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 Security, or it is worse to bail out an industry, such as the…
Daily Analysis
Has the European Fiscal Crisis Ended?
I’ve frequently commented on Europe’s fiscal mess and argued that excessive government spending is responsible for both the sovereign debt crisis and the economic stagnation that plagues the continent. But it does seem that things have calmed down, so the readers who…
Do Higher Tax Rates Hurt Growth?
Because of Obama’s class-warfare tax hike and additional tax increases by kleptocrats at the state level, many successful taxpayers will now lose more than 50 percent of any additional income they generate for the American economy. I discuss the implications of this…
The “National Taxpayer Advocate” at the IRS is Advocating for the Government, Not Taxpayers
I’m not a big fan of the Internal Revenue Service, though I try to make sure that politicians get much of the blame for America’s convoluted, punitive, and unfair tax code. Heck, just look at these three images – here, here, and here – and you’ll find startling…
The United States Ranks 7th in Comprehensive New “Freedom Index”
I’ve always been a big fan of Economic Freedom of the World because it provides a balanced and neutral measure of which nations do best in providing free markets and small government. And I like it even when it gives me bad news. It’s somewhat depressing, after all,…
Do Tax Cuts “Starve the Beast”?
There’s a debate among policy wonks about whether a no-tax-hike policy is an effective way of restraining the burden of government spending. At the risk of over-simplifying, the folks who support the “starve the beast” theory argue that there are political and/or…
The Only Good Death Tax is a Dead Death Tax
Just before the end of the year, I shared some fascinating research about people dying quicker or living longer when there are changes in the death tax. Sort of the ultimate Laffer Curve response, particularly if it’s the former. But the more serious point is that the…
Do You Live in a “Death Spiral” State?
Three years ago, I put together a “Moocher Index” that measured the degree to which non-poor people in a state were benefiting from redistribution programs. As you can see if you click on the nearby table, Vermont was the worst state, followed by Mississippi, Maine,…
The Fiscal Cliff Was an Inevitable Loss, but Here Are Three Upcoming Battles that Advocates of Small Government Can Win
Our number one fiscal problem is an excessive burden of government spending. A big part of the solution is entitlement reform. Our number two fiscal problem is a punitive and corrupt tax code (as captured by images here, here, and here). A big part of the solution is…
Yes, We Should “Reform” Payroll Taxes, but only if that Means Personal Retirement Accounts
Washington is filled with debate and discussion about the economic burden of the federal income tax, which collected $1.13 trillion in FY2012 ($1.37 trillion if you include the corporate income tax). Yet politicians rarely consider the economic impact of payroll…