The Market Center Blog

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Freedom and Prosperity
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CF&P E-Mail Update,  April 5, 2004

Center for Freedom and Prosperity's E-mail Update

1) Opposition to IRS Interest Reporting Regulation Grows

2) Low taxes help the US out-perform Europe

3) European attack against Switzerland uses more Orwellian double-speak

4) More false demagoguery against tax havens by the left

5) Tyco shareholders overwhelmingly choose to stay in Bermuda

6) Good and bad news from Europe

7) Protectionism halts progress and destroys jobs

8) William Safire:  Never has there been a financial rip-off of the magnitude of the U.N. oil-for-food scandal

9) Law of the Sea Treaty a threat to open markets and US interests

10) Economist magazine says proposed EU constitution is a terrible mess

11) Glenn Hubbard: Mr. Kerry's Math

12) The Deficit Debate Is a Charade

13) Richard Rahn: Regulatory malpractice

14) CF&P Clips

 

1) Opposition to IRS Interest Reporting Regulation Grows

[From The Market Center Blog, Friday, March 26, 2004 ~ 1:43 p.m., Andrew Quinlan Wrote]

Twenty-eight Members of Congress object to a proposed IRS regulation, which was initially proposed during the final days of the Clinton Administration. The IRS initiative has generated considerable opposition since many foreigners would withdraw their money from American banks, thus raising concerns that it would harm America's economy and undermine the competitiveness of U.S. financial institutions.

[Tax-News.com reports:]

The House members have won the support of many free market lobby groups such as the Center for Freedom and Prosperity …According to the Center for Freedom and Prosperity, one hundred lawmakers, including 18 Senators and 82 Congressmen from 39 states, two federal agencies (FDIC and Office of Advocacy of the SBA), every major financial industry association, and 40 Public Policy organizations have all denounced the proposed IRS regulation. [Link to full article below:]

March 25, 2004, Tax-News.com, by Mike Godfrey, Congressmen Urge Snow To Withdraw Interest Reporting Regulation
http://www.tax-news.com/asp/story/story.asp?storyname=15499

March 26, 2004, The Market Center Blog, Opposition to IRS Interest Reporting Regulation Grows.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#266

Link to CF&P's Press Statement:
http://www.freedomandprosperity.org/press/p03-22-04/p03-22-04.shtml

Link to Green Letter:
http://www.freedomandprosperity.org/ltr/green-irs/green-irs.shtml

CF&P's Dedicated IRS Interest Reporting Regulation Web Page:
http://www.freedomandprosperity.org/update/irsreg/irsreg.shtml

 

2) Low taxes help the US out-perform Europe

[From The Market Center Blog, Tuesday, March 23, 2004 ~ 2:04 p.m., Dan Mitchell Wrote]

The Joint Economic Committee has just published an excellent paper comparing economic performance among developed nations. The paper notes that all major economies suffered an economic downturn in recent years, but it then shows that the US has had the strongest recovery with the best job market. The JEC article also notes that all nations experienced big shifts in fiscal balance, regardless of whether tax rates were reduced:

[Excerpt from JEC article:]

Among the major developed economies, the United States has had the largest increase in its real GDP of 7.8 percent after its downturn had ended. The United States had the second smallest high-to-low contraction in industrial production amounting to 6.7 percent. Since its low, U.S. industrial production has climbed by 5.0 percent. Although unemployment rates have increased in all major developed economies, the United States has had the largest post-recession decline in its unemployment rate of 0.8 percentage points. The most recent U.S. unemployment rate of 5.6 percent remains significantly below the most recent unemployment rates of 8.0 percent in the European Union or 7.4 percent in Canada. Moreover, the average duration of unemployment is much shorter for jobless workers in the United States than in either the European Union or Japan.... Two of the countries that did not significantly reduce their tax burdens - Germany and the United Kingdom - suffered two of the largest deteriorations in their government budget balances.
http://www.house.gov/jec/growth/03-18-04.pdf

March 23, 2004, The Market Center Blog, Low taxes help the US out-perform Europe.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#235

More Clips and Blogs on Tax Competition

April 2, 2004, The Market Center Blog, John Kerry's plan to make America less competitive.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#023

April 2, 2004, The Market Center Blog, Onshore jurisdictions have the weakest anti-money laundering laws.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#021

March 31, 2004, The Market Center Blog, Will the Germans ever figure out that taxes are too high?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#316

March 31, 2004, The Market Center Blog, Tax competition is promoting better tax policy in Italy.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#312

March 26, 2004, The Market Center Blog, Belgium's Prime Minister calls for lower taxes... sort of.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#267

March 23, 2004, The Market Center Blog, Spain was a victory for the socialists, but not for socialism.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#232

March 22, 2004, The Market Center Blog, Authors should highlight link between tax havens and prosperity.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#221

 

3) European attack against Switzerland uses more Orwellian double-speak

[From The Market Center Blog, Wednesday, March 31, 2004 ~ 11:33 a.m., Dan Mitchell]

The European Parliament (what a surprise!) is urging the European Commission to continue the persecution of Switzerland and other market-oriented jurisdictions. Amazingly, the politicians actually have the gall to claim that Switzerland is holding them hostage. In reality, Europe's high-tax welfare states are using threats and coercion in an attempt to coerce Switzerland into acting as a deputy tax collector. A story from today's Bureau of National Affairs also illustrates the hostility to financial privacy in Brussels:

[Excerpt from Bureau of National Affairs article:]

The European Parliament March 30 called on the European Commission to take a tough line in negotiations with Switzerland and offshore banking centers to secure agreement on the handling of earnings by EU citizens on nonresident savings accounts. "Pressure needs to be brought on these jurisdictions," a declaration adopted by the Parliament said. "The EU should not be held hostage to a prolonged negotiating ordeal and should use its political might to enforce a quick and fair outcome." ...Representing the Parliament's Economic and Monetary Affairs Committee (EMAC), Spanish lawmaker Jose Manuel Garcia-Margallo y Marfil said, "Conclusion of an agreement with Switzerland is now urgent, and should not be linked to ongoing negotiations with other third countries. These other negotiations need also to progress quickly, as the Jan. 1, 2005, deadline looms. "No further counter-requests from these countries should be accepted and the commission should strive to replicate the contents of the Switzerland agreement for the other countries," the lawmaker said. According to an EMAC report, progressive abolition of banking secrecy for fiscal purposes in the European Union --"and worldwide for that matter"-- will benefit fiscal transparency and the functioning of the EU single market. [Link to full article below:]

March 31, 2004, Bureau of National Affairs, By Arthur Rogers, EU Parliament Calls on Commission to Take Tough Line With Switzerland Over Savings Tax
http://pubs.bna.com/ip/BNA/der.nsf/is/a0a8h0h2z3

March 31, 2004, The Market Center Blog, European attack on Switzerland uses more Orwellian double-speak.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#314

Additional links on European Union Savings Tax Directive and other issues:

April 3, 2004, The Market Center Blog, Is Europe dying?
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#032

April 3, 2004, The Market Center Blog, Switzerland continues to resist EU bullying.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#031

April 1, 2004, The Market Center Blog, Berlusconi pushes Italy in the right direction.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#016

March 31, 2004, Tax-News.com, by Amanda Banks, Cayman Financial Association Supports Information Exchange With EU
http://www.tax-news.com/asp/story/story.asp?storyname=15558

March 31, 2004, Swissinfo, by Katrin Holenstein, Cabinet sets out stall for EU negotiations
http://www.swissinfo.org/sen/swissinfo.html?siteSect=105&sid=4835984

Mar 31, 2004, Moneylaundering.com, European Commission proposes new EU information-sharing and other measures on terrorism
http://www.moneylaundering.com/NewsBriefDisplay.aspx?id=476

March 31, 2004, Associated Press, By Paul Geitner, European Parliament Says EU-US Agreement on Sharing Airline Passenger Data Violates Privacy Law
http://ap.tbo.com/ap/breaking/MGAQJ70RHSD.html

March 31, 2004, CF&P's The Market Center Blog, European Commission launches Orwellian attack on Gibraltar tax system.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#315

March 29, 2004, The Market Center Blog, Is Germany finally coming to its senses?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#294

March 29, 2004, Swissinfo, by Jean-Didier Revoin, Swiss economy challenged by EU enlargement
http://www.swissinfo.org/sen/swissinfo.html?siteSect=105&sid=4822570

March 27, 2004, The Market Center Blog, The EU tramples freedom of the press in an effort to stifle dissent.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#271

March 25, 2004, The Market Center Blog, European bureaucrats want to impose an indirect tax on American shareholders.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#251

March 24, 2004, LawAndTax-News.com, by Ulrika Lomas, Swiss Government Seeks To Overturn German Decision On Banking Sector
http://www.tax-news.com/asp/story/story.asp?storyname=15481

March 23, 2004, The Market Center Blog, Former Congressman condemns German tactics, defends Swiss privacy protections.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#233

March 23, 2004, The Market Center Blog, Bolkestein continues his fight against competition and liberalization.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#231

March 22, 2004, The Market Center Blog, Germany reverts to form in bullying campaign against Switzerland.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#222

March 22, 2004, Tax-News.com, by Ulrika Lomas, Bolkestein Speaks On Tax Progress In EU
http://www.tax-news.com/asp/story/story.asp?storyname=15442

March 21, 2004, The Sunday Times (London), Luxembourg and the EU
http://www.timesofmalta.com/core2/article.php?id=149729

March 18, 2004, The Market Center Blog, Will socialists kill the Spanish Miracle?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#185

March 17, 2004, Swissinfo, Swiss indignant over German clampdown on banks
http://www.swissinfo.org/sen/swissinfo.html?siteSect=105&sid=4796781

 

4) More false demagoguery against tax havens by the left

[From The Market Center Blog, Thursday, March 25, 2004 ~ 1:15 p.m., Dan Mitchell Wrote:]

The Boston Globe is a very left-wing paper, so it should come as no surprise that they have printed a biased and inaccurate column against low-tax jurisdictions. But shouldn't there be some minimum standard of accuracy? The columnist asserts that tax havens somehow are linked to terrorist financing - even though the 9-11 terrorists used banks in Middle Eastern and OECD nations. Moreover, researchers at FATF, IRS, CIA, and the State Department confirm that low-tax jurisdictions tend to have the strongest anti-money laundering laws. But facts don't matter to people who loathe freedom, as this column indicates:

[Excerpt from the Boston Globe column]

...the growing concern about Al Qaeda required a crackdown on global money laundering. The US-European plan would have tightened reporting requirements on banks and corporations, dramatically reducing criminals' ability to channel profits into tax havens. But the Bush administration put the tax- avoidance interests of its corporate allies ahead not just of the solvency of the US Treasury but of the war against money laundering by terrorists. Link to full op-ed below:]

March 24, 2004, The Boston Globe, By Robert Kuttner, Fix economy by targeting tax cheats
http://www.boston.com/news/globe/editorial_opinion/oped/articles/2004/03/24/fix_economy_by _targeting_tax_cheats/

March 25, 2004, The Market Center Blog, More false demagoguery against tax havens by the left.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#253

 

5) Tyco shareholders overwhelmingly choose to stay in Bermuda

[From The Market Center Blog, Monday, March 29, 2004 ~ 10:44 a.m., Dan Mitchell Wrote]

In a vote that can be seen as a referendum on America's uncompetitive corporate tax system, Tyco shareholders rejected a silly proposal to re-charter the company in America. The landslide margin is a positive sign that shareholders understood the adverse economic consequences of surrendering to demagoguery from greedy US politicians:

[Excerpt from Tax-News.com article:]

According to an announcement made by the company last week, 93% of the voting shares chose to reject a move to reincorporate in the United States, which was proposed in a bid to remove the "the negative stigma of being lumped in with tax avoiders". ... a move back to the United States would increase the company's tax rate from 28% to around 36%, an event which would hurt the firm's earnings and potentially wipe up to $5 billion from its value.
http://www.tax-news.com/asp/story/story.asp?storyname=15524

March 29, 2004, The Market Center Blog, Tyco shareholders overwhelmingly choose to stay in Bermuda.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#293

 

6) Good and bad news from Europe.

[From The Market Center Blog, Thursday, March 18, 2004 ~ 10:42 a.m., Dan Mitchell Wrote]

Commissioner Frits Bolkestein announced that the EU may allow smaller companies to use the tax base of their home country to calculate their taxable income for all EU nations. This would be a step in the right direction since governments would face competitive pressure to improve their definitions of taxable income (i.e., the tax base). But this small bit of good news is offset by a new effort to permit tax harmonization ("enhanced co-operation" in the Orwellian world of Brussels) by a subset of EU nations. Bolkestein claims that harmonization will improve growth and job creation, but he fails to provide a single example in all of world history to support this preposterous claim:

[Excerpt from Bolkestein's statement:]

The Commission has consulted widely on ways to enable companies to use a single EU-wide tax base for their cross-border business. We plan to make a recommendation for a pilot scheme to allow Small and Medium Enterprises to use the tax rules of their home state for calculating their EU-wide taxable profits before the summer this year. ...we must explore other options. One would be the mechanism introduced by the Amsterdam Treaty and developed by the Nice Treaty to allow "enhanced co-operation" between smaller groups of countries. After all, it will be unfair if some Member States are allowed to stand in the way of the elimination of tax obstacles to cross-border business when this is crucial to the development of the EU Internal Market, economic growth and job creation. [Link to full statement below:]

March 16, 2004, Statement by Frits Bolkestein Member of the European Commission, Progress on Financial Services Action Plan and Taxation
http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/04/136|0|RAP ID&lg=EN&display=

March 18, 2004, The Market Center Blog, Good and bad news from Europe.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#181

 

7) Protectionism halts progress and destroys jobs

[From The Market Center Blog, Tuesday, March 16, 2004 ~ 6:41 a.m., Dan Mitchell Wrote]

Economists have long understood that trade barriers hurt economic performance, but they generally have a hard time using common-sense language to explain why protectionism is misguided. Fortunately, Tom Sowell of the Hoover Institution has come to the rescue. His Townhall.com column succinctly explains the adverse consequences of politicians telling us what we are allowed to buy:

[Excerpt from Dr. Sowell's article:]

Back during the Great Depression of the 1930s, when unemployment in the United States hit a high of 25 percent, one of the many foolish things the government did was create international trade restrictions designed to save American jobs. Other countries around the world created similar restrictions to save their own workers' jobs. Net result: world trade in 1933 was one-third of what it had been in 1929, making everybody poorer and therefore less able to create jobs. Many economists have blamed these restrictions for making the depression worse and longer lasting.... The government can always save 10,000 jobs -- at a cost of 50,000 other jobs. If the jobs that are saved are in one industry, represented by vocal spokesmen, and the 50,000 lost jobs are spread thinly across the country in two's and three's here and there, then this is a good deal for the politician who becomes a hero to those 10,000 voters whose jobs he saved. This is obviously not a good deal for those who lose their jobs but they may not even know why. Moreover, when they are not concentrated in one place or in one industry, they are unlikely to come to the attention of the media. So they don't count politically.... Anything that increases economic efficiency -- whether by outsourcing or a hundred other things -- is likely to cost somebody's job. The automobile cost the jobs of people who took care of horses or made saddles, carriages, and horseshoes. Computers sent typewriter manufacturers into bankruptcy. [Link to full article below:]

March 16, 2004, Townhall.com, By Thomas Sowell, 'Outsourcing'
http://www.townhall.com/columnists/thomassowell/ts20040316.shtml

March 16, 2004, The Market Center Blog, Protectionism halts progress and destroys jobs.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#161

Other Outsourcing Articles:

March 20, 2004, The Market Center Blog, Why are protectionists endangering American jobs?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#202

March 16, 2004, The Market Center Blog, How France and Germany destroy jobs by trying to help workers.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#162

 

8) William Safire: Never has there been a financial rip-off of the magnitude of the U.N. oil-for-food scandal

[From The Market Center Blog, Tuesday, March 30, 2004 ~ 8:59 a.m., Andrew Quinlan Wrote]

New York Times ace columnist William Safire led off his column yesterday with the previous sentence. I know that it is "shocking, just shocking" that there is corruption at the United Nations. Unfortunately, Iraqi children suffered from the greed of many French and German "humanitarians."

[William Safire writes:]

Never has there been a financial rip-off of the magnitude of the U.N. oil-for-food scandal. ...At least $5 billion in kickbacks went from corrupt contractors — mainly French and Russian — into the pockets of Saddam and his thugs. Some went to pay off his protectors in foreign governments and media, and we may soon see how much stuck to the fingers of U.N. bureaucrats as well. ...Responding to a harangue in this space on March 17, the spokesman for Kofi Annan confirmed that the secretary general's soft-spoken son, Kojo, was on the payroll of Cotecna Inspections of Switzerland until December 1998. In that very month, the U.N. awarded Cotecna the contract to monitor and authenticate the goods shipped to Iraq. ...Prices were inflated to allow for 10 percent kickbacks, and the goods were often shoddy and unusable. As the lax Cotecna made a lot of corporate friends, Iraqi children suffered from rotted food and diluted medicines. [Link to full article below:]

March 29, 2004, The New York Times, By William Safire, Follow-Up to Kofigate
http://www.nytimes.com/2004/03/29/opinion/29SAFI.html?n=Top%2fOpinion%2fEditorials%20a nd%20Op%2dEd%2fOp%2dEd%2fColumnists

March 30, 2004, The Market Center Blog, "Never has there been a financial rip-off of the magnitude of the U.N. oil-for-food scandal."
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#302

Other UN articles:

April 2, 2004, FrontPageMagazine.com, By Newt Gingrich, How Saddam Bribed the UN
http://www.frontpagemag.com/Articles/ReadArticle.asp?ID=12822

March 30, 2004, The Market Center Blog, IMF buffoons continue to reward irresponsible governments.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#306

March 28, 2004, The Market Center Blog, UN bureaucrats want to control the Internet.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#282

March 26, 2004, CNET News.com, By Declan McCullagh, United Nations ponders Net's future
http://news.com.com/2100-1028-5179694.html

March 16, 2004, The Market Center Blog, The UN wants to create a global tax police, but that is not the organization's only nutty idea.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#164

 

9) Law of the Sea Treaty a threat to open markets and US interests

[From The Market Center Blog, Monday, March 29, 2004 ~ 3:19 p.m., Dan Mitchell Wrote]

For inexplicable reasons, the Bush Administration has resuscitated a misguided pact that would give the United Nations power over maritime activities. Supporters argue that the current version of the treaty is not as bad as the one killed by Ronald Reagan more than 20 years ago, but that is hardly an argument for ratification. As the Wall Street Journal opines today, this idea should be allowed to die:

[Excerpt from the Wall Street Journal:]

...the treaty's central flaw remains unfixable: It is not in the best interests of the U.S. to have its maritime activities -- military or economic -- subject to the control of a highly politicized U.N. bureaucracy. That was a bad idea in 1982 and it's even worse today, as we fight the war on terror. It's also a terrible precedent, especially as we do more in space. ... The solution that seems to be emerging is for Majority Leader Bill Frist to conclude that there's no room on the tight Senate calendar to bring up the treaty this year. If President Bush won't follow Mr. Reagan's example and sink the pact, we hope he'll at least let Mr. Frist maroon it. [Link to full article below:]

March 29, 2004, The Wall Street Journal, Review and Outlook: Bottom-of-the-Sea Treaty
http://online.wsj.com/article/0,,SB108052872422667594,00.html?mod=opinion (subscription required)

Additional links to articles on Law of the Sea Treaty:

March 29, 2004, The Market Center Blog, Law of the Sea Treaty a threat to open markets and US interests.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#296

March 24, 2004, Statement of Senator James M. Inhofe, U.S. Senate Committee on Environment & Public Works Hearing, Law of the Sea Convention 
http://epw.senate.gov/hearing_statements.cfm?id=219593

March 24, 2004, Statement of Frank Gaffney Jr., U.S. Senate Committee on Environment & Public Works Hearing, Law of the Sea Convention
http://epw.senate.gov/hearing_statements.cfm?id=219549

March 24, 2004, Statement of Peter Leitner, U.S. Senate Committee on Environment & Public Works Hearing, Law of the Sea Convention
http://epw.senate.gov/hearing_statements.cfm?id=219545

 

10) Economist magazine says proposed EU constitution is a terrible mess.

[From The Market Center Blog, Monday, March 29, 2004 ~ 7:55 a.m., Dan Mitchell Wrote]

Like Dracula, the EU constitution has risen from the grave. This is an unwelcome development - and not just because it creates a new opportunity for high-tax nations to push for tax harmonization. As the Economist explains, the entire project seems designed to undermine the original European vision for the free flow of jobs, capital, goods, and services:

[Excerpt from Economist magazine]

...the draft constitution that EU leaders have been discussing, drawn up by a 105-member European Convention, is a terrible mess. It is so hard to understand that even the convention's members struggle to explain it. Whereas it ought to have strengthened the principle of "subsidiarity" (devolving decision-making so it is as close to the people as possible), it does the opposite-making everything subordinate to the Union's objectives, which include various types of "cohesion" (read: Brussels-led harmonisation).

March 26, 2004, The Economist, Revived to die another day?
http://www.economist.com/agenda/displayStory.cfm?story_id=2550082

March 29, 2004, The Market Center Blog, Economist magazine says proposed EU constitution is a terrible mess.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#292

Additional EU Constitution article:

April 1, 2004, The Market Center Blog, EU draft Constitution is a minefield of government intervention.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#015

March 26, 2004, The Market Center Blog, A better idea for the EU Constitution.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#263

March 16, 2004, The Market Center Blog, Spanish election could reinvigorate drive for EU constitution.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#167

 

11) Glenn Hubbard: Mr. Kerry's Math

[From The Market Center Blog, Friday, March 26, 2004 ~ 10:11 a.m., Andrew Quinlan Wrote]

Kerry economic plan means higher taxes. A former Bush Administration official writes in today's Wall Street Journal that Senator Kerry's economic plan has a $1 trillion hole - a hole that will be filled with higher taxes. Given the Bush Administration's regrettable tendency to spend taxpayer money, this may be an example of people in glass houses throwing stones, but Kerry's Senate voting record does demonstrate a love affair with big government.

[Glenn Hubbard's article notes:]

Besides proposing $1.7 trillion in new spending, Sen. Kerry has pledged to cut the budget deficit in half in his first term. That means that all of his new spending programs must be offset by tax increases or spending cuts -- and he certainly hasn't proposed much in the way of cutting spending. Instead, he claims he can raise taxes on upper-income earners and small business owners to pay for all of his spending plans. But the numbers show otherwise. If you add up all of his proposed tax increases, the extra revenue would be at most $700 billion over 10 years. That leaves a hole of $1 trillion. Laws of math cannot be repealed -- one cannot increase federal spending by $1.7 trillion over 10 years, slash the deficit over four years, and raise taxes only on those earning $200,000-plus to pay for the rest. More Americans would pay higher taxes under John Kerry's administration than John Kerry is willing to let on. Fully funding his promises would require repealing the entire Bush tax cuts, implying large tax increases for lower- and middle-income workers. [Link to full commentary below:]

March 26, 2004, The Wall Street Journal, by R. Glenn Hubbard, Mr. Kerry's Math
http://online.wsj.com/article/0,,SB108026124710565991,00.html?mod=opinion (subscription required)

March 26, 2004, The Market Center Blog, Kerry economic plan means higher taxes.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#264

Other articles on Senator Kerry's tax plans:

April 1, 2004, The Economist, Is there a there, there?
http://www.economist.com/world/na/displayStory.cfm?story_id=2553235

March 31, 2004, The Market Center Blog, Chamber of Commerce condemns Kerry's anti-competitive tax plan.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#313

March 30, 2004, The Market Center Blog, Kerry's bait-and-switch tax plan.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#303

March 29, 2004, The Market Center Blog, Kerry's industrial policy tax credit.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#295

March 22, 2004, The Market Center Blog, Why does Kerry want to repeat the mistakes of the Great Depression?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#224

 

12) The Deficit Debate Is a Charade

[From The Market Center Blog, Saturday, March 20, 2004 ~ 11:12 a.m., Andrew Quinlan Wrote]

When you hear a politician tell you that the deficit is out of control, be very afraid. Their answer is always to raise taxes, not cut spending. Dan Mitchell explains that cutting taxes and reducing spending is the answer.

[Excerpt from Dan's op-ed:]

Deficits, however, are not the issue. The real problem is government spending, and we should view rising deficits as a symptom of Washington's profligacy. The spending crisis is both a short-term and a long-term problem. Federal spending has jumped dramatically in recent years, climbing from 18.4 percent of GDP in 2000 to more than 20 percent of GDP in 2004 (and less than half of that increase can be attributed to national defense or homeland security). …Bigger government, though, is economically harmful. When politicians spend money, regardless of whether they get it from taxes or through borrowing, they're taking it from the productive sector of the economy. This might not be so bad if lawmakers used strict cost-benefit analysis to determine if the money was being well-spent — particularly when compared with the efficiency of private-sector expenditures. Unfortunately, that rarely happens. Instead, politicians allocate funds on the basis of political rather than economic considerations. This inevitably weakens economic performance. [Link to full article below:]

March 19, 2004, The Washington Post, by Dan Mitchell, The Deficit Debate Is a Charade: Bloated government, not the tax cut, is to blame.
http://www.nationalreview.com/nrof_comment/mitchell200403190800.asp

March 20, 2004, The Market Center Blog, The Deficit Debate Is a Charade.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#201

Other big government articles:

April 3, 2004, The Market Center Blog, Welfare destroys lives.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#032

April 2, 2004, The Market Center Blog, Ending welfare has helped the poor.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#025

April 1, 2004, The Market Center Blog, Politicians and business conspire to rip-off consumers.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#013

April 1, 2004, The Market Center Blog, Time to kill the pork-filled energy bill.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#012

March 30, 2004, The Market Center Blog, Even communists realize that there are too many government bureaucrats
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#307

March 30, 2004, The Market Center Blog, White House commitment to spending discipline was long-overdue, but at least it's working.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#305

March 28, 2004, The Market Center Blog, Will Medicare turn America into France?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#284

March 26, 2004, The Market Center Blog, Welfare reform works.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#261

March 24, 2004, The Market Center Blog, Looking at the Medicare disaster, sometimes it's depressing to be right.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#243

March 24, 2004, The Market Center Blog, More Medicare fallout.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#242

March 22, 2004, The Market Center Blog, Nostalgia for Ronald Reagan.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#225

March 21, 2004, The Market Center Blog, Water subsidies hurt consumers and the environment.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#211

March 19, 2004, The Market Center Blog, Is big government behind high gas prices?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#191

March 18, 2004, The Market Center Blog, More on Germany's malaise.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#184

March 17, 2004, The Market Center Blog, Medicare fiasco shows that bad policy is bad politics.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#171

 

13) Richard Rahn: Regulatory malpractice

[From The Market Center Blog, Friday, March 19, 2004 ~ 5:21 p.m., Andrew Quinlan Wrote]

Tracking down terrorists is important and worthwhile. Stopping their pipeline of funds is also paramount. Richard Rahn, however, points out that strict cost-benefit and civil liberties' tests must be applied to the laws and organizations set up to stop terrorist funding.

[Dr. Rahn explains:]

People around the globe are justifiably concerned about terrorism and ordinary criminality. A certain international political class has used this anxiety to argue that since criminals and terrorists use money, all monetary movements and holdings must be monitored. Yes, it is useful to be able to trace the money trail of al Qaeda operatives. But does that mean all citizens of every country should be subject to having all their financial privacy destroyed? Furthermore, is it cost-effective to monitor almost everyone, or would both public and private law enforcement dollars be more wisely spent monitoring the activities of those individuals or groups known or strongly suspected of engaging in terrorist or criminal activities? …The reason we should care is that all of these extra, and in many cases totally unnecessary, costs are passed along to consumers of financial services as higher fees and more expensive and fewer choices in financial products. This directly translates into job losses not only in financial industries but in all businesses that rely on some outside financing. …There is little evidence all the new rules and paperwork are having any appreciable effect on crime or terrorism, because there is an almost infinite number of ways to "launder" money, and organized terrorists and criminals can almost always find ways around the regulations. On the other hand, there is considerable evidence of damage to our pocketbooks and civil liberties from these regulations. Link to full article below:]

March 18, 2004, The Washington Times, By Richard W. Rahn, Regulatory malpractice
http://www.washingtontimes.com/commentary/20040317-082622-7954r.htm

March 19, 2004, The Market Center Blog, Regulatory malpractice.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#192

Other civil liberties articles:

March 26, 2004, The Market Center Blog, Money laundering laws undermine privacy for law-abiding, but don't stop terrorists.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#262

March 24, 2004, The Market Center Blog, Courts rule that governments are not allowed to steal cars.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#245

March 18, 2004, The Market Center Blog, Money laundering laws should target criminals and terrorists.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#182

 

14) CF&P Clips:

April 4, 2004, The Market Center Blog, The real racists are the people who block school choice.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#041

April 2, 2004, The Market Center Blog, Another international bureaucracy targets America.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#022

April 2, 2004, The Market Center Blog, Free markets promote democracy.
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#024

April 1, 2004, The Market Center Blog, Will Israel choose free markets?
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#014

April 1, 2004, The Market Center Blog, Are Europeans waking up to the cost of chicken-little environmentalism?
http://www.freedomandprosperity.org/blog/2004-04/2004-04.shtml#011

April 1, 2004, Tax-News.com, by Mike Godfrey, IRS Accuracy Rates Slipping On Questions Of Tax Law
http://www.tax-news.com/asp/story/story.asp?storyname=15570

April 1, 2004, FrontPageMagazine.com, By Jon Thibault, Patriot Act 101
http://frontpagemag.com/Articles/ReadArticle.asp?ID=12801

March 31. 2004, The Royal Gazette, by Ahmed El Amin, Little Antigua takes on America - and wins
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20040331/BUSINESS/103310066

March 31, 2004, The Market Center Blog, Another nation opts for the flat tax.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#311

March 30, 2004, Ludwig von Mises Institute, by Adam Young, William Tell, Tax Rebel
http://www.mises.org/fullstory.asp?control=1478

March 30, 2004, The Market Center Blog, Tom Sowell for President!
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#304

March 29, 2004, New Zealand Herald, High tax rate may deter foreign investment, says survey
http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3557446&thesection=business&thesu bsection=latest

March 28, 2004, The Market Center Blog, Another despicable lying politician.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#283

March 28, 2004, The Market Center Blog, Are unions paper tigers?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#281

March 26, 2004, The Market Center Blog, The next Ronald Reagan?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#265

March 26, 2004, Sinchew-i.com, Singapore's Corporate Tax Rate Among The Lowest
http://e.sinchew-i.com/content.phtml?sec=5&artid=200403260004

March 26, 2004, Swissinfo, Money-laundering investigations rise 57%
http://www.swissinfo.org/sen/Swissinfo.html?siteSect=105&sid=4822783

March 24, 2004, The Market Center Blog, Brown-skinned people need not apply.

http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#241

March 24, 2004, Tax-News.com, by Robert Lee, Progress Made In Elimination Of Harmful Tax Practices, Says OECD
http://www.tax-news.com/asp/story/story.asp?storyname=15484

March 24, 2004, Noticias.info, OECD Announces Further Progress in Eliminating Harmful Tax Practices
http://www.noticias.info/Asp/aspComunicados.asp?nid=20696&src=0

March 24, 2004, The Market Center Blog, Why do "feminist" politicians want to discourage employers from hiring women?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#247

March 22, 2004, The Market Center Blog, Unions and leftists fight against interests of low-income shoppers.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#226

March 22, 2004, The Market Center Blog, EU antitrust lunacy.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#223

March 21, 2004, Palm Beach Post, By Dan Moffett, Checking your privacy today?
http://www.palmbeachpost.com/opinion/content/auto/epaper/editions/sunday/opinion_04b5579 9747e3033001c.html

March 21, 2004, Los Angeles Times, by Kathy M. Kristof, Coalition Offers Fix for Social Security
http://www.latimes.com/business/la-fi-perfin21mar21,1,4257505.column

March 20, 2004, The Atlanta Journal-Constitution, By Duane D. Stanford, All our lives are on file, for sale
http://www.ajc.com/metro/content/metro/0304/21privacymain.html

March 18, 2004, The Market Center Blog, Whatever happened to Germany and Japan?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#183

March 17, 2004, The Market Center Blog, Federal Reserve Board Chairman Hubbard?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#173

March 17. 2004, The Royal Gazette, Kerry fears exaggerated, Government officials say
http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20040317/BUSINESS/103170025

March 17, 2004, Evening Standard (London), By John Gilmore, UK and US in gambling review row
http://www.thisislondon.co.uk/news/business/articles/timid75830

March 17, 2004, The Market Center Blog, Are high taxes healthy?
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#174

March 16, 2004, The Market Center Blog, Europeans interfere with US companies.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#166

March 16, 2004, The Market Center Blog, Class warfare tax policies penalize all Americans.
http://www.freedomandprosperity.org/blog/2004-03/2004-03.shtml#165

March 15, 2004, The Washington Times, By Daniel J. Mitchell, Greatest threat to prosperity
http://www.washtimes.com/commentary/20040314-101718-3674r.htm

March 15, 2004, Associated Press, Terror Database Hits Snags
http://www.foxnews.com/story/0,2933,114198,00.html

March 7 - 20, 2004, The Panama News, Text of the US State Department's report on Panama's effort against money laundering
http://www.thepanamanews.com/pn/v_10/issue_05/business_02.html

 

Best regards,

Andrew Quinlan
Center for Freedom and Prosperity
President
202-285-0244
quinlan@freedomandprosperity.org
www.freedomandprosperity.org

__________________________

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