TAX POLITIX
The Politics of Taxes
AOC’s Economic Illiteracy
When we have a generation of voters who take their policy lessons from a person who believes that billionaires shouldn’t exist, we are in trouble. What’s more, she boasts of having an economics degree but her ideas are not rooted in reality. Let’s take a look at some of her more unorthodox economic positions: Green New Deal: AOC created a sweeping bill that puts the environment impact as the basis for economic policy. Not only is this inherently anti-free-market, her objectives of addressing...
More on CON Laws
Certificate of Need laws, otherwise known as CON laws, are laws required in many states and some federal jurisdictions before proposed acquisitions, expansions, or creations of healthcare facilities are allowed. They are also absolutely ridiculous and entirely based entirely on cronyism. CON laws are irresponsible, damaging to the economy, and a prime example of an assault on economic liberty. A recent report by Mercatus noted that “Nearly six decades ago, New York became the first state to...
Alan Blinder’s Blunder
Alan Blinder is a distinguished economist who insists on misleading the public about economic matters. The latest affair is found in Blinder’s Op-Ed, “A Speedy Recovery Depends on More Aid: Will Trump Deliver?” wherein Blinder deliberately misleads his readers about the economy and the road to recovery. Here are some of his statements: “Mr. McConnell is a roadblock to more relief funds.” It wasn’t McConnell, but Pelosi who refused to talk. McConnell put forth a relief package but because...
Overpaid Executive Tax
One of the most outrageous and economically stupid measures to pass on Election Day came out of San Francisco: a new tax called the “Overpaid Executive Tax.” It’s really as bad as it sounds. This law levies a .1% surcharge on any company in San Francisco whose top executives earn 100 times more than the “typical worker.” It was enacted as a means to fight against pay inequality, but all it does is show how incompetent its proponents really are. It’s worth noting that this tax applies to both...
Why the GILTI Tax Matters
One of the most overlooked yet troubling aspects of Biden’s plan is his doubling of the Global Intangible Low-Taxed Income (GILTI) tax. GILTI taxes items that generate foreign income and profits owned by American companies with foreign affiliates. This is troubling, because GILTI taxes American companies on income that has virtually nothing to do with anything in the United States. It’s bad enough that the current tax rate is 10.5%; Biden wants to raise this to 21%. The tax laws of every...
Biden Won: What Does That Mean For Tax Changes?
Now that Biden has been elected President, it's important to take stock of what tax changes are likely to be coming. Merrill Lynch did a good job putting together a side-by-side comparison of current tax law in four areas: income, estate, social security, and corporate, and then possible changes in those areas according to Biden's campaign tax plans. The summary is below. It is notable that in just about every instance, there will be a tax increase under Biden's plans. How this will impact the...
Unfairly Attacking the Gig Economy
Earlier this year, California passed AB5, a measure that would require companies to reclassify independent contractors as employees. The problem is that the government is yet again intruding on employer-employee relationships under the guise of worker protections. Furthermore, it’s an attempt to put unions even more in charge of things in California while also purporting to provide more revenue to a nearly-bankrupt state, all doomed to failure because of its economic ignorance. AB5...
The Illinois Fair Tax Proposal is Not Fair
On November 3, Illinois residents have a Constitutional referendum to change their method of taxation from a flat tax to a “fair tax.” The current system treats all Illinois taxpayers the same by levying a modest 4.95% rate. Under the proposed change, taxpayers would be divided among multiple tiers with a progression of increased rates based on higher levels of income, and both individual and corporate rates would be affected. By removing the Constitutional provision against graduated-rate...
What Does Trade Deficit Mean?
Despite what you may have heard from politicians and journalists, trade deficits are not a bad thing… In fact, they almost always indicate a healthy economy.Some people (including a number of our civil leaders) believe that the United States’ trade deficit is a bad thing. They think that it means that other countries are abusing us. This is just wrong – and economically ignorant. It is the same as saying that a deficit of sugar in your diet is a bad thing. Just wrong.By definition, a trade...
Taylor Case: Systemic Police Reform not Systemic Racism
Everyone is aware of the tragic death of Breonna Taylor and its surrounding circumstances. But many are calling for murder charges against the police officers who did the shooting, and are calling the event evidence of systemic racism. Both positions are ridiculously off base. The grand jury did not charge any officers with the killing of Ms. Breonna Taylor in her home. The mainstream media would have you believe that this means that the grand jury was derelict in its duties. This...
TAX
Tips
More Capital Gains Distortions
The article written by Josh Zumbrun of the Wall Street Journal on December 31, entitled, "Tax Rate for Top 400 Taxpayers Climbed in 2013," should have been fairly straightforward with interesting data on that particular tax demographic....
The IRS Admits to Erasing Another Important Hard Drive
The IRS is involved in another "erased hard drive" event -- and it's not a part of the IRS scandal of 2013. It is apparent that there is a pattern of destruction at the agency. This time, the hard drive that was erased belonged to "Samuel Maruca,...
Getting Ready For Tax Season? Here are the 2015 Rates You’ll Need
Tax season has begun. Normally, the deadline for filing your federal tax return is April 15. But because the Washington D.C. Emancipation Day holiday falls on April 15 this year, Tax Day is the Monday after, April 18th. Last spring, Forbes put...
Government Outpaces Private Sector in Wages and Benefits
Government wage increases vastly outpaced the public sector, and the number of government jobs have soared. For the federal government alone, there are 2.1 million workers, “costing over $260 billion in wages and benefits this year.” according to...