I had lunch with a left-of-center colleague of mine the other day. Very smart attorney who also happens to be very misguided politically. Her biggest hang-up currently is the war in Iraq. I did concede to her that, despite my support of the war initially and my continuing belief that the long-term consequences of the action there will prove to be decidedly positive, I can understand why many people are so firmly against it. It is a debatable issue to me, one where the other side often has very convincing points, even to a conservative. Same goes for the death penalty and gay marriage.
Economics, unfortunately, is not debatable. And why liberals choose to ignore the most wonderful case studies in the failure of socialism, I'm not quite sure. My friend's response to the failure of western European socialism as a governing model was that such places had too much 'greed' to sustain the system. If you mean 'greedy with your effort and productivity' then yes, I suppose you could call 'greed' the weakness of western European socialism, where 35 hour workweeks and afternoon naps are the norm. And yes, greed for power and short-term tax revenue might be what led the geniuses in Lansing, Michigan to increase taxes and regulations on a state that is hemorrhaging jobs.
Liberals also shudder at the fact that capitalism has lifted more people across this earth out of poverty than all of the other forms of government put together. They cannot explain, through the prism of big government, the prosperity of America’s poor when matched against the rest of the world. It’s no comparison. This research from the Heritage Foundation is excellent reading material.
Sure there is poverty in America. But the relevant questions from there are:
How do we deal with it? What should the role of government be? Is there any evidence from the past as to what type of governmental role is best for reducing poverty? Larry Kudlow knows . It should be a little telling to liberals about their position on economics that conservatives don't even have to argue the tried and true points about personal responsibility, we're now able to argue on their turf by pointing out that capitalism is even beneficial to the least responsible among us, not to mention the truly poor and helpless, in the form of low, competitive prices, jobs, and the astronomical levels of charity like that found in the United States. We don't have to concede the idea that heavy-governmental control may be better for the poor and move on to other arguments... because it's not.
I think the thing that worries them most about the fact that capitalism and freedom do such a wonderful job of reducing poverty is that it happens by accident. It happens without some government official going to a committee and grandstanding about all of their wonderful intentions. And it’s intentions, not results, that are most important to a liberal, folks. So if an evil corporation comes to town and creates 6,000 jobs, liberals can’t get over the fact that they’re making a profit at the same time. It’s a non-starter for them.
Like I said, she’s a brilliant friend… and because she’s a friend, I’m going to buy her this present for her birthday .
Monday, February 18, 2008
Monday, February 4, 2008
Second Christmas
One of the perversions that results from our current income tax (and the magic of withholding) is that which occurs around this time every year. It's subliminal, but it's there. It's the subconscious association that people have with their tax refunds... and the depressing notion that practically no one can tell you how much federal income tax they paid in 2007. Only how much they got back. And what they bought with what they got back. See where I'm going?
Most people will use a portion of a large refund to pay down some debt, but most will also treat the one-time windfall as an opportunity to treat themselves to something nice. A new depthfinder for the boat. A new patio set. New countertops. Although I have no studies to point to that would substantiate this, is it possible that, at least subconsciously, American taxpayers have come to associate tax season with goodies? Do most American's view the US Income Tax withholding system as a February ATM?
If not, then at a minimum the magic of withholding is so painful to observe as a conservative. Where the true cost of government is masked to the taxpayer by the US Treasury before they even see their money.
If so, what a shame. What a shame that Americans have come to view, in a favorable light, the fact that the US government has spooked them into keeping a $4,000 savings account that pays 0% interest, and can't be withdrawn until February of the next year. Keep your own savings account, folks. Citibank and CapitalOne have Online Accounts that pay close to 3.5-4%. Have some money direct deposited there and "withhold" from yourself. Use it to pay your tax in February if you need it.
The only problem with that is the other infuriating thing. That Congress has made the withholding and general income tax rules in general so difficult to understand that most people just say 'screw it' and play it safe. And it's really hard to blame them. No one wants to get in between Chuck Grassley and his ethanol subsidies or Hillary Clinton and her Woodstock Museum. But your accountant could certainly help you. My goal every year is to have my federal payment offset my state refund.
I'd rather the state hold my money interest free because they actually have to balance their budget and can't just print money and inflate away our purchasing power.
Folks, pay attention to one of the most expensive part of your lives. Go look at boring, old line 44 on your most recent income tax return (Form 1040) and ask yourself if you have paid enough attention to how that money (and your kids money) is being spent. If you have looked at it already this year, then you could automatically rule out half of the presidential field that thinks that you're not paying enough. And you'd probably like how tough on spending McCain has been at times, but still a little nervous about his vote against the Bush tax cuts.
Most people will use a portion of a large refund to pay down some debt, but most will also treat the one-time windfall as an opportunity to treat themselves to something nice. A new depthfinder for the boat. A new patio set. New countertops. Although I have no studies to point to that would substantiate this, is it possible that, at least subconsciously, American taxpayers have come to associate tax season with goodies? Do most American's view the US Income Tax withholding system as a February ATM?
If not, then at a minimum the magic of withholding is so painful to observe as a conservative. Where the true cost of government is masked to the taxpayer by the US Treasury before they even see their money.
If so, what a shame. What a shame that Americans have come to view, in a favorable light, the fact that the US government has spooked them into keeping a $4,000 savings account that pays 0% interest, and can't be withdrawn until February of the next year. Keep your own savings account, folks. Citibank and CapitalOne have Online Accounts that pay close to 3.5-4%. Have some money direct deposited there and "withhold" from yourself. Use it to pay your tax in February if you need it.
The only problem with that is the other infuriating thing. That Congress has made the withholding and general income tax rules in general so difficult to understand that most people just say 'screw it' and play it safe. And it's really hard to blame them. No one wants to get in between Chuck Grassley and his ethanol subsidies or Hillary Clinton and her Woodstock Museum. But your accountant could certainly help you. My goal every year is to have my federal payment offset my state refund.
I'd rather the state hold my money interest free because they actually have to balance their budget and can't just print money and inflate away our purchasing power.
Folks, pay attention to one of the most expensive part of your lives. Go look at boring, old line 44 on your most recent income tax return (Form 1040) and ask yourself if you have paid enough attention to how that money (and your kids money) is being spent. If you have looked at it already this year, then you could automatically rule out half of the presidential field that thinks that you're not paying enough. And you'd probably like how tough on spending McCain has been at times, but still a little nervous about his vote against the Bush tax cuts.