and Bill Clinton put in welfare reform but now that has been done away with and no one has to work anymore it seems. In fact, over 40% of the USA is now on the government dole. What is going to happen when that figure gets over […]
Again we have another shooting and the gun control bloggers are out again calling for more laws. I have written about this subject below and on May 23, 2012, I even got a letter back from President Obama on the subject. Now some very interesting statistics below and a cartoon follows. (Since this just hit the […]
watch?v=llQUrko0Gqw] The federal government spends about 10% on roads and public goods but with the other money in the budget a lot of harm is done including excessive regulations on business. That makes Obama’s comment the other day look very silly. A Funny Look at Obama’s You-Didn’t-Build-That Comment July 28, 2012 by Dan Mitchell I made […]
I have written a lot about this in the past and sometimes you just have to sit back and laugh. Laughing at Obama’s Bumbling Class Warfare Agenda July 13, 2012 by Dan Mitchell We know that President Obama’s class-warfare agenda is bad economic policy. We know high tax rates undermine competitiveness. And we know tax increases […]
Dan Mitchell Discussing Dishonest Budget Numbers with John Stossel Uploaded by danmitchellcato on Feb 11, 2012 No description available. ______________ Dan Mitchell of the Cato Institute has shown before how excessive spending at the federal level has increased in recent years. A Humorous Look at Obama’s Screwy Budget Math May 31, 2012 by Dan Mitchell I’ve […]
Sometimes it is so crazy that you just have to laugh a little. The European Mess, Captured by a Cartoon June 22, 2012 by Dan Mitchell The self-inflicted economic crisis in Europe has generated some good humor, as you can see from these cartoons by Michael Ramirez and Chuck Asay. But for pure laughter, I don’t […]
Another great cartoon on President Obama’s efforts to create jobs!!! A Simple Lesson about Job Creation for Barack Obama December 7, 2011 by Dan Mitchell Even though leftist economists such as Paul Krugman and Larry Summers have admitted that unemployment insurance benefits are a recipe for more joblessness, the White House is arguing that Congress should […]
Dan Mitchell hits the nail on the head and sometimes it gets so sad that you just have to laugh at it like Conan does. In order to correct this mess we got to get people off of government support and get them in the private market place!!!! Chuck Asay’s New Cartoon Nicely Captures Mentality […]
Cato Institute scholar Dan Mitchell is right about Greece and the fate of socialism: Two Pictures that Perfectly Capture the Rise and Fall of the Welfare State July 15, 2011 by Dan Mitchell In my speeches, especially when talking about the fiscal crisis in Europe (or the future fiscal crisis in America), I often warn that […]
John Stossel report “Myth: Gun Control Reduces Crime Sheriff Tommy Robinson tried what he called “Robinson roulette” from 1980 to 1984 in Central Arkansas where he would put some of his men in some stores in the back room with guns and the number of robberies in stores sank. I got this from Dan Mitchell’s […]
I have put up lots of cartons and posters 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. Amusing Gun Control Picture – Circa 1999 April 3, 2010 by Dan Mitchell Dug this gem out […]
We got to cut spending and stop raising the debt ceiling!!! When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending […]
I have put up lots of cartons and posters 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. On 2-6-13 the Arkansas Times Blogger “Sound Policy” suggested, “All churches that wish to allow concealed […]
Gun Free Zones???? Stalin and gun control On 1-31-13 ”Arkie” on the Arkansas Times Blog the following: “Remember that the biggest gun control advocate was Hitler and every other tyrant that every lived.” Except that under Hitler, Germany liberalized its gun control laws. __________ After reading the link from Wikipedia that Arkie provided then I responded: […]
On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]
ANNOUNCER: Senate Conservatives Action is responsible for the content of this message.
____________
Dear Senator Pryor,
Why not pass the Balanced Budget Amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).
On my blog www.HaltingArkansasLiberalswithTruth.com I took you at your word and sent you over 100 emails with specific spending cut ideas. However, I did not see any of them in the recent debt deal that Congress adopted. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend.
Many of the politicians in Washington, including President Obama during his State of the Union address, piously tell us that there is no way to balance the budget without tax increases. Trying to get rid of red ink without higher taxes, they tell us, would require “savage” and “draconian” budget cuts.
The Congressional Budget Office has just released its 10-year projections for the budget, so I crunched the numbers to determine what it would take to balance the budget without tax hikes. Much to nobody’s surprise, the politicians are not telling the truth.
The chart below shows that revenues are expected to grow (because of factors such as inflation, more population, and economic expansion) by more than 7 percent each year. Balancing the budget is simple so long as politicians increase spending at a slower rate. If they freeze the budget, we almost balance the budget by 2017. If federal spending is capped so it grows 1 percent each year, the budget is balanced in 2019. And if the crowd in Washington can limit spending growth to about 2 percent each year, red ink almost disappears in just 10 years.
These numbers, incidentally, assume that the 2001 and 2003 tax cuts are made permanent (they are now scheduled to expire in two years). They also assume that the AMT is adjusted for inflation, so the chart shows that we can balance the budget without any increase in the tax burden.
We also have international evidence showing that spending restraint – not higher taxes – is the key to balancing the budget. New Zealand got rid of a big budget deficit in the 1990s with a five-year spending freeze. Canada also got rid of red ink that decade with a five-year period where spending grew by an average of only 1 percent per year. And Ireland slashed its deficit in the late 1980s by 10 percentage points of GDP with a four-year spending freeze.
People often ask why I put so much political humor on this site. The easy answer is that I like a good joke.
But I also find that some cartoons and jokes do a very good job of helping people understand economics. I’ve always liked this cartoon, for instance, because it cleverly illustrates the impact of government handouts on the labor market. And looking at that cartoon is a lot quicker than taking a class about labor economics.
Well, you can also skip the class about public finance. Here’s a cartoon that shows the economic burden of government “stimulus” spending.
Very funny and very intellectually sound. Indeed, the only thing that would have made the cartoon even better would have been showing that the jockey became bloated by eating the horse’s food. But I reckon it’s not easy making multiple points with one picture.
Anyhow, I’m disappointed that I didn’t notice it at Reason.com a couple of years ago when the debate on the faux stimulus was taking place. It probably would have helped more people understand that you don’t boost economic performance by draining resources from the productive sector of the economy to finance a larger government.
Max Brantley is wrong about Tom Cotton’s accusation concerning the rise of welfare spending under President Obama. Actually welfare spending has been increasing for the last 12 years and Obama did nothing during his first four years to slow down the rate of increase of welfare spending. Rachel Sheffield of the Heritage Foundation has noted: […]
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. I think Max Brantley of the Arkansas Times Blog was right to point out on 2-6-13 that Hillary […]
I thought it was great when the Republican Congress and Bill Clinton put in welfare reform but now that has been done away with and no one has to work anymore it seems. In fact, over 40% of the USA is now on the government dole. What is going to happen when that figure gets over […]
Again we have another shooting and the gun control bloggers are out again calling for more laws. I have written about this subject below and on May 23, 2012, I even got a letter back from President Obama on the subject. Now some very interesting statistics below and a cartoon follows. (Since this just hit the […]
watch?v=llQUrko0Gqw] The federal government spends about 10% on roads and public goods but with the other money in the budget a lot of harm is done including excessive regulations on business. That makes Obama’s comment the other day look very silly. A Funny Look at Obama’s You-Didn’t-Build-That Comment July 28, 2012 by Dan Mitchell I made […]
I have written a lot about this in the past and sometimes you just have to sit back and laugh. Laughing at Obama’s Bumbling Class Warfare Agenda July 13, 2012 by Dan Mitchell We know that President Obama’s class-warfare agenda is bad economic policy. We know high tax rates undermine competitiveness. And we know tax increases […]
Dan Mitchell Discussing Dishonest Budget Numbers with John Stossel Uploaded by danmitchellcato on Feb 11, 2012 No description available. ______________ Dan Mitchell of the Cato Institute has shown before how excessive spending at the federal level has increased in recent years. A Humorous Look at Obama’s Screwy Budget Math May 31, 2012 by Dan Mitchell I’ve […]
Sometimes it is so crazy that you just have to laugh a little. The European Mess, Captured by a Cartoon June 22, 2012 by Dan Mitchell The self-inflicted economic crisis in Europe has generated some good humor, as you can see from these cartoons by Michael Ramirez and Chuck Asay. But for pure laughter, I don’t […]
Another great cartoon on President Obama’s efforts to create jobs!!! A Simple Lesson about Job Creation for Barack Obama December 7, 2011 by Dan Mitchell Even though leftist economists such as Paul Krugman and Larry Summers have admitted that unemployment insurance benefits are a recipe for more joblessness, the White House is arguing that Congress should […]
Dan Mitchell hits the nail on the head and sometimes it gets so sad that you just have to laugh at it like Conan does. In order to correct this mess we got to get people off of government support and get them in the private market place!!!! Chuck Asay’s New Cartoon Nicely Captures Mentality […]
Cato Institute scholar Dan Mitchell is right about Greece and the fate of socialism: Two Pictures that Perfectly Capture the Rise and Fall of the Welfare State July 15, 2011 by Dan Mitchell In my speeches, especially when talking about the fiscal crisis in Europe (or the future fiscal crisis in America), I often warn that […]
John Stossel report “Myth: Gun Control Reduces Crime Sheriff Tommy Robinson tried what he called “Robinson roulette” from 1980 to 1984 in Central Arkansas where he would put some of his men in some stores in the back room with guns and the number of robberies in stores sank. I got this from Dan Mitchell’s […]
I have put up lots of cartons and posters 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. Amusing Gun Control Picture – Circa 1999 April 3, 2010 by Dan Mitchell Dug this gem out […]
We got to cut spending and stop raising the debt ceiling!!! When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending […]
I have put up lots of cartons and posters 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. On 2-6-13 the Arkansas Times Blogger “Sound Policy” suggested, “All churches that wish to allow concealed […]
Gun Free Zones???? Stalin and gun control On 1-31-13 ”Arkie” on the Arkansas Times Blog the following: “Remember that the biggest gun control advocate was Hitler and every other tyrant that every lived.” Except that under Hitler, Germany liberalized its gun control laws. __________ After reading the link from Wikipedia that Arkie provided then I responded: […]
On 1-31-13 I posted on the Arkansas Times Blog the following: I like the poster of the lady holding the rifle and next to her are these words: I am compensating for being smaller and weaker than more violent criminals. __________ Then I gave a link to this poster below: On 1-31-13 also I posted […]
If you take a group of Democrats who are also unionized government employees, and put them in charge of policing political speech, it doesn’t matter how professional and well-intentioned they are. The result will be much like the debacle in the Cincinnati office of the IRS. …there’s no reason to even posit evil intent by the IRS officials who formulated, approved or executed the inappropriate guidelines for picking groups to scrutinize most closely. …The public servants figuring out which groups qualified for 501(c)4 “social welfare” non-profit status were mostly Democrats surrounded by mostly Democrats. …In the 2012 election, every donation traceable to this office went to President Obama or liberal Sen. Sherrod Brown. This is an environment where even those trying to be fair could develop a disproportionate distrust of the Tea Party. One IRS worker — a member of NTEU and contributor to its PAC, which gives 96 percent of its money to Democratic candidates — explained it this way: “The reason NTEU mostly supports Democratic candidates for office is because Democratic candidates are mostly more supportive of civil servants/government employees.”
Tim concludes with a wise observation.
As long as we have a civil service workforce that leans Left, and as long as we have an income tax system that requires the IRS to police political speech, conservative groups can always expect special IRS scrutiny.
The real issue is the expansive, expensive bureaucratic state and its inherent threat to any system of limited government, rule of law, and individual liberty. …the broader the government’s authority, the greater its need for revenue, the wider its enforcement power, the more expansive the bureaucracy’s discretion, the increasingly important the battle for political control, and the more bitter the partisan fight, the more likely government officials will abuse their positions, violate rules, laws, and Constitution, and sacrifice people’s liberties. The blame falls squarely on Congress, not the IRS.
…the denizens of Capitol Hill also have created a tax code marked by outrageous complexity, special interest electioneering, and systematic social engineering. Legislators have intentionally created avenues for tax avoidance to win votes, and then complained about widespread tax avoidance to win votes.
So what’s the answer?
The most obvious response to the scandal — beyond punishing anyone who violated the law — is tax reform. Implement a flat tax and you’d still have an IRS, but the income tax would be less complex, there would be fewer “preferences” for the agency to police, and rates would be lower, leaving taxpayers with less incentive for aggressive tax avoidance. …Failing to address the broader underlying factors also would merely set the stage for a repeat performance in some form a few years hence. …More fundamentally, government, and especially the national government, should do less. Efficient social engineering may be slightly better than inefficient social engineering, but no social engineering would be far better.
But here’s the challenge. We know the solution, but it will be almost impossible to implement good policy unless we figure out some way to restrain the spending side of the fiscal ledger.
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At the risk of over-simplifying, we will never get tax reform unless we figure out how to implement entitlement reform.
Here’s another Foden cartoon, which I like because it has the same theme asthis Jerry Holbert cartoon, showing big government as a destructive and malicious force.
We know the IRS commissioner wasn’t telling the truth in March 2012, when he testified: “There’s absolutely no targeting.”However, Lois Lerner knew different when she misled people with those words. Two important points made by Noonan in the Wall Street Journal in the article below: First, only conservative groups were targeted in this scandal by […]
Ohio Liberty Coalition versus the I.R.S. (Tom Zawistowski) Published on May 20, 2013 The Ohio Liberty Coalition was among tea party groups that received special scrutiny from the I.R.S. Tom Zawistowski says his story is not unique. He argues the kinds of questions the I.R.S. asked his group amounts to little more than “opposition research.” Video […]
Francis Schaeffer: “Whatever Happened to the Human Race?” (Episode 2) SLAUGHTER OF THE INNOCENTS Published on Oct 6, 2012 by AdamMetropolis The 45 minute video above is from the film series created from Francis Schaeffer’s book “Whatever Happened to the Human Race?” with Dr. C. Everett Koop. This book really helped develop my political views concerning […]
We got to lower the size of government so we don’t have these abuses like this in the IRS. Cartoonists v. the IRS May 23, 2013 by Dan Mitchell Call me perverse, but I’m enjoying this IRS scandal. It’s good to see them suffer a tiny fraction of the agony they impose on the American people. I’ve already […]
Dear Senator Pryor, Why not pass the Balanced Budget Amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion). On my blog http://www.HaltingArkansasLiberalswithTruth.com I took you at your word and sent you over 100 emails with specific spending cut ideas. However, […]
Is the irs out of control? Here is the link from cato: MAY 22, 2013 8:47AM Can You Vague That Up for Me? By TREVOR BURRUS SHARE As the IRS scandal thickens, targeted groups are coming out to describe their ordeals in dealing with that most-reviled of government agencies. The Ohio Liberty Coalition was one of […]
Get Ready to Be Reamed May 17, 2013 by Dan Mitchell With so many scandals percolating, there are lots of good cartoons being produced. But I think this Chip Bok gem deserves special praise. It manages to weave together both the costly Obamacare boondoggle with the reprehensible politicization of the IRS. So BOHICA, my friends. If […]
You want to talk about irony then look at President Obama’s speech a few days ago when he joked about a potential audit of Ohio St by the IRS then a few days later the IRS scandal breaks!!!! The I.R.S. Abusing Americans Is Nothing New Published on May 15, 2013 The I.R.S. targeting of tea party […]
Dear Senator Pryor, Why not pass the Balanced Budget Amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion). On my blog http://www.HaltingArkansasLiberalswithTruth.com I took you at your word and sent you over 100 emails with specific spending cut ideas. However, […]
We could put in a flat tax and it would enable us to cut billions out of the IRS budget!!!! May 14, 2013 2:34PM IRS Budget Soars By Chris Edwards Share The revelations of IRS officials targeting conservative and libertarian groups suggest that now is a good time for lawmakers to review a broad range […]
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.
I also got to provide some commentary on the book and the lessons that we can learn from the Coolidge era.
I managed to talk for more than 15 minutes, but I could have boiled my remarks down to these two points.
Small government is the best way to achieve competent and effective government. Coolidge and his team were able to monitor government and run it efficiently because the federal budget consumed only about 5 percent of GDP. But when the federal budget is 23 percent of GDP, by contrast, it’s much more difficult to keep tabs on what’s happening – particularly when the federal government operates more than 1,000 programs. Even well-intentioned bureaucrats and politicians are unlikely to do a good job, as illustrated by this Eric Allie cartoon.
Higher tax rates don’t automatically lead to more tax revenue. Coolidge and his Treasury Secretary practiced something called “scientific taxation,” but it’s easier just to call it common sense. Since Amity’s book covered the data from the 1920s, I shared with the audience some amazing data from the 1980s showing that lower tax rates on the “rich” led to big revenue increases.
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 […]
I have blogged about Dr. Kevorkian many times in the past and today I have included another post about him. Most of the articles dealt with moral issues and included the works of Dr. C. Everett Koop and Francis Schaeffer and the film series “Whatever happened to the Human Race?” However, I have mentioned in […]
Ronald Reagan wanted to return more power to the states and that is what the Founding Fathers had in mine too. Here is just one example below where the federal government can cut out a lot of waste by returning disaster relief responsibilities back to the states. Instead, today we have politicians like Senator Mark […]
Ohio Liberty Coalition versus the I.R.S. (Tom Zawistowski)
Published on May 20, 2013
The Ohio Liberty Coalition was among tea party groups that received special scrutiny from the I.R.S. Tom Zawistowski says his story is not unique. He argues the kinds of questions the I.R.S. asked his group amounts to little more than “opposition research.”
Video produced by Caleb O. Brown and Austin Bragg.
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A great cartoonist takes on the IRS!!!! Why do people in the IRS think they could take the 5th when the IRS would not be happy with that answer from a taxpayer?
Notwithstanding the title of this post, this is not a story about a taxpayer fighting against the IRS. If you want that kind of story (and if you have a strong stomach), you can read about how an IRS thug named Robert Norlander tried to ruin the life of a guy named Charlie Engle.
Or, on a lighter note, you can read about Evan Mathis and his “encounter” with the IRS. But that’s not today’s topic either.
As you can see from these cartoons, I’m very happy to be introduced to Jim McKee, particularly since he’s generating some great material about the IRS scandal. Let’s start with a cartoon he produced that calls attention to the fact that an IRS hack pleaded the fifth even though taxpayers don’t have similar rights when confronted by tax collectors.
By the way, the IRS actually is concerned about its image. This is the bureaucracy, after all, that decided to squander $15 million of our money on a PR campaign.
Anyhow, McKee has given us some very amusing cartoons. But let’s not lose sight of the fact that we have a terrible tax code, which is enforced by some terrible people.
The politicians deserve most of the blame, but you can see from these examples that the IRS bureaucracy deserves scorn.
We got to lower the size of government so we don’t have these abuses like this in the IRS. Cartoonists v. the IRS May 23, 2013 by Dan Mitchell Call me perverse, but I’m enjoying this IRS scandal. It’s good to see them suffer a tiny fraction of the agony they impose on the American people. I’ve already […]
Dear Senator Pryor, Why not pass the Balanced Budget Amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion). On my bloghttp://www.HaltingArkansasLiberalswithTruth.com Itook you at your word and sent you over 100 emails with specific spending cut ideas. However, […]
Is the irs out of control? Here is the link from cato: MAY 22, 2013 8:47AM Can You Vague That Up for Me? By TREVOR BURRUS SHARE As the IRS scandal thickens, targeted groups are coming out to describe their ordeals in dealing with that most-reviled of government agencies. The Ohio Liberty Coalition was one of […]
Get Ready to Be Reamed May 17, 2013 by Dan Mitchell With so many scandals percolating, there are lots of good cartoons being produced. But I think this Chip Bok gem deserves special praise. It manages to weave together both the costly Obamacare boondoggle with the reprehensible politicization of the IRS. So BOHICA, my friends. If […]
You want to talk about irony then look at President Obama’s speech a few days ago when he joked about a potential audit of Ohio St by the IRS then a few days later the IRS scandal breaks!!!! The I.R.S. Abusing Americans Is Nothing New Published on May 15, 2013 The I.R.S. targeting of tea party […]
Dear Senator Pryor, Why not pass the Balanced Budget Amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion). On my bloghttp://www.HaltingArkansasLiberalswithTruth.com Itook you at your word and sent you over 100 emails with specific spending cut ideas. However, […]
We could put in a flat tax and it would enable us to cut billions out of the IRS budget!!!! May 14, 2013 2:34PM IRS Budget Soars By Chris Edwards Share The revelations of IRS officials targeting conservative and libertarian groups suggest that now is a good time for lawmakers to review a broad range […]
The IRS has thuggish employees and the President was right to condemn their latest actions. Let’s Thank President Obama for Reminding Americans that They Should Distrust the IRS May 14, 2013 by Dan Mitchell Last week, while writing about the latest IRS scandal, I noted that the IRS has a long record of abusive actions. It has thieving employees. […]
So I think I have at least a vague sense of where they are coming from. Well, ever since Jay Leno announced that he’s retiring, it sure seems like his jokes have veered in an anti-Obama direction.
Enjoy his latest, as well as contributions from others.
Jay Leno
Time magazine found a picture of President Obama at his high school prom back in 1979. Let me tell you how long ago that was. Back then, Obama had to ask a girl for her phone number. He couldn’t illegally obtain it through the Justice Department.
It is not looking good for President Obama. Today, his teleprompter took the Fifth. In fact, the White House has changed its slogan from “Yes, we can” to “No, I can’t remember.”
The latest scandal in Washington, of course, is raising questions about the IRS. You know, I have a question. Why is it called the Internal Revenue Service? How is having your money confiscated a service?
A Democratic congressman said that he worries that the IRS scandal might have a chilling effect on the IRS and that they might be afraid to audit people. So finally some good is coming out of all of this.
White House officials continue to insist that President Obama knew nothing about the IRS scandal until we all heard about it in the news last week. They said because there was an investigation under way, it would have been inappropriate to tell him. And besides, Obama was too busy not knowing anything about Benghazi.
Anthony Weiner has formally announced he is running for mayor of New York City. He posted a video announcing it just after midnight — and traditionally, being online in the middle of the night has always worked so well for Mr. Weiner.
President Obama gave the commencement address at Morehouse College over the weekend. Great speech, very inspiring. He told the young graduates their future is bright — unless, of course, they want jobs.
The White House admitted President Obama’s chief of staff had advance warning that the IRS was targeting conservative groups. President Obama says the first time he heard about the IRS and AP scandals was from the media. See, that’s why President Obama holds press conferences. It’s not to explain what’s going on. It’s to find out what’s going on.
These White House scandals are not going away any time soon. I’ll tell you how bad it’s looking for President Obama: People in Kenya are now saying he’s 100 percent American.
This week will mark the 37th time House Republicans have tried to repeal Obamacare. If Republicans really wanted to do away with Obamacare they should just endorse it as a conservative non-profit and let the IRS take it down.
President Obama announced the appointment of a new acting commissioner of the IRS — the other guy was fired. See, they’re called “acting commissioner” because you have to act like the scandal doesn’t involve the White House.
A lot of critics are now comparing President Obama to President Nixon. The good news for Obama? At least he’s no longer being compared to President Carter.
This week marks the 40th anniversary of the Watergate hearings. For those of you too young to remember, back then the administration had an enemies list. They were spying on reporters, and they used the IRS to harass groups they didn’t like. Thank God those days are gone forever.
A lot of critics are comparing President Obama to President Richard Nixon, which is unfair. Nixon’s unemployment rate was only 5 percent.
Today the White House unveiled its latest high-tech weapon: the IRS audit.
I love what IRS commissioner Steve Miller said today about this whole targeting conservative groups thing. He said, “Mistakes were made, but they were in no way made with a political or partisan motivation.” Yeah, “Mistakes were made” — try saying THAT during your next IRS audit.
Get Ready to Be Reamed May 17, 2013 by Dan Mitchell With so many scandals percolating, there are lots of good cartoons being produced. But I think this Chip Bok gem deserves special praise. It manages to weave together both the costly Obamacare boondoggle with the reprehensible politicization of the IRS. So BOHICA, my friends. If […]
We should lower federal taxes because jobs are going to states like Texas that have low taxes. What Can We Learn by Comparing the Employment Situation in Texas vs. California? April 3, 2013 by Dan Mitchell One of the great things about federalism, above and beyond the fact that it both constrains the power of governments […]
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. What a bunch of wimps we have on Capitol Hill. They can’t even cut 2% out of this […]
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. Two Social Security Cartoons April 27, 2012 by Dan Mitchell Since we recently learned Social Security is even […]
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. Valentine’s Day is a happy day but if you look at what President Obama has done for […]
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. I think Max Brantley of the Arkansas Times Blog was right to point out on 2-6-13 that Hillary […]
Several scholars have pointed out that Lois Lerner waived her right to invoke the 5th!!!! The Heritage Foundation, The Washington Post, and The Week, all have articles on this issue. Here is one below I found on Townhall.com: Issa: Lois Lerner Waived Her Right to Invoke the Fifth Amendment Kate Hicks | May 22, 2013 […]
New video from Heritage Foundation on Benghazi Scandal. White House Spins Obama’s Role in Benghazi: From Competence to Irrelevance (VIDEO) Helle Dale May 21, 2013 at 5:04 pm Benghazi: Demand the Truth Published on May 21, 2013 President Obama has dismissed questions about the Benghazi debacle as a political “side show.” Demand the truth. The American […]
The IRS has thuggish employees and the President was right to condemn their latest actions. Let’s Thank President Obama for Reminding Americans that They Should Distrust the IRS May 14, 2013 by Dan Mitchell Last week, while writing about the latest IRS scandal, I noted that the IRS has a long record of abusive actions. It has thieving employees. […]
The Dangers of Government Dependency Published on Jun 10, 2012 This video from the Center for Freedom and Prosperity Foundation contrasts the dependency mentality in the President’s “Life of Julia” campaign with the traditional American approach of self reliance and individual achievement. _____________________ Moocher’s Hall of Fame is a hall of shame. The Moocher […]
Austerity in Europe generally is just a code word for higher taxes. Governments only restrain spending as a last resort.
The Daily Hatch 