Category Archives: Taxes

If Europe is struggling more that USA then why copy Europe?

May 25, 2013 – 10:54 am

Since Europe is struggling more than the USA then why are we copying European Socialism?

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 30 percent-40 percent below American levels.

And while many people are upset about the 7.5 percent joblessness rate in the United States, we’re doing much better than our cousins across the ocean. The unemployment rate averages about 11 percent in the European Union.

Given all this news, you would think that most people would understand that European policy makers would be trying to copy the United States, and not the other way around.

But that would be a rash assumption. There are interventionists in America who want to impose European-style mandates for paid-vacation time.

Here’s some of what USA Today wrote about a new report on the issue.

Nearly one in four Americans (23%) has no paid vacation days, according to a report released today by the Center for Economic and Policy Research, a non-profit based in Washington, D.C. ”Relying on businesses to voluntarily provide paid leave just hasn’t worked,” says report co-author John Schmitt… The USA is the only advanced economy that does not require employers to provide paid vacation days, the report says. Many U.S. employers offer paid vacation days and holidays, but no law sets a minimum. The 27-member European Union requires employers to grant at least 20 paid vacation days a year.

The authors want people to conclude that America should be more like Europe.

You won’t be surprised to see that I offered a different opinion.

The center first analyzed vacation and holiday data six years ago. “It is striking that six years after we first looked at this topic, absolutely nothing has changed,” Schmitt says. “U.S law and U.S. employer behavior still lags far behind the rest of the rich countries in the world.” …Daniel Mitchell, a senior fellow at the Cato Institute, a Washington-based think tank, [said]. “When you make it more expensive to hire workers, fewer workers get hired.”

This is a classic example of good intentions leading to bad results.

Would it be nice if we could wave a magic wand and give all workers paid-vacation time? Of course.

Just like it would be nice if we could pass a law that raised everyone’s pay.

Or required employers to provide health insurance.

In the real world, however, these policies all have a cost. Some workers will lose jobs. Others will receive lower pay to offset the cost of paid vacation.

Sometimes the cost will be passed along to consumer. Simply stated, there’s no free lunch.

The moral of the story is that it’s not very advisable to copy Europe, particularly when we see Europe melting down before our eyes.

But as this Michael Ramirez cartoon illustrates, there are some people who want to follow the lemmings over the cliff.

The European Lemming

October 23, 2011 by Dan Mitchell

This cartoon says it all.

You can find some additional great Ramirez cartoons here, here, and here.

Related posts:

Europe is going down the tube but we are heading their way (includes editorial cartoon)

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. It is sad to me that we can’t learn from history. So many european countries are so far […]

USA must rein in entitlement spending or we will have our own European financial crisis here

6/6/12 Republican Leadership Press Conference Published on Jun 6, 2012 by HouseConference Today House Republican leaders, joined by Senate Republican Leader Mitch McConnell, discussed the importance of preventing any tax increase to provide certainty to America’s job creators. Even President Bill Clinton and Larry Summers agree — taxes should not be raised on anyone in […]

Europe in trouble because of too much spending

Dan Mitchell Discussing Fake Austerity in Europe on Fox Business Published on May 9, 2012 by danmitchellcato No description available. Europe’s Crisis Is Because of Too Much Government, Not the Euro Currency July 19, 2012 by Dan Mitchell The mess in Europe has been rather frustrating, largely because almost everybody is on the wrong side. Some […]

We got to control spending or we will end up like Europe

Great article below: Europe’s Disaster Is Headed Our Way Nov 14, 2011 12:00 AM EST   Can America withstand the death spiral of debt?       As an author who has just published a book on the crisis of Western civilization, I couldn’t really have asked for more: simultaneous crises in Athens and Rome, […]

D Day was 68 years ago, Joe Speaks of Arkansas was captured twice during the European battles

I have so much respect for war heroes and I wanted to remember them today which 68 years after D Day. Below I have the story of Joe Speaks who fought in Europe and was captured twice by the Germans. Photo by Associated Press American GI’s clamber into a landing craft as they prepare to […]

If Europe follows Obama’s plan it would go broke even faster

U.S. President Barack Obama (R) waves as French President Francois Hollande looks on following their bilateral meeting in the Oval Office of the White House in Washington May 18, 2012. Hollande is in the United States to join other leaders of the major industrial economies and meet for a G8 Summit at Camp David this […]

Europe has a bleak future because they don’t want austerity

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 […]

Gun control in Europe

I really like this post by Dan Mitchell: Will You Be Able to Protect Your Family if Politicians Destabilize Society? December 5, 2011 by Dan Mitchell About a week ago, I wrote that people in western nations need the freedom to own guns just in case there are riots, chaos, and social disarray when welfare states […]

Obama has taken us past most bankrupt European countries already

Over the last 20 or 30 years I have heard conservatives say that it is  a real shame that we are headed towards a bankrupt European liberal socialist kind of state. However, we are now there. We’re Already Europe by Michael D. Tanner Michael Tanner is a senior fellow at the Cato Institute and author of Leviathan […]

We got to control spending or we will end up like Europe

Great article below: Europe’s Disaster Is Headed Our Way Nov 14, 2011 12:00 AM EST   Can America withstand the death spiral of debt?   As an author who has just published a book on the crisis of Western civilization, I couldn’t really have asked for more: simultaneous crises in Athens and Rome, the cradles […]

By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell, spending out of control | Comments (0)

Rand Paul puts the Senate in their place!!!!

May 23, 2013 – 10:23 am

Rand Paul puts the Senate in their place!!!!

Rand Paul Debunks the Shameful Demagoguery against Apple

May 22, 2013 by Dan Mitchell

Senator Rand Paul is perhaps even better than I thought he would be.

The Founding Fathers would be proud

He already is playing a very substantive role on policy, ranging from his actions of big-picture issues, such ashis proposed budget that would significantly shrink the burden of government spending, to hiswillingness to take on lower-profile but important issues such as repealing the Obama Administration’swretched FATCA law.

But he also plays a very valuable role by articulating the message of liberty and refusing to allow leftist politicians to claim the moral high ground and use false morality to cloak their greed for other people’s money.

And there’s no better example than what he just did at the Senate hearing about Apple’s tax burden.

Sen. Paul Defends Apple Against HSGAC Subcommittee – 05/21/2013 PART 1

Published on May 21, 2013

Sen. Rand Paul attends the Homeland Security and Government Affairs Subcommittee hearing that called for executives of Apple to testify on the companies tax practices. In the hearing, Sen. Paul defended the job-creating efforts Apple has made and lambasted his fellow Members for perpetuating a U.S. tax code that hinders corporate growth and productivity. PART 1

Wow. I thought I hit on the key issues in my post on the anti-Apple demagoguery, but Senator Paul hit the ball out of the park.

If you want other video examples of Senator Paul in action, click here to see himgrill a TSA bureaucrat and click here to see him rip an Obama appointee on whether Americans should be free to choose the light bulb they prefer.

 

Related posts:

 

IRS cartoons from Dan Mitchell’s blog

May 17, 2013 – 2:02 pm

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 […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Healthcare, Taxes | Edit | Comments (0)

 

Dan Mitchell explains what happened in Cyprus

April 14, 2013 – 1:46 pm

Dan Mitchell explains what happened in Cyprus.   What Really Happened in Cyprus? April 14, 2013 by Dan Mitchell Did Cyprus become an economic basket case because it is a tax haven, as some leftists have implied? Did it get in trouble because the government overspent, which I have suggested? The answers to those questions are […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell | Edit | Comments (0)

 

Dan Mitchell on Obamacare (includes cartoons on Obamacare)

April 10, 2013 – 9:37 am

Some very good points by Dan Mitchell of the Cato Institute on Obamacare: Why We Should Be Optimistic about Repealing Obamacare and Fixing the Healthcare System April 10, 2013 by Dan Mitchell I’m going to make an assertion that seems utterly absurd. The enactment of Obamacare may have been good news. Before sending a team of medical […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Healthcare, President Obama | Edit | Comments (0)

 

Dan Mitchell’s blog has great cartoon that demonstrates what President Obama has been doing the last 4 years!!!

April 9, 2013 – 3:52 pm

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’ve Obtained a Secret Pre-Release Copy of Obama’s Budget April 9, 2013 by Dan Mitchell The President is supposed to release […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, President Obama | Edit | Comments (2)

 

Dan Mitchell’s tribute to Margaret Thatcher

April 8, 2013 – 1:53 pm

Very well said by Dan Mitchell. A Tribute to Margaret Thatcher April 8, 2013 by Dan Mitchell The woman who saved the United Kingdom has died. A Great Woman I got to meet Margaret Thatcher a couple of times and felt lucky each time that I was in the presence of someone who put her nation’s […]

By Everette Hatcher III | Posted in spending out of control | Edit | Comments (0)

 

Dan Mitchell, Ron Paul, and Milton Friedman on Immigration Debate (includes editorial cartoon)

April 8, 2013 – 8:42 am

I like Milton Friedman’s comments on this issue of immigration   and Ron Paul and Dan Mitchell do well on the issue too. Question of the Week: What’s Your Take on the Immigration Debate? April 7, 2013 by Dan Mitchell A reader from overseas wonders about my views on immigration, particularly amnesty. I confess that this is one of […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Milton Friedman | Edit | Comments (0)

 

Dan Mitchell on Texas v. California (includes editorial cartoon)

April 3, 2013 – 4:35 pm

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 […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, spending out of control, Taxes | Edit | Comments (0)

 

Cartoons from Dan Mitchell’s blog on Obamacare

March 30, 2013 – 9:14 am

Third-Party Payer is the Biggest Economic Problem With America’s Health Care System Published on Jul 10, 2012 This mini-documentary from the Center for Freedom and Prosperity Foundation explains that “third-party payer” is the main problem with America’s health care system. This is why undoing Obamacare, while desirable, is just a small first step if we […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Healthcare | Edit | Comments (0)

 

Obamacare cartoons from Dan Mitchell’s blog

March 27, 2013 – 1:14 pm

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. The funniest cartoon is the one with “Nurse Sebelius” stuffing the huge capsule down the kid’s throat!!! Obamacare […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Healthcare | Edit | Comments (0)

 

Editorial cartoon from Dan Mitchell’s blog on California’s sorry state of affairs

March 26, 2013 – 12:38 pm

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 sequester, economy, eternal unemployment benefits, socialism,  minimum wage laws, tax increases, social security, high taxes in California, Obamacare,  Greece,  welfare state or on gun control. President Obama’s favorite state must be California because […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell | Edit | Comments (0)
By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell | Comments (0)

Avoiding Taxes is a good thing!!!

May 21, 2013 – 3:50 pm

If anyone can avoid taxes then why not do it?

The Senate is holding a Kangaroo Court designed to smear Apple for not voluntarily coughing up more tax revenue than the company actually owes.

Here are four things you need to know.

Apple is fully complying with the tax law. There is no suggestion that Apple has done anything illegal. The company is being berated by politicians for simply obeying the law that politicians have enacted. What’s really happening, of course, is that the politicians are conducting a show trial in hopes of creating an environment more conducive to tax increases on multinational companies (this is in addition to the OECD effort to impose higher tax burdens on multinational firms).

Left-wing whining

It is better for Apple to retain its profits than it is for politicians to grab the money. If Harry Reid, Barack Obama, and the rest of the crowd in Washington are able to use this fake issue as an excuse to raise taxes, the only things that changes is that the tax system becomes more onerous and politicians have more money to spend. Neither of those results are good for growth, particularly compared to the potential benefits of leaving the money in the productive sector of the economy.

Apple shouldn’t pay any tax to the IRS on any of its foreign-source income. A few years ago, Google was criticized for paying “only” 2.4 percent tax on its foreign-source income, but I explained that was 2.4 percentage points too high. Likewise, when Apple earns money overseas, that should not trigger any tax liability to the IRS since the income already is subject to all applicable foreign taxes (much as, say, Toyota pays tax to the IRS on its US-source income). Good tax policy is based on the common-sense notion of “territorial taxation,” which means governments only tax income and activity within their national borders. Unfortunately, the American tax system is partially based on the anti-competitive policy of “worldwide taxation,” which means the IRS gets to tax income that is earned – and already subject to tax – in other nations. Fortunately, we have a policy called “deferral,” which allows companies to postpone this second layer of tax.

If Apple is trying to characterize US-source income into foreign-source income, that’s because the US corporate tax system is anti-competitive. Multinational companies often are accused of “abusing” transfer-pricing rules on intra-company transactions to inappropriately turn US-source income into foreign-source income. To the extent this happens (and always with IRS approval), it is because the American corporate tax rate is now the highest in the developed world (and the second highest in the entire world), so companies naturally would prefer to reduce their tax burdens by declaring income elsewhere. So the only pro-growth solution is lowering the corporate tax rate.

It’s worth noting, by the way, that the Tax Foundation recently estimated that the revenue-maximizing corporate tax rate is 14 percent.

So if the anti-Apple lynch mob actually wants more revenue, they should learn a Laffer Curve lesson and slash the corporate tax rate.*

*I want to maximize growth, not maximize revenue.

Related posts:

Raising taxes higher on the rich doesn’t always work out so good!!!

Raising taxes higher on the rich doesn’t always work out so good!!! Lucky French Taxpayers Get an Obama-Style Flat Tax May 20, 2013 by Dan Mitchell I joked back in 2010 that Barack Obama had a very simple flat tax proposal. But as you can see, sometimes simple isn’t the same as good. Well, satire too often becomes reality […]

When taxes are raised the taxpayers change their behavior!!!

  When taxes are raised the taxpayers change their behavior!!!   Question of the Week: Quit Dodging the Issue and Tell Us the Revenue-Maximizing Point on the Laffer Curve May 19, 2013 by Dan Mitchell I feel like I’m on the witness stand and I’m being badgered by a hostile lawyers. Readers keep asking me to […]

We could put in a flat tax and it would enable us to cut billions out of the IRS budget!!!!

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 […]

By Everette Hatcher III | Posted in Taxes | Edit | Comments (0)

“Friedman Friday” Milton Friedman: “If taxes are raised in order to keep down the deficit, the result is likely to be a higher norm for government spending” (Charlie Rose interview pt 4)

MILTON FRIEDMAN: THE MIND BEHIND THE REPUBLICAN TAX REVOLT Jack Roberts | Jul 22, 2011 | 0 comments The on-going debate over raising the debt ceiling has focused on many areas of disagreement between Democrats and Republicans but none bigger than the Republican determination not to raise taxes.  Many pundits credit this to the political […]

If you want the rich to pay a bigger percentage of the nation’s tax revenues then keep their tax rates low!!!

If you want the rich to pay a bigger percentage of the nation’s tax revenues then keep their tax rates low!!! Evidence from England Shows that If You Want to “Soak the Rich,” Keep Tax Rates Low September 26, 2012 by Dan Mitchell I’ve pulled evidence from IRS publications to show that rich people paid a […]

Why are despicable people sometimes subsidized by taxpayers?

  Why are despicable people sometimes subsidized by taxpayers? Are You Happy that Your Tax Dollars Subsidized the Tsarnaev Family? April 28, 2013 by Dan Mitchell The bad news is that there are despicable and evil people seeking to kill innocents. The worse news is that some of these pathetic excuses for protoplasm are subsidized by […]

Tax Freedom Day

President Obama is from Illinois and he is running our nation like the politicians of Illinois run their state with lots of wasteful spending and too many high taxes. It’s Tax Freedom Day, So Congratulations (if You Don’t Live in New York, California, New Jersey, Illinois, etc) April 18, 2013 by Dan Mitchell It’s time to celebrate. […]

People hated tax collectors like Zacchaeus 2000 years ago and they hate them today too!!!

The IRS agents are as well thought of as Zacchaeus who was the tax collector that only Jesus was nice to. Here is a fine article by Dan Mitchell of the Cato Institute.  Some Good Cartoons if You’re Suffering from Post-Tax Return Traumatic Stress Disorder April 16, 2013 by Dan Mitchell For the past 30 or so […]

Use of our tax money is pretty stupid

Sad that the government wastes so much of our money and it wants more from us under President Obama. An Aggravating Reminder of Government Waste on Tax Day April 15, 2013 by Dan Mitchell Remember the Spending Quiz from 2010, which asked people to guess whether absurd examples of government waste were true or false? Well, […]

Laffer curve hits tax hikers pretty hard (includes cartoon)

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 […]

By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell | Comments (0)

Raising taxes higher on the rich doesn’t always work out so good!!!

May 20, 2013 – 5:09 pm

Raising taxes higher on the rich doesn’t always work out so good!!!

Lucky French Taxpayers Get an Obama-Style Flat Tax

May 20, 2013 by Dan Mitchell

I joked back in 2010 that Barack Obama had a very simple flat tax proposal.

But as you can see, sometimes simple isn’t the same as good.

Well, satire too often becomes reality in a world of greedy and corrupt politicians who think class-warfare is an acceptable guide to tax policy.

I say this because thousands of French taxpayers now are being subject to this satirical Obama flat tax.

Here are some of the grotesque details from a Reuters report.

More than 8,000 French households’ tax bills topped 100 percent of their income last year, the business newspaper Les Echos reported on Saturday, citing Finance Ministry data. …President Francois Hollande’s Socialist government imposed the tax surcharge last year, shortly after taking office… The government has been forced to redraft a proposed bill to levy a temporary 75 percent tax on earnings over 1 million euros, which had been one of Hollande’s campaign pledges. …Since then, a top administrative court has determined that a marginal tax rate higher than 66.66 percent on a single household risked being considered as confiscatory by the council.

Ironically, President Hollande already made a commitment that no taxpayers should have to surrender more than 80 percent of their incomes, but I guess that promise didn’t mean much.

After all, this is the guy who equates higher taxes with patriotism.

No wonder successful people are fleeing the country.

If you want to understand real tax reform, click here.

And here’s my video describing why the right kind of flat tax is a good idea.

This topic is particularly meaningful to me since I’m in the middle of the Free Market Road Show and I’ve been five flat tax nations – Bulgaria, Romania, Kosovo, Macedonia, and Albania – in the past 36 hours.

Too bad there’s little reason to hope that America will ever be part of the flat tax club.

P.S. I guess it’s good that the French court thinks that a 66.66 percent tax is “confiscatory.” But isn’t that true of any tax – at any rate – that is used to fund illegitimate activities?

 

 

____________

Related posts:

We could put in a flat tax and it would enable us to cut billions out of the IRS budget!!!!

May 15, 2013 – 6:04 am

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 […]

By Everette Hatcher III | Posted in Taxes | Edit | Comments (0)

The Flat Tax is the way to go.

January 3, 2013 – 8:38 am

The Flat Tax is the way to go. Since Leftists Don’t Like Corporate Loopholes, They Should Support the Flat Tax August 9, 2012 by Dan Mitchell I appeared on CNBC a couple of days ago to discuss a new report which claims that some big U.S. companies “only” paid 9 percent of their income to the […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Edit | Comments (0)

Flat Tax would lower the incentive to avoid paying taxes

December 12, 2012 – 8:20 am

The Flat Tax would lower the incentive to avoid paying taxes to the government. Then it seems that those who complain about all the  Washington influence-peddling and lobbying  should support the Flat Tax. Max Brantley of the Arkansas Times complains probably the most but there is no way he would favor trying to lesson the problem […]

By Everette Hatcher III | Posted in Arkansas Times, Max Brantley, President Obama, Speaker of the House John Boehner, spending out of control, Taxes | Edit | Comments (0)

The flat tax will grow the economy

August 17, 2012 – 12:14 pm

If we want the economy to grow then we should look closely at a flat tax. A Primer on the Flat Tax and Fundamental Tax Reform August 11, 2012 by Dan Mitchell In previous posts, I put together tutorials on the Laffer Curve, tax competition, and the economics of government spending. Today, we’re going to look […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Edit | Comments (0)

A flat tax is the answer

May 27, 2012 – 7:57 pm

Uploaded by afq2007 on Mar 29, 2010 This Center for Freedom and Prosperity Foundation video shows how the flat tax would benefit families and businesses, and also explains how this simple and fair system would boost economic growth and eliminate the special-interest corruption of the internal revenue code.http://www.freedomandprosperity.org __________________________________ Dan Mitchell hits the nail […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Tagged , ,,  | Edit | Comments (0)

Flat tax is all the over world but USA still has complicated tax code

February 8, 2012 – 12:49 am

It is amazing to me that Reagan put in only 3 levels of taxation before he left office but now we have made it complicated again. Take a look at this video from the Cato Institute. Uploaded by catoinstitutevideo on Apr 13, 2009 This video was produced by Caleb Brown ( http://www.twitter.com/cobrown ) and Austin […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Edit | Comments (0)

A flat tax is the answer

February 2, 2012 – 10:38 am

Uploaded by afq2007 on Mar 29, 2010 This Center for Freedom and Prosperity Foundation video shows how the flat tax would benefit families and businesses, and also explains how this simple and fair system would boost economic growth and eliminate the special-interest corruption of the internal revenue code.http://www.freedomandprosperity.org __________________________________ Dan Mitchell hits the nail […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Tagged , ,,  | Edit | Comments (0)

Cato Institute grades Perry’s flat tax

October 25, 2011 – 9:15 am

I really like to read Dan Mitchell’s opinions. Grading Perry’s Flat Tax: Some Missing Homework, but a Solid B+ Posted by Daniel J. Mitchell Governor Rick Perry of Texas has announced a plan, which he outlines in the Wall Street Journal, to replace the corrupt and inefficient internal revenue code with a flat tax. Let’s […]

By Everette Hatcher III | Posted in Cato Institute, Taxes | Tagged , , , ,  | Edit | Comments (0)

When taxes are raised the taxpayers change their behavior!!!

May 19, 2013 – 3:48 pm

  When taxes are raised the taxpayers change their behavior!!!   Question of the Week: Quit Dodging the Issue and Tell Us the Revenue-Maximizing Point on the Laffer Curve May 19, 2013 by Dan Mitchell I feel like I’m on the witness stand and I’m being badgered by a hostile lawyers. Readers keep asking me to […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, Taxes | Edit |Comments (0)
 
By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell | Comments (0)

When taxes are raised the taxpayers change their behavior!!!

May 19, 2013 – 3:48 pm

 

When taxes are raised the taxpayers change their behavior!!!

 

Popeye Laffer Curve

I feel like I’m on the witness stand and I’m being badgered by a hostile lawyers. Readers keep asking me to identify the revenue-maximizing point on the Laffer Curve.

But I don’t like that question. In the past, I’ve explained that the growth-maximizing point on the Laffer Curve is where enough revenue is raised to finance the legitimate – and limited – functions of government.

And one of the earliest posts on this blog explained that we don’t want to maximize tax revenue.

But I still get versions of this question, including a few that accuse me of dodging the issue.

So what the heck, I may as well give an answer to the question. But I won’t give my answer. Instead, I’ll provide the analysis of a Nobel Prize winner.

James Mirrlees won the Nobel Prize in Economics in 1996 and he’s researched this issue, starting with a left-of-center perspective.

Many economists, including Mirrlees, want to use the tax system to achieve a higher degree of equality than would otherwise obtain. This means taking a substantial amount of the additional income of high-income people, which would imply high marginal tax rates on them. But when the government imposes such high marginal tax rates on the highest-income people, it reduces the incentive of the most productive people to be productive. …Economists have long wanted to figure out the optimum, but until Mirrlees’s work no one had been able to solve it.

And what did Mirrlees find? Well, notwithstanding his own preferences, he calculated that the tax rate should be no higher than 20 percent.

Mirrlees started with no presumption against high marginal tax rates. Indeed, he has been an adviser to Britain’s Labour Party, which for decades imposed marginal tax rates in excess of 80 percent. But Mirrlees found that the top marginal tax rate should be only about 20 percent; and moreover, it should be about the same 20 percent for everyone. In short, Mirrlees’s work justified what is now known as a “flat tax,” more appropriately called a “flat tax rate.” Mirrlees wrote, “I must confess that I had expected the rigourous analysis of income taxation in the utilitarian manner to provide arguments for high tax rates. It has not done so.”

Not only a rate of 20 percent, but a flat tax!

Too bad the Labour Party politicians don’t listen to his advice. Heck, the Conservative Party politicians don’t follow his advice either.

But at least we have a rigorous estimate of the revenue-maximizing point on the Laffer Curve.

Though I hasten to add that it’s not the ideal tax rate. As the risk of being repetitive, the tax system should only fund the legitimate functions of government. For much of our history, the government only consumed about 10 percent of economic output and we didn’t need any broad-based tax. So you know where I stand.

That being said, it’s clearly destructive to have tax rates that are above both the growth-maximizing level and the revenue-maximizing level. And that’s where we stand now.

For more information, here’s my video on the Laffer Curve.

And if you want to learn specifically why Obama’s class-warfare agenda is misguided, here’s my Laffer-Curve-lesson-for-Obama post.

P.S. The Tax Foundation has estimated that the revenue-maximizing corporate tax rate is 14 percent.

Related posts:

IRS cartoons from Dan Mitchell’s blog

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 […]

Dan Mitchell explains what happened in Cyprus

Dan Mitchell explains what happened in Cyprus.   What Really Happened in Cyprus? April 14, 2013 by Dan Mitchell Did Cyprus become an economic basket case because it is a tax haven, as some leftists have implied? Did it get in trouble because the government overspent, which I have suggested? The answers to those questions are […]

Dan Mitchell on Obamacare (includes cartoons on Obamacare)

Some very good points by Dan Mitchell of the Cato Institute on Obamacare: Why We Should Be Optimistic about Repealing Obamacare and Fixing the Healthcare System April 10, 2013 by Dan Mitchell I’m going to make an assertion that seems utterly absurd. The enactment of Obamacare may have been good news. Before sending a team of medical […]

Dan Mitchell’s blog has great cartoon that demonstrates what President Obama has been doing the last 4 years!!!

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’ve Obtained a Secret Pre-Release Copy of Obama’s Budget April 9, 2013 by Dan Mitchell The President is supposed to release […]

Dan Mitchell’s tribute to Margaret Thatcher

Very well said by Dan Mitchell. A Tribute to Margaret Thatcher April 8, 2013 by Dan Mitchell The woman who saved the United Kingdom has died. A Great Woman I got to meet Margaret Thatcher a couple of times and felt lucky each time that I was in the presence of someone who put her nation’s […]

Dan Mitchell, Ron Paul, and Milton Friedman on Immigration Debate (includes editorial cartoon)

I like Milton Friedman’s comments on this issue of immigration   and Ron Paul and Dan Mitchell do well on the issue too. Question of the Week: What’s Your Take on the Immigration Debate? April 7, 2013 by Dan Mitchell A reader from overseas wonders about my views on immigration, particularly amnesty. I confess that this is one of […]

Dan Mitchell on Texas v. California (includes editorial cartoon)

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 […]

Cartoons from Dan Mitchell’s blog on Obamacare

Third-Party Payer is the Biggest Economic Problem With America’s Health Care System Published on Jul 10, 2012 This mini-documentary from the Center for Freedom and Prosperity Foundation explains that “third-party payer” is the main problem with America’s health care system. This is why undoing Obamacare, while desirable, is just a small first step if we […]

Obamacare cartoons from Dan Mitchell’s blog

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. The funniest cartoon is the one with “Nurse Sebelius” stuffing the huge capsule down the kid’s throat!!! Obamacare […]

Editorial cartoon from Dan Mitchell’s blog on California’s sorry state of affairs

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 sequester, economy, eternal unemployment benefits, socialism,  minimum wage laws, tax increases, social security, high taxes in California, Obamacare,  Greece,  welfare state or on gun control. President Obama’s favorite state must be California because […]

By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell | Comments (0)

IRS cartoons from Dan Mitchell’s blog

May 17, 2013 – 2:02 pm

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.

IRS Obamacare

If you want other Chip Bok cartoons, click here, here, here, here, here, here (my favorite), here and here.

And for cartoons that mix the IRS and Obamacare, click here, here, and here.

For the past 30 or so years, I’ve done my own taxes by hand. I thought this was a good approach because it would help me better understand the practical challenges of the tax code.

Bravest man IRS

Dan Mitchell has dropped out of this contest

But it’s time to confess that I broke down and used Turbotax for yesterday’s tax return.

It’s not that my financial affairs are complicated. I basically get my Cato salary and a bit of income from speeches and articles. But even that became too much of a challenge. The tipping point was the form for Health Savings Accounts. The IRS is yelling at me for how I filled out this form in past years, and I fear that I will be perpetually in their cross hairs without relying on a computer program to avoid mistakes.

To help me deal with yesterday’s traumatic experience, I’m sharing some very good cartoons.

We’ll start with one from Gary Varvel.

IRS Cartoon 1

Sort of the visual version of this letter-to-the-editor.

Our next cartoon, which may be my favorite of the group, is from Glenn McCoy.

IRS Cartoon 2

By the way, if you don’t think the IRS is capable of thuggery, read this horrifying story.

I don’t know Paul Fell’s work, but this next cartoon is a very good introduction.

IRS Cartoon 3

This is the second time the grim reaper has appeared in a cartoon. The first time involved the death tax.

Last but not least, we have a Chip Bok cartoon about tax code complexity.

IRS Cartoon 4

As a bonus, it also features the complexity of Obamacare. If you like cartoons that mix the IRS and Obamacare, check out this classic from Glenn McCoy and this gem by Gary Varvel.

If you still need to be cheered up, here’s some more IRS humor to brighten your day, including the IRS version of the quadratic formula, a new Obama 1040 form, a list of tax day tips from David Letterman, a cartoon ofhow GPS would work if operated by the IRS, an IRS-designed pencil sharpener, a sale on 1040-form toilet paper (a real product), and two songs about the tax agency (here and here),  and a PG-13 joke about a Rabbi and an IRS agent.

Painfully Funny

April 21, 2010 by Dan Mitchell

This would be much more enjoyable if it weren’t true.

 

Related posts:

“Sanctity of Life Saturday” Remembering Dr. C. Everett Koop with pictures and quotes Part 3 ( three more editorial cartoons too)

MemFormer Surgeon General C.Everett Koop © A Genuine G-Shot.wmv orial Tribute ________________ Dr. Koop with Hillary Clinton In 1980 I really was influenced at my highschool by a teacher of mine named Mark Brink. He introduced me to the film series “Whatever happened to the human race?” by Francis Schaeffer and Dr. C. Everett Koop. […]

Obama has created less jobs than people he has on disability (includes cartoons)

Obama has created less jobs than people he has on disability. Plagued by Rising Costs and Vulnerable to Fraud, It’s Time to Focus Attention on the Disability Progam April 12, 2013 by Dan Mitchell When I think of the disability program, I think of the bum who is collecting a check so he can be an “adult […]

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor, cartoons included)

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, […]

Dan Mitchell on Obamacare (includes cartoons on Obamacare)

Some very good points by Dan Mitchell of the Cato Institute on Obamacare: Why We Should Be Optimistic about Repealing Obamacare and Fixing the Healthcare System April 10, 2013 by Dan Mitchell I’m going to make an assertion that seems utterly absurd. The enactment of Obamacare may have been good news. Before sending a team of medical […]

Sequester not so bad after all (includes cartoons)

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. Sequester was not so bad after all. Since the Sequester Has Been in Place for More than One […]

Cartoons from Dan Mitchell’s blog on Obamacare

Third-Party Payer is the Biggest Economic Problem With America’s Health Care System Published on Jul 10, 2012 This mini-documentary from the Center for Freedom and Prosperity Foundation explains that “third-party payer” is the main problem with America’s health care system. This is why undoing Obamacare, while desirable, is just a small first step if we […]

Obamacare cartoons from Dan Mitchell’s blog

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. The funniest cartoon is the one with “Nurse Sebelius” stuffing the huge capsule down the kid’s throat!!! Obamacare […]

Cartoons about Obama’s postponing reforms until fiscal crisis

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 sequester, economy, eternal unemployment benefits, socialism,  minimum wage laws, tax increases, social security, high taxes in California, Obamacare,  Greece,  welfare state or on gun control. Even Cartoonists Understand that You Shouldn’t Postpone Reforms […]

Michael Cannon on Obamacare (editorial cartoons on Judge Roberts and Obamacare)

Representative Bollinger asks CATO Institute Michael Cannon about Obamacare Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. Representative Bollinger […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 6

  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 sequester, economy, eternal unemployment benefits, socialism,  minimum wage laws, tax increases, social security, high taxes in California, Obamacare,  Greece,  welfare state or on gun control. Here is another one. This Cartoon Does […]

By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell, Healthcare | Comments (0)

Obama jokes about audit of Ohio St by IRS then IRS scandal breaks!!!!!

May 17, 2013 – 6:53 am

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 groups in the United States is par for the course. It’s not the first time the agency has been used for partisan political ends. Whether or not the targeting was undertaken as a directive from the White House, the agency’s broad latitude in determining what constitutes partisan political activity is very problematic. The solutions offered by campaign finance reformers would unfortunately only give the agency more power.

Featuring: David Keating, President of the Center for Competitive Politics / Michael W. MacLeod-Ball, Chief Legislative and Policy Counsel, ACLU / John Samples, Director of the Cato Institute’s Center for Representative Government / Gene Healy, Vice-President, Cato Institute

________________

MAY 16, 2013 9:07AM

Scandals Keep Eroding Our Faith in Benevolent Government

By 
DAVID BOAZ

George Will, Michael Gerson, and our own Gene Healy are among the columnists who reminded us – in the wake of the IRS and AP snooping scandals – of President Obama’s stirring words just two days before the IRS story broke:

Unfortunately, you’ve grown up hearing voices that incessantly warn of government as nothing more than some separate, sinister entity. . . . They’ll warn that tyranny is always lurking just around the corner. You should reject these voices.

No road to serfdom here. Just us folks working together, to protect ourselves from sneaky reporters and organized taxpayers.

And now lots of people are noting that a series of scandals in government just might undermine people’s faith in government. John Dickerson of Slate writes:

The Obama administration is doing a far better job making the case for conservatism than Mitt Romney, Mitch McConnell, or John Boehner ever did. Showing is always better than telling, and when the government overreaches in so many ways it gives support to the conservative argument about the inherently rapacious nature of government….

Conservatives argue that the more government you have, the more opportunities you will have for it to grow out of control.

And Paul Begala, the Bill Clinton operative, notes:

This hurts the Obama Administration more than similar issues hurt the Bush administration because a central underpinning of the progressive philosophy is a belief in the efficacy of government. In the main almost all of the Obama agenda requires expanding folks’ faith in government, and these issues erode that faith.

“Faith in government” indeed. To paraphrase Oscar Wilde, putting your faith in government is, like a second marriage, a triumph of hope over experience.

But most particularly this week I’m reminded of Murray Rothbard’s comment in 1975 about what the era of Vietnam, Watergate, and stagflation had done to trust in government:

Twenty years ago, the historian Cecelia Kenyon, writing of the Anti-Federalist opponents of the adoption of the U.S. Constitution, chided them for being “men of little faith” – little faith, that is, in a strong central government. It is hard to think of anyone having such unexamined faith in government today.

Another 38 years later, it should be even more difficult to retain such faith.

By Everette Hatcher III | Also posted in Cato Institute | Comments (0)

We could put in a flat tax and it would enable us to cut billions out of the IRS budget!!!!

May 15, 2013 – 6:04 am

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

The revelations of IRS officials targeting conservative and libertarian groups suggest that now is a good time for lawmakers to review a broad range of the agency’s activities. Since the agency’s last overhaul in the IRS Restructuring and Reform Act of 1998, its budget has exploded from $33 billion to a proposed $106 billion in 2013.

Using data from the OMB budget database, I split total IRS outlays into two broad activities: administration and handouts. Administration includes tax return processing, investigations, enforcement, and other bureaucratic functions. Handouts mainly includes spending on “refundable” tax credits such as the EITC.

The chart shows that the IRS has become a huge social welfare agency in recent decades. Handouts have soared from $4.4 billion in 1990 to an estimated $91.1 billion in 2013 (red line). Handouts are down a bit in recent years because some of the refundable credits from “stimulus” legislation have expired. IRS administration costs have grown from $7.7 billion in 1990 to an estimated $15.3 billion in 2013 (blue line).

How should we reform the IRS budget? First, we should terminate the handout programs. That would save taxpayers more than $90 billion annually and cut the IRS budget by 86 percent.

The largest IRS handout is the refundable part of the EITC, which is expected to cost $55 billion in 2013. Many policymakers favor the EITC as a “conservative” handout program because it encourages people to work. But the EITC itself creates a discouragement to increased work over the income range that it is phased-out. It also adds to tax-code complexity and has an error and fraud rate of more than 20 percent.

The EITC is an example of how big government begets more big government. We certainly wouldn’t need the EITC incentive to work if we slashed all the taxes and welfare programs that currently encourage people not to work.

It’s a similar situation with other IRS handout programs, such as the $1 billion “Therapeutic Discovery” grant program. These grants are supposed to “produce new and cost-saving therapies, support jobs and increase U.S. competitiveness.” But it would be better to accomplish those goals by repealing the excise tax on medical devices and slashing the high 40 percent U.S. corporate income tax.

As for the $15 billion in spending on IRS administration, we could dramatically cut that cost with major tax reforms. In particular, a consumption-based flat tax would hugely simplify the code and greatly reduce paperwork costs of the IRS and taxpayers alike.

Looking ahead, the IRS budget is expected to balloon in coming years as the agency plays a key role in implementing ObamaCare. Unless the health care legislation is repealed, IRS outlays are expected to soar from $106 billion this year to $263 billion by 2023.

Related posts:

The Flat Tax is the way to go.

The Flat Tax is the way to go. Since Leftists Don’t Like Corporate Loopholes, They Should Support the Flat Tax August 9, 2012 by Dan Mitchell I appeared on CNBC a couple of days ago to discuss a new report which claims that some big U.S. companies “only” paid 9 percent of their income to the […]

Flat Tax would lower the incentive to avoid paying taxes

The Flat Tax would lower the incentive to avoid paying taxes to the government. Then it seems that those who complain about all the  Washington influence-peddling and lobbying  should support the Flat Tax. Max Brantley of the Arkansas Times complains probably the most but there is no way he would favor trying to lesson the problem […]

The flat tax will grow the economy

If we want the economy to grow then we should look closely at a flat tax. A Primer on the Flat Tax and Fundamental Tax Reform August 11, 2012 by Dan Mitchell In previous posts, I put together tutorials on the Laffer Curve, tax competition, and the economics of government spending. Today, we’re going to look […]

A flat tax is the answer

Uploaded by afq2007 on Mar 29, 2010 This Center for Freedom and Prosperity Foundation video shows how the flat tax would benefit families and businesses, and also explains how this simple and fair system would boost economic growth and eliminate the special-interest corruption of the internal revenue code. http://www.freedomandprosperity.org __________________________________ Dan Mitchell hits the nail […]

Flat tax is all the over world but USA still has complicated tax code

It is amazing to me that Reagan put in only 3 levels of taxation before he left office but now we have made it complicated again. Take a look at this video from the Cato Institute. Uploaded by catoinstitutevideo on Apr 13, 2009 This video was produced by Caleb Brown ( http://www.twitter.com/cobrown ) and Austin […]

A flat tax is the answer

Uploaded by afq2007 on Mar 29, 2010 This Center for Freedom and Prosperity Foundation video shows how the flat tax would benefit families and businesses, and also explains how this simple and fair system would boost economic growth and eliminate the special-interest corruption of the internal revenue code. http://www.freedomandprosperity.org __________________________________ Dan Mitchell hits the nail […]

Cato Institute grades Perry’s flat tax

I really like to read Dan Mitchell’s opinions. Grading Perry’s Flat Tax: Some Missing Homework, but a Solid B+ Posted by Daniel J. Mitchell Governor Rick Perry of Texas has announced a plan, which he outlines in the Wall Street Journal, to replace the corrupt and inefficient internal revenue code with a flat tax. Let’s […]

“Friedman Friday” Milton Friedman: “If taxes are raised in order to keep down the deficit, the result is likely to be a higher norm for government spending” (Charlie Rose interview pt 4)

MILTON FRIEDMAN: THE MIND BEHIND THE REPUBLICAN TAX REVOLT Jack Roberts | Jul 22, 2011 | 0 comments The on-going debate over raising the debt ceiling has focused on many areas of disagreement between Democrats and Republicans but none bigger than the Republican determination not to raise taxes.  Many pundits credit this to the political […]

If you want the rich to pay a bigger percentage of the nation’s tax revenues then keep their tax rates low!!!

If you want the rich to pay a bigger percentage of the nation’s tax revenues then keep their tax rates low!!! Evidence from England Shows that If You Want to “Soak the Rich,” Keep Tax Rates Low September 26, 2012 by Dan Mitchell I’ve pulled evidence from IRS publications to show that rich people paid a […]

Use of our tax money is pretty stupid

Sad that the government wastes so much of our money and it wants more from us under President Obama. An Aggravating Reminder of Government Waste on Tax Day April 15, 2013 by Dan Mitchell Remember the Spending Quiz from 2010, which asked people to guess whether absurd examples of government waste were true or false? Well, […]

By Everette Hatcher III | Comments (0)

The sad truth is Obama is wrong about the mean rich people keeping this county down (Cartoon showing that fleecing the rich is not enough)

May 15, 2013 – 1:04 am

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.

The sad truth is Obama is wrong about the mean rich people keeping this county down.

You can see one of my favorite political cartoons, produced by Chuck Asay, by clicking this link. It shows how a burdensome welfare state undermines growth by creating too heavy a load for the economy to carry.

Here’s a Lisa Benson cartoon that makes a similar point, but it focuses on Obama’s class-warfare tax policy.

Cartoon Grinch Spending

What makes the cartoon especially effective is that it not only shows that higher tax burden is designed to finance more spending, but also it makes clear that soaking-the-rich won’t be enough.

I’ve already cited a bunch of semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been warned.

P.S. My two other favorite Lisa Benson cartoons can be enjoyed here and here.

P.P.S. For Chuck Asay fans, my two other top choices for his work can be seen here and here.

Related posts:

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 2

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: […]

Cartoons from Dan Mitchell’s blog that demonstrate what Obama is doing to our economy Part 1

  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 […]

Great cartoon from Dan Mitchell’s blog on government moochers

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 […]

Gun Control cartoon hits the internet

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 […]

“You-Didn’t-Build-That” comment pictured in cartoons!!!

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 […]

Cartoons about Obama’s class warfare

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 […]

Cartoons on Obama’s budget math

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 […]

Funny cartoon from Dan Mitchell’s blog on Greece

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 […]

Obama on creating jobs!!!!(Funny Cartoon)

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 […]

Get people off of government support and get them in the private market place!!!!(great cartoon too)

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 […]

2 cartoons illustrate the fate of socialism from the Cato Institute

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 […]

Cartoon demonstrates that guns deter criminals

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 […]

Gun control posters from Dan Mitchell’s blog Part 2

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!!!

  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 […]

Gun control posters from Dan Mitchell’s blog Part 1

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 […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 3) “Did Hitler advocate gun control?”

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: […]

Taking on Ark Times bloggers on the issue of “gun control” (Part 2) “Did Hitler advocate gun control?”

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 […]

 

By Everette Hatcher III | Also posted in Cato Institute, Economist Dan Mitchell | Comments (0)

Open letter to President Obama (Part 317)

May 13, 2013 – 1:03 am

Government Must Cut Spending

Uploaded by on Dec 2, 2010

The government can cut roughly $343 billion from the federal budget and they can do so immediately.

__________

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.

You are the one that people will hold responsible for the economy not growing fast enough. Don’t you agree with these two following statements?

If you lower taxes on the job creators then you will get more businesses starting up and more jobs created. If you raise taxes on the job creators then guess what you get? The answer is France.

Ayn Rand’s famous novel, Atlas Shrugged, tells the story of what happens when society’s most productive people go on strike because they don’t want to subsidize the looters and moochers.

I won’t give away the plot, but one interesting twist in the story is when government officials realize that they need some people to produce. Otherwise, as the former President of Brazil acknowledged in real life, there’s nothing to redistribute.

Well, some people in France don’t understand the risks of driving away the geese that lay the golden eggs. Here are some excerpts from a Christian Science Monitor story.

“au revoir, looters and moochers”

As French President François Hollande outlined new taxes and spending cuts while promoting reforms to turn the economy around – word leaked out that France’s wealthiest man, Bernard Arnault, was heading for Belgium in a rumored tax dodge. At first, the timing could not appear to have been worse for the national morale and Mr. Hollande. …he will hit those with direct salaries over 1 million euros ($1.3 million) with a 75 percent tax. The French have not forgotten the national shame when British Prime Minister David Cameron told the world from Mexico in early summer that London was “rolling out the red carpet” for wealthy French seeking tax havens.  Yet, instead, in a national spasm of pique, France spent all day making accusations of “traitor” and “ingrate” at the rich guy – Mr. Arnault, worth $41 billion. …The anti-Arnault frenzy spurred far-left guru Jean-Luc Mélenchon to call him a “parasite,” and far-right darling Marianne Le Pen to proclaim “scandalous” what appears to be a financial exile. A screaming headline in Libération – “Get Lost You Rich Idiot”… Hollande yesterday said the fashion tycoon, who also left France for the US during the last Socialist government of François Mitterand, “should have measured what it means to apply for citizenship to another country. In this period, we need to appeal to patriotism.”

I’ve already posted about productive people escaping France, so that’s not exactly a new development.

What is remarkable, though, is the way French politicians, journalists, and ordinary citizens (presumably of the moocher variety) have viciously attacked Mr. Arnault.

Sort of like thieves who want moral sanction from their victims. Hmmm…seems that somebody wrote a book with that theme – and it didn’t end well for the looter class. Which is exactly why I’m predicting that France will soon face a Greek-style fiscal crisis.

______

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, lowcostsqueegees@yahoo.com

By Everette Hatcher III | Also posted in President Obama | Comments (0)