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Archive for the ‘nanny state’ Category

Since I focus on public finance, I think California is crazy because of punitive taxes and reckless spending policies.

But I can understand why other people think California is crazy, period.

This is a state, after all, where politicians come up with bizarre ideas such as regulating babysitting and banning Happy Meals.

Not to mention banning other things as well.

So you won’t be surprised to learn that the Golden State is leading the way in attacking the horrible scourge of plastic straws.

Plastic straws are quickly becoming a takeout taboo. Starbucks has vowed to get its iconic green sippers completely off store shelves by 2020, while Seattle banned all plastic utensils, including straws, from bars and businesses city-wide earlier this month. San Francisco quickly followed suit this week and passed an ordinance that, once approved, will ban plastic straws beginning in July of 2019… It may seem as though the quarter-of-an-inch diameter drinking straw is the least of our worries. But environmentalists say the fight’s got to start somewhere. “We look at straws as one of the gateway issues to help people start thinking about the global plastic pollution problem,” Plastic Pollution Coalition CEO Dianna Cohen told Business Insider.

If I’m willing to claim earmarks are the gateway drug for big spending, then I can’t complain when other people come up with imaginative claims about other types of “gateways.”

In any event, there is a legitimate reason to be concerned about plastic.

Some straws drift out to sea, becoming just one more piece of the 79 thousand-ton colossal floating iceberg of trash called the Great Pacific Garbage Patch. Scientists who’ve studied the patch, a trash heap wider than two whole Texases that bobs somewhere between Hawaii and California, have discovered it’s essentially a watery pit of litter and illegal dumps that’s trapped in the ocean currents, and it is basically all plastic. …The anti-straw movement may have first picked up steam because…Texas A&M graduate student Christine Figgener…noticed something encrusted in the nose of one of the male turtles. …The team soon figured out it was actually a “plastic straw stuck in his nose,” and removed it, hoping the extraction might help give him some more breathing time on Earth.

But the people on the left side of the country are not actually solving this problem.

Plastic pollution is basically a problem caused by developing countries.

So the politicians in Seattle and San Francisco are making the Nanny State more intrusive without achieving anything.

A classic case of virtue signaling.

But look at the bright side. It’s already generated some great political satire.

Starting with this little girl.

I imagine the plastic straw will be a gateway for operating an unlicensed lemonade stand!

And if SWAT teams run out of harmless pot smokers to harass, they now have new target to justify their budgets.

And the gun grabbers will appreciate the importance of dealing with high-capacity straw dispensers.

Though it’s unclear how the left will deal with the danger of concealed straws.

Especially since some of those straw nuts will become dealers.

I’ve saved the best for last. For those old enough to remember OJ Simpson and the white Bronco, this image of a renegade toddler will bring back memories.

Remember, if you outlaw straws, only outlaws will have straws.

Next thing you know, they’ll try to outlaw tanks.

It’s a slippery slope!

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A couple of days ago, citing bizarre government policies in India, Belgium, Malaysia, Romania, and Spain, I wrote about some “great moments in foreign government.”

Today, we’re going to give special attention to the United Kingdom.

I’m not claiming there’s an above-average level of government stupidity in the United Kingdom (though that’s distinctly possible). Instead, I suspect I simply get exposed to more stories from the U.K.

Whatever the reason, let’s start with this report from the Times.

Plastic stirrers and cotton buds are to be banned alongside straws… The move, expected to come into force as early as next year, is designed to curb “society’s addiction” to throwaway products, the environment secretary writes… The UK uses 13.2 billion cotton buds a year, more than any other member of the EU, as well as 44.1 billion stirrers and 42 billion straws, according to the World Wide Fund for Nature. …Mr Gove initiated plans last month to require retailers to impose a deposit on plastic bottles and has extended the 5p tax on plastic bags to smaller shops. Moves for an industry levy aimed at reducing the use of products such as takeaway food cartons are also underway in the Treasury.

Apparently, the supposedly conservative government in the United Kingdom thinks this type of green virtue signalling is a way of wooing the tiny collection of misguided Tories who oppose Brexit.

Mr Gove is said to believe that the issue helps reconnect the Conservatives with former supporters angry over Brexit.

Switching topics, here’s a bizarre story from the BBC.

Chelsea Russell, 19, from Liverpool posted the lyric from Snap Dogg’s I’m Trippin’ to pay tribute to a boy who died in a road crash, a court heard. Russell argued it was not offensive… Prosecutors said her sentence was increased from a fine to a community order “as it was a hate crime.” She was charged after Merseyside Police were anonymously sent a screenshot of her update. …The words Russell used on her account contained a racial label which some people find extremely offensive. …Prosecutor Angela Conlan said Russell’s defence also argued her profile “wasn’t public, but it had been proved in court that anyone could access it and “see the offensive language”. Russell was found guilty… She was given an eight-week community order, place on an eight-week curfew and told to pay costs of £500 and an £85 victim surcharge.

Given my utter lack of cultural awareness, I’ve never heard of Snap Dogg. I’m guessing he’s black, but I could be wrong.

In any event, this absurd story raises a couple of points.

  • First, people should have the right to say offensive things.
  • Second, it appears that there was no offensive intent.
  • Third, this shouldn’t be an issue for government.

I’m sure that there’s still real racism in British society. I hope there is widespread scorn for people who practice that odious version of collectivism. I also support boycotts of private measures to punish unambiguous racists (the ideal goal is to have their minds changed by kindness).

Government should only step in when there’s a threat to life, liberty, or property.

Sadly, the British government is policing speech, perhaps even speech that should be considered totally benign.

Which is a good excuse to post this funny-yet-sad item from Libertarian Reddit.

Speaking of things that are funny and sad, here’s a Reason column on the latest development in the battle to leave Brits totally vulnerable to crime.

It turns out that when you pass laws disarming people in an attempt to prevent violence, criminals who habitually disregard all laws don’t make exceptions for the new rules. In London, crime still thrives despite the U.K.’s tight gun controls and the British political class is now desperately turning its attention to restricting knives. …Firearms are strictly restricted in the U.K., including a near-total ban on handguns. Nevertheless, “[i]n the 12 months to October 2017, there were 2,500 offences involving guns: a 16 per cent increase on the previous year and a 44 per cent increase on 2014,”… Criminals, it seems, are not averse to committing crimes—including the illegal acquisition of tools that help them commit more crimes. Besides illegal guns, British criminals also use edged weapons… Having failed to disarm criminals with gun controls that they defy, British politicians are now turning their attention to implementing something new and different: knife control. Because criminals will be much more respectful of knife laws than of those targeted at firearms, I guess. …Poundland (the British equivalent of a dollar store) announced last week that it will no longer sell kitchen knives in any of its 850 stores. Similar stores are being slapped with fines for selling knives to minors. British politicians propose banning home delivery of knives and police promote street-corner bins for the surrender of knives.

If you outlaw knives, only outlaws will have knives (in America, we apply that lesson to tanks).

And they’ll also have acid, as noted on Libertarian Reddit.

The cops don’t have the time and energy to concentrate on these real crimes.

Instead, they bust a girl for benignly quoting a bad word. Or they bust homeowners for harming robbers. Or harass employers who commit discrimination by advertising for “reliable” workers.

And apparently Brits also are on guard against the scourge of eggs in the hands of kids. And flour.

How embarrassing.

Today’s collection is even worse than the ones I shared in February and April.

P.S. And let’s not forget the U.K.’s creepy statism and ghoulish government-run healthcare.

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Considering that America’s Founders created a very small central government that operated for more than 100 years without any income tax (or any other broad-based tax), it’s very disappointing that Washington is now consuming more that 20 percent of our nation’s output.

That’s bad for growth since resources are diverted from the productive sector of the economy.

But let’s also keep in mind that politicians also impose policies that may not have much impact on GDP statistics, but definitely reduce our quality of life.

I’ve written about some of these annoying bits of red tape.

Jeffrey Tucker, in a column for the Foundation for Economic Education, shares my disdain for the nanny state.

Soap doesn’t work. Toilets don’t flush. Clothes washers don’t clean. Light bulbs don’t illuminate. Refrigerators break too soon. Paint discolors. Lawnmowers have to be hacked. It’s all caused by idiotic government regulations that are wrecking our lives one consumer product at a time, all in ways we hardly notice.

And he points out another item to add to our list.

We now have gas cans that don’t work nearly as well as they used to because of mindless bureaucracy.

Who would make a can without a vent unless it was done under duress? After all, everyone knows to vent anything that pours. Otherwise, it doesn’t pour right and is likely to spill. …The whole trend began in (wait for it) California. …The notion spread and was picked up by the EPA, which is always looking for new and innovative ways to spread as much human misery as possible. …So…you have not been able to buy gas cans that work properly. They are not permitted to have a separate vent. The top has to close automatically.

Environmental zealots tell us we need these poorly functioning gas cans to save the environment from vapor.

But as Tucker explains, the policy is backfiring.

…don’t tell me about spillage. It is far more likely to spill when the gas is gurgling out in various uneven ways, when one spout has to both pour and suck in air. …There is no possible rationale for these kinds of regulations. It can’t be about emissions really, since the new cans are more likely to result in spills.

Amen.

This is a never-ending nightmare when I mow my lawn. When it’s time to refill the gas tank, I know gas is going to spill regardless of how careful I am.

I can’t imagine that’s good for the environment (I’m sure it releases far more vapor than would seep into the atmosphere with a vent), but I confess that my main concern is that gas dribbles onto a hot lawnmower engine. So I’m always poised to run away from my mower if the thing bursts into flame.

Oh, the joy of red tape!

Writing for Forbes, Clyde Wayne Crews also has commented on this inane and counter-productive regulation.

…when I first tried to use these new gas cans a few months after purchase I was shocked at their new spring-loaded, Mousetrap game style…spouts. …You need three hands to operate today’s gas can spouts. You’ll start each project spilling more gas than you get into the mower, motorcycle, car or whichever. In other words, you will create more vapor emissions than you ever would have otherwise. …No gas cans available for sale anymore have vents on the opposite top-side either, so when trying to pour you get a sloshing, heaving mess, burping gasoline eruptions leaking from the complex yet flimsy spout that easily breaks.

But Wayne very helpfully proposes a solution…assuming one is willing to incur a small risk.

…in order to harm the Earth less with a normal, non-polluting spout, I was wondering about workarounds for the inhumane, vapor-spewing trick spouts the environmentally unfriendly EPA forces you to buy to increase pollution. With a bit of searching, I found so-called EZ Pour “water” jugs. Note: You and I cannot use these alternatives to pour gasoline into vehicles or equipment, since that is an illegal non-EPA bureaucrat-approved hack, but they can be used to pour “liquid,” however.

The EPA can have our EZ Pour jugs when they pry them from our cold, dead, non-polluting fingers!

I had some fun in 2013 by pointing out that when they outlaw tanks, only outlaws will have tanks. Who could have predicted we’d be saying the same thing about well-functioning gas cans?

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Here are three things I’ve written about tax policy. See if you can detect a pattern:

  • I’ve written that I don’t want a value-added tax because the money would be used to finance bigger government.
  • I’ve also explained I don’t want a carbon tax because the revenue from such a levy would finance bigger government.
  • I’ve given thumbs down to financial transactions taxes as well because I don’t want to finance bigger government.

Just in case it’s not obvious, the common theme is that I don’t want to give politicians new sources of revenue that would be used to expand the burden of government spending.

Some of my technocrat friends get upset by these writings. They argue, often correctly, that some of these taxes are not as destructive as the current tax code.

My response is that they’re making an irrelevant argument. Politicians who advocate the above taxes are not proposing to eliminate the income tax and repeal the 16th Amendment. Instead, they simply want to levy a new tax without fully repealing the awful system that already exists.

And now there’s a new tax idea gaining steam.

The Task Force on Fiscal Policy for Health…will examine the evidence on excise tax policy for health, including barriers to implementation, and make recommendations on how countries can best leverage fiscal policies to yield improved health outcomes for their citizens with the added benefit of bringing in additional revenue.

For readers who aren’t familiar with DC bureaucrat-speak, “leverage fiscal policies” means higher taxes. More specifically, advocates want higher “sin taxes” on unhealthy food and drink.

This Task Force is being spearheaded by Larry Summers (yes, that Larry Summers) and Mike Bloomberg (yes, that Mike Bloomberg), so it’s no surprise that this pair of leftists view “additional revenue” as an “added benefit.”

While my focus is on the negative fiscal and economic consequences of higher taxes and more spending, it’s worth pointing out the moral and practical argument against sin taxes.

Bill Wirtz, in a column for CapX, warns that nanny-state policies treat people as infants.

2017 has seen yet another increase in lifestyle regulations and sin taxes… Historically, it was social conservatives pushing for this kind of meddling. …How different is today’s excruciatingly irritating public health lobby…? Food and non-alcoholic drinks are…under fire, and blamed for a range of health issues. France and Ireland are now cracking down on that scourge on society: fizzy drinks. Ireland introduced a new tax on sugary drinks, while France increased the tax created in 2012 under French president Nicolas Sarkozy. Such policies are highly regressive… When Denmark introduced its controversial tax on fatty foods, consumers simply switched to cheaper – but equally unhealthy – alternatives. The country’s diet did not improve. …We are adults and we sometimes make decisions for ourselves which are unhealthy. The answer is for us to moderate our consumption, not quasi-prohibition. It’s time to stop infantilising the…consumer.

Charles Hughes of the Manhattan Institute reviews what happened with a new sin tax on sweetened beverages in Seattle.

Seattle recently became the latest major city to enact a sweetened beverage tax. …customers are reeling from sticker shock. One local reporter found that the tax added $10.34 to a case of Gatorade, bringing the final price to more than $26.00. …One of the justifications for beverage taxes is that customers will respond to price changes by reducing consumption of taxed beverages. The mechanism here is straightforward: tax something to get less of it. If people were to substitute diet sodas or other, less-harmful beverages for sugared sodas, they would be healthier.

But will such a policy work?

Many people are likely to avoid the tax by traveling to other untaxed locations to purchase groceries. Costco tells its customers about locations outside the city that are not subject to the beverage tax. …so the tax will have limited success in its health-related goals while also harming local businesses and failing to generate revenue.

Yet the fact the tax will be a failure at generating revenue isn’t stopping the city was squandering the money.

…revenue has already been allocated to a smorgasbord of causes, ranging from $500,000 for displaced worker retraining, to more than $1 million in tax administration costs, to vouchers to purchase fruits and vegetables.

While I’m glad consumers are escaping the tax by buying beverages from outside the city’s borders, in an ideal world, they would react in a bolder fashion.

If nothing else, the pro-tax crowd has a very elastic definition of sin.

They even want to tax meat.

Move over, taxes on carbon and sugar: the global levy that may be next is meat. Some investors are betting governments around the world will find a way to start taxing meat production… Meat could encounter the same fate as tobacco, carbon and sugar, which are currently taxed in 180, 60, and 25 jurisdictions around the world, respectively, according to a report Monday from investor group the FAIRR (Farm Animal Investment Risk & Return) Initiative. Lawmakers in Denmark, Germany, China and Sweden have discussed creating livestock-related taxes in the past two years.

By the way, the supposed Conservative Party in the United Kingdom is pushing sin taxes to finance bigger government.

The sugar tax was announced by Chancellor Philip Hammond in his budget statement in 2017. He said the money raised as part of the levy would go to the Department for Education. The former Chancellor said the new levy would be put on drinks companies and they would be taxed according to how much sugar was in their beverages. Two categories of taxation are set to come into force. One on the total sugar content on drinks with more than 5g per 100ml and a higher levy for drinks with 8g per 100ml or more. …The new tax could whack up the cost of a 2 litre bottle of Coca-Cola (10.6g per 100ml) by as much as 48p.

The nanny-state crowd complains that this isn’t enough.

Health campaigners have said the fizzy drinks tax should be extended to cover all chocolate, sweets and other confectionery containing the highest levels of sugar. …Action on Sugar is urging a mandatory levy set at a minimum of 20 per cent on all confectionery products that contain high levels of sugar.

Politicians in other nations also are using this excuse to extract more money from the citizenry.

Other countries have introduced similar measures and have seen some success in reducing the drinking of fizzy drinks. Mexico introduced a 10 per cent tax on sugary drinks in 2014 and saw a 12 per cent reduction over the first year. Hungary brought in a tax on the drinks companies and saw a 40 per cent decrease in the amount of sugar in the products. Brits will be joining some of our European neighbours with the move with similar measures in place on drinks in France and Finland and the Norwegians chocolate tax.

Let’s sum this up. The case against sin taxes is based on two simple principles.

  1. Politicians want to seize more of our money in order to have greater ability to buy votes. Saying no to tax increases is a necessary (though sadly not sufficient) condition for good fiscal policy.
  2. Politicians want to tell us how to live our lives. But that’s not their job, even in cases where I agree with the underlying advice. Coerced good behavior is not a sign of virtue.

The bottom line is that some proponents of sin taxes presumably have their hearts in the right place. But they need their brains in a good place as well. If they want to be taken seriously, at the very least they should match their proposed sin taxes with permanent repeal of an existing tax of similar magnitude.

For example, offer to trade a sugar tax for repeal of the death tax. Or suggest a fat tax accompanied by elimination of the capital gains tax.

Until we see such offers, advocates of sin taxes should be met with unyielding opposition.

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When I write about regulation, I usually focus on big-picture issues involving economic costs, living standards, and competitiveness.

Those are very important concerns, but the average person in American probably gets more irked by rules that impact the quality of life.

That’s a grim list, but it’s time to augment it.

Jeffrey Tucker of the Foundation for Economic Education explains that the government also has made showering a less pleasant experience. He starts by expressing envy about Brazilian showers.

…was shocked with delight at the shower in Brazil. …step into the shower and you have a glorious capitalist experience. Hot water, really hot, pours down on you like a mighty and unending waterfall… At least the socialists in Brazil knew better than to destroy such an essential of civilized life.

I know what he’s talking about.

I’m in a hotel (not in Brazil), and my shower this morning was a tedious experience because the water flow was so anemic.

Why would a hotel not want customers to have an enjoyable and quick shower?

The answer is government.

…here we’ve forgotten. We have long lived with regulated showers, plugged up with a stopper imposed by government controls imposed in 1992. There was no public announcement. It just happened gradually. After a few years, you couldn’t buy a decent shower head. They called it a flow restrictor and said it would increase efficiency. By efficiency, the government means “doesn’t work as well as it used to.” …You can see the evidence of the bureaucrat in your shower if you pull off the showerhead and look inside. It has all this complicated stuff inside, whereas it should just be an open hole, you know, so the water could get through. The flow stopper is mandated by the federal government.

The problem isn’t just the water coming out of the showerhead. It’s the water coming into your home.

It’s not just about the showerhead. The water pressure in our homes and apartments has been gradually getting worse for two decades, thanks to EPA mandates on state and local governments. This has meant that even with a good showerhead, the shower is not as good as it might be. It also means that less water is running through our pipes, causing lines to clog and homes to stink just slightly like the sewer. This problem is much more difficult to fix, especially because plumbers are forbidden by law from hacking your water pressure.

So why are politicians and bureaucrats imposing these rules?

Ostensibly for purposes of conservation.

…what about the need to conserve water? Well, the Department of the Interior says that domestic water use, which includes even the water you use on your lawn and flower beds, constitutes a mere 2% of the total, so this unrelenting misery spread by government regulations makes hardly a dent in the whole. In any case, what is the point of some vague sense of “conserving” when the whole purpose of modern appliances and indoor plumbing is to improve our lives and sanitation? (Free societies have a method for knowing how much of something to use or not use; it is called the signaling system of prices.)

Jeffrey is right. If there really is a water shortage (as there sometimes is in parts of the country and world), then prices are the best way of encouraging conservation.

Now let’s dig in the archives of the Wall Street Journal for a 2010 column on the showerhead issue.

Apparently bureaucrats are irked that builders and consumers used multiple showerheads to boost the quality of their daily showers.

Regulators are going after some of the luxury shower fixtures that took off in the housing boom. Many have multiple nozzles, cost thousands of dollars and emit as many as 12 gallons of water a minute. In May, the DOE stunned the plumbing-products industry when it said it would adopt a strict definition of the term “showerhead”… A 1992 federal law says a showerhead can deliver no more than 2.5 gallons per minute at a flowing water pressure of 80 pounds per square inch. For years, the term “showerhead” in federal regulations was understood by many manufacturers to mean a device that directs water onto a bather. Each nozzle in a shower was considered separate and in compliance if it delivered no more than the 2.5-gallon maximum. But in May, the DOE said a “showerhead” may incorporate “one or more sprays, nozzles or openings.” Under the new interpretation, all nozzles would count as a single showerhead and be deemed noncompliant if, taken together, they exceed the 2.5 gallons-a-minute maximum.

And here’s something that’s both amusing and depressing.

The regulations are so crazy that an entrepreneur didn’t think they were real.

Altmans Products, a U.S. unit of Grupo Helvex of Mexico City, says it got a letter from the DOE in January and has stopped selling several popular models, including the Shower Rose, which delivers 12 gallons of water a minute. Pedro Mier, the firm’s vice president, says his customers “just like to feel they’re getting a lot of water.” Until getting the DOE letter, his firm didn’t know U.S. law limited showerhead water usage, Mr. Mier says. “At first, I thought it was a scam.”

Unsurprisingly, California is “leading” the way. Here are some passages from an article in the L.A. Times from almost two years ago.

The flow of water from shower heads and bathroom faucets in California will be sharply reduced under strict new limits approved Wednesday by the state Energy Commission. Current rules, established in 1994 at the federal level, allow a maximum flow of 2.5 gallons per minute from a shower head. Effective next July, the limit will fall to 2.0 gallons per minute and will be reduced again in July 2018, to 1.8 gallons, giving California the toughest standard of any U.S. state.

Though “toughest standard” is the wrong way to describe what’s happening. It’s actually the “worst shower” of any state.

P.S. I forget the quality of shower I experienced in South Korea, but I was very impressed (see postscript) by the toilet.

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What’s the right way to define good tax policy? There are several possible answers to that question, including the all-important observation that the goal should be to only collect the amount of revenue needed to finance the legitimate functions of government, and not one penny above that amount.

But what if we want a more targeted definition? A simple principle to shape our understanding of tax policy?

I’m partial to what I wrote last year.

the essential insight of supply-side economics…when you tax something, you get less of it.

I’m not claiming this is my idea, by the way. It’s been around for a long time.

Indeed, it’s rumored that Reagan shared a version of this wisdom.

I don’t know if the Gipper actually said those exact words, but his grasp of tax policy was very impressive. And the changes he made led to very good results, even if folks on the left still refuse to believe the IRS data showing that Reagan’s lower tax rates on the rich generated more revenue.

In any event, our friends on the nanny-state left actually understand this principle when it suits their purposes. They propose sugar taxes, soda taxes, carbon taxes, housing taxes, tanning taxes, tobacco taxes, and even “adult entertainment” taxes with the explicit goal of using the tax code to reduce the consumption of things they don’t like.

I don’t like the idea of government trying to dictate people do with their own money, but these so-called sin taxes generally are successful because supply-siders are right about taxes impacting incentives.

But that doesn’t mean it’s always popular when statist governments impose such policies. At least not in Belarus, according to a story from RFERL.

Protests over a new tax aimed at reducing social welfare spread beyond the Belarusian capital, as thousands took to the streets in Homel and other towns. Along with similar protests two days earlier in Minsk, the February 19 demonstrations were some of the largest in the country in years. In Homel, near the border with Russia, at least 1,000 people marched and chanted slogans against the measure, known as the “Law Against Social Parasites.”

But what are “social parasites” and what does the law do?

…the law…requires people who were employed fewer than 183 days in a calendar year to pay a tax of about $200. …The measure is aimed at combating what President Alyaksandr Lukashenka has called “social parasitism.”

For what it’s worth, the Washington Post reports that the government had to back down.

The protesters won. On Thursday, Lukashenko announced that he won’t enforce the measure this year, though he’s not scrapping it. “We will not collect this money for 2016 from those who were meant to pay it,” he told the state news agency Belta. Those who have already paid will get a rebate if they get a job this year. The law, signed into effect in 2015, is reminiscent of Soviet-era crackdowns against the jobless, who undermined the state’s portrayal of a “workers’ paradise.”

That’s good news.

If people can somehow survive without working (assuming they’re not mooching off taxpayers, which is something that should be discouraged), more power to them. It’s not the life I would want, but it’s not the role of government to tax them if they don’t work. Or if they simply choose to work 182 days per year.

Mr. Lukashenko should concentrate instead on taking the heavy foot of government off the neck of his people. According to the most-recent Index of Economic Freedom, Belarus is only ranked #104, with especially weak scores for “rule of law” and “open markets.”

If he turns his country into a Slavic version of Hong Kong, based on free markets and small government, people will be clamoring to work. But I’m not holding my breath expecting that to happen.

P.S. While government shouldn’t tax people for not working, it’s also a bad idea to subsidize them for not working. Indeed, there’s even a version of the Laffer Curve for poverty and redistribution.

P.P.S. Given the low freedom ranking for Belarus, I suspect the real parasites in that country (just like in the U.S.) are the various interest groups that are feeding from the government trough.

P.P.P.S. On an amusing note, here’s the satirical British video on killing the poor instead of taxing them.

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Over the years, I’ve run into oddball stories about what happens when politicians and bureaucrats get involved with matters relating to sex.

And here are two more examples. Government isn’t involved yet, but will be if statists get their way.

  • Leftists concocted a crazy theory that tax havens promote sex slavery.
  • And other leftists hypothesized that climate change promotes prostitution and AIDS.

Let’s add to our collection. We now have new evidence in favor of the Laffer Curve, thanks to Illinois politicians levying a tax on strip clubs.

Here are some excerpts from a story in the St. Louis Post-Dispatch.

…she and others…were expecting at least $1 million to be raised…the Live Adult Entertainment Facility Surcharge tax…went into effect Jan. 1, 2013, with the first monies collected in fiscal year 2014. For that fiscal year, the State Department of Revenue reported $405,996.62 in revenue; over the next two fiscal years, the amounts collected were a bit more — $501,334.85 for fiscal year 2015 and $532,271.46 for fiscal year 2016. The state’s newest ‘sin tax,’ which poses a tax on facilities that serve alcohol and that have live adult entertainment, includes topless, nude dancing and stripping. “They were expecting it to raise quite a bit of revenue,” McClanahan said of the tax on strip-club type facilities… “We anticipated it would be a greater number of clubs that would be paying and we would have anticipated about a million in revenue,” Poskin said. “So I don’t know if that if the tax that they’re paying is accurate and consistent with their gross receipts.”

The bottom line (no pun intended) is that politicians collected about half as much money as originally projected.

It’s unclear, to be sure, why the revenues didn’t materialize.

The clubs are probably engaging in a bit of avoidance and evasion, which is quite common in all areas of the economy when tax burdens increase.

And the clubs presumably are suffering from a loss of business because of the tax, which also is a common effect of higher tax burdens in all sectors of the economy.

Which gives me an excuse to make a broader point about the economy-wide implication of higher tax burdens.

Scott Sumner compares output in the U.S. and the four biggest European nations (Germany, U.K., France, and Italy), observes that per-capita tax collections in the U.S. are almost as high as they are in these other countries with far higher tax burdens, and has some must-read analysis about the very high economic cost of getting additional tax revenue.

…tax rates in the US are about 31% lower than in Europe, so there is a lot of scope for tax increases in the US. But how much revenue would those higher taxes actually collect—in the long run? This data suggests not very much. …we are in a region where disincentive effects are kicking in. GDP per person in these four countries is about 25.5% lower than in the US (PPP), so they only raise about 7.5% more revenue that we do, despite far higher tax rates. …The mistake that progressives make is to see the huge US GDP as a sort of piggy bank from which money can be raised for any policy objectives, without killing the goose that lays the golden eggs. …it’s clear that progressivism can never succeed in America. The only question is how badly it will fail.

Looking at all this data, the one important question that must be asked is how anyone could possibly think that it’s a good idea to sacrifice 25.5 percent of our income in order to give politicians 7.5 percent more tax revenue.

By the way, for those who think Scott’s conclusions are somehow illegitimate because they’re based on back-of-the-envelope calculations, check out the very detailed and rigorous analysis from the European Central Bank that found an even larger negative relationship between tax revenue and foregone economic output.

In other words, there is a Laffer Curve. When tax burdens climb, taxable income falls. Which is just another way of stating that the cost of higher taxes isn’t just that politicians take our money. They also impose lots of damage on the economy, which means we suffer from lower earnings.

So it’s a double-whammy. They tax more, we earn less.

P.S. While I don’t want politicians involved with sex, I must confess that there’s also some compelling evidence that people don’t want economists involved with sex.

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