Cato Daily Dispatch for October 16, 2001
Bush Admin: Don't Cut Taxes Too MuchAfghanistan's Exiled King Calls For U.N. Troops
California Enacts Nation's Toughest Gun Laws
Bush Admin: Don't Cut Taxes Too Much
The Bush administration signaled yesterday that it would not support the full package of tax cuts that Republicans will bring to the House floor this week as their plan for giving a boost to the weakened economy, according to The New York Times.
Treasury Secretary Paul H. O'Neill said the tax cuts in the bill -- which would total nearly $100 billion for the current fiscal year and $159 billion over 10 years -- were more than the administration was seeking.
President Bush has called for tax cuts and spending of $60 billion to $75 billion for the current year, with most devoted to tax cuts.
The House bill would provide more than $70 billion in tax cuts to companies this year, and nearly $29 billion to individuals. It has none of the Democratic spending proposals to help the unemployed or create jobs.
Speaking in Memphis, O'Neill seemed to distance the administration from the bill and suggested that it represented a bit of political posturing by members of the president's own party.
In "Business Tax Cuts Crucial in a Slowdown," Director of Fiscal Policy Studies Chris Edwards says it makes the most sense to aim a tax cut directly at the core problem, which is slumping investment in machinery and equipment.
Last week, the Cato Institute hosted the policy forum "Is Fiscal Stimulus Desirable? If So, What Works Best?" Speakers included Douglas Holtz-Eakin, chief economist, Council of Economic Advisers, Chris Edwards, Director, Fiscal Policy, Cato Institute, Rep. Jim Saxton, chairman, Joint Economic Committee, Alan Reynolds, Cato Institute senior fellow, and William A. Niskanen, Cato Institute chairman.
Afghanistan's Exiled King Calls For U.N. Troops
Afghanistan's exiled King Mohammed Zahir Shah has appealed to the United Nations Security Council to establish and dispatch a U.N. peacekeeping force to Afghanistan if the Taliban regime collapses under the pressure of the American and British military strikes, according to The Washington Post.
The former king, 87, is at the center of international efforts to find a political alternative to the Taliban. He warned U.N. Secretary General Kofi Annan in a letter distributed yesterday to members of the 15-nation council that the Taliban's defeat could lead to a bloody "power vacuum."
In the new book, "Fool's Errands: America's Recent Encounters with Nation Building," Gary Dempsey and Roger W. Fontaine explore the long string of failed nation-building missions on which the U.S. has embarked. On Thursday, October 18, Cato will host a forum to discuss this new book featuring the authors and columnist James P. Pinkerton. To attend or watch the event, visit the Cato Web site.
California Enacts Nation's Toughest Gun Laws
In a last-minute flurry over the weekend, California Gov. Gray Davis (D) signed into law over 120 bills to meet a midnight deadline for approving bills passed in the final weeks of the legislative session. Among these were the strictest requirements in the nation for prospective handgun buyers, according to The New York Times.
In the most significant gun control measure of the year, Davis approved legislation that requires handgun owners to pass a written test and prove to a state instructor that they know how to handle a gun safely. The laws, which go into effect in 2003, also require new owners of handguns to provide the Department of Justice with a thumbprint.
Had the laws been in effect from the start of this year through Oct. 6, the State Department of Justice said, they would have applied to the sales of 109,866 handguns in California.
In "Gun Policy in the Aftermath of Littleton," Cato Fellow Doug Bandow writes that gun control is misguided and that studies show that guns are used five times as often to prevent as to commit crimes. In "Fighting Back: Crime, Self-Defense, and the Right to Carry a Handgun," Jeffrey R. Snyder shows that crime rates are reduced in states that adopt concealed-carry laws.
Last year, the Cato Institute hosted a book forum featuring legal scholar John R. Lott, Jr., author of "More Guns, Less Crime." The updated edition of his book presents the most comprehensive analysis ever done on crime statistics and right-to-carry laws. Video of the forum is available on the Cato Web site.
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