December 1, 1999

WTO Meeting Is a Gas
Compassionate Tax Cuts
China No Threat to Canal
Baby Boon?
Cigarettes a Drug?

WTO Meeting Is a Gas

Mass protests in Seattle yesterday canceled the opening talks of the World Trade Organization meeting. Thousands of labor union members, environmentalists, and other protestors blocked participants from reaching the convention center. According to the Post, most of the demonstrators were "militantly peaceful": some chained themselves together, while others donned black clothes and ski masks, and smashed windows. Police fired tear gas to disperse protesters, making about 20 arrests.

Cato’s Center for Trade Policy Studies (http://www.freetrade.org) proposed specific policy recommendations for the WTO meeting (assuming it will get underway). In "Seattle and Beyond: A WTO Agenda for the New Millennium," Brink Lindsey, Daniel T. Griswold, Mark A. Groombridge, and Aaron Lukas outline specific steps for free trade. They seek a "‘bottom-up’ process in which countries liberalize, not merely to gain ‘concessions’ from other countries, but primarily to reap the economic rewards of their own liberalization." Also, the Cato Institute hosted an all-day conference in preparation for the WTO on November 17. All the papers presented at the conference and RealVideo of the presentations are also available on our website.

Compassionate Tax Cuts

The New York Times is reporting today that George W. Bush is rolling out his economic plan, "calling for sweeping cuts in income tax rates, a tax break for many married couples, and an increase in the child credit." Bush’s plan would reduce taxes across all tax brackets over a five-year period and would use projected surpluses to offset the cuts. His $483 billion plan is larger than the congressionally proposed tax cut vetoed by President Clinton last month.

In the commentary "Return the Surplus to Those Who Earned It," Doug Bandow writes that the individual tax burden is huge and giving it back to workers would be a boon to the economy. "Cutting taxes would also be the right thing to do. People are paying too much for too little. The budget is larded with pork, unnecessary programs, special interest subsidies and blatant waste." The Cato Handbook for Congress also includes a section on "Fundamental Tax Reform" (pdf) by Stephen Moore which calls for drastic tax cuts.

China No Threat to Canal

President Clinton yesterday dismissed the notion that national security would be compromised when a Hong Kong firm with ties to the Chinese Red Army takes over operation of ports at both ends of the Panama Canal at the end of the year, according to Reuters.

In his commentary "Ghosts of the Cold War," Ivan Eland writes that "allegations that China is undermining U.S. security by attempting to gain control of shipping through the strategic Panama Canal is preposterous." Eland also hosted the Cato policy forum "Is China a Threat to the Panama Canal?" which is available on RealVideo.

Baby Boon?

In a front page story, the Washington Times is reporting that President Clinton yesterday cleared the way for tens of billions of dollars to be set aside for unemployment benefits to be paid to "able-bodied workers who choose to stay home with a newborn." The president said that although many new parents would like to be home with new babies, they simply can’t afford to miss work and that the U.S. should join the other industrialized countries that offer this entitlement.

In "Mandatory Family-Leave Legislation: The Hidden Costs," Deborah Walker discusses whether the United States should follow other industrialized countries and require employers to offer a family-leave benefit. "Would such legislation take much of the burden off those women who are trying to juggle a career and a family? Or would the legislation instead place costly demands on employers, forcing them to decrease employment opportunities, especially for women?" she asks.

Cigarettes a Drug?

According to CNN, the Supreme Court will hear arguments today on whether the FDA can regulate nicotine as a drug. The most likely immediate result would be a ban on most cigarette-vending machines, restrictions on tobacco advertising, a ban on tobacco company-branded clothing and other products, and prohibiting tobacco-brand sponsorship of sports and entertainment events.

Cato senior fellow Robert Levy analyzes the government’s ongoing attacks on the tobacco industry in "Tobacco Medicaid Litigation: Snuffing Out the Rule of Law," and "Where There’s Smoke, There’s Money." Director of natural resource studies Jerry Taylor also examined the issue in "Clinton’s Tobacco War: How High the Constitutional Price?"