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According to bureaucrats at the Paris-based Organization for Economic Cooperation and Development, so-called tax havens are terrible and should be shut down. Their position is grossly hypocritical since they get tax-free salaries while pushing for higher taxes on everyone else, but not very surprising since the OECD’s membership is dominated by increasingly uncompetitive European welfare states.

Many economists, by contrast, view tax havens favorably since they discourage politicians from over-taxing and over-spending (thus protecting nations from “goldfish government“).

I agree with this economic argument for tax havens, but I also think there’s a very strong moral argument for these jurisdictions since there are so many evil and incompetent governments in the world.

But I don’t want to rehash the argument about the desirability of tax havens in this column. Instead, we’re going to focus on a nation that is becoming the world’s premier “offshore” center.

But it’s not a Caribbean island or a micro-state in Europe.

Instead, as noted in a recent Bloomberg editorial, the United States is now the magnet for global investment.

…the U.S. is becoming one of the world’s best places to hide money from the tax collector. …Congress rejected the Obama administration’s repeated requests to make the necessary changes to the tax code. As a result, the Treasury cannot compel U.S. banks to reveal information such as account balances and names of beneficial owners. The U.S. has also failed to adopt the so-called Common Reporting Standard, a global agreement under which more than 100 countries will automatically provide each other with even more data than FATCA requires. …the U.S. is rapidly becoming the new Switzerland. Financial institutions catering to the global elite, such as Rothschild & Co. and Trident Trust Co., have moved accounts from offshore havens to Nevada, Wyoming and South Dakota. New York lawyers are actively marketing the country as a place to park assets. …From a certain perspective, all this might look pretty smart: Shut down foreign tax havens and then steal their business.

The Economist also identified the U.S. as a haven.

America seems not to feel bound by the global rules being crafted as a result of its own war on tax-dodging. It is also failing to tackle the anonymous shell companies often used to hide money. …All this adds up to “another example of how the US has elevated exceptionalism to a constitutional principle,” says Richard Hay of Stikeman Elliott, a law firm. …America sees no need to join the CRS. …reciprocation is patchy. It passes on names and interest earned, but not account balances; it does not look through the corporate structures that own many bank accounts to reveal the true “beneficial” owner; and data are only shared with countries that meet a host of privacy and technical standards. That excludes many non-European countries. …The Treasury wants more data-swapping and corporate transparency, and has made several proposals to bring America up to the level of the CRS. But most need congressional approval, and politicians are in no rush to enact them. …Meanwhile business lobbyists and states with lots of registered firms, led by Delaware, have long stymied proposed federal legislation that would require more openness in corporate ownership. (Incorporation is a state matter, not a federal one.) …America is much safer for legally earned wealth that is evading taxes… It has shown little appetite for helping enforce foreign tax laws.

And here are some passages from a recent column in Forbes.

…foreign financial institutions are required to report the identities and assets of United States taxpayers to the IRS. Meanwhile, U.S. financial institutions cannot be compelled to reveal the same information to foreign countries. Additionally, the United States has not adopted the Common Reporting Standard. …So, the United States government obtains tax and wealth information from other countries, but fails to share information about what occurs in the U.S. with those other counties. …the U.S. is among the top five best countries for setting up anonymous shell companies. Tax havens deliver a set of benefits including secrecy, potential tax minimization, and the ability of the wealthy to access their monies from anywhere in the world. For a substantial percentage of the global super-rich, the United States is regularly unmatched.

Here’s some of what was reported by the U.K.-based Financial Times.

South Dakota is best known for its vast stretches of flat land and the Mount Rushmore monument… Yet despite its small town feel, Sioux Falls has become a magnet for the ultra-wealthy who set up trusts to protect their fortunes from taxes… Assets held in South Dakotan trusts have grown from $32.8bn in 2006 to more than $226bn in 2014, according to the state’s division of banking. The number of trust companies has jumped from 20 in 2006 to 86 this year. The state’s role as a prairie tax haven has gained unwanted attention… The Boston Consulting Group estimates that there is $800bn of offshore wealth in the US, nearly half of which comes from Latin America. …Bruce Zagaris, a Washington-based lawyer at Berliner, Corcoran & Rowe, says the US offshore industry is even bigger than people realise. “I think the US is already the world’s largest offshore centre. It has done a real good job disabling competition from Swiss banks.”

If this sounds like the United States is hypocritical, that’s a very fair accusation.

Indeed, it was the topic of an entire panel at an Offshore Alert conference. If you have a lot of interest in this topic, here’s the video.

This is an odd issue where I agree with statists (though only with regard to which jurisdictions are “havens”). For instance, the hard-left Tax Justice Network has calculated that the United States is not the biggest offshore jurisdiction. But America is close to the top.

In the TJN’s most-recent Financial Secrecy Index, the United States ranks #2. They think that’s a bad thing (indeed, one of their top people actually asserted that all income belongs to the government), but I’m happy we’ve risen in the rankings.

TJN also has specific details about U.S. law and I think they’ve put together a reasonably accurate summary.

The bottom line is that America is a haven, though it’s probably worth noting that we’ve risen in the rankings mostly because other nations have been coerced into weakening their human rights laws on financial privacy, not because the United States has improved.

At the risk of pointing out the obvious, TJN and I part ways on whether it’s good for the United States to be a tax haven.

I already explained at the start of this column why I like tax havens and tax competition. Simply stated, it’s good for taxpayers and the global economy when governments are forced to compete.

But there’s also a good-for-America argument. Here’s the data from the Commerce Department’s Bureau of Economic Analysis on indirect investment in the U.S. economy. As you can see, cross-border flows of passive investment have skyrocketed. It’s unknown how much of this increase is due to overall globalization and how much is the result of America’s favorable tax and privacy rules for foreigners.

But there’s no question the U.S. economy benefits enormously from foreigners choosing to invest in America.

All of which helps to explain why it would be a big mistake for the United States to ratify the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Unless, of course, one thinks it would be good to undermine American competitiveness by creating a global tax cartel to enable bigger government.

P.S. The OECD doesn’t like me, but I don’t like them either.

P.P.S. The TJN folks and OECD bureaucrats claim that their goal is to reduce tax evasion. My response is that a global tax cartel is a destructive way of achieving that goal. There’s a much better option available.

P.P.P.S. Rand Paul is one of the few heroes on this issue.

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The United Nations has proposed a set of “sustainable development goals.” Most of them seem unobjectionable. After all, presumably everyone wants things such as less poverty, a cleaner environment, better education, and more growth, right?

That being said, I’m instinctively skeptical about the goal of “climate action” because of the U.N.’s past support for statist policies in that area.

And I also wonder why the bureaucrats picked “reduced inequalities” when “upward mobility for the poor” is a much better goal.

While I am tempted to nit-pick about some of the other goals as well, I’m actually more worried about how the U.N. thinks the goals should be achieved.

I participated in a U.N. conference in early April and almost every bureaucrat and government representative asserted that higher tax burdens were necessary to achieve the goals. It truly was a triumph of ideology over evidence.

And some of the cheerleaders for this initiative have a very extreme view on these issues. Consider a new report, issued by Germany’s Bertelsmann Stiftung and the U.N.’s Sustainable Development Solutions Network, that ranks nations based on how successful they are at achieving the sustainable development goals. Jeffrey Sachs was the lead author, so perhaps we shouldn’t be too surprised to discover that there are some very odd results.

Bernie Sanders will be naively happy since the Nordic nations dominate the top of the rankings. The United States is #42, by contrast, sandwiched between Argentina and Armenia. Moreover, the United States is behind countries such as Hungary, Belarus, Portugal, Moldova, Greece, and Ukraine, which seems strange because Americans enjoy significantly higher levels of consumption – even when compared to other rich jurisdictions.

But the most absurd feature – at least for anyone with the slightest familiarity with international economic data – is that Cuba (circled in green) is ranked considerably above the United States (circled in red).

This is a jaw-droppingly stupid assertion. Cuba is a staggeringly impoverished nation thanks to an oppressive communist dictatorship.

So how can Sachs and his colleagues produce a report putting that country well above a rich nation like the United States?

Let’s look at some of the data. Here’s the summary of Cuba from the report. Pay particular attention to the circle on the right. If the blue bars extend to the outer edge, that means the country supposedly is doing a very good job achieving a goal, whereas a small blue bar indicates poor performance.

And here is the same information for the United States.

It appears that Cuba does much better for poverty (#1), responsible consumption (#12), climate action (#13), life on land (#15), and partnership (#17), while the United States while the United State does much better for industry, innovation, and infrastructure (#9).

But here’s an easier and more precise way of comparing the two nations. All you need to know is that green is the best, yellow is second best, followed by burnt orange, and red is the worst.

Cuba wins in nine categories and the United States is ranked higher in three categories.

Now here’s why most of these rankings are total nonsense. If you go to page 51 of the report, you’ll see the actual variables that are used to produce the scores for the 17 U.N. goals.

And what do you find? Well, here are some things that caught my eye.

  • For the first goal of “no poverty,” the report includes a measure of income distribution rather than poverty. This is same dodgy approach that’s been used by the Obama Administration and the OECD, and because almost everyone is Cuba is equally poor, that means it scores much higher than the United States, where everyone is richer, but with varying degrees of wealth. I’m not joking.
  • For the second goal of “zero hunger,” I can’t figure out how they concocted a higher score for Cuba. After all, there’s pervasive food rationing in that hellhole of an island. My best guess is that the United States gets downgraded because the category includes an obesity variable. Having a lot of overweight people may not be a good feature of America, but is it rude for me to point out that a large number of heavy people is the opposite of hunger?
  • Jumping ahead to the fifth goal of “gender equality,” I assume the United States gets a bad score because of the variable for the gender wage gap, even though women in America earn far higher incomes than their unfortunate and impoverished counterparts in Cuba.
  • Regarding the eighth goal of “decent work and economic growth,” it’s not clear how Sachs and his colleagues gave Cuba the best possible score. But I know the final result is preposterous given that the Cuban people are suffering from crippling material deprivation.
  • For the twelfth (“responsible consumption and production”) and thirteenth (“climate action”) goals, it appears that the United States gets a lower score because rich nations consume more energy than poor nations. If this is why Cuba beats the USA (just as they “scored higher” in the so-called Happy Planet Index), then I’m glad America loses that contest.
  • Last but not least, I can’t resist commenting on Cuba getting the best score and the U.S. getting worst score for “partnerships,” which is the seventeenth goal. If you read the fine print, it turns out that nations get better grades if their tax burdens are higher. And countries like the United States get downgraded because they are tax havens and/or they respect financial privacy.

The main takeaway is that Sachs and his colleagues produced a shoddy report based on statist ideology and – in many cases – on dodgy methodology.

Anyone who ranks Cuba above the United States when trying to measure quality of life should be treated like a laughingstock.

The report also ranks the ultra-rich and very successful nation of Singapore at #61, below poor countries such as Uzbekistan and Mexico. Are these people smoking crack? That’s even more absurd than the OECD’s report on Asian taxes, which basically pretended Singapore didn’t exist.

Heck the report also has dysfunctional Venezuela ahead of Panama, even though tens of thousands of Venezuelans have fled to Panama to escape their poorly governed nation. But I guess real-world evidence doesn’t matter to people trying to promote statism.

P.S. I got to tangle with Jeffrey Sachs at a United Nations conference on the state of the world economy back in 2012. Nothing has changed.

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One of the more surreal aspects of the 2016 campaign was watching Bernie Sanders argue that the United States should become more like a European welfare state.

Was he not aware that Europe had major problems such as high unemployment and a fiscal crisis?

Didn’t he know that America’s economy was growing faster (which is a damning indictment since growth in the U.S. was relatively anemic during the Obama years)?

Perhaps more important, didn’t he know that Americans enjoy much higher living standards than their European counterparts? Was he not aware that European nations, if they were part of America, would be considered poor states?

If you don’t believe me, here’s a chart I prepared using the “average individual consumption” data from the Organization for Economic Cooperation and Development. These are the numbers that measure the material well-being of households. As you can see, the United States is far ahead of other nations. Indeed, the only three countries that are even close are two admirable tax havens and oil-rich Norway.

What about Denmark and Sweden, the two nations that Bernie Sanders said were role models? Well, the United States could copy them, but only if we wanted our living standards to drop by more than 30 percent.

By the way, since the OECD is a left-leaning bureaucracy that is guilty of periodically rigging numbers against the United States, you can be confident that this AIC data isn’t structured to favor America.

So why does the United States have such a big advantage?

In a new study from the National Bureau of Economic Research, Professor Martin Feldstein addresses why Europe is lagging the United States.

Although the official statistics imply that the rate of growth of real GDP in the United States has declined in recent years, it has still been substantially higher than the real growth rates in Europe and the other industrial countries. The sustained higher rate of real GDP growth in the United States over a longer period of time has resulted in a substantially higher level of real GDP per capita in the United States than in other major industrial countries.

He lists 10 reasons for the growth gap. Here are the ones that are related to public policy, followed by my brief observations.

(4) Labor markets that generally link workers and jobs unimpeded by large trade unions, state-owned enterprises, or excessively restrictive labor regulations. In the private sector, less than seven percent of the labor force is unionized. There are virtually no state-owned enterprises. While labor laws and regulations affect working conditions and hiring rules, they are much less onerous than in Europe.

Given America’s high ranking in the World Bank’s Doing Business, this makes sense.

(6) A culture and a tax-transfer system that encourages hard work and long hours. The average employee in the United States works 1800 hours per year, substantially longer than the 1500 hours worked in France and the 1400 hours worked in Germany.

The U.S. subsidizes leisure, but not nearly as bad as Europe (think of Lazy Robert).

(7) A supply of energy that makes North America energy independent. The private ownership of land and mineral rights has facilitated a rapid development of fracking to expand the supply of oil and gas.

Apparently the United States is one of the few nations where you own minerals under your land. Good for us.

(8) A favorable regulatory environment. Although the system of government regulations needs improvement, it is less burdensome on businesses than the regulations imposed by European countries and the European Union.

Given the data from Economic Freedom of the World, I’m not sure I believe this.

(9) A smaller size of government than in other industrial countries. According to the OECD, outlays of the U.S. government at the federal, state and local levels totaled 38 percent of GDP while the corresponding figure was 44 percent in Germany, 51 percent in Italy and 57 percent in France. The higher level of government spending in other countries implies that not only is a higher share of income taken in taxes but also that there are higher transfer payments that reduce incentives to work. In the United States, …There is no value added tax. State income taxes vary but are generally about five percent… So Americans have a higher pre-tax reward to working and can keep a larger share of their earnings.

A smaller burden of government spending may be America’s biggest advantage. And that’s connected with our other big advantage, which is not being burdened by a government-fueling value-added tax.

(10) The U.S. has a decentralized political system in which states compete. The competition among states encourages entrepreneurship and work effort and the legal systems protect the rights of property owners and entrepreneurs. The United States political system assigns many legal rules and taxing power to the fifty individual states. The states then compete for businesses and for individual residents by their legal rules and tax regimes. Some states have no income taxes and have labor laws that limit unionization.

We still have some federalism, and that helps.

Overall, Feldstein’s list is impressive, though it fails to note that there are areas where Europe has better policy, such as lower corporate tax rates, lower death taxes, private postal services, and private infrastructure. There are even European nations with school choice and private retirement accounts.

Notwithstanding these attractive features, Feldstein is right about more economic liberty in the United States. And that helps to explain higher living standards in America.

What makes this especially noteworthy is that convergence theory says that poorer nations should automatically catch up to richer nations. Yet Europe’s catch-up period came to halt in the 1980s and the continent has since been losing ground.

And for fans of apples-to-apples comparisons, it’s very illuminating that Americans of Scandinavian descent earn about 40 percent more than those who didn’t emigrate and still live in Scandinavia.

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Back in 2009, I shared the results of a very helpful study by Pierre Bessard of Switzerland’s Liberal Institute (by the way, “liberal” in Europe means pro-market or “classical liberal“).

Pierre ranked the then-30 member nations of the Organization for Economic Cooperation and Development based on their tax burdens, their quality of governance, and their protection of financial privacy.

Switzerland was the top-ranked nation, followed by Luxembourg, Austria, and Canada.

Italy and Turkey were tied for last place, followed by Poland, Mexico, and Germany.

The United States, I’m ashamed to say, was in the bottom half. Our tax burden was (and still is) generally lower than Europe, but there’s nothing special about our quality of governance compared to other developed nations, and we definitely don’t allow privacy for our citizens (though we’re a good haven for foreigners).

Pierre’s publication was so helpful that I’ve asked him several times to release an updated version.

I don’t know if it’s because of my nagging, but the good news is that he’s in the final stages of putting together a new Tax Oppression Index. He just presented his findings at a conference in Panama.

But before divulging the new rankings, I want to share this slide from Pierre’s presentation. He correctly observes that the OECD’s statist agenda against tax competition is contrary to academic research in general, and also contrary to the Paris-based bureaucracy’s own research!

Yet the political hacks who run the OECD are pushing bad policies because Europe’s uncompetitive governments want to prop up their decrepit welfare states. And what’s especially irksome is that the bureaucrats at the OECD get tax-free salaries while pushing for higher fiscal burdens elsewhere in the world.

But I’m digressing. Let’s look at Pierre’s new rankings.

As you can see, Switzerland is still at the top, though now it’s tied with Canada. Estonia (which wasn’t part of the OECD back in 2009) is in third place, and New Zealand and Sweden also get very high scores.

At the very bottom, with the most oppressive tax systems, are Greece and Mexico (gee, what a surprise), followed by Israel and Turkey.

The good news, relatively speaking, is that the United States is tied with several other nations for 11th place with a score of 3.5.

So instead of being in the bottom half, as was the case with the 2009 Tax Oppression Index, the U.S. is now in the top half.

But that’s not because we’ve improved policy. It’s more because the OECD advocates of statism have been successful in destroying financial privacy in other nations. Even Switzerland’s human rights laws on privacy no longer protect foreign investors.

As such, Pierre’s new index basically removes financial privacy as a variable and augments the quality of governance variable with additional data about property rights and the rule of law.

P.S. When measuring the tax burden, the reason that America ranks above most European nations is not because they impose heavier taxes on rich people and businesses (indeed, the U.S. has a much higher corporate tax rate). Instead, we rank above Europe because they impose very heavy taxes on poor and middle-income taxpayers (mostly because of the value-added tax, which helps to explain why I am so unalterably opposed to that destructive levy).

P.P.S. Also in 2009, Pierre Bessard authored a great defense of tax havens for the New York Times.

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The Index of Economic Freedom is my favorite annual publication from the Heritage Foundation. It’s a rich source of information, using dozens of data sources, about economic liberty around the world.

I first wrote about the Index back in 2010 and shared the bad news that the U.S. score dropped dramatically in Obama’s first year.

Well, the new Index lets us see the net effect of Obama’s entire tenure. The worse news is that the U.S. score has dropped to 75.1 on a 0-100 scale. And the worst news is that this represents America’s lowest score in the twenty-plus years that the Index has been published.

The United States is ranked #17 in the latest Index. We’re only in the “Mostly Free” category, behind Luxembourg and the Netherlands and tied with Denmark.

The top-ranked jurisdiction, once again, is Hong Kong. And what’s really amazing is that Hong Kong actually increased it score. Indeed, all five nations in the “Free” category managed to increase overall economic freedom.

So congratulations also to Singapore, New Zealand, Switzerland, and Australia.

Here’s a map showing the entire world. The worst nations are in red, with North Korea at the very bottom, followed by Venezuela and Cuba.

By the way, Cuba jumped 4.1 points last year, so maybe Fidel’s death is the beginning of some much-needed liberalization.

For more information on the United States, here’s the breakdown of America’s score. As you can see, our worst category is “government size.” In other words, we tax too much and spend too much.

America’s best score is for “regulatory efficiency,” which helps to explain why the U.S. gets a top-10 score from the World Bank’s Doing Business.

Let’s close by comparing the United States with Hong Kong. This charts shows how our scores have changes over time, and also shows the average score for the entire world.

The biggest takeaway is that the U.S. basically is halfway between Hong Kong and the world average.

The great unknown, of course, is whether America’s score will go up or down under Trump.

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Most folks in Washington are still digesting last night’s debate between Tweedledee and Tweedledum. If that’s what you care about, you can see my Twitter commentary, though I was so busy addressing specific issues that I failed to mention the most disturbing part of that event, which was the total absence of any discussion about the importance of liberty, freedom, and the Constitution.

But let’s set aside the distasteful world of politics and contemplate U.S. competitiveness. Specifically, let’s examine America’s position in the latest edition of the World Economic Forum’s Global Competitiveness Report. This Report is partly a measure of policy (sort of like Economic Freedom of the World) and partly a measure of business efficiency and acumen.

The bad news is that we used to be ranked #1 and now we’re #3.

The good news is that being #3 is still pretty good, and it’s hard to beat Switzerland and Singapore because they have such good free-market policies. And that’s where America falls short.

Indeed, if you look at the top-10 nations and the three major measurements, you’ll notice that the United States ranks extremely high in “efficiency enhancers” and “innovation and sophistication factors,” both of which have a lot to do with the private sector’s competitiveness. But we have a mediocre (at least for developed nations) score for “basic requirements,” the area where government policy plays a big role.

Moreover, if you look at the the biggest obstacles to economic activity in the United States, the top 4 deal with bad government policy.

The tax treatment of companies is easily the main problem, as you might expect since we rank #94 out of 100 nations in a study of business tax policy.

Let’s now look at the indices where the United States scored especially low out of the 138 nations that were ranked.

America’s lowest scores were for exports (#130) and imports (#134), though I take issue with the Report‘s methodology, which is based on trade flows as a share of GDP. The problem with that approach is that the United States has a huge internal market, equal to about 22 percent of the world’s economic output. That’s why our trade flows aren’t very large relative to GDP. Being surrounded by two major oceans also probably has some dampening effect on cross-border trade flows. Yes, America is guilty of some protectionism, but I think our ranking for trade tariffs (#33) is the more appropriate and accurate measure of the degree to which there is a problem.

America also got a very bad score (#128) for government debt, though at least we beat Italy (#135), Greece (#137), and Japan (#138). In case you’re wondering, Hong Kong was #1, as you might expect from a well-run jurisdiction with small government and a flat tax.  Though I must say that it is rather disappointing that the Report doesn’t include rankings for the overall burden of government spending. After all, government debt is basically a symptom of an underlying problem of a bloated public sector.

And there also was a very low score for the business cost of terrorism (#104), which is probably an unavoidable consequence of being the world’s leading superpower (and therefore a target for crazies). That being said, I imagine America’s score could be improved if we weren’t engaging in needless intervention – and thus generating needless animosity – in places such as Syria and Libya.

Here are two indices that deserve special attention. As you can see the United States gets a poor score for wasteful spending and a terrible score for the punitive taxation of profits.

With this information in mind, let’s now remind ourselves about last night’s debate. Did either candidate propose to control spending and reduce pork-barrel programs? Nope.

Did either candidate put forth a realistic plan to lower the corporate tax rate? Hillary’s plan certainly doesn’t qualify since she wants a bunch of class-warfare tax hikes. And while Trump’s plan includes a lower corporate rate, it’s not a serious proposal since he is too timid to put forth a plan to restrain government outlays.

And since neither candidate intends to address America’s looming fiscal crisis, it will probably be just a matter of time before America drops in the rankings.

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Exactly five years, I created a Declaration of Dependence for my statist readers.

It was supposed to be satire, but after looking at some new estimates of dependency, I now wonder whether I accidentally foretold America’s future.

Anyhow, here’s how my attempt to be funny began.

We hold these truths to be self-evident, that all people should be made equal, that they are endowed by their government with certain unalienable Rights, that among these are jobs, healthcare and housing.–That to secure these rights, Governments must rule over the people, deriving their just powers from the consent of the elite.

While I like to think I came up with a few clever lines, it’s hard to laugh when you think about what’s happened ever since America’s real Declaration of Independence.

Here’s what the Tax Foundation tells us about the evolution of taxation.

Since our country’s founding, we have witnessed…federal revenues taking up less than 5 percent of our economy to more than 20 percent. …Taxation in the United States in 1776 was incredibly different than what it is today. There were no income taxes, no corporate taxes, and no payroll taxes.

Instead, the government relied on a relatively modest set of tariffs and excise taxes.

…taxes primarily existed on imports of goods and services to the colonies, as well as on the sale of particular products. What sort of items were these tariffs imposed on? Primarily, they were levied on ships on a per-tonnage basis, slaves, tobacco, and alcoholic beverages. In all, the average tariff worked out to about 10 percent of the value of imports.

Amazingly, this very modest form of taxation lasted for more than 100 years. It wasn’t until that wretched day when the 16th Amendment was approved that the stage was set for the oppressive tax system that now exists.

By the way, when there was no income tax, there also was very little government spending.

For much of our nation’s history, federal outlays consumed less than 3 percent of economic output. The burden of Washington spending today, by contrast, amounts to more than 20 percent of GDP. And I hate to even think about the long-run projections since I become suicidal.

Oh, and let’s not forget the regulatory burden. We’ve gone from a system that had virtually no red tape to a nation that is now suffocating from a blizzard of bureaucratic edicts.

All of which makes today more costly, as the Washington Examiner reports.

Hundreds of federal regulations on beer, fireworks, hamburgers and even corn-on-the-cob cost families an additional $40, according to a new report on the July 4th tax. American Action Forum regulatory policy director Sam Batkins researched the regulations on the holiday treats to determine the costs. And they are huge.

Here’s the infographic he created.

Red tape adding $40 to our costs today? That will leave a bad taste in your mouth.

Let’s close on an upbeat and inspirational note by reading Professor Randy Barnett on the drafting of the Declaration of Independence.

The Committee of Five consisted of the senior Pennsylvanian Benjamin Franklin, Roger Sherman of Connecticut, New York’s Robert Livingston, the Massachusetts stalwart champion of independence John Adams, and a rather quiet thirty-three year old Virginian named Thomas Jefferson. After a series of meetings to decide on the outline of the declaration, the committee assigned Jefferson to write the first draft. …Jefferson did not have three leisurely weeks to write. He had merely a few days. Needing to work fast, Jefferson had to borrow, and he had two sources in front of him from which to crib. The first was his draft preamble for the Virginia constitution that contained a list of grievances, which was strikingly similar to the first group of charges against the King that ended up on the Declaration. The second was a preliminary version of the Virginia Declaration of Rights that had been drafted by George Mason in his room at the Raleigh Tavern in Williamsburg where the provincial convention was being held. …Mason’s May 27th draft proved handy indeed in composing the Declaration’s famous preamble. Its first two articles present two fundamental ideas that lie at the core of a Republican Constitution. The first idea is that first come rights, and then comes government.

To be sure, the Founders’ view of rights was grossly imperfect. Blacks and Indians were grossly mistreated and women were not full citizens.

But by the standards that existed then, the America’s Founders did a remarkable job of curtailing the power of the state and enhancing the rights of individuals.

The good news is that there have been some significant expansions of liberty ever since the Declaration of Independence. A bloody war was fought in part to end the scourge of slavery. The toxic combination of racism and statism embodied by the Jim Crow laws has been abolished. And women now have full political and economic rights.

The bad news is that there also have been significant contractions of liberty in the economic sphere. It started with the so-called Progressive Era, particularly the disastrous tenure of Woodrow Wilson. It then accelerated during FDR’s economy-stifling New Deal. Government’s size and power further expanded during the grim LBJ-Nixon years. And, more recently, we witnessed the debacle of a Supreme Court ruling that the very limited enumerated powers in the Constitution somehow give the federal government the right to coerce individuals to buy products from private companies.

Notwithstanding all this bad news, I’m not quite ready to pack my bags for Australia.

The United States was the only nation founded on a set of philosophical principles and I’m very patriotic – in the proper sense of the word – about being an American.

I hope all American readers enjoy Independence Day. And in the spirit of the Founding Fathers, break a few rules. Dodge a tax, set off some illegal fireworks, and drive over the speed limit!

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