The fault line in American politics is not really between Republicans and Democrats, but rather between taxpayers and the Washington political elite. Here are two examples that symbolize why economic policy is such a mess. First, we have President Bush’s former…
Daily Analysis
Seeking to Undermine Competition from the Internet, Politicians Pushing Privacy-Destroying State Sales Tax Cartel
One of the good features of the Internet is that it gives people more options. But this is bad news for politicians, who like to control – and tax – what people are doing. But it’s not easy for politicians at the state level to impose high sales taxes on consumers…
America's Best Governor Wants to Starve the Beast
Chris Christie of New Jersey has done a remarkable job so far, but his biggest battles are still ahead of him. A key fight is whether the state will impose a cap on property taxes. As the Wall Street Journal opines, this reform has worked very well in Massachusetts…
The Uncertainty Induced Failure of Obamanomics
Allan Meltzer has an opinion piece in the Wall Street Journal explaining the failures of Obamanomics. One of the causes he identifies is the high level of uncertainty surrounding tax rates and regulatory policy under this administration. Such uncertainty is the enemy…
Thanks to Tax Competition, Corporate Tax Rates Continue to Fall in Europe
Many people assume that Europe is the land of high-tax welfare states and America is an outpost of laissez-faire capitalism. We should be so lucky. The burden of government in America is still lower than it is in the average European nation, but the United States is a…
Obama’s Fiscal Fantasyland
That’s the title of Richard Rahn’s new column in the Washington Times, which discusses the delusional Keynesian policy being advocated – in America and around the world – by the current administration. As Richard explains, the evidence is overwhelming that government…
You Can't Soak the Drenched
The lazy politician looks at deficits and screams, “soak the rich!” But as CBO’s latest analysis of federal average tax rates shows, they are already paying a highly disproportionate share of taxes. The graphs above show that the highest earners are…
The ‘Rahn Curve’ Shows Government Is Far too Big
President Bush was a big spender, but President Obama is taking profligacy to the next level. In his first year in office, Obama pushed through a pork-filled “stimulus” that was supposed to increase jobs and prosperity (at least according to the discredited Keynesian…
Robert Samuelson’s Unintentional Case for Austrian Economics
In his Washington Post column discussing a crisis of confidence among economists, Robert Samuelson correctly notes that Keynesians don’t seem to have the right answers. But he concludes that other schools of thought are similarly befuddled by current…
IRS Hands Out Home Buyer Tax Credits to Prisoners
Dan Mitchell recently appeared on MSNBC to explain why we should not be surprised to learn that more than $9 million dollars in home buyer tax credits were given to prison inmates who were clearly not new home owners. This kind of waste is to be expected when…