Topic: Government and Politics

(Unintentional) Praise for ‘50 Vetoes’

The Fiscal Times:

So far, officials in 34 states have elected not to create insurance exchanges under the law where the uninsured can go to purchase affordable or subsidized health care coverage. And only 20 states and the District of Columbia have agreed to expand Medicaid programs for the poor and disabled…

Earlier this year, Cannon published a lengthy Cato “white paper,” a handbook of sorts for gumming up the works. Entitled “50 Vetoes: How States Can Stop the Obama Health Care Law,” the report urges governors and state officials to refuse to set up insurance exchanges in their states and to refuse to opt into an expanded Medicaid program for the poor…

Ron Pollack, executive director of Families USA, and a board member of Enroll America, complained…that Cannon’s handbook was designed to “throw sand into the machinery of state implementation of the Affordable Care Act.”

“So has it been a factor? Of course,” added Pollack.

Click here to read “50 Vetoes.”

Presidents Barack Obama and Xi Jinping Chart the Future of U.S.-China Relations

As the 1970s dawned, the People’s Republic of China was a closed, forbidding society. Then came the famed opening to the West. Reforms unleashed the creativity of the Chinese people, causing the PRC to go from isolated backwater to emerging giant; which is changing the international order. 

Chinese President Xi Jinping is meeting President Barack Obama in California this week. Much is at stake in their administrations forging a working relationship.

As I explained in my latest Forbes online column:

There is abundant cause for misunderstanding and disagreement across a range of issues. Treating each other as adversaries, as advocated by some in both countries, would be disastrous. Neither nation, nor Asia and the world, would benefit from conflict between the two.  In contrast, much could be achieved if the world’s superpower and incipient superpower develop a cooperative relationship.

Chinese officials with whom I spoke last week in Beijing spoke of a new “great power relationship” to reshape ties between Beijing and Washington.  Despite obvious differences in important areas, Liu Jieyi, Vice Minister of the Communist Party’s International Department, rightly argued that “there are many issues where we have common interests and common responsibilities.” What sets today apart from the Cold War struggle with the Soviet Union is the fact that current differences don’t constitute “structural and irreconcilable conflicts and problems,” in Liu’s words.

That doesn’t mean the gaps separating the two countries on questions ranging from human rights to security policy are small. Obviously, it is easier to call for cooperation than to practice it. 

Nevertheless, there is no necessity for conflict. Peace requires cooperation when possible and accommodation when necessary. That means the willingness on both sides to negotiate and compromise. Most critical is to avoid the temptation to treat the other side as an enemy, which could turn into a self-fulfilling prophecy.

Even Americans should celebrate in China’s “rise,” which has raised countless numbers of people out of poverty. But there are legitimate reasons why other nations worry about China’s dramatic entry into the world system

The U.S. and China must find a way to work together not only for themselves, but also for the rest of Asia and the world. The most important relationship in coming years will be that between America and China. We all must make it a century of cooperation rather than confrontation.

The Kids Are All Right

Is libertarianism a worldwide trend among young people? There are poll reports from the United States, Great Britain, and Turkey this week that point in that direction.

The College Republican National Committee put out a report finding that young voters are very much against excessive government spending (though they do support higher taxes on the wealthy) and are strongly in favor of gay marriage. They want to reform entitlements but see the Republican party as “closed-minded, racist, rigid, old-fashioned.”

Meanwhile, the Economist, in an editorial titled “The strange rebirth of liberal England” (in an allusion to a famous history book), writes, “Young Britons have turned strikingly liberal, in a classical sense….The young want Leviathan to butt out of their pay cheques as well as their bedrooms.” An accompanying article declares, “Britain’s youth are not just more liberal than their elders. They are also more liberal than any previous generation”:

Young Britons are classical liberals: as well as prizing social freedom, they believe in low taxes, limited welfare and personal responsibility. In America they would be called libertarians.

More than two-thirds of people born before 1939 consider the welfare state “one of Britain’s proudest achievements”. Less than one-third of those born after 1979 say the same. According to [the long-running British Social Attitudes survey], members of Generation Y are not just half as likely as older people to consider it the state’s responsibility to cover the costs of residential care in old age. They are also more likely to take such a hard-hearted view than were members of the famously jaded Generation X (born between 1966 and 1979) at the same stage of life.

“Every successive generation is less collectivist than the last,” says Ben Page of Ipsos MORI, a pollster.

And finally comes this headline from the Hurriyet Daily News in Istanbul: 

Protesters are young, libertarian and furious at Turkish PM, says survey

An online survey of 3000 protesters conducted by two academics found, among other things:

A majority of the protesters who completed the survey, 81.2 percent, defined themselves as “libertarian.” A total of 64.5 percent of the respondents defined themselves as “secular.”

Maybe this really is the libertarian momentStudents for Liberty attracted 1,400 attendees to its February national conference, and another 365 to a European conference in March. Now, as the Economist says, if only the young people will vote – and the parties will offer them candidates.

A Brief Civil Liberties Quiz

See if you can spot the civil-liberties victory:

  1. The Supreme Court says the government can put your DNA in a national database, even if you were wrongly arrested.
  2. The State of Mississippi imposes mandatory collection of the DNA of babies born to teenage moms, neither of which is suspected of a crime.
  3. The Department of Justice is tracking and threatening to prosecute reporters, for the crime of reporting.
  4. The National Security Agency is collecting everyone’s phone records, even if they suspect you of nothing.
  5. The U.S. Senate kills a bill that could lead to a registry of law-abiding gun owners.

Answer: #5. 

Those crazy senators are looking less crazy all the time. 

Your Congress, Your NSA Spying

The National Security Agency is collecting records of every domestic and cross-border Verizon phone call between now and July 19th. The secret court order requiring Verizon to hand over these records has been leaked to the Guardian.

You may find that outrageous. 1984 has arrived. Big Brother is watching you.

But the author of this story is not George Orwell. It’s Representative Lamar Smith of Texas, Senator Diane Feinstein of California, and you.

Here’s what I mean: In June of last year, Representative Smith (R) introduced H.R. 5949, the FISA Amendments Act Reauthorization Act of 2012. Its purpose was to extend the FISA Amendments Act of 2008 for five years, continuing the government’s authority to collect data like this under secret court orders. The House Judiciary Committee reported the bill to the full House a few days later. The House Intelligence Committee, having joint jurisdiction over the bill, reported it at the beginning of August. And in mid-September, the House passed the bill by a vote of 301 to 118.

Sent to the Senate, the bill languished until very late in the year. But with the government’s secret wiretapping authority set to expire, the Senate took up the bill on December 27th. Whether by plan or coincidence, the Senate debated secret surveillance of Americans’ communications during the lazy, distracted period between Christmas and the new year.

Senator Dianne Feinstein (D) was the bill’s chief defender on the Senate floor. She parried arguments doggedly advanced by Senator Ron Wyden (D-OR) that the surveillance law lacks sufficient oversight. My colleague Julian Sanchez showed ably at the time that modest amendments proposed by Wyden and others would improve oversight and in no way compromise security. But false urgency created by the Senate’s schedule won the day, and on December 28th of last year, the Senate passed the bill, sending it to the president, who signed it on December 30th.

The news that every Verizon call is going to the NSA not only vindicates Senator Wyden’s argument that oversight in this area is lacking. It reveals the upshot of that failed oversight: The secret FISA court has been issuing general warrants for communications surveillance.

That is contrary to the Fourth Amendment to the Constitution, which requires warrants to issue “particularly describing the place to be searched, and the persons or things to be seized.” When a court requires “all call detail records” to be handed over “on an ongoing daily basis,” this is in no sense particular. Data about millions of our phone calls are now housed at the NSA. Data about calls you make and receive today will be housed at the NSA.

The reason given for secret mass surveillance of all our phone calls, according to an unofficial comment from the Obama administration, is that it is a “critical tool” against terrorism. These arguments should be put to public proof. For too long, government officials have waved off the rule of law and privacy using “terrorism” as their shibboleth. This time, show us exactly how gathering data about every domestic call on one of the largest telecommunications networks roots out the tiny number of stray-dog terrorists in the country. If the argument is based on data mining, it has a lot to overcome, including my 2008 paper with IBM data mining expert Jeff Jonas, “Effective Counterterrorism and the Limited Role of Predictive Data Mining.”

The ultimate author of the American surveillance state is you. If you’re like most Americans, you allowed yourself to remain mostly ignorant of the late-December debate over FISA reauthorization. You may not have finished digesting your Christmas ham until May, when it was revealed that IRS agents had targeted groups applying for tax exempt status for closer scrutiny based on their names or political themes.

The veneer of beneficent government is off. The National Security Agency is collecting records of your phone calls. The votes in Congress that allowed this to happen are linked above in this post. What are you going to do about it?

Moral of the Story: Tax Havens Are Okay if You’re a Politically Connnected Statist

Earlier this year, I had some fun when it was revealed that the president’s new Treasury Secretary had a lot of money in the Cayman Islands.

After all, leftists want us to believe tax havens are rogue regimes that should be eliminated. Some of them even want military intervention against these low-tax jurisdictions!

Much to my amusement, Mr. Lew even pretended he was financially illiterate to justify making sensible decisions to invest via the Cayman Islands.

And unlike the president’s first Treasury Secretary, Mr. Lew didn’t break the law and cheat on his tax return.

You probably won’t be surprised to learn that Secretary Lew wasn’t the first Democrat to utilize tax havens. Lawmakers such as John Kerry, Bill Clinton, John Edwards, and others on the left also have utilized tax havens to boost their own personal finances.

And it appears that Mr. Lew won’t be the last Democrat to be caught with his hands in the cookie jar.

Here’s some of what’s being reported by the New York Times in regard to the president’s nominee to be U.S. Trade Representative:

Michael Froman, a longtime White House economic aide nominated to be President Obama’s trade representative, has nearly half a million dollars in a fund based in the Cayman Islands, according to financial documents provided to the Senate Finance Committee. …White House officials said Mr. Froman played no role in creating, managing or operating the investment funds and had done nothing wrong. “Mike Froman has paid every penny of his taxes and reported all of the income, gains and losses from the investment on his tax returns,” Mr. Whithorne said.

I don’t remember that compliance with the tax law mattered when Obama and the media were going after Romney in 2012 for legally investing in the Cayman Islands.

Could it be that tax havens are okay, but only if you support big government?

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.