The Great Hillsdale College Debate: Flat Tax or Fair Tax?

by Dan Mitchell | Jan 30, 2013 | Blogs, Flat Tax, Taxation

I’m at Hillsdale College in Michigan for a conference on taxation. The event is called “The Federal Income Tax: A Centenary Consideration,” though I would have called it something like “100 Years of Misery from the IRS.” I’m glad to be here, both because Hillsdale...

The Sequester May Not Be “Fair,” but It’s Real and It Would Slow the Growth of Government

by Dan Mitchell | Jan 28, 2013 | Big Government, Blogs, Government Spending

Much to the horror of various interest groups, it appears that there will be a “sequester” on March 1. This means an automatic reduction in spending authority for selected programs (interest payments are exempt, as are most entitlement outlays). Just about everybody...

Is Anybody Surprised that Krugman Was Wrong about U.K. Fiscal Policy?

by Dan Mitchell | Jan 23, 2013 | Big Government, Blogs, Economics, Government Spending

Just like in the United States, politicians in the United Kingdom use the deceptive practice of “baseline budgeting” as part of fiscal policy. This means the politicians can increase spending, but simultaneously claim they are cutting spending because the budget could...

California’s One-Man Laffer Curve

by Dan Mitchell | Jan 22, 2013 | Blogs, Economics, Laffer Curve, Taxation

I’ve already condemned the foolish people of California for approving a referendum to raise the state’s top tax rate to 13.3 percent. This impulsive and misguided exercise in class warfare surely will backfire as more and more productive people flee to other states –...

If You Could Reform only One Major Entitlement Program, Which One Would You Pick?

by Dan Mitchell | Jan 20, 2013 | Big Government, Blogs, Government Spending, Welfare and Entitlements

This is a tough question. I obviously want comprehensive reform of all entitlement programs, so selecting just one is a bit of a challenge. Sort of like being asked to pick your favorite kid. Would I reform Social Security? That’s a logical choice. It’s the biggest...