The US gets away with its current spending levels, and the “quantitative easing” (faking money) combined with borrowing money, because we remain the world’s reserve currency. Generally, this means that everyone else’s currency and trade is measured in US dollars.

As a random aside, the word “dollar” and “neanderthal” share a common root - the “thal ( Read more... )

One very desirable benefit of the FairTax system - and not part of any “flat tax” - is anonymity. No tax agency needs to be aware of your income, your transactions, or your assets.

This is a big deal. Currently, they must keep track of things to catch cheaters. But under the FairTax, all taxes are paid each day as purchases are made, and there is ( Read more... )

Imagine that this asterisk is a unit of legislation: *

This would be the amount of legislation produced by the United States legislative branch, Congress (i.e., the Senate and House of Representatives), and signed into law by President Obama (in the executive branch) in 2013. This represents about 800 pages of the Federal Register where such laws ( Read more... )

Harvey_Rritt commented on the “ Acting White” post in a way that made me think a moment:

Terry Pratchett calls it the Crab Bucket. It is a perfect expression. (He does that.) When a crab starts to get out of the bucket full of crabs, the others, awaiting death by live steam, pull the escaping crab back into the bucket.

My own take is less elegant:

( Read more... )

(From the ongoing tax policy discussion.)

@Pete, who wrote: "at the same time, [Adam Smith] saw the need of government as an interventionary force to prevent excesses that worked against the general public interest"
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Another commenter in the FairTax discussion, and my reply:

[Y]ou’d expect conservative media to support a policy that shifts the tax burden off the rich - the opposite is the case. The Wall Street Journal ran a piece not so long explaining why “fair” tax is an bad idea. It was unexpected to say the least.”

First, google[Wall Street Journal ( Read more... )

A discussion I’m involved in on the MENSA site had one member independently think up the idea of replacing the income tax with a sales tax. He and I are very far apart politically (something he noted during the discussion), but I agree with him on this. There has been a proposal that is continually refined to accomplish exactly this, and it would ( Read more... )

Charles Krauthammer has written favorably of adding more taxes to the cost of gasoline:

For 32 years I’ve been advocating a major tax on petroleum. I’ve got as much chance this time around as did Don Quixote with windmills. But I shall tilt my lance once more.

NB: 32 years ago, Dr. Krauthammer was a speechwriter for Walter Mondale, bitterly ( Read more... )

Do presidents really have an effect on the US economy? That question was put to me. Here’s my reply.
( Read more... )

François Hollande, the new socialist president of France in 2012, astounded the world, and pleased President Obama, by imposing a 75% income tax on high earners. Obama invited him over, took him in as a new best buddy, and White House photographs featured the smiling pair together at Camp David.
( Read more... )