Four years ago, the modern Tea Party seemed to emerge from nowhere, leaving journalists bewildered and the public with few reference points to understand seemingly spontaneous rallies by middle-class people seeking lower tax rates. A search for the phrase “tea party” in connection with “politics” in major newspapers yielded fewer than 100 mentions in 2008—and when the words did appear linked together, they suggested studied formality and decorum. The next year, they appeared more than 1,500 times, often connected to “protest demonstration.”
One of the main arguments for why it's a bad thing if the newspaper industry dies is that newspapers cover local affairs in a way that nobody else does, and that has demonstrable effects on people's lives. Most of the time we don't actually see those effects, but every once in a while, a story comes along that proves all over again why newspapers are so vital, not just because of what they can expose but because of the change that can come from it.
The Washington Post is in the midst of a series of articles about an unbelievable scam victimizing some extremely vulnerable citizens of the District of Columbia. It's one of those combinations of government incompetence, private greed, and sheer immorality that just makes your blood boil. Here's what happened.
A familiar tale: In a small country on the Mediterranean rim, the government chooses to solve an economic crisis by enacting an austerity budget. Regressive taxes will rise. Aid to families will be cut. Less will be left of the welfare state built decades ago. The novice finance minister promises this will heal the economy.
As the people of that unhappy land say: Happy are those who believe.
In 2011, Jacob Hacker wrote a ground-breaking paper in which he coined the phrase predistribution. Under Hacker's definition, predistribution refers to measures governments take to reduce or eliminate inequality in market incomes. This differs from redistribution, which Hacker uses to mean measures states take to reduce or eliminate inequality after market incomes have been distributed, for instance through taxes and government benefit programs.
Today is tax day, the yearly opportunity for millions of Americans to shake their fists at the government and declare their contempt for the ideas of mutual concern and collective responsibility. So on this most practical of days, it's good to remind ourselves of some realities. First, the taxes we pay are, by international standards, fairly modest. Second, despite what some would have you believe, the wealthy are not crushed by the burden of taxation. And third, though nobody particularly enjoys giving part of their income to the government, taxes are the price we pay for having an advanced, democratic society.
North Dakota. Can you smell the freedom? (Flickr/Gadi Golan)
The Mercatus Center, an independently funded free-market think tank housed at George Mason University, just released its annual "Freedom in the 50 States" rankings, and the results, showing whether you live in a Randian paradise or a soul-crushing statist hellhole, are getting a lot of ridicule on Twitter. Liberals may laugh that this kind of thing is pretty silly, but it's conservatives who ought to find the results deeply unsettling. Because if "freedom" as conservatives define it really does determine the quality of one's existence, then they all ought to be packing their bags to move to the most free of all the states. Which, according to the Mercatus Center, is North Dakota. You can see the problem here.
With over twenty million Americans still unable to find full-time work, Washington shouldn't take its eye off job creation for a minute. That's certainly the feeling of voters, who overwhelmingly told exit pollsters on Election Day last November that fixing the economy should be Congress's number one priority—far more than said reducing the deficit.
Frankly, though, official Washington seems better at destroying jobs these days than creating them: Exhibit A are the sequestration cuts, which are eliminating jobs as I write this. Exhibit B is the rollback of the payroll tax holiday on January 1, which ensured that nearly every working American has been living with a pay cut for the past ten weeks.
In announcing Thursday that he would no longer negotiate with President Obama over a deal to reduce the nation’s budget deficit, House Speaker John Boehner said that Republicans would support no more tax increases. The question, he said, came down to “how much more money we want to steal from the American people to fund more government. I’m for no more.”
In February 1913, exactly a century ago, the Sixteenth Amendment gave Congress a constitutional green light to levy a federal tax on income. Later that same year, lawmakers made good on that opportunity. An income tax has been part of the federal tax code ever since.
No idea is more central to conservative economic thinking than the belief that cutting taxes leads to higher economic growth. One can certainly understand the appeal of this belief: Itwouldbe great if government could collect the same amount of revenue, but with much lower tax rates, because those rates fostered strong growth.
Mitt Romney was in Colorado yesterday, where some people aren't too pleased with him. This week he came out in opposition to an extension of the wind-power production tax credit (PTC), which is set to expire at the end of the year. The tax credit helps make wind power competitive and is credited with enabling the creation of thousands of jobs in manufacturing and construction. This is almost certainly not going to be a huge issue in the campaign, but it does reveal some interesting things about where Romney is vis-a-vis the Republican Party. On one side, you have the parochial economic interests of many Republican members of Congress and some very well-heeled Republican economic constituency. On the other, you have the purely knee-jerk reaction of Tea Party types to anything hippies might like. Guess where Mitt comes down?
Mitt Romney tells ABC's David Muir he's no sucker.
Back in January, when he was asked during a primary debate about the taxes he pays, Mitt Romney made the somewhat odd assertion that "I pay all the taxes that are legally required and not a dollar more. I don't think you want someone as the candidate for president who pays more taxes than he owes." As I've written before, this would seem to indicate that Romney believes that if you don't have a team of accountants who can ferret out every last loophole to minimize your tax bill then you're just a sucker, so pathetic that you are unworthy of occupying the highest office in the land. But maybe I was being unfair. After all, I've been critical of the campaign habit of reading too much into any particular statement a candidate makes. We all say things that upon reflection we'd like to put another way or take back completely, so maybe Romney didn't quite mean it the way it sounded.
But once you repeat a statement like that more than once, we can be pretty sure you do in fact mean it. And based on what he said in an interview yesterday with ABC News, we can be pretty sure Mitt Romney genuinely believes that if you paid an extra dollar to the federal government, then you're not just a chump, you're such a chump we wouldn't want you to be president:
Last week, Mitt Romney had some kind of weird brain freeze and accidentally stumbled into agreement with President Obama on the fact that entrepreneurs actually do benefit from the efforts of other people, and even get help from the government. You may have heard about it, as a number of bloggers took note. But there was something else he said that was even more interesting, and I wanted to point it out because we do seem to be having a discussion about the fundamentals of capitalism and government. It sounded extemporaneous, so perhaps Romney didn't think through the full implications of it, but here's what he said:
There are a lot of people in government who help us and allow us to have an economy that works and allow entrepreneurs and business leaders of various kinds to start businesses and create jobs. We all recognize that. That's an important thing. Don't forget, by the way, government doesn't invent those people out of thin air. We pay for those people with our taxes! We're paying for those resources that we receive.