Advertisements

Christopher F. Rufo: Fed Up in Seattle 

Citizens of the ultra-progressive city have lost patience with political leaders’ failure to address the homelessness crisis.

Don’t believe the hype that “Amazon killed the Seattle head tax,” the new levy that the city recently passed on businesses to fund an affordable-housing initiative. The truth behind the city council’s stunning reversal—repealing the tax by a 7-2 vote, just four weeks after passing it 9-0—is that Seattle citizens have erupted in frustration against the city’s tax-and-spend political class that has failed to address the homelessness crisis, despite record new revenues.

“To my astonishment, I’ve heard at least a dozen neighbors, friends, and colleagues whisper that ‘Seattle needs a Giuliani’—that is, the city needs to recognize that, in addition to public programs, we need to get tough on street homelessness and enforce the law.”

As recently as a few years ago, it seemed as if Seattle voters largely viewed our hyper-progressive city council as a harmless oddity in an otherwise tolerant, thriving, liberal city. But times have changed. Now, according to recent public polling, 83 percent of Seattle voters are dissatisfied with how the council has addressed homelessness, 65 percent believe that the local government hasn’t used new tax revenues effectively, and 63 percent believe that the city has enough money to solve the problem but isn’t pursuing the right policies.

[Read the full story here, at City Journal]

Progressives have tried to paint the anti-head tax campaign as corporate astroturfing, but beneath the surface, it’s being driven by this broader shift in public opinion. In just two weeks, the No Tax on Jobs campaign, led by local businesses, recruited 2,000 volunteer signature-gatherers and collected nearly 46,000 signatures—more than double the amount required to qualify as a ballot measure. When I spoke with one of the volunteers in the liberal Fremont neighborhood, he told me: “I’m retired and I wanted to volunteer for the cause. I think the tax is a bad idea: if you tax something, you get less of it. I’m going to collect two pages of signatures and then go home.” Read the rest of this entry »

Advertisements

Tax Overhaul Could Jolt Dollar as U.S. Companies Bring Home Cash 

Corporations could repatriate as much as $400 billion in earnings and cash from abroad.

Companies could bring back as much as $400 billion, according to one estimate, as they take advantage of a one-time cut for repatriation of earnings and cash held overseas written into the GOP tax overhaul. That typically requires them to sell foreign holdings and buy assets denominated in dollars, which could boost the U.S. currency.

Gauging the dollar’s trajectory is crucial to both investors and corporations. The currency’s climb over the past several years has been blamed for pressuring profits among U.S. multinational companies and making exporters’ goods less competitive abroad.

Its trajectory also influences prices for raw materials like oil, copper and gold, which are denominated in dollars and become more expensive to foreign investors when the dollar rises.

Many investors expected the dollar to strengthen in 2017, boosted by the Trump administration’s fiscal-stimulus and infrastructure-spending pledges. Instead, the currency as of Friday had fallen nearly 7% against its peers, as key White House initiatives stalled.

Read the rest of this entry »


[VIDEO] Freedom in the 50 States 2015-2016 

map-cato

How free is your state? Find out! The Freedom in the 50 States 2015-2016 index from the Cato Institute measures freedom across a range of over 200 policies and across personal, regulatory and fiscal dimensions.

Source: Cato Institute


Tax Rates Now & Tax Rates Under Bernie

CZhzCiJUkAI-eiF.jpg-large


On Soda Taxes and Purported Health Benefits


Taxation and Charity

taxation and charity


Captain Obvious Headline of the Day

Captian-Obious-Headline-Chicago

 CBS Chicago


BREAKING: Chicago Imposes 9% ‘Anime Tax’, Begins Enforcement of Anime Control Act

Anime-controlanime-jailtears-crying-jail-prison-animejpg

[Also see – Chicago to Apply 9% ‘Amusement Tax’ for ‘the Privilege of Chewing Gum’]

[More  – Chicago to Apply 9% ‘Netflix Tax’]

 


Chicago to Apply 9% ‘Amusement Tax’ for ‘the Privilege of Witnessing, Viewing or Participating in the Chewing of Gum’

cops-arrest-gum-txtTAX-GUM

[See also – Chicago to Apply 9% ‘Netflix Tax’]


Now That Our False ‘Love, Mutual Respect, Equality’ Argument Has Achieved its Purpose, Let’s Dump it and Unveil Our True Agenda

ex-religion-agenda

[TIME]


What Is Rent-Seeking Behavior?

fair-exchange

Much rent-seeking is redistributing the surplus of one group of the middle class to another group of the middle class via the government. Although there might be great incentives for one group to seek another’s surplus, there is no added value for society as a whole

David John Marotta writes: Voluntary trade benefits both sides. Unless both parties believe they will benefit from the exchange, they will not consent.

In most exchanges both parties can produce the item they are trading more efficiently than they can produce what they are receiving. Producing a surplus of one item provides each party something to trade for someone else’s surplus. Having more than your family needs opens the opportunity to trade the excess for profit.

“In the public sector, for example, government lobbyists are hired to sway public policy to benefit their companies and punish their competitors. Although hiring lobbyists clearly benefits the company they represent, the work of lobbyists does not add value to the larger marketplace.”

Unfortunately, when property rights are weakened and the ownership of someone’s wealth or goods is debatable, people can gain more by trying to appropriate that wealth than by producing themselves. This behavior is called rent-seeking.

Rent-seeking frequently requires spending your own resources so you own someone else’s surplus in the end. In the public sector, for example, government lobbyists are hired to sway public policy to benefit their companies and punish their competitors. Although hiring lobbyists clearly benefits the company they represent, the work of lobbyists does not add value to the larger marketplace. If property rights on the surplus the company seeks had been more stable, such roles for lobbyists would never have been created.

1943 June Workers leaving Pennsylvania shipyards Beaumont Texas LOC FSA OWI Photo Credit John Vachon

Rent-seeking doesn’t add any national value. It is coerced trade and benefits only one side. Rent-seeking can include piracy, lobbying the government or even just giving away money.

“Imagine a thriving sea trade in which ships carrying cargo receive a 20% profit on the value of the goods. Now imagine the first pirate who arms his boat with cannons and rent-seeks the profit. The pirates are not producing any value of their own but are spending their own resources to capture the surplus of the shipping trade.”

If the pirate ship captures just one in every hundred ships, the average profit for the traders will drop to 19%. Meanwhile the pirate ship is seizing a 100% profit. There is incentive to join the rent-seeking pirate trade. By the time 10 pirates are competing for plunder, the profit of honest merchants has dropped to just 10%. At 20 pirates, there would be no profit remaining and no incentive to engage in the shipping trade.

titanic-pirate-ship-wallpaper-free-3

The rent-seeking of pirates motivates merchants to spend their resources to prevent the theft. They sail with an armed escort. They pay privateers to capture the pirates. Even if these efforts cost 15%, they will still preserve a 5% profit. If the effort costs much more, however, shipping will simply cease. All of this expense could be avoided if incentives to be a rent-seeking pirate were somehow eliminated.

“If the pirate ship captures just one in every hundred ships, the average profit for the traders will drop to 19%. Meanwhile the pirate ship is seizing a 100% profit. There is incentive to join the rent-seeking pirate trade.”

When I (David John Marotta) was applying for college, I was told that hundreds of scholarships, many based on merit, were available. After hours of research I found very few for which I qualified. I found one scholarship for a student of Italian-American ancestry. It was worth $1,000 and required me to submit an essay. It took me three hours to write the essay. I was engaging in rent-seeking.

“By the time 10 pirates are competing for plunder, the profit of honest merchants has dropped to just 10%. At 20 pirates, there would be no profit remaining and no incentive to engage in the shipping trade.”

You might think that giving away money is free, but it is not. Even if you hold a random lottery, potential winners still need to take the time to enter. At my $5 hourly wage, my entry cost me $15. I learned later they received 450 entries. If my experience was typical, the rent-seeking cost of all the applicants was $6,750 just to win a $1,000 scholarship. If you add the time to judge the competition and send return letters, the waste gets even greater.

pirate-flag

“Rent-seeking never encourages productivity. The production of valuable goods and services is maximized with strong property rights when little is wasted in efforts to seize the surplus of others or to prevent others from seizing our surplus.”

During a strong economy there are fewer incentives for rent-seeking because production is highly rewarded. But when economic times make it more difficult to produce, it becomes more attractive to rent-seek someone else’s surplus.

This situation can create a downward spiral because the rewards of rent-seeking are often constant, whereas the surpluses available in a market economy are more variable. When the economy is poor, the burden of fixed rent-seeking costs on producers drives surpluses even lower. This makes rent-seeking relatively more attractive, which in turn further burdens those who try to remain productive.

“Any efforts to subsidize or bail out struggling businesses are rent-seeking. When some banks take excessive risks to gain excessive returns, they are risking that the returns will be worth the hazards involved.”

Much rent-seeking is redistributing the surplus of one group of the middle class to another group of the middle class via the government. Although there might be great incentives for one group to seek another’s surplus, there is no added value for society as a whole. Read the rest of this entry »


Economics: $34 Billion Headline of the Day

34billion-Unicorns

 


Quotes: PJ & JFK Sandwich

PJ

kennedy-tax-cut


D.C. is WAY Richer Than Everywhere Else


[VIDEO] MSNBC Tries To Enroll In ObamaCare On Live TV – Works Perfectly!

It worked exactly as designed. To fall short. To fail. To need more money and more resources. Does anyone seriously still think the Affordable Care Act is meant to succeed in its current form?

As a necessary stepping stone to single-payer socialized medicine, it’s working exactly as intended. Expect additional measures, multiple infusions, advances, tweaks, and changes, ultimately disabling the private insurance market completely, in order to achieve the long-term goal of permanent government ownership of the health care industry.

As seen in the live TV effort, MSNBC’s attempt is to demonstrate enrollment reveals a system performing as designed.


How Much More Does It Cost to Hire a Federal Bureaucrat?

…Conversely, how much do taxpayers save by eliminating one federal bureaucrat position?

When politicians claim that they will save money by “in-sourcing” federal functions from contractors, or will respond to some new need by expanding the federal workforce, that has a cost to taxpayers. 

How much is that cost?

Read on, via >>  Americans for Tax Reform