What Does that “C” Stand for Again?

For anyone who still believes that the debate over expanding the state Children’s Health Insurance Program (S-CHIP) is really about health care for poor children, the New York Times reports that 8 Senate Democrats have signed a letter saying they will oppose any compromise that doesn’t allow the program to continue covering adults.

Currently, 12 states currently use S-CHIP funds to provide taxpayer-funded insurance for adults. According to data released by the Department of Health and Human Services in July, Wisconsin covers almost twice as many adults as children — and spends 75 percent of its S-CHIP funds on them. Minnesota spends 63 percent of its S-CHIP funds on adults. In New Jersey, it’s 43 percent.

Let’s keep that in mind the next time we see ads featuring adorable little kids pleading for those mean, nasty Republicans to give them health insurance.

I Guess It Depends What “All” Means…

Several blogs, including the one over at the New Republic have taken me to task for my last post pointing out that with the deadline looming for complying with the Massachusetts individual health insurance mandate, more than 100,000 people still haven’t purchased the required insurance. I suggested that this proves a mandate is unlikely to achieve universal coverage. But, the blogs say, no one ever claimed that the Massachusetts plan would insure everyone.

Except that is exactly what the plan’s supporters claimed. When the bill was signed, the media, state lawmakers, and health care reform advocates hailed it as achieving “universal coverage.” As Mitt Romney himself wrote in the Wall Street Journal, “all Massachusetts citizens will have health insurance.”

There’s no doubt that the Massachusetts plan has reduced the number of people without health insurance in the state. But that is largely because of the plan’s enormously generous (and costly) subsidies. The mandate, with its infringement on individual liberty and invitation to greater government regulation, has had little positive impact.

Anti-Immigrant Opinions are Weakly Held II

[Here’s Anti-Immigrant Opinions are Weakly Held I.]

In his book The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500 to 2000 Yale history professor Paul Kennedy makes the case that, historically, great powers have risen to a point where they have become overextended because of their imperial commitments and the expenditures needed to defend them, at which point they have collapsed.

I was reminded of this when I saw the television ad Rep. Tom Tancredo is running in Iowa. (It’s getting much more play in the blogosphere than he could ever afford to buy.)

By equating immigrants to terrorists, this leader of the anti-immigrant right is shedding credibility - the coin of the political realm - at a furious pace. His argument just doesn’t square with the real world or the common sense judgments good American people make for themselves.

Anti-immigrant opinions have reached their apex. The cartoonish quality of Tancredo’s hysteria-mongering presages the fall. See for yourself.

Spitzer Gives Up, Will Start Over Later

The New York Times reports today that New York Governor Eliot Spitzer (D) has dropped his plan to issue licenses without regard to immigration status.

His original, correct decision to break the tie between driver licensing and immigration status met with hails of derision from anti-immigrant groups and his political opponents. He attempted to quell the outrage by agreeing to sign New York up for the federal government’s “REAL ID” national ID system, but this did not please anyone. So now he’s back at square one.

He said the state would put on hold the plan to adopt the Real ID, which has been championed by the Bush administration. The governor said he wanted to wait until federal regulations for Real ID licenses were issued next year before deciding how to proceed.

Now that he’s - ahem - studied the issues, one hopes he’ll recognize that REAL ID is costly, privacy-invasive, and ineffective, and he’ll decline to involve his state in the national ID program.

Treating Successful Taxpayers Like Piñatas

New data from the Internal Revenue Service confirm that the so-called rich are paying a huge share of the tax burden. As Richard Rahn explains in the Washington Times, “The IRS just released the numbers for 2005, and they show the top 1 percent of taxpayers paid almost 40 percent of the nation’s total income tax bill, and that the top 5 percent paid 60 percent of the taxes.” This is normally considered an economic issue since people on the left argue that higher tax rates on the rich are a never-ending source of money for politicians, while people on the right explain that low tax rates encourage productive behavior and boost growth. But the disproportionate tax burden on successful taxpayers, combined with the fact that a huge share of the population does not pay any income tax, also is a moral or philosophical issue. As Walter Williams writes:

The fact that there are so many American earners who have little or no financial stake in our country poses a serious political problem. The Tax Foundation estimates that…”When all of the dependents of these income-producing households are counted, there are roughly 122 million Americans – 44 percent of the U.S. population – who are outside of the federal income tax system.” These people represent a natural constituency for big-spending politicians. In other words, if you have little or no financial stake in America, what do you care about the cost of massive federal spending programs?

Jonah Goldberg also is concerned about this development. In his Townhall.com column, he explicitly warns that the nation’s social capital will be eroded if a large share of the population learn that the tax system is nothing more than a way to confiscate other people’s money:

…our politics seem to be suffering from a “rich people curse.” We treat the rich like a constantly regenerating pinata, as if they will never change their behavior no matter how many times they get whacked by taxes. And we think everyone can live well off the treats that will fall to the ground forever. … Democrats keep telling the bottom 95 percent of taxpayers that
America’s problems would be solved if only the rich people would pay “their fair share” of income taxes. Not only is this patently untrue and a siren song toward a welfare state, it amounts to covetousness as fiscal policy. … it’s unhealthy for a democracy when the majority of citizens don’t see government as a service they’re reluctantly paying for but as an extortionist that cuts them in for a share of the loot.

These concerns may be somewhat overstated because there is still considerable income mobility in the United States, so many people who today are not paying tax presumably envision that they will be swept in the tax net in the future. But there probably is a tipping point, a level of taxation and redistribution that results in a permanent economic sclerosis. Indeed, some speculate that nations such as Italy are now incapable of reform because the electorate is dominated by people who have concluded that they have a right to live off the income of others.

Sarkozy Attacks Capitalism Again

French President Nicolas Sarkozy may be “right wing” by French standards, but that still puts him on the left side of the spectrum on economic issues. In a recent speech, he again embraced protectionism and said Europe should avoid “untrammelled capitalism.” But since Europe has avoided so-called untrammeled capitalism for the past 100 years or so, he can probably put his mind at rest. The EU Observer reports:

French president Nicolas Sarkozy has outlined a vision for Europe that would see “untramelled” capitalism pushed far down the political hierarchy to be replaced by a focus on cultural and spiritual issues with more than a hint of European protectionism. …Noting that “economic values seem to win the day over other values,” Mr Sarkozy said that it is a mistake to overlook culture. …The French leader gave a lot of time to protectionism - a concept that has fallen out of favour in the EU since the more market-oriented eastern member states joined the bloc in 2004, coupled with the current European Commission with its strong liberal profile. “The word protection should be not be outlawed,” said the president adding that “we must be able to protect ourselves as much as others do.” …He went on to say that while Europe has chosen a market economy and capitalism, this should not give rise to “untrammelled capitalism.”

Earmark Hall of Shame

The New York Times reports:

Buried deep in the largest domestic spending bill of the year is money for a library and museum honoring first ladies. The $130,000 was requested by the local congressman, Representative Ralph Regula, Republican of Ohio. The library was founded by his wife, Mary A. Regula. The director of the library is his daughter, Martha A. Regula.

Other “namesake projects” in the bill include the Charles B. Rangel Center for Public Service at City College of New York, named for the chairman of the House Ways and Means Committee; the Thad Cochran Research Center at the University of Mississippi, named for the senior Republican on the Senate Appropriations Committee; and the Thomas Daschle Center for Public Service at South Dakota State University, honoring the former Senate Democratic leader.

The bill also includes “Harkin grants” to build schools and promote healthy lifestyles in Iowa, where Senator Tom Harkin, a Democrat, is running for re-election.

The federal government is taking $2.9 trillion of our hard-earned money this year. That will include the need to borrow $155 billion because even the record $2.8 trillion tax haul isn’t sufficient to cover all of America’s vital needs. Like the National First Ladies Museum and the Charles B. Rangel Center for Public Service. Really, have they no shame? Politicians tax Americans to build monuments to themselves, or to provide jobs for their families.

Projects that are actually needed–federal courthouses, perhaps, or highways–might appropriately be named for great Americans of the past. But naming monuments for living politicians is a bit too reminiscent of North Korea or Turkmenistan. Perhaps if we’re going to name public works projects for living people, they should all be named for the people who actually pay for those projects–the taxpayers. So we could name them Taxpayers’ Highway, Taxpayers’ Federal Courthouse, Taxpayers Airport.

But at least those are useful projects. The earmarks mentioned above are for fripperies and indulgences and monuments to the ego of politicians. Members of Congress should be ashamed to spend the money taxed away from working people on these tributes to themselves.