Archives: 07/2008

Americans Overwhelmingly Reject Redistribution

In some heartening news, new poll results from Gallup show that Americans decisively reject redistributionist policies by an 84 percent-13 percent margin. Even Democrats prefer that government focuses on growth rather than redistribution by a margin of 77 percent-19 percent. A blogger for the New Republic claims the question was poorly worded, but that seems like wishful thinking. People were basically asked whether government should focus on making the pie bigger or focus on re-slicing the pie, and the results are very encouraging:

…given a choice about how government should address the numerous economic difficulties facing today’s consumer, Americans overwhelmingly – by 84% to 13% – prefer that the government focus on improving overall economic conditions and the jobs situation in the United States as opposed to taking steps to distribute wealth more evenly among Americans. … Americans’ lack of support for redistributing wealth to fix the economy spans political parties: Republicans (by 90% to 9%) prefer that the government focus on improving the economy, as do independents (by 85% to 13%) and Democrats (by 77% to 19%). This sentiment also extends across income groups: upper-income Americans prefer that the government focus on improving the economy and jobs by 88% to 10%, concurring with middle-income (83% to 16%) and lower-income (78% to 17%) Americans. … In sum, free-market advocates can take considerable solace in Americans’ overwhelming belief that the government should not focus on redistributing income and wealth, but on improving the overall economy. And, to a lesser degree, Americans also believe government continues to do too much – not too little – to solve the nation’s problems.

Justice Department Bureaucrats May Set Risky Precedent with Extra-Territorial Tax Persecution

Bush Administration appointees involved with issues such as the Iraq war and coercive interrogation of suspected terrorists probably don’t spend much time thinking about international tax policy, but they may rue the day that the Justice Department decided to persecute Swiss banks and Swiss bankers for obeying Swiss law and protecting the financial privacy of customers. What’s the connection? By going after Swiss banks and Swiss bankers in hopes of finding a few Americans who might be hiding money from the IRS, the Justice Department is embracing the notion that governments should not be constrained by national boundaries and national laws. Richard Rahn already has an excellent piece explaining why this is an absurd policy, but let’s consider some of the broader implications.

What if John Yoo or Donald Rumsfeld travel to Europe in the near future for business or personal reasons and some European government decides to throw them in jail for violating “international law”? This may sound fanciful, but German authorities already have moved in this direction by asserting universal jurisdiction, and it doesn’t take much imagination to foresee politically ambitious officials from other nations grabbing the baton. The Wall Street Journal report does not cover these broader implications, but it is a good summary of the Justice Department’s fishing expedition:

The Justice Department, in an unprecedented move against a foreign bank, is seeking to force UBS AG to turn over the names of wealthy U.S. clients who allegedly used the giant Swiss bank to avoid taxes. …U.S. authorities have been holding discussions for several weeks with UBS and Swiss banking authorities to identify the U.S. account holders. People familiar with the talks say UBS officials floated the possibility that the U.S. could obtain the names through a request to Swiss regulators. Monday’s federal court filing instead puts the bank in direct conflict with the U.S. government. …The filing is the first against a non-U.S. bank by the Justice Department using what it calls a “John Doe summons,” a maneuver typically used to investigate tax fraud by people whose identities are unknown. The move could spark a major legal battle because the Justice Department is essentially gambling that courts will bless the move when it’s directed at a company with extensive U.S. operations but that isn’t based in the U.S.