Governor Jindal’s Bold Reform Plan Slashes Revenue to DC, Abolishes the Corporate Income Tax

October 8, 2015

Phineas Fahrquar:

Of the remaining Republican candidates, Bobby Jindal is perhaps closest to my own policy preferences, at least on matters of entitlements, spending, and taxes. Dan Mitchell takes a look at Jindal’s proposed tax plan and likes what he sees. So do I. Jindal likely won’t be the nominee, but it’s to be hoped he’s an important part of the next administration, assuming the Republicans win.

Originally posted on International Liberty:

Give him credit. Most elected officials are content to tinker at the edges, but Governor Jindal of Louisiana actually wants to solve problems.

Look what he’s done, for instance, on fiscal policy.

He sought to abolish his state’s personal income tax, a step that would have dramatically boosted the states competitiveness.

That effort stalled, but he actually has been successful in curtailing state spending. He’s amassed one of the best records for frugality of all governors seeking the GOP presidential nomination.

And he’s now joined the list of presidential candidates seeking to rewrite the internal revenue code.

Since we’ve already reviewed the tax reform plans put forth by Rand Paul, Marco Rubio, Jeb Bush, and Donald Trump, let’s do the same for the Louisiana governor.

Regular readers hopefully will recall that there are three big problems with the current tax code.

  1. High tax rates that undermine…

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Scholarly Evidence against the Welfare State

September 28, 2015

Phineas Fahrquar:

One of these days, we’re going to come to our economic senses. Soon, I hope.

Originally posted on International Liberty:

I repeatedly try to convince people that the welfare state is bad for both taxpayers and poor people.

Sometimes I’ll add some more detailed economic analysis and explain that redistribution programs undermine growth by reducing labor supply (with Obamacare being the latest example).

And I’ve even explained that the welfare state has a negative impact on savings and wealth accumulation (these dramatic charts show Social Security debt in America compared to ever-growing nest eggs in Australia’s private pension system).

But if new research from the European Central Bank (ECB) is any indication, I should be giving more emphasis to this final point.

Culling from the abstract, here’s the key finding from the working paper by Pirmin Fessler and Martin Schürz.

…multilevel cross-country regressions show that the degree of welfare state spending across countries is negatively correlated with household net wealth. These findings suggest that social services provided by…

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Asia’s coal power climate joke

September 26, 2015

Phineas Fahrquar:

Obama wants to destroy the coal industry here, while California thinks it can heal the world on its own by forsaking the Demon Carbon. Meanwhile in Asia, they merely pay lip service to global warming while pressing on with building coal plants — and laughing at us behind our backs. And sometimes in front of them.

Originally posted on Watts Up With That?:


Guest essay by Eric Worrall

Mother Jones is celebrating that China has just committed $3.1 billion to help poor countries fight climate change. Mother Jones cautiously states they don’t know what China means by this statement. My guess is they know very well what China probably means – but they don’t want to detract from their climate story.

According to Mother Jones;

China followed up its promise Friday to create the world’s largest cap-and-trade program with yet another significant climate policy announcement: It will commit to spending $3.1 billion to help developing countries slash their greenhouse gas emissions and adapt to climate change. China’s financial commitment, along with its new carbon market, are part of a comprehensive package of climate measures to be announced at a joint press conference featuring US President Barack Obama and Chinese President Xi Jinping on Friday in Washington, DC.

The new pledge, emerging from high-profile…

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Poverty, the Welfare State, and the Failure of Centralized Government

September 24, 2015

Phineas Fahrquar:

Centralize everything in DC’s hands, if you want to achieve perfect mediocrity.

Originally posted on International Liberty:

As we get deeper into an election season, many politicians feel compelled to discuss how to deal with poverty.  And some of them may even be serious about trying to improve the system.

This hopefully will lead to big-picture discussions of key issues, such as why the poverty rate stopped falling in the mid-1960s.

If so, it helps to look past the headline numbers and actually understand the scope of the problem.

Nicholas Eberstadt of the American Enterprise Institute explains that the official poverty data from the Census Bureau overstates the number of poor people.

…the official poverty rate is a positive embarrassment today. The poverty rate manifestly cannot do the single thing it was intended for: to count the number of people in our country subsisting below a fixed and absolute “poverty line.” Among its many other shortcomings, this index implicitly assumes that a family’s annual reported income…

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(Video) Is Capitalism moral?

September 14, 2015

The short answer is “yes, far more so than any other system.” Via Prager University, Walter Williams of George Mason University explains why:

You’d think this would be obvious, but too many people fall for the siren’s song of “economic justice,” or whatever the leftist claptrap of the week is.

Dramatic Increase in Poverty Rate: One Small Step for Obama, One Giant Step for the So-Called War on Poverty

September 11, 2015

Phineas Fahrquar:

Heard from someone online of her conversation with a person who thought the War on Poverty was going great until Reagan was elected. Looks like some hard facts are in order. (And before anyone says “That post was from 2010!”, consider this a refresher course for those who need it. Such as all progressives.)

Originally posted on International Liberty:

The Census Bureau has just released the 2010 poverty numbers, and the new data is terrible.

There are now a record number of poor people in America, and the poverty rate has jumped to 15.1 percent.

But I don’t really blame President Obama for these grim numbers. Yes, he’s increased the burden of government, which doubtlessly has hindered the economy’s performance and made things worse, but the White House crowd legitimately can argue that they inherited a crummy situation.

What’s really striking, if we look at the chart, is that the poverty rate in America was steadily declining. But then, once President Lyndon Johnson started a “War on Poverty,” that progress came to a halt.

As I’ve explained before, the so-called War on Poverty has undermined economic progress by trapping people in lives of dependency. And this certainly is consistent with the data in the chart, which show…

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Seattle: #RaiseTheWage, choose to work less

July 26, 2015
Didn't pay attention

Seattle economics adviser

Okay, I have to admit it: I was wrong about the choices facing business owners when a jurisdiction mandates a minimum wage increase. On several occasions, I’ve written something like the following:

Labor is a cost, because the business owner has to provide wages and, often, benefits that cost him more money. When a government mandate increases that cost, the business owner has three choices: pass the cost along to the customer, who may decide it’s too much and stop shopping there; cut employee hours and stop hiring to save on labor costs, thus costing potential jobs and putting a burden on workers still employed; and, finally, just decide it’s not worth it anymore and close up shop. In the low-margin bookseller business, Borderlands’ owner chose the last course as the only one viable.

Well, it seems I didn’t figure on one other possibility: employees demanding to work fewer hours.

Evidence is surfacing that some workers are asking their bosses for fewer hours as their wages rise – in a bid to keep overall income down so they don’t lose public subsidies for things like food, child care and rent.

Full Life Care, a home nursing nonprofit, told KIRO-TV in Seattle that several workers want to work less.

“If they cut down their hours to stay on those subsidies because the $15 per hour minimum wage didn’t actually help get them out of poverty, all you’ve done is put a burden on the business and given false hope to a lot of people,” said Jason Rantz, host of the Jason Rantz show on 97.3 KIRO-FM.


The notion that employees are intentionally working less to preserve their welfare has been a hot topic on talk radio. While the claims are difficult to track, state stats indeed suggest few are moving off welfare programs under the new wage.

A minimum wage is a form of economic redistribution and welfare, taking money from business owners and giving it to the employees in the name of “fairness” and “justice.” The idea, as averred in the last quoted paragraph, is to help get people off government aid. Good intentions, no?

Well, we all know what’s said about using good intentions as paving material. Like so many welfare programs, the minimum wage creates a perverse incentive to not increase one’s income, for fear of losing desirable benefits. Dan Mitchell of the Cato Institute has a wonderful chart and post explaining this very problem, what he calls a “poverty trap.” By raising the minimum wage, in addition to all the other problems it causes, Seattle is creating its own poverty trap, one that encourages people to work less.

Now how, I ask progressives, is that “progress?”

PS: Read the whole article for other problems caused by Seattle leftists’ good intentions arrogant, economically ignorant self-righteousness.


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