Tag: obama

Is Common Core about to Melt Down?

Is the national curriculum standards debate about to go nuclear?

Proponents of national standards, as I’ve pointed out many times, have made a concerted effort to avoid attention as they’ve insidiously—and successfully—pushed the so-called Common Core on states. They’ve insisted the effort is “state led,” even though states didn’t create the standards and Washington coerced adoption through Race to the Top and No Child Left Behind waivers. They’ve called adoption “voluntary,” even with the heavy hand of the Feds behind them. And they’ve assiduously avoided what blew up past efforts to impose national standards: concrete content such as required readings or history lessons that were guaranteed to make people angry.

Well, with a recent unveiling of sample items for federally funded tests that go with the standards, all that might be about to change, and the whole thing could become radioactive to the public.

A couple of days ago the HechingerEd blog—from the education-centric Hechinger Report—published a post looking at preliminary testing items from the two consortia hand-picked by the Obama administration to create the national tests. Included in the post were links to sample items. I didn’t hit every one, but those I did check out contained, among other things,  confusing readings, poor questions, and lame functionality (in some cases the reading material on which questions were based didn’t even show up). And here’s one for the grammarians: A video-based item about the effect of weightlessness on astronauts’ bodies asked how weightlessness is like “lying” on a bed. The astronaut being interviewed, however, said it’s like “laying on a bed.” A small matter, perhaps, but one among many matters both small and big.

And here’s a really big one:

Smarter Balanced officials gave an example of a multi-part question in which high school students are asked to imagine they are the chief of staff for a congresswoman. Before they start working on the test, their teacher is supposed to lead a classroom activity about nuclear power. The students are then asked to come up with a list of pros and cons about nuclear power. Finally, they must write up a presentation for the congresswoman to give at a press conference later that day…. Questions like the one about nuclear power are more expensive, because they will likely require a trained evaluator to score them.

So much for avoiding controversy! Not only do we discover that the tests will have students take on hot-button topics like nuclear power, but scores will be meted out by human evaluators.

The fears and problems are clear: What should students be told about nuclear power—or any other contentious issue—that the tests address? Who decides? Will evaluators really just grade students on the structure of their presentations, or whether students write things with which the evaluators agree?  How will scoring be consistent among evaluators? Even if consistent, how will students and parents be assured of that?

This day had to arrive sooner or later. Eventually, something substantive had to come from the Common Core crowd. The question now is whether it will cause the whole, dubious undertaking to suddenly melt down.

New Video Shows that Obamanomics Is a Failure

I’ve narrated a video on why Keynesian economics is bad theory, I’ve also narrated a video specifically debunking Obama’s failed stimulus, and I’ve put together a post with data from the Minneapolis Fed showing how Reaganomics worked far better than Obamanomics.

But this video from the Center for Freedom and Prosperity Foundation does all that—and more—in only about six minutes.

By the way, for those who like gory details, a previous video in the CF&P Foundation’s Economics 101 series looked at how the so-called stimulus was a rat’s nest of waste and corruption.

Not that anybody should be surprised. Big government facilitates corruption in the same way that a dumpster attracts rats and cockroaches.

My concern is long-term trends. Politicians should be complying with Mitchell’s Golden Rule, which means reducing government spending as a share of GDP (to put it in terms that make economists feel warm and fuzzy, gov’t exp/GDP should be decreasing).

What irks me about Obama is that he wants to increase the burden of government spending, which means the numerator in the equation is going in the wrong direction. And he wants class-warfare tax policy and more red tape, which makes it even harder for the denominator to move in the right direction.

And if that ratio continues to deteriorate, as both the BIS and OECD are predicting, then it’s just a matter of time before the United States becomes Greece.

Obama, Romney, Teachers, and Choice

Jay Greene has an excellent piece in the Wall Street Journal this week revealing that the teacher workforce has grown dramatically over the past forty years—and at enormous cost—without improving student achievement by the end of high school. And he rightly disparages President Obama for arguing that even more teachers would somehow do the trick. Even better, Greene notes that American education will not reverse its productivity collapse and become efficient until we allow it to benefit from the freedoms and incentives of the marketplace.

But then Jay cites Governor Romney’s goal of “voucherizing federal education funds so that parents can take those resources and use them to send their children to schools of their choice,” and he does so with apparent approbation. Even ignoring the fact that the Constitution does not empower Congress to run education programs, this is a very dangerous idea.

There has been no civilization in the history of humanity in which governments have paid for private schooling without ultimately controlling what was taught and who could teach, erecting barriers to entry and thereby crippling market forces.

For that reason, I recommended against a federal voucher program under the Bush administration. Since then, additional evidence has come to light. When I studied the regulatory impact of U.S. private school choice programs last year I found that even the small existing U.S. voucher programs do indeed impose a heavy and very statistically significant additional burden of regulation on participating private schools.

Perhaps a way will be found to enact and maintain minimally regulated voucher programs in the coming years. Until that time comes, it would be the height of folly to introduce a federal voucher program whose regulations would suffocate educational freedom from coast to coast.

In my statistical study of choice program regulation, I found that K-12 tax credit programs do not impose a statistically significant extra burden of regulation on private schools. But even a national K-12 tax credit program would be far too dangerous. By leaving education policy to the states and the people, we can see which programs flourish and which become sclerotic. We must encourage and learn from that policy diversity, not squelch it with federal programs or mandates.

Post-Debate Analysis: Debunking Obama’s Flawed Assertions on Tax Deductions and Corporate Welfare

In a violation of the 8th Amendment’s prohibition against cruel and unusual punishment, my brutal overseers at the Cato Institute required me to watch last night’s debate (you can see what Cato scholars said by clicking here).

But I will admit that it was good to see Obama finally put on the defensive, something that almost never happens since the press protects him (with one key exception, as shown in this cartoon).

This doesn’t mean I like Romney, who would probably be another Bush if he got to the White House.

On the specifics, I obviously didn’t like Obama’s predictable push for class warfare tax policy, but I’ve addressed that issue often enough that I don’t have anything new to add.

I was irked, though, by Obama’s illiteracy on the matter of business deductions for corporate jets, oil companies, and firms that “ship jobs overseas.”

Let’s start by reiterating what I wrote last year about how to define corporate income: At the risk of stating the obvious, profit is total revenues minus total costs. Unfortunately, that’s not how the corporate tax system works.

Sometimes the government allows a company to have special tax breaks that reduce tax liabilities (such as the ethanol credit) and sometimes the government makes a company overstate its profits by not allowing it to fully deduct costs.

During the debate, Obama was endorsing policies that would prevent companies from doing the latter.

The irreplaceable Tim Carney explains in today’s Washington Examiner. Let’s start with what he wrote about oil companies.

…the “oil subsidies” Obama points to are broad-based tax deductions that oil companies also happen to get. I wrote last year about Democratic rhetoric on this issue: “tax provisions that treat oil companies like other companies become a ‘giveaway,’…”

I thought Romney’s response about corrupt Solyndra-type preferences was quite strong.

Here’s what Tim wrote about corporate jets.

…there’s no big giveaway to corporate jets. Instead, some jets are depreciated over five years and others are depreciated over seven years. I explained it last year. When it comes to actual corporate welfare for corporate jets, the Obama administration wants to ramp it up — his Export-Import Bank chief has explicitly stated he wants to subsidize more corporate-jet sales.

By the way, depreciation is a penalty against companies, not a preference, since it means they can’t fully deduct costs in the year they are incurred.

On another matter, kudos to Tim for mentioning corrupt Export-Import Bank subsidies. Too bad Romney, like Obama, isn’t on the right side of that issue.

And here’s what Tim wrote about “shipping jobs overseas.”

Obama rolled out the canard about tax breaks for “companies that ship jobs overseas.” Romney was right to fire back that this tax break doesn’t exist. Instead, all ordinary business expenses are deductible — that is, you are only taxed on profits, which are revenues minus expenses.

Tim’s actually too generous in his analysis of this issue, which deals with Obama’s proposal to end “deferral.” I explain in this post how the President’s policy would undermine the ability of American companies to earn market share when competing abroad - and how this would harm American exports and reduce American jobs.

To close on a broader point, I’ve written before about the principles of tax reform and explained that it’s important to have a low tax rate.

But I’ve also noted that it’s equally important to have a non-distortionary tax code so that taxpayers aren’t lured into making economically inefficient choices solely for tax reasons.

That’s why there shouldn’t be double taxation of income that is saved and invested, and it’s also why there shouldn’t be loopholes that favor some forms of economic activity.

Too bad the folks in government have such a hard time even measuring what’s a loophole and what isn’t.

How the Media Undermined President Obama’s Debate Performance

The media elites are surprised and disappointed by President Obama’s debate performance last night. They are partly to blame. If they had spent the past four years challenging the president as aggressively as they did his predecessors, he would have been far better prepared to defend his record and respond to criticism. But instead of pitching him curves and fastballs, they’ve mostly lobbed him Nerf balls. Even the Pew Charitable Trusts, hardly a Republican operation, found after his first 100 days in office that the media coverage of President Obama was twice as favorable as that received by President Bush and 50% more favorable than that received by President Clinton. Things haven’t changed much since, and the American people know it. This summer, a Rasmussen poll found that “likely voters, by a five-to-one margin, believe that America’s media is in President Obama’s pocket and will treat his candidacy better than challenger Mitt Romney.”

After tonight’s debate, perhaps the media will realize that the old adage applies to them: you only hurt the one you love.

ObamaCare’s ‘Essential Health Benefits’: Few States Implement, HHS ‘Is in Clear Violation of the Law’

ObamaCare directs the Secretary of Health and Human Services to define the “essential health benefits” that all consumers in the individual and small-group health insurance markets must purchase. HHS Secretary Kathleen Sebelius kicked that decision to the states, giving them a deadline of this past Friday, September 30. Kaiser Health News reports that all of 16 states submitted an Essential Health Benefits (EHB) benchmark to HHS by the deadline.

But did Sebelius have the authority to kick this decision to states? In a September 26 letter to Sebelius, Pennsylvania Insurance Commissioner Michael Consedine writes:

[T]he PPACA clearly states that the Secretary of HHS is to define the EHB package for policies offered both inside and outside of health insurance exchanges. While the language in PPACA was plain that this statutory responsibility fell on HHS, in December of last year HHS issued guidance preliminarily indicating states must select a benchmark design, with HHS potentially acting as final arbiter…of that selection. (Emphasis added.)

Is September 30 even a deadline?

Some communications from your agency indicate that this is a suggested response date while others indicate that it is a deadline of some sort. We again are asking for clarity.

Letting states make that decision will increase flexibility, though. Right?

[I]n reality the guidance placed additional restrictions on the EHB selection rather than flexibility. HHS guidance appears to render the states’ ability to innovate and to make an independent choice illusory. (Emphasis added.)

Indeed, the 16 states who have complied may be in for a rude awakening.

HHS indicated that any selection by the states will be subject to additional review, but we have no definitive guidance as to what, if any, weight will be given to a state’s selection. The minimum amount of information provided to date invites concern that your agency will alter or override a state’s submission…raising serious questions as to whether states have any meaningful ability to make a definitive selection of an EHB benchmark. (Emphasis added.)

Pennsylvania thus declined to submit one, and effectively told Sebelius to do her job.

Louisiana went a step further, threatening to hold Sebelius accountable if she doesn’t. In a September 27 letter, Louisiana’s Secretary of Health and Hospitals Bruce Greenstein and Insurance Commissioner James Donelson noted that the December 2011 “bulletin” merely stated that HHS “intend[s] to propose” a deadline of  September 30 for making that decision—meaning that the bulletin “neither… has the force of law, nor commits federal regulators to any particular course of action.” Moreover:

[I]t is our State’s conclusion that while the bulletin states a decision is to be made by [September 30], this “deadline” has never been formalized through the official rulemaking process. As long as formal rules do not exist, the federal government can change its approach. Since the federal government is not bound by these bulletins, neither are the States. As such, the State of Louisiana is not legally required to submit a benchmark preference by [September 30,] 2012. The State of Louisiana will not permit the federal government to dictate to our residents a default benchmark plan, as the federal government, in its disregard of the requirements of the Administrative Procedure Act regarding essential health benefits and other provisions of the PPACA, has no authority to do so under federal or Louisiana law until regulations are published in the Federal Register, following established notice and comment procedure.

The process developed for defining the essential health benefit benchmark has been a completely new method of establishing law without proper rulemaking. Implementation of new policies without open and public comment and publication in the Federal Register is in clear violation of the law.

The administration has charged states to build what the federal government mandates, but the federal government has provided [only] informal guidance and incomplete rules and regulations…Accordingly, there will be no essential health benefits package for the State of Louisiana, and we will pursue all avenues to prevent the federal government from selecting one on behalf of our state. (Emphasis added.)

As I have written previously, “implementing these parts of the law can only lead to more regulation, fewer choices, and higher costs. And of course, state officials will take the blame when ObamaCare starts increasing costs and denying care to people. There is simply no good reason for states to assume this impossible, harmful, and thankless task.”

‘I Haven’t Raised Taxes’

Why am I only hearing about President Obama’s gob-smacking “I haven’t raised taxes” claim today, and from Reason?

On CBS News’s “60 Minutes” Sunday night, President Obama said, “Taxes are lower on families than they’ve been probably in the last 50 years. So I haven’t raised taxes.”

As of Monday morning, neither the Washington Post’s Pinocchio-awarding Fact-Checker, nor the Annenberg Public Policy Center’s FactCheck.org, nor the Tampa Bay Times’ Pulitzer-Prize-winning Politifact.com had risen to this opportunity…

Unbelievable. I just checked those websites, and they still haven’t.

Fortunately, Ira Stoll has. He leaves out a number of taxes President Obama has enacted, though, including raising the Medicare payroll tax on high-income earners, applying the Medicare payroll tax to non-payroll income for high-income earners, limiting the tax exclusion for flexible spending accounts, increasing the penalties on certain health savings account withdrawals, the “Cadillac tax” on high-cost health plans…