Bandit Gang Writ Large

FDR: Sowing the Seeds of Chaos

"The long-lasting imprint from FDR’s famous 'Hundred Days' did not stem from the bank holiday, national industrial recovery act, the farm adjustment act, the Tennessee Valley Authority, or the public works administration. Instead, it is lodged in the footnotes of standard histories; namely, FDR’s April 1933 order confiscating every ounce of gold held by private citizens and businesses throughout the United States. Shortly thereafter he also embraced the Thomas Amendment, giving him open-ended authority to drastically reduce the gold content of the dollar; that is, to trash the nation’s currency." Continue reading →

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76-Year-Old Man Loses $197,000 Home Over $134 Tax Lien

"On the day Bennie Coleman lost his house, the day armed U.S. marshals came to his door and ordered him off the property, he slumped in a folding chair across the street and watched the vestiges of his 76 years hauled to the curb. Movers carted out his easy chair, his clothes, his television. Next came the things that were closest to his heart: his Marine Corps medals and photographs of his dead wife, Martha. The duplex in Northeast Washington that Coleman bought with cash two decades earlier was emptied and shuttered. By sundown, he had nowhere to go. All because he didn’t pay a $134 property tax bill." Continue reading →

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Personal Retirement Accounts Are Great only if You Can Stop Confiscation

"Most Western nations have huge long-run fiscal problems because of unfavorable demographics and misguided entitlement programs. That’s the bad news. The good news is that dozens of nations have fully or partially shifted to mandatory private savings as a pro-growth way of modernizing bankrupt tax-and-transfer Social Security systems. But good news in the short run doesn’t mean good news in the long run if greedy politicians decide to loot the wealth accumulated in personal retirement accounts. That’s already happened in Argentina and Hungary, and now it’s happened in Poland." Continue reading →

Continue ReadingPersonal Retirement Accounts Are Great only if You Can Stop Confiscation

Poland Confiscates Half Of Private Pensions To “Cut” Sovereign Debt Load

"Well, once you nationalize private assets, the public debt will lindeed appear lower than it was before confiscation: we give them that much. End result: 'The Polish pension funds' organisation said the changes may be unconstitutional because the government is taking private assets away from them without offering any compensation.... 'This may lead to the private pension systems shutting down,' said Rafal Benecki of ING Bank Slaski.' But best of all, in the aftermath of Cyprus, we now know what the two most recent European blueprints for preserving the myth of solvency are: bail-ins, which confiscate deposits, and pension fund 'overhauls', which confiscate, well, pension funds." Continue reading →

Continue ReadingPoland Confiscates Half Of Private Pensions To “Cut” Sovereign Debt Load

Rebalance To Buffer Crises?

"Sovereigns may save themselves at the expense of citizens. Poland has withdrawn $37 billion in government holdings from national pension funds to pay down sovereign debt. Its markets dropped 4.8% the day the news hit. Given relative GDP size, a similar take here would be north of $1 trillion and laws have been prepared to bail-in major banks. Many cities already are bankrupt and pension funds are at risk as pensioneers and bond holders battle over the remains. Those who buy the official narrative are riding in a ticker-tape parade on which Central Banks are showering confetti. When the dreamers awake, they will be looking at a demonic jack-o-lantern." Continue reading →

Continue ReadingRebalance To Buffer Crises?

Tax Havens Are Crucial if We Want to Restrain Predatory Government

"Politicians have little incentive to control spending and reform programs if they think that higher taxes are an option. So how do we control their appetite for more revenue? There’s no silver bullet solution, but part of the answer is that we need tax competition and tax havens. Politicians are less likely to over-tax and over-spend if they’re afraid that the geese that lay the golden eggs can fly across the border. In other words, tax competition is a necessary but not sufficient condition to promote good policy. And that’s why I’m willing to defend tax havens, even if it requires bringing a message of liberty to traditionally hostile audiences such as readers of the New York Times and viewers of CNN." Continue reading →

Continue ReadingTax Havens Are Crucial if We Want to Restrain Predatory Government

Strangled By Red Tape

"We’re talking about a huge cost to the economy, and it’s been getting worse for the past 12 years. If those numbers don’t make you sit up and take notice, how about these ones? Americans spend 8.8 billion hours every year filling out government forms. The economy-wide cost of regulation is now $1.75 trillion. For every bureaucrat at a regulatory agency, 100 jobs are destroyed in the economy’s productive sector. The Obama Administration added $236 billion of red tape just in 2012. Today’s Byzantine system is good for tax lawyers, accountants, and bureaucrats, but it’s bad news for America." Continue reading →

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Free Lunches for All Students in Boston

"The federal government has taken a chunk of taxpayers’ money and handed it over to Boston’s tax-funded schools. The money will be used to supply free lunches for all students. There will be no means-testing. Rich kids will get free meals. Why? So as to avoid the sense of shame in the hearts of poor kids, who might see their families as charity cases, which of course they are. Reality is painful. Self-awareness is painful. Politicians spend their careers trying to find ways to shield voters from reality." Continue reading →

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Australia’s Carbon Tax: Lessons for the United States

"The real-world results in Australia throw cold water on the claims made by proponents of a U.S. carbon tax. Every single claim they make in their case for a U.S. carbon tax had the opposite effect in Australia. In the year after Australia’s carbon tax was introduced, household electricity prices rose 15%, including the biggest quarterly increase on record. Currently 19% of the typical household’s electricity bill is due to Australia’s carbon tax and other 'green' programs such as a renewable energy mandate. The job market had previously been stable, but after Australia’s carbon tax the number of unemployed began rising rapidly." Continue reading →

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Orange County, CA Still Has No Tax Software

"The tax code of Orange County is so complex that the documentation for an useless computer program to run the tax system is 6,000 pages long. The program did not work. The county then hired another firm to produce the needed program. Original bid: $8 million. But there were cost overruns: another $8 million. The county says the second program does not work. The company is part of the Tata conglomerate, the giant Indian firm. Orange County has fired Tata. So, the county is still flying blind." Continue reading →

Continue ReadingOrange County, CA Still Has No Tax Software