Archive for the ‘Government and Politics’ Category
Obamacare Will Be a Budget Buster
Does anyone think that a huge new entitlement program will lead to lower budget deficits? Sounds implausible, yet proponents of government-run healthcare claim this is the case according to the official estimates from the Congressional Budget Office and Joint Committee on Taxation.
To use a technical phrase, this is hogwash. This new 6-1/2 minute video, narrated by yours truly, gives 12 reasons why Obamacare will lead to higher deficits – including real-world evidence showing how Medicare and Medicaid are much more costly than originally projected.
By the way, this video doesn’t even touch on the mandate issue, which Michael Cannon explains is not being counted in order to make the cost of government-run healthcare less shocking.
Filed under: Government and Politics; Health, Welfare & Entitlements; Tax and Budget Policy
Abortion Funding and Health Care
President Obama’s approach to health care reform — forcing taxpayers to subsidize health insurance for tens of millions of Americans — cannot not change the status quo on abortion.
Either those taxpayer dollars will fund abortions, or the restrictions necessary to prevent taxpayer funding will curtail access to private abortion coverage. There is no middle ground.
Thus both sides’ fears are justified. Both sides of the abortion debate are learning why government should not subsidize health care. Tip of the hat to President Obama for creating this teachable moment.
Meanwhile, Catholics should be outraged at the United States Conference of Catholic Bishops (to which my grandfather served as counsel). Yes, the USCCB helped prevent taxpayer funding of abortions in the House bill. But at the same time, those naughty bishops have abandoned the Church’s doctrine of subsidiarity by endorsing the rest of the Democrats’ plan to centralize power in Washington.
As it happens, Caesar is the main source of funding for Catholic hospitals. That may explain why the bishops are so eager to render unto, ahem, Him.
Cross-posted at Politico’s Health Care Arena.
Filed under: Government and Politics; Health, Welfare & Entitlements
Taking Land for Public Uselessness
Over at the Washington Examiner, Tim Carney reports that Pfizer is abandoning its New London offices and deciding what to do with the property it gained in the infamous Kelo v. New London land-grab:
The private homes that New London, Conn., took away from Suzette Kelo and her neighbors have been torn down. Their former site is a wasteland of fields of weeds, a monument to the power of eminent domain.
But now Pfizer, the drug company whose neighboring research facility had been the original cause of the homes’ seizure, has just announced that it is closing up shop in New London.
To lure those jobs to New London a decade ago, the local government promised to demolish the older residential neighborhood adjacent to the land Pfizer was buying for next-to-nothing. Suzette Kelo fought the taking to the Supreme Court, and lost. Five justices found this redevelopment met the constitutional hurdle of “public use.”
That this purported “public use” is now exposed as the façade for corporate welfare that it always was is, of course, little comfort to Suzette Kelo and the other homeowners whose land was seized. But hopefully this will be an object lesson for other companies considering eminent domain abuse as a route to acquire land on the cheap — and especially for state and local officials who acquiesce in this type of behavior.
You can read Cato’s amicus brief for the ill-fated case here. Cato also hosted a book forum for the story of Suzette’s struggle, Little Pink House, featuring the author, Jeff Benedict, the attorney who argued the case, the Institute for Justice’s Scott Bullock, and Ms. Kelo herself, here.
HT: Jonathan Blanks
Filed under: Government and Politics; Law and Civil Liberties
It Could Happen Here Too
The Washington Post reports that China’s ‘netizens’ are holding authorities to new standard.
Filed under: Government and Politics; Telecom, Internet & Information Policy
The Slippery Slope Goes Vertical
In the Obama era, the slippery slope has gone vertical. Instead of “eventually,” the feared extensions of government power come immediately.
When President Obama decided to convert George W. Bush’s bailout of General Motors Corp. and Chrysler L.L.C. into effective government ownership, critics warned that this could lead to political intrusion into the management of automobile companies, with decisions being made for political instead of economic reasons. The companies would get less efficient. The government might try to preserve jobs or engage in political grandstanding rather than build sound companies that serve consumers – eventually.
But there was no “eventually” about it. Before he had even secured government control, Obama fired the chief executive officer of General Motors. He decided what the ownership structure of the companies should be. He insisted that the companies build “clean cars” rather than cars that consumers want to buy. And as soon as a deal was concluded, members of Congress started trying to block the closing of inefficient dealerships and to require the companies to buy their palladium in Montana, use unionized trucking companies, remove mercury from scrapped cars, and so on. Politics reared its ugly head in the first moments of government control.
Now we have the federal government’s unprecedented intrusions into executive-pay decisions at seven bailed-out banks and automobile companies….
Read more at today’s Philadelphia Inquirer.
Just Say “No” to Competition
The Democrats who still control the Virginia State Senate (which wasn’t on the ballot this week) say they want to work with the new Republican governor.
“I won’t be like the House Republicans were, where anything they propose is bad,” said Senate Majority Leader Richard L. Saslaw (D-Fairfax), who like many Democrats says the GOP-led House obstructed the agenda of Gov. Timothy M. Kaine (D). “If there are areas where we can work things out, I’m ready, willing and able, and so is my caucus.”
But not so fast:
But asked about certain key pieces of McDonnell’s agenda, Saslaw demurred. Selling state-run liquor stores to raise money for transportation, for instance, would sacrifice the annual revenue the stores provide to schools and other purposes, Saslaw said. The Senate’s education committee remains opposed to changing state laws to allow more charter schools, another McDonnell proposal, he said.
No to bipartisan cooperation, no to competition, yes to hoary monopolies. Is that really the rock on which the Democrats want to make their stand as the country’s “implicit libertarian synthesis” yields a “libertarian moment”?
Liberty Most Deer
As a footnote to Chris Moody’s post about Monday’s 20-year anniversary of the fall of the Berlin Wall, I just came across this article about red deer refusing to cross from Germany into the Czech Republic. This, of course, is a border that was the once heavily fortified dividing line between free West Germany and captive Czechoslovakia.
Even deer who weren’t born when barbed wire, watchtowers, and armed guards prevented the natural extension of their happy grazing grounds act as if the Cold War never ended — apparently because they learned their habits from their parents, who learned them from their parents.
Still, as with the new generation of Eastern Europeans who have no memory of Communism, some young deer are starting to break the mold, taking advantage of — and even taking for granted — their newfound freedom. I wonder if the grass (and ferns, and whatever else deer eat) is any greener on the other side of the former Iron Curtain.
Give Us Your Tired, Your Energetic, Your Poor, Your Rich — Pretty Much Anyone Who’s Not a Criminal or Terrorist
On Wednesday I blogged about how, for the first time in many years — since the last recession — H-1B skilled worker visas remain available despite the hard cap on their number. In other words, even foreigners respond to market incentives: when there are no jobs, there are fewer immigrants.
I’ve gotten some interesting email in response to that little notice, one of which I post below, along with my paragraph-by-paragraph responses.
Just read your blog entry on the H-1b visa. The problem is that this visa has been misused by sponsoring companies, suffering from high rates of fraud. I find it strange that Cato supports (or appears to support) a labor tool that is anything but free market. The H-1b visa is more of an indentured servant visa program than anything else – where employees must be sponsored by an employer. Since employees aren’t free to find new jobs or start their own business, it results in a captive workforce who will do whatever the employee asks, even beyond reason. They won’t bargain for higher wages, quit if mistreated, join unions, or do anything that might result in their immigration status being jeopardized.
Having myself been on H-1Bs with several employers, including Cato, I agree that the program is seriously flawed, in the ways this correpondent describes and in others. Ideally, people would be able to apply for a work permit — their application gaining more “points,” say, for language, youth, skills, the needs of the economy, or whatever other criteria the political process determines are important — and then not be tied to an employer and have an opportunity to receive permanent residence and eventual naturalization if they pay their taxes, stay out of jail, etc. Or, indeed, we could admit all people who want to come here (after screening for security, criminal, and health concerns), and give them the same opportunity. But until we get to that more perfect world, I see no conflict in advocating for a repeal of the H-1B cap or pointing out how this recession shows that immigrants come for jobs, not to leech off our welfare state (if that’s the concern, then wall off the welfare state, not the country) or commit crimes.
One thing not correct in your blog is that H-1b visa holders cannot get a green-card. They can, unfortunately most of the workers are from India so it is difficult for those workers to get the green-card because of how, numerically, green-cards are issued. The H-1b visa is a “dual intent” visa meaning there is a path to permanent residence and after 6 years on the visa holders can extend 1 year until their green-card is processed. Indian workers call it the “green carrot” and relate it to the picture of where the mule driver holds a carrot on a stick in front of the mule to keep him moving. No matter how hard the mule tries, the carrot gets no closer.
The H-1B’s “dual intent” provision is categorically not a path to a green card. All it does is, as the correspondent points out, allow the worker to stay in the country during the green card application process. That process, however, and the substantive requirements for obtaining a green card, is no different for H-1B holders than it is for anyone else. Indeed, spending five or six years on an H-1B with one employer can be a detriment, inasmuch as that employer’s sponsorship application cannot take into account the skills gained during that time of employment. And yes, the nationality-based restrictions are also obnoxious.
Filed under: Government and Politics; Law and Civil Liberties; Trade and Immigration
Government of Continual Failure
The Washington Post is full of so many stories about government failure these days, it’s hard to keep up.
Today, on page A19 we learn about a Small Business Administration subsidy program that has a 60-percent default rate. On the same page, we learn that the U.S. Postal Service will lose $7 billion this year.
Flipping over to page A20, we learn that former New York City Police Commissioner Bernard Kerik is a liar, a tax cheat, and thoroughly corrupt.
Then flip back to A15, and columnist Steve Pearlstein rightly lambastes the latest stimulus scheme from Congress: ”This $10 billion boondoggle is nothing more than a giveaway to the real estate industrial complex.”
Finally, on A14, we’ve got government-owned Fannie Mae losing a colossal $19 billion this year and asking the Treasury for another $15 billion taxpayer hand-out.
The federal government is a mess. Policymakers have no idea what the effects will be when they spend billions on scheme after scheme. Most of them don’t read the legislation, they don’t understand economics, and they never admit mistakes when their schemes almost inevitably fail. Fully 40 percent of the vast federal budget will be debt-fueled this year, but few policymakers seem to care. And public corruption seems never-ending.
Isn’t it time to give libertarianism a chance?
Filed under: Government and Politics; Tax and Budget Policy
As it Turns Out, There Are Limits on Congress’s Power
In 2006, Congress passed the Adam Walsh Child Protection and Safety Act. One provision of the law authorizes the federal government to civilly commit anyone in the custody of the Bureau of Prisons whom the attorney general certifies to be “sexually dangerous.” The effect of such an action is to continue the certified person’s confinement after the expiration of his prison term, without proof of a new criminal violation.
Six days before the scheduled release of Graydon Comstock — who had been sentenced to 37 months in jail for receiving child pornography — the attorney general certified Comstock as sexually dangerous. Three years later, Comstock thus remains confined in a medium security prison, as do more than 60 other similarly situated men in the Eastern District of North Carolina alone.
Comstock and several others challenged their confinements as going beyond Congress’s constitutional authority and won in both the district and appellate courts. The United States successfully petitioned the Supreme Court to review the case.
Cato, joined by Georgetown law professor (and Cato senior fellow) Randy Barnett, filed a brief opposing the government. We argue that the use of federal power here is unconstitutional because it is not tied to any of Congress’s limited and enumerated powers. The government’s reliance on the Necessary and Proper Clause of Article I, Section 8, is misplaced because that clause grants no independent power but merely “carries into execution” the powers enumerated elsewhere in that section. The commitment of prisoners after their terms simply is not one of the enumerated powers.
While the government justifies its actions by invoking its implied power “to establish a federal penal system” — itself a necessary and proper auxiliary to certain enumerated powers — civil commitment is unrelated to creating or maintaining a penal system (let alone any enumerated power). Nor can the law at issue fall under the Commerce Clause, because civil commitment involves non-economic intrastate activity.
As the Supreme Court recognized almost 150 years ago in Ex Parte Milligan, “[n]o graver question was ever considered by this court, nor one which more nearly concerns the rights of the whole,” than the government’s unconstitutional assertion of power against its own citizens. In this spirit, the Court should affirm the Fourth Circuit’s rejection of this blatant government overreach.
United States v. Comstock will be argued on January 12. You can read Cato’s brief here.
Filed under: Government and Politics; Law and Civil Liberties
The House Health Care Bill — Transparent or Not?
The House health care bill is reportedly coming to the floor this weekend, and House Speaker Pelosi committed in September to a 72-hour delay between the time the bill is posted online and a final vote.
Is that 72-hour delay happening? Some say yes. Some say no.
On the “yes” side are some folks at the Sunlight Foundation. John Wonderlich wrote a post last Sunday called “72 Hours is Now.” He hailed the posting of the health care bill well in advance of a vote.
“Public outcry, partisan pressure, and rising expectations are forcing Congress’s hand,” he wrote, ”and it’s now (apparently) taken as a matter of course that this bill is online for a long weekend before its final consideration.”
Paul Blumenthal followed that up mid-week, sounding slightly more cautious notes but hailing the posting of the “final manager’s amendment.” His post restarted the 72-hour clock.
Which brings us to the folks who say no.
On the Weekly Standard blog, John McCormack says that Speaker Pelosi plans to violate the promise to post the health care bill online for 72 hours.
House members are still negotiating important issues in the bill — whether it will provide taxpayer-funding for abortions, for example. Pelosi is pushing for a Saturday House vote, and a number of big changes will be introduced, likely less than 24 hours before the vote takes place (if in fact it does).
Filed under: Government and Politics; Telecom, Internet & Information Policy
Big Business Not Investing
In a recent post, I argued that while third-quarter GDP was positive, the underlying data revealed that U.S. private investment was still in the toilet. While government spending might be providing a short-term “sugar high” for the economy, U.S. business investment remains in recession. I speculated that Obama’s anti-business agenda is likely one cause of the problem.
For those observations, economist Brad DeLong called me an “utter fool.”
Let me draw your attention to an article in the Washington Post today entitled “Corporate giants sit on piles of cash.” Nucor Steel is sitting on piles of cash that it is unwilling to invest. Nucor’s chief executive Daniel Dimicco explains:
Everything is still on hold because we don’t have a lot of confidence that the right things are being done in Washington to reinvigorate the economy.
To story goes on:
Nucor isn’t alone. The balance sheets of large U.S. corporations are for the most part in good shape. Many big companies have piles of cash on hand and credit markets have thawed so that they can raise new funds… But most U.S. executives lack enough confidence in the economy to expand their businesses.
Filed under: Government and Politics; Regulatory Studies; Tax and Budget Policy
Tea Party Conservatism and the GOP
This morning, Politico’s Arena asks:
Is Tea Party conservatism a help or a hazard for Republicans seeking a return to power?
My response:
Let’s start with some clarity: “Tea Party conservatism” stands for several things, but it is not the caricature one often finds in the mainstream media, to say nothing of the left wing blogs. It is a movement with deep historical roots, drawing its name and inspiration from the Boston Tea Party of 1773. As with that event, taxes brought it to the fore — on Tax Day, April 15. But taxes are simply the most obvious manifestation of modern government run amok, insinuating itself into every corner of life. Trillions of dollars of debt for our children, out-of-control government budgets, massive interventions in private affairs — the list of wrongs is endless, and under Obama has exploded. He stands for nothing if not for making us all dependent on the government he has promised us. That’s not America. That’s a foreign vision, which over the centuries countless millions have fled, searching for freedom.
To be sure, the Tea Party movement has its fringe elements, as did the revolt against British tyranny, which the establishment of its day disparaged. So too does the Obama administration, some of whom have already resigned. The basic question, however, is what does the movement stand for? What are its principles? And on that, the contrast with the Obama vision is stark: However much confusion there might be on specific issues, which is to be expected, the broad principles are clear. The Tea Party movement stands for limited constitutional government. At its rallies, on hand-written sign after sign, that was the message repeatedly seen. These are ordinary Americans – Republicans, Independents, and even Democrats — who want simply to be left alone to plan and live their own lives. They don’t want “community organizers” to help empower them to get more from government.
But they do need to be organized to bring that about — to get government off their backs. And the Republican Party should be the natural vehicle toward that end — the party, after all, that was formed to get government off the backs of several million slaves. But today’s Republican Party is a mixed lot: Some understand those principles; but others, as in the NY 23 race, are all but indistinguishable from their counterparts in the party of Obama. The problem in NY 23 was not that a third party entered the race. Rather, the party establishment botched things from the beginning, by picking a nominee who properly belonged in the Democratic Party, as her pathetic last-minute endorsement indicated, and that’s why a third party entered the race — with a novice of a nominee who nearly won despite the odds against him.
The question, therefore, is not whether Tea Party conservatism is a help or a hazard for Republicans seeking a return to power? To the contrary, it is whether the Republican Party is a help or a hindrance to the Tea Party movement? It will be a help only if it returns to its roots. The mainstream media, overwhelmingly of the Democratic persuasion, will continue to push Republicans to be “moderate,” of course – meaning “Democrat Lite” — to which the proper response is: Why would voters go for that when they can get the real thing on the Democratic line? If Tuesday’s returns showed anything, it is that Independents, a truly mixed lot, are up for grabs; but at the same time, they are looking for leaders who promise not simply to “solve problems” but to do so in a way that respects our traditions of individual liberty, free markets, and limited government. When Republican candidates stand clearly and firmly for those principles, they stand a far better chance of being elected than when they temporize. That is the lesson that Republicans must grasp — and not forget — if they are to return to power.
Filed under: Government and Politics; Law and Civil Liberties
One Year Later
This morning, Politico’s Arena asks:
“Election 09: What’s the message?”
My response:
A note on NY 23, then to the larger message in yesterday’s returns. Already this morning we’re seeing an effort to spin the NY 23 outcome as a warning to Republicans and a hopeful sign for Democrats. Yet the striking thing about that outcome is how close a third-party candidate came in the face of opposition from the Republican establishment. And the ultimate outcome can doubtless be explained simply by absentee ballots, plus voters unaware of the last-minute developments in the race.
Thus, given those factors, the NY 23 outcome is perfectly consistent with returns in the rest of the country. (In fact, Conservative and Republican votes in that race total more than 50 percent.) And the message will not be lost on blue-dog Democrats. If the internal inconsistencies of ObamaCare did not trouble those Democrats before yesterday, they surely must now. The silence coming from the White House last night spoke volumes.
Hail, Bloomberg, Magister Populi
New York mayor Michael Bloomberg has been elected to a third term, despite the two-term limits that New Yorkers voted for twice. His biggest challenge was persuading the City Council to overrule the voters, but he managed that trick thanks to his absolute mastery of money and politics in the Big Apple. And on election day, even his $100 million campaign barely overcame popular anger over the repeal of term limits.
Personally, I wish the Council had just given Bloomberg another term. Don’t get rid of term limits. Just do like the Romans used to do in an emergency. Name Bloomberg “dictator,” an extraconstitutional position with extraordinary authority but limited duration. Then you keep the rules, you just make an exception. And I’m sure Bloomberg would be willing to be addressed as Dictator for the duration of the emergency powers.
Instead, Bloomberg used his money and connections to get the Council to allow all the city officeholders to serve three terms, instead of the two that the people had twice voted for.
He said it was because of the financial crisis — just as Rudolph Giuliani had suggested that the city shouldn’t elect a new mayor in the aftermath of 9/11. Of course, as Nicole Gelinas of the Manhattan Institute has shown, New York’s revenues rose 41 percent between 2000 and 2007, while spending increased even faster, so it’s not clear why he’s the man you need in a financial crisis.
But the plutocrat mayor used his personal wealth – and the city’s tax dollars – to pressure people to support his bid to stay in office. Last year the New York Times reported:
The mayor and his top aides have asked leaders of organizations that receive his largess to express their support for his third-term bid by testifying during public hearings and by personally appealing to undecided members of the City Council. …
The requests have put the groups in an unusual and uncomfortable position, several employees of the groups said. City Hall has not made any explicit threats, they said, but city officials have extraordinary leverage over the groups’ finances. Many have received hundreds of thousands of dollars from Mr. Bloomberg’s philanthropic giving and millions of dollars from city contracts overseen by his staff.
Sounds like a lot of overlap between his personal philanthropy and the city’s own spending, and the Times doesn’t seem to find anything odd about that aspect of the story. And then the New York Post found that the mayor’s tax-funded “slush fund” was being enlisted in the campaign, too:
Mayor Bloomberg showered cash on key City Council members with the power to kill a term-limits extension bill in the last year.
Members of the council’s Government Operations Committee have received millions from Hizzoner’s slush fund, a once-secret pot of taxpayer money the mayor doles out to favored lawmakers for their pet causes….
Five members of the committee secured $3.1 million from the $5.3 million stash in Bloomberg’s 2008 budget. Only three other council members received funds from the mayor in the last year.
And the New York Daily News noted that everyone working for Bloomberg at the City Council hearings is on Mayor Mike’s payroll one way or another:
There was the mayor’s legal counsel and the city’s corporation counsel, both paid with tax dollars, testifying that Bloomberg can and should get another term.
There were aides from the mayor’s Community Assistance Unit, who rounded up pro-Bloomberg speakers from the community and religious and civic groups they work with all day long – many of which thrive on city grants.
There were the dozens of “Ready, Willing and Able” guys from the Doe Fund, which gets funding from the city – and used its vans to bring people to the hearing.
That’s why — to return to my Roman theme – union boss Dennis Rivera came to praise Bloomberg, not to bury him, at a recent campaign event. Hail Bloomberg, Magister Populi, Magister Urbi.
Don’t Copy Europe’s Mistakes
In this new video, Eline van den Broek of the Netherlands needs only about four minutes to explain why government-run healthcare in Europe is a mistake and why the problems in the U.S. healthcare system are the result of too much government, not too little.
The only thing I don’t like about this video is that I fear people may no longer want to watch the ones I narrate.
Filed under: Government and Politics; Health, Welfare & Entitlements; International Economics and Development; Tax and Budget Policy
Way To Go (Almost All the Way), Jay!
This morning Washington Post education columnist — and terrific Cato forum panelist – Jay Mathews called for abolition of the office of the U.S. Secretary of Education! Why? Because it has proven itself worthless, that’s why:
The president, I suspect, thought that Duncan, the former chief of the Chicago public schools, could use all he had learned there to raise achievement for students across the country.
It sounds great, but it was the same thought that led previous presidents to appoint those previous fine education secretaries to their posts. How much good did that do? Test scores for elementary and middle school students have come up a bit in the last couple of decades, but not enough to get excited about. High school scores are still flat. If national education policy had made a big jump forward, I would say we should continue to fill this job, but that hasn’t happened either. I think the No Child Left Behind law, supported by both parties, was an improvement over previous federal policies, but it was only copying what several states had already done to make schools accountable and identify schools that needed extra help.
Other than the “fine” secretaries part and the (sorta) nice words for NCLB, that sounds like something we at Cato’s Center for Educational Freedom might have written. Bottom line: Washington doesn’t add any value to education, and at best just picks up on things states are already doing.
Unfortunately, after dropping the “ed sec must go” bombshell and furnishing ironclad evidence why the position is worthless, Mathews retreats from the obvious, ultimate implication of his argument: We should abolish the department the secretary leads!
The evidence screams this and, from a technical standpoint, you can’t keep a cabinet-level department and not have a secretary to head it. But in what smells a lot like a cop out, Mathews asserts that the department should stay (though in a smaller form). After all, someone has to be in charge of doling out all of the taxpayer cash that isn’t doing a damn bit of good:
Keep in mind I am NOT saying we should abolish the education department. That old Reagan campaign platform died a natural death long ago. We need the department to intelligently distribute federal money to the most promising schools in our cities and states. Cut back the number of people rumbling around that big building on Maryland Avenue—many of them are going crazy from boredom anyway—and put it under the control of a savvy civil service administrator who knows how to keep the checks and the useful data rolling out.
Too bad Mathews wasn’t willing to go all the way on this. But just for proposing that we put the position of U.S. Secretary of Education out to pasture, he deserves some hearty applause.
Filed under: Education and Child Policy; Government and Politics
Health Care Bill Improves Lawyers’ Financial Health
The great thing for legislators about a nearly 2000 page bill — such as, oh, the House’s latest health care salvo — is that very few people bother to read the whole thing. So it’s easy to bury little gifts to favored supporters. Or big ones.
For example, check out section 2531 — that’s pages 1431-33 for those following along at home — which has gone largely unnoticed in the major news cycle. These three pages of the bill reward states that refrain from setting (or repeal) any caps on medical malpractice rewards — and the accompanying lawyers’ fees! – by requiring the Secretary of Health and Human Services to provide them a bribe an “incentive payment.”
As Hans von Spakovsky notes at NRO’s Corner, this “alternative medical liability law” aims to eviscerate cost-saving measures that protect doctors from frivolous lawsuits that increase the cost of health care to the consumer. So this has nothing to do with providing better or cheaper care, covering the uninsured, or even eliminating waste and fraud. Instead, it’s a pure sop to one of the Congressional Democrats’ key constituencies: trial lawyers.
For more information on free market health care reform alternatives, please visit Cato’s Health Care website here.
Filed under: Government and Politics; Health, Welfare & Entitlements; Law and Civil Liberties
NY 23: A Return to Principle?
At today’s Politico Arena the editors ask:
NY 23 and the GOP: The road to “first principles” or to “internecine ruin?”
My response:
In important respects, the NY 23 congressional race is a microcosm of the Goldwater/Rockefeller battle of 1964 — a battle for the soul of the Republican Party. For years during the 1950s and ’60s, “Rockefeller Republicans” were not simply ”Democrat Lite” but often to the left of Democrats, giving rise back then to the New York Conservative Party, which nominated Doug Hoffman for the NY 23 seat at stake tomorrow. And the policies those Republicans put in place, starting with taxes, were directly responsible for the relentless decline of the Empire State. As reported in a recent Empire Center study, “New York’s share of the nation’s population declined sharply in the second half of the 20th century, from 19 percent of all Americans in 1950 to less than 7 percent in 2000.”
Goldwater won that intra-party battle, of course, then lost an election all but foreordained by the Kennedy assassination. And with Goldwater’s victory for the soul of the Republican Party, the parties were at last distinguished by their principles, even if a remnant of Rockefeller Republicans, like the two Bushes, remained to muddy the waters.
The NY 23 situation captures this perfectly. Nominated not in a primary but by a few party officials, Dede Scozzafava’s indifference to Republican Party principles was no better illustrated than by her decision, when it became clear how badly she was losing, not simply to remove herself from the race but to endorse the Democratic nominee — in an apparent back-room deal with state and national Democrats. We’ll doubtless know in time just what promises were made for that endorsement. But it reeks already of the lust for power over principle: Do whatever it takes to stay in the political game.
It’s impossible to predict the outcome of this election, of course. Some of Scozzafava’s loyalists will probably follow her, while others will be moved by a sense of betrayal to go the other way. The larger question, however, is whether we are going to have two significantly different parties in this nation – or simply two parties vying for power, with barely a dime’s worth of difference between them. The Obama administration’s lust for power, making Bush look like a piker, has brought the Goldwater/Reagan revolution back to life. But the Wall Street Journal’s sober editorial this morning got it exactly right: Whether this revival returns the GOP to first principles or leads to internecine ruin “will depend on how GOP leaders and conservative activists respond.” Both could do worse than look to Ronald Reagan for guidance.
The World’s Best Tax Haven: In America, but Unavailable to Americans
Tax competition is an issue that arouses passion on both sides of the debate. Libertarians and other free-market advocates welcome tax competition as a way of restraining the greed of politicians. Governments have lowered tax rates in recent decades, for instance, because politicians are afraid that the geese that lay the golden eggs can fly across the border. But collectivists despise tax competition — for exactly the same reason. They want investors, entrepreneurs, and companies to passively serve as free vending machines, dispensing never-ending piles of money for politicians. So when a left-wing group puts together a ranking of the world’s “top secrecy jurisdictions” in hopes of undermining tax competition, proponents of individual freedom can use that list as a guide to world’s most investor-friendly nations. The good news is that an American state, Delaware, is number one on the list. And since being a tax haven is a magnet for investment, this is good news for U.S. competitiveness. The bad news is that American taxpayers are not allowed to benefit from many of Delaware’s “tax haven” policies. Here’s what a left-wing columnist in the United Kingdom wrote about the issue:
You’re a billionaire but you don’t want anyone, least of all the taxman, to know. What do you do? Head for a palm-fringed island paradise or a snow-covered Alpine micro-state? Wrong. The world’s most opaque jurisdictions – the ones that will best shield you and your cash from the light – are mostly in the heart of the most sophisticated and powerful global financial centres. London, Luxembourg and Zurich are in the top five most secretive jurisdictions, according the first comprehensive index of financial transparency ever compiled. Yet top of the pile, beating the British Virgin Islands, Belize or Liechtenstein as the best place to hide wealth, is Delaware. One of the smallest states in the US, it offers the best protection for anyone who does not want to disclose their identity as a beneficial owner of a company. That is one very good reason why the East Coast state hosts 50% of the US’s quoted firms and 650,000 companies – almost equivalent to one company per Delaware resident. …Delaware – the political power-base of the US vice-president, Joe Biden – offers high levels of banking secrecy and does not make details of trusts, company accounts and beneficial ownership a matter of public record. Delaware also allows companies to re-domicile within its borders with minimal disclosure, and allows the existence of privacy-enhancing “protected cell” or “segregated portfolio” companies, among many other stratagems useful for protecting the identity of those who do business there.
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