Archives: 04/2015

Familiar Yet Forgotten Tax Lessons from Ancient Greece and Rome

In Ancient Greece, “The politicians strained their ingenuity to discover new sources of public revenue… . The results of these imposts was a wholesale hiding of wealth and income, Evasion became universal, goods were seized, men were thrown into jail. But the wealth still hid itself, or melted away.”

–Will Durant The Life of Greece, Simon and Schuster, 1939. P. 66.

 In ancient Rome; “taxation rose to such heights that men lost incentive to work or earn, and an erosive contest began between lawyers finding devices to evade taxes and lawyers formulating laws to prevent evasion. The government issued decrees binding the peasant to his field and the worker to his shop until all his debts and taxes had been paid. In this and other ways medieval serfdom began.”

–Will, and Durant, Ariel. The Lessons ofHistory, Simon and Schuster, 1968.

Fed Ed, by Every Other Name, Still Smells Rank

With yesterday’s release of a new, Senate, No Child Left Behind revision, there certainly seems to be a serious effort to reauthorize the Elementary and Secondary Education Act, due since 2007. Perhaps the first thing they should do, though, is keep the name simply “Elementary and Secondary Education Act” so I don’t always have to explain that the ESEA is the same as NCLB.  But no: this is the Every Child Achieves Act of 2015, in keeping with the political need to have names no one could possibly oppose. (You want to leave kids behind? You want some kids not to achieve?) That said, while the bill seems to be a step in the right direction, it would still keep us miles from our necessary destination: no federal education control.

The new bill, like the Student Success Act in the House (yup, another loaded name) gets rid of NCLB’s “adequate yearly progress” mandate and the cascade of punishments for schools that fail to meet it, and tries to curb the U.S. Secretary of Education’s ability to coerce states to use specific standards and tests such as the Common Core and related exams. But it would still require states to have uniform standards and tests – sorry, local control – and state accountability plans would have to be approved by the secretary. This approval provision is especially concerning because, despite NCLB giving the secretary no authority to attach conditions to waivers out of its requirements, the Obama administration attached conditions anyway. In other words, we already have concrete experience with an education secretary blatantly exceeding the authority given to him by law. To think a future administration wouldn’t do so again is wishful thinking. Yes, there is a “peer review” process for state plans, and some rules on what a secretary may not require a state to do, but never underestimate the power of regulation-writing to fill in gaps with unexpected power, or future administrations to interpret imprecise wording as expansively as possible.  And the bill calls for states to have “challenging” standards, which certainly seems to require that the feds define what, exactly, “challenging” means. So maybe the worst parts of NCLB are gone, but the biggest danger – rule by executive fiat – remains.

Economists Weigh-in on the TPP

In recent weeks, a number of prominent economists have expressed views on the Trans Pacific Partnership (TPP).  David AutorDavid Dorn, and Gordon Hanson are for itTyler Cowen is for it, mainly for foreign policy reasons; Noah Smith is for it; Larry Summers is a maybe; Paul Krugman thinks it’s not a big deal and questions whether Obama should spend “political capital” pushing it; Brad DeLong is more positive than Krugman; Dean Baker is skepticaland Matt Yglesias is skeptical, noting that “[t]he political economy and public choice issues around what’s become of the mutlilateral trade process stink.”

Before jumping to any conclusons, though, I think DeLong makes an important point here: 

“It is foolish to debate whether a trade agreement that has not yet been negotiated is a good idea and should be ratified. Such a debate should properly begin only once there is something to analyze.”

That’s very true: We don’t have a negotiated agreement yet, so it’s difficult to judge its content.  If this were an old-school trade agreement whose main function was to get rid of tariffs, it would be easier to make an assessment in advance.  If we knew all or most tariffs would be brought to zero, and that’s all that would happen in the agreement, we would know just about everything we needed to know.   However, today’s trade agreements have lots of substantive policymaking in them, and the details are important.  

The Walter Scott Case

Yesterday, South Carolina’s Post and Courier released the video of a North Charleston police officer fatally shooting a fleeing man, Walter Scott, in the back. After the mayor’s press conference late yesterday afternoon, the State Law Enforcement Division arrested the officer and charged him with murder. Under Tennessee v. Garner (1985), it is illegal for an officer to shoot a fleeing suspect absent an objectively reasonable fear of danger to the public or himself.

 

Photo via the Post and Courier.

The officer had originally stated that he “felt threatened” before deploying lethal force against the 50-year-old man. The police report also stated that the officer performed CPR on Scott after the shooting, but video shows the officers left him handcuffed and on the ground with no attempt at CPR.

You should read the full story here.

This was cross-posted at PoliceMisconduct.net

Engage North Korea as Pyongyang Advances Along the Nuclear Path

North Korea continues along the nuclear path. A new report warns that Pyongyang could amass a nuclear arsenal as large as 100 weapons by 2020. That would make the North a significant regional power.

Washington has no realistic strategy to deal with the Democratic People’s Republic of Korea. Some policymakers have advocated offensive military action, but that likely would trigger a war which would devastate South Korea.

The Obama administration’s chief policy has been to reaffirm Washington’s defensive alliance with the South. Some 28,500 U.S. troops are on station, backed by conventional and nuclear forces elsewhere.

However, this only encourages the North’s nuclear development. The DPRK sees nukes as protection against the allies’ overwhelming military strength, prestige for an otherwise geopolitical nullity, potent tool of extortion, and domestic reward for the military.

Some analysts look to more economic sanctions to stop a North Korea bomb. But neither China nor Russia is likely to approve new UN penalties. Additional U.S. sanctions alone aren’t likely to cause the North to surrender a program deemed essential to the regime’s international standing and domestic stability.

There also is the increasingly forlorn hope for negotiation. However, voluntary disarmament seems especially unlikely given the critical political role played by the military in Pyongyang.

Some policymakers look to Chinese pressure on the North as a panacea. But the People’s Republic of China is not inclined to take steps which might violently collapse the North Korean state.

Victories for Educational Choice in the Southwest

It’s looking more and more like the Year of Educational Choice each week.

Yesterday, Arizona Governor Doug Ducey signed a bill expanding eligibility for the state’s pioneering education savings account (ESA) law to all students living on Native American tribal lands. The ESAs were originally limited to students with special needs, but the state subsquently expanded eligibility to include students in adoptive care, students with an active-duty military parent, siblings of an ESA recipient, and students zoned to a district school rated D or F.

On the same day, Nevada became the third state this year to adopt a new educational choice law in both legislative chambers, behind Mississippi and Arkansas. In addition, the Montana Senate recently voted to create a new scholarship tax credit (STC) law, and Alabama Senate voted last week to expand the state’s existing STC law.

Nevada’s Assembly Bill 165 creates a STC law. Corporate donors will be able to receive tax credits for contributions to nonprofit scholarship organizations that aid low- and middle-income students attend the school of their family’s choice. The scholarships can be worth up to $7,755 in the first year, which is significantly less than the average $9,650 cost per pupil in Nevada’s district schools.

Rand Paul and the Future of Conservatism

Libertarians are by definition individualistic, and so the sorts of debates you often hear at their gatherings often revolve around questioning someone’s ideological bona fides or debating how much libertarians should get involved in the messy, compromise-filled world of politics. Rand Paul’s formal entry into the 2016 presidential campaign crystallizes both of these discussions – and David Boaz offers thoughtful perspectives on whether Paul is a real libertarian and whether a libertarian-leaning politician can win the GOP nomination.

But another way of framing that debate is to approach it from the perspective of those who are comfortably on “the Right” but without fully labeling themselves either conservative or libertarian. Frank Meyer, father of longtime Federalist Society president Eugene Meyer, launched such a “fusionist” project in the pages of National Review. Half a century later, another NR writer, Charlie Cooke, has issued a Conservatarian Manifesto (which I’ve reviewed for a forthcoming issue of the Cato Journal). 

So is Rand Paul that magical candidate who can finally “unite the right” in this manner? We’ve seen glimpses of that possibility, and two years ago, I penned an op-ed with my social-conservative friend Francisco Gonzalez of the James Madison Institute (Florida’s leading free-market think tank) that posited that Paul “can shape the future of conservatism”:

As a libertarian and a traditional conservative, we disagree with Paul on a number of issues. Yet we both see his constitutional conservatism as auguring a future in which social tolerance, fiscal temperance and a humbler role for government are pursued not as ends in themselves but because that’s the best path… .

1. Its social policy will focus primarily on protecting freedom of conscience in an increasingly pluralistic society, while undoing the excesses of the drug war and punitive sentencing for nonviolent crime… .

2. This new conservatism will align with the ideas of governors such as Scott Walker of Wisconsin and Bobby Jindal of Louisiana, who are fighting battles for domestic policy reform… .