Topic: Government and Politics

Tax Code Industrial Policy

Millionaire football fans are among the beneficiaries of supposed emergency hurricane tax relief according to an AP report. The only positive aspect of this story is that the special tax breaks deprive politicians of extra money to waste (though they will continue to borrow and waste, so don’t get too excited). Actually, this corrupt form of tax-code industrial policy also has another positive attribute – it is an excellent example of why the internal revenue code should be junked and replaced with a simple and fair flat tax:

…federal tax breaks designed to spur rebuilding are flowing hundreds of miles inland to investors who are buying up luxury condos near the University of Alabama’s football stadium. About 10 condominium projects are going up in and around Tuscaloosa, and builders are asking up to $1 million for units with granite countertops, king-size bathtubs and ‘Bama decor, including crimson couches and Bear Bryant wall art. …And they intend to take full advantage of the generous tax benefits available to investors under the Gulf Opportunity Zone Act of 2005, or GO Zone, according to Associated Press interviews with buyers and real estate officials. …The GO Zone was drawn to include the Tuscaloosa area even though it is about 200 miles from the coast and got only heavy rain and scattered wind damage from Katrina. …The GO Zone investor tax breaks are credited with contributing to the condo boom in Tuscaloosa.

RomneyCare Falls A Bit Short

When Mitt Romney signed the Massachusetts health care plan into law, he bragged that it would provide universal health care coverage. In fact, he still says that on the campaign trail. After all, the plan does mandate that everyone in the state buy health insurance. The state has done pretty well at the welfare aspects of the bill, signing up some 150,000 people for subsidized insurance (families of four earning as much as $62,000 are eligible for subsidies). But the latest reports from Massachusetts indicate that of 170,000 people who are uninsured but have incomes too high for subsidies, only 17,500 have complied with the mandate so far. Someone should have pointed out that the Massachusetts mandate is probably unenforceable and almost certainly not going to achieve universal coverage. Oh, that’s right, we did.

Term Limits and the Happiness of the People

Hugo Chavez is the latest public official to join the effort to roll back term limits. He will soon be free of the limits on his terms as president of Venezuela as well as other constraints on his drive toward total power. If you ever wondered whether term limits contravened excessive ambition, perhaps President Chavez suggests an answer.

Chavez is seeking to end his term limit and other measures to increase his power “to guarantee to the people the largest amount of happiness possible.”

Is he so different from American politicians? He offers the voters happiness (not liberty) and demands power adequate to that end. Constraints on power like term limits are so, you know, neo-liberal, so pre-New Deal.

What Are You, Some Kind of Communist?

I never sprung for their six(!)-volume history of Whitewater, but I used to love the Wall Street Journal’s Clinton-bashing during the ’90s. Sure, writers for the WSJ could get a little, uh, exuberant with some of their charges, but even if they couldn’t prove that our 42nd president was a drug-running rapist, you could usually count on finding some good dirt on Bill and Hill on the editorial and op-ed pages. 

Well, boy, do I feel like a useful idiot now. It turns out that by savaging our president throughout the ’90s, the Journal was “taking a page from the old Soviet playbook.” Say it ain’t so, Paul Gigot!

Anyway, that’s what I got out of ”Propaganda Redux,” the op-ed by Ion Mihai Pacepa that ran in Tuesday’s Wall Street Journal, even though the author’s main focus, predictably, is on Bush-bashing. Pacepa is “the highest-ranking intelligence official ever to have defected from the Soviet bloc,” so he knows something about anti-American commie tactics, like spreading doubts about the president. You see:

Sowing the seeds of anti-Americanism by discrediting the American president was one of the main tasks of the Soviet-bloc intelligence community during the years I worked at its top levels. This same strategy is at work today, but it is regarded as bad manners to point out the Soviet parallels. For communists, only the leader counted, no matter the country, friend or foe.

As Pacepa recounts, Soviet bloc spies would stop at nothing in their disinformation campaign, portraying “Nixon as a petty tyrant, Ford as a dimwitted football player and Jimmy Carter as a bumbling peanut farmer.” When you think how close Americans came to believing some of that stuff, it really gives you a chill. We might well have lost the Cold War. 

Yet even today, over a decade and a half after the collapse of the Soviet Union, the ominous parallels remain. As Pacepa notes, “At the 2004 Democratic National Convention, for example, Bush critics continued our mud-slinging at America’s commander in chief.” This will not do, for, as Pacepa explains in the last paragraph:

[T]he communists got it right. It is America’s leader that counts.

And there you have it. Right in the pages of the Wall Street Journal. The second Clinton presidency sure is going to be interesting.   

Conservative Big Spending Goes Global

By now it’s old hat that President Bush, who remains inexplicably popular with conservatives, is the biggest spender since LBJ. Now it turns out that the Conservative government elected two years ago in Canada is trying to match him.

John Williamson of the Canadian Taxpayers Federation notes in the National Post that “the Conservatives’ two budgets boosted spending by $24.4 billion over two years.” OK, it’s not Bush’s trillion dollars. But Canada is a smaller country, and “as a result the size of the federal government has grown by 14%.”

It looks like Patrick Basham was all too prescient when he predicted, to much consternation in Canada, that Harper would become “Bush’s new best friend.” 

The Left Understands RomneyCare

In defending his health care plan, former Massachusetts governor turned presidential candidate Mitt Romney never fails to call it a “free market” plan or to denounce “HillaryCare,” the presumed alternative. In the most recent Iowa debate, he proclaimed: “This is a country that can get all of our people insured with not a government takeover, without HillaryCare, without socialized medicine…. We [in Massachusetts] didn’t expand government programs.”

In reality, as my collegue Michael Cannon has pointed out, RomneyCare is virtually indistinguishable from HillaryCare. But don’t take our word for it.

Joe Conason of the New York Observer is the latest liberal advocate of national health care to note the similarities. As Conason says, “Actually, his fabulous Bay State plan is based entirely on governmental action, from mandating insurance coverage and minimum coverage requirements to subsidizing insurance and imposing fines on those who fail to comply.”

Romney has been trying to position himself as the “conservative” alternative to Rudy Giuliani and John McCain. But being a conservative Republican should be about more than abortion policy and the War on Terror. At the very least, supporting a government take over of one-seventh of the U.S. economy should disqualify one from being anything but the biggest of big-government conservatives.

Recessed Enlightenment

With Congress adjourned for its August recess, Americans can enjoy a brief respite from the steady stream of bad legislation that typically emanates from the Capitol.

But wouldn’t it be nice if Congress stayed out of Washington for a bit longer?

Senator Joe Biden (D-Del.) recalled a conversation with former Senator Jim Eastland (D-Miss.) about the way Congress used to deal with the summer heat:

“‘Before we had air conditioning,’ he said, ‘that sun would beat down on that dome, heat up that place,’ he said. ‘It would get too hot and we’d leave Washington, and we’d leave for the year,’” Biden quoted Eastland as saying.

“‘Then we got air conditioning, stayed year-round and ruined America.’”