Tag: National Review

NR: States Should Join Oklahoma, Challenge IRS’s $800b Power Grab

The IRS is attempting to tax, borrow, and spend more than $800 billion over the next 10 years without congressional authorization, and indeed in violation of an express statutory prohibition enacted by both chambers of Congress and signed into law by President Obama. 

In a new editorial, National Review calls on officials in 33 states to join Oklahoma attorney general Scott Pruitt in filing court challenges to this illegal and partisan power grab:

By offering the [Patient Protection and Affordable Care Act’s] subsidies in states that have not set up [health insurance] exchanges, the federal government is inflicting tax penalties on individuals and employers that go beyond even what Obamacare allows…

Pruitt v. Sebelius has been supplemented by a lawsuit filed last month by a group of small businesses and individual taxpayers also challenging the IRS’s authority to impose penalties outside of state-created exchanges…

Stopping the IRS from imposing punitive taxes where it has no legal power to do so should in fact be a popular and bipartisan issue, regardless of one’s opinions about the ACA itself…

Republican governors, attorneys general, and state legislators looking to use their offices to the significant benefit of the nation as a whole should be lining up to create a 30-state united front with Oklahoma. Scott Pruitt is fighting for the rule of law, and Republican governors might trouble themselves to give him a hand. 

Click here for information on an upcoming Cato policy forum on Halbig v. Sebeliusthe legal challenge filed by several small businesses and taxpayers.

Obama Visits Afghanistan, Perpetuates Misguided Policy

President Obama’s surprise visit to Afghanistan shows that he is determined to use the bin Laden killing to his political advantage. He also hopes to win points for ending two unpopular wars.

That is understandable. If nothing else, it allows him to draw distinctions between both his predecessor, who failed to find bin Laden, and the eventual GOP nominee, Mitt Romney, who argues against withdrawing U.S. troops from Afghanistan.

But the policy that President Obama is pursuing in Afghanistan is still at odds with what most Americans desire. The strategic partnership agreement signed by Obama and President Hamid Karzai embodies this policy.  He chose to expand the U.S. presence in Afghanistan in 2009, and will now draw down to levels at or near those when he took office. That doesn’t go far enough: a majority of Americans want all U.S. troops out of Afghanistan within a year, and a large-scale military presence isn’t needed to continue to hunt al Qaeda. The organization is a shadow of its former self, and has shifted its operations and tactics to many other places. We are still spending tens of billions of dollars in a desperate nation-building mission; this money could be spent much more effectively elsewhere, including here in the United States.

Moreover, President Obama lacks the authority to make the promises that he has extended to the Afghan government and people. For example, he pledges to leave some unspecified number of troops in the country until well past the end of his second term (if there is a second term), but Congress determines funding for overseas military operations, including troop deployments, and there is no reason to believe that future Congresses (or future presidents) will feel bound by Barack Obama’s promises.

After 9/11, the American people rightly demanded that the U.S. government hunt down Osama bin Laden, and perhaps even to move heaven and earth to do it. It made sense to punish al Qaeda and degrade the organization’s ability to carry out another attack. Those tasks have been fulfilled. The mission of preventing the Taliban from rising again in Afghanistan is a hopelessly quixotic crusade, and one that we would be wise to abandon.

Ryan Plan Would Reduce Medicare & Medicaid Fraud

That’s the theme of my article in the current issue of National Review:

The budget blueprint crafted by Paul Ryan, passed by the House of Representatives, and voted down by the Senate would essentially give Medicare enrollees a voucher to purchase private coverage, and would change the federal government’s contribution to each state’s Medicaid program from an unlimited “matching” grant to a fixed “block” grant. These reforms deserve to come back from defeat, because the only alternatives for saving Medicare or Medicaid would either dramatically raise tax rates or have the government ration care to the elderly and disabled. What may be less widely appreciated, however, is that the Ryan proposal is our only hope of reducing the crushing levels of fraud in Medicare and Medicaid.

The three most salient characteristics of Medicare and Medicaid fraud are: It’s brazen, it’s ubiquitous, and it’s other people’s money, so nobody cares…

The full article is now available at the Cato website.

End of an Era, Passing of an Age

Yesterday’s giants continue to exit the arena:  I missed the news cycle on this, but two weeks ago Bill Rusher died at the ripe old age of 87.

Rusher was a conservative writer and activist, and the publisher of National Review in its first few decades.  Although he mostly dropped off the public stage after retiring from NR in 1989, he had latterly been involved with such Cato-friendly groups as the Pacific Research Institute and Pacific Legal Foundation.

From the Wall Street Journal’s obit-itorial:

In the early 1960s, Rusher and others built the foundation for what became Barry Goldwater’s successful run for the Republican Presidential nomination in 1964. While Goldwater lost, his candidacy signaled the conservative ascendancy within the GOP that culminated in Ronald Reagan’s election in 1980.

Rusher wrote a successful syndicated column for 36 years in which he exhibited his fundamental optimism about America and its purposes—even through the dark days of reckless government expansion after 2008. Having once thought Reagan should mount a populist, third-party challenge to the GOP in the 1970s, Rusher and the tea party were kindred spirits. He had a deep faith in the ability of the American people to regain their bearings after a political mistake.

He was also a man of great personal dignity and superb taste who we recall once offering us the very good advice that, “The best restaurant is the restaurant that knows you best.”

It is this last bit that has perhaps stuck most with me about the man, whom I met a few times in college because Rusher enjoyed mentoring young right-of-center writers.  I remember well talking with him late into the night about how to balance intellectualism and activism, or more simply how to put ideas into action.  Well into his 70s by then, Rusher had this cool, stylish charm, a lively mind behind a steely manner (and an impeccable wardrobe).

Not quite a household name any more even in conservative circles, Bill Rusher will certainly be missed in my household.

Why Trading with China is Good for Us

Back in February, more than 100 House members introduced a bill that would make it easier to slap duties on imports from China. I explain why picking a trade fight with China would be a bad idea all around in an article just published in the print edition of National Review magazine.

Titled “Deal with the Dragon: Trade with the Chinese is good for us, them, and the world,” the article explains why our burgeoning trade with the Middle Kingdom is benefiting Americans as consumers, especially low- and middle-income families that spend a higher share on the everyday consumer items we import from China.

We also benefit as producers—China is now the no. 3 market for U.S. exports and by far the fastest growing major market. Chinese investment in Treasury bills keeps interest rates down in the face of massive federal borrowing, preventing our own private domestic investment from being crowded out.

The article also argues that, “As the Chinese middle class expands, it becomes not only a bigger market for U.S. goods and services, but also more fertile soil for political and civil freedoms.”

You can read the full article at the link above. Better yet, pick up the April 4 print edition of the magazine, the one with Gov. Rick Perry on the cover. My article begins on p. 20. (It might be a holdover from my newspaper days, but I still get an extra kick out of seeing an article printed in a real publication.)

P.S. For a fuller treatment of our trade relations with China, you can check out my 2009 Cato book, Mad about Trade: Why Main Street America Should Embrace Globalization. China takes center stage in several places in the book, which—did I mention?—was just named a runner-up finalist for the Atlas Foundation’s 22nd Annual Sir Antony Fisher International Memorial Award for the best think-tank book of 2009-10.

The False Choice Between a VAT and Impossible Spending Cuts

Governor Mitch Daniels of Indiana has triggered a spat among policy wonks with his recent comments expressing sympathy for a value-added tax (VAT). Kevin Williamson of National Review is arguing that a VAT will probably be necessary because there is no hope of restraining spending. Ryan Ellis of Americans for Tax Reform jumped on Williamson for his “apostasy,” arguing that a VAT would be bad news for taxpayers. From a policy perspective, I’m very much against a VAT because it will finance bigger government, as explained in this video.

 

That being said, Kevin Williamson makes a good point when he says that some supply-siders have neglected the spending side of the fiscal ledger. And it certainly is true that Republicans don’t seem very interested in curtailing the growth of government. But does this mean, as Williamson argues, but that our choices are limited to 1) a 36 percent spending cut, 2) catastrophic deficits and debt, or 3) a European-style value-added tax.

I actually think it would be a great idea to reduce the budget by 36 percent. That would bring the burden of federal spending back down to where it was in 2003. Notwithstanding the screams from various interest groups that this would generate, nobody was starving in the streets when the budget was $2.3 trillion rather than today’s $3.5 trillion. But Kevin is unfortunately correct in noting that this type of fiscal reform won’t happen.

Kevin is wrong, however, in saying that we therefore have to choose between either Greek-style deficits or a VAT. According to the Congressional Budget Office, tax revenues over the next 10 years will increase by an average of about 7.3 percent each year - and that’s assuming the tax cuts are made permanent and the AMT is adjusted for inflation. Reducing red ink simply requires that politicians exercise a tiny bit of restraint so that spending grows by a lesser amount. This video walks through the numbers and shows how quickly the budget could be balanced with varying levels of spending discipline.

By the way, it’s worth pointing out that the VAT has not prevented gigantic deficits in nations such as Greece, Japan, Ireland, Spain, England, etc, etc. Politicians in those nations implemented VATs, usually with promises that the money would be used to reduce other taxes and/or lower red ink, but all that happened was more spending and bigger government (this cartoon makes the point in a rather amusing fashion). In other words, Milton Friedman was right when he wrote that, ”In the long run government will spend whatever the tax system will raise, plus as much more as it can get away with.”

One Signature Closer to a Vote on Obamacare Repeal

This morning, in a column for National Review Online, I criticized a number of Democrats and Republicans who voted against Obamacare but had not signed a discharge petition that would force a floor vote on repealing the new health care law. One of the Republicans I singled out was Rep. Castle of Delaware, who is now seeking the GOP nomination for US Senate. This afternoon, Rep. Castle’s staff informed me that he intends to sign that petition as soon as he returns to Washington after the recess. That leaves five Republicans who have not signed.  For the record, they are: Mark Kirk of Illinois, Joseph Cao and Charles Boustany of Louisiana, David Reichert of Washington, and Shelley Moore Capito of West Virginia.

Pages