Feed aggregator

Obama Uses His Infamous Pen For Green Energy Cronyism

Environment Suite - In The News - September 03, 2014, 1:00 PM
It’s President Obama’s way or the highway, to summarize the words of of one of his spokespersons, that he will “use all of the tools at his disposal working…

Obama Uses His Infamous Pen For Green Energy Cronyism

Stuff We Wish We Wrote - Homepage - September 03, 2014, 1:00 PM
It’s President Obama’s way or the highway, to summarize the words of of one of his spokespersons, that he will “use all of the tools at his disposal working…

Shut Down MITFA and Demand ITFA Before November 1st, 2014

Somewhat Reasonable - September 03, 2014, 11:10 AM

public domain

Most of Congress agrees that the Internet access tax ban should continue, at least for now; even the House passed the Internet Tax Freedom Act (ITFA) with merely a voice vote. It seems like it would be almost unanimous in the Senate, too, but one hot topic attached to access taxes is causing controversy: the Internet sales tax. The four-page ITFA bill also contains a provision that protects against discriminatory taxes on electronic commerce. While brick-and-mortar stores have a definitive sales tax they pay based on where they’re located, e-retailers do not. Without sales tax protection, e-retailers could have to pay up to 9,600 different state and local taxing bodies, an administrative expense that the average small business owner could not handle (24 million Americans, where 29% make less than $10,000/year in sales). On top of that, if a taxing body charges the wrong tax or makes a mistake and an e-retailer needs to take legal action, they would incur further costs for lawyers and litigation that would diminish the incentive to sell anything online in the first place.

A group of senators is planning to hold Internet access taxes hostage (the ban expires November 1st, 2014) in an attempt to force the Internet sales tax question. They created their own version of an Internet tax freedom act, but with many perversions that cater to the retail industry giants who could easily soak up the administrative costs and send their armies of lawyers to court for them. This new fourteen-page bill, the Marketplace and Internet Tax Freedom Act (MITFA), only extends the Internet access tax ban by 10 years instead of permanently, and it would open up the 9,600 different state and local tax collecting agencies—many of whom are in debt—to enforcing burdensome regulation and taxation on e-retailers.

Imagine someone who makes homemade trinkets and sells them online, perhaps something they started doing while on unemployment or just as a hobby. If they get orders from many people across the country, they would have to calculate each tax rate in each location of each customer. What if they fail to do so? Many state and local authorities charge high fines if a seller does not pay sales taxes, and you can even go to jail. Suppose they find a charge that shouldn’t be there, but the taxing body disputes it. Where would this person find the money to fight the legal battle this would cause? They might just settle, even if they were never in the wrong. This is what the legal language of the current law banning Internet sales tax means by discrimination.

There is even legal precedent set by the SCOTUS in the case Quill Corp. vs. North Dakota. In this case, North Dakota was trying to make Quill Corp., an office supplier based out of Delaware, pay taxes for advertising and selling its products in the state. The Supreme Court ruled that a business has to have a physical presence in a state in order to be subjected to its sales taxes. In 1992, Justice Stevens delivered the opinion of the Court in which he said “…because the State had not shown that it had spent tax revenues for the benefit of the mail order business, there was no ‘nexus to allow the state to define retailer in the manner it chose.’”

Quill has three warehouses in three separate states, so it is paying sales taxes in those states that it runs its operations out of. States that foster poor business conditions should not be allowed to tax businesses in other states just because customers order items from them online. This would defeat basic competition between states and would be unfair to states that are responsible. States that have ruined their economies can’t be allowed to suck out money from successful companies in other states whose business conditions are better. Some states don’t even have general sales taxes, and their companies would be forced to pay an extra expense that they never needed to before.

E-retailers are not dodging taxes because they do have a physical location somewhere. If anything, banning Internet sales taxes would force states to rethink their economic policy. Challenges and tough times can often spark amazing motivation for real growth and change. Opening another source of revenue for states that have proven time and again mismanagement of funds would be a disaster for everyone involved. Successful companies that have harnessed the equalizing powers of technology would be penalized, and American consumers would be left with less choice and less in their wallets.

The ITFA bill that has passed the House is now in the Senate’s hands; the bill is concise at only four pages, and most people would be able to easily understand it. It would permanently ban Internet access taxes and multiple and discriminatory taxes on electronic commerce. The proposed MIFTA bill, masquerading as a better alternative, would only ban access taxes for 10 years, but allow almost 10,000 tax collecting agencies a chance at a massive money grab, convoluting competition and reducing economic freedom. Contact your senators today and tell them to take up a vote on IFTA, not MIFTA, before November 1st. We only have 59 days left.

Categories: On the Blog

THE GREAT KITTEN AND PUPPY EXTINCTION - Tim Blair

Stuff We Wish We Wrote - Homepage - September 03, 2014, 9:25 AM
Harvard warmist Naomi Oreskes predicts the deaths of all Australians due to climate change – and even worse, as Tony Thomas observes: She prophesises the…

Lower Tax Rates vs. Targeted Tax Credits

Budget and Tax Suite - In The News - September 03, 2014, 9:22 AM
I wrote a column for the Wall Street Journal last week about the policy debate over whether it’s better to lower tax rates or to provide targeted tax cuts for…

Lower Tax Rates vs. Targeted Tax Credits

Stuff We Wish We Wrote - Homepage - September 03, 2014, 9:22 AM
I wrote a column for the Wall Street Journal last week about the policy debate over whether it’s better to lower tax rates or to provide targeted tax cuts for…

Will Europe Pull Its Weight on Defense?

Somewhat Reasonable - September 02, 2014, 7:10 PM

The ongoing conflict in Ukraine has laid bare the woeful state of European defense. For decades  Europe has been reliant on an American security blanket, one that has put Europe’s various defense departments to sleep. Putin’s recent belligerence has given them a loud wake-up call. What they will do about the aggression on their frontier remains to be seen.

Hopefully, Europe’s leaders will finally begin to pull their weight on providing for their own defense and fro the maintenance of NATO. Currently America makes up the lion’s share of NATO forces and spends a vastly disproportionate amount of its GDP on the task. The United Kingdom is the only major EU power that spends more than 2 percent of its GDP on defense. The rest have seemed happy to spend their cash on unaffordable social programs in the hope that America will always be there to protect them.

It’s about time that America made a stand on defense spending in Europe. It is ludicrous to expect the United States to spend more on defending Europe than the Europeans are willing to. Now that Putin has increased his warmongering, many of Europe’s leaders have finally started to agree. While it is still far too early to declare that Europe is definitely going to shoulder the task of ensuring its own security, we are now seeing positive steps, taken through the NATO alliance, to meaningfully increase the share of Europe’s burden on the maintenance of its defense. Member countries in Europe have agreed to increase their defense spending to more adequately address security concerns.

This is a good sign for America. We have spent a vast fortune trying to maintain peace and security in the world, to mixed success. We cannot afford to be the sole guarantor of international order forever. What we need is other responsible, democratic nations to shoulder a larger part of that burden. It will benefit the US taxpayer and add legitimacy to a global order that favors free markets and the rule of law. Europe, America’s partner in liberal-democratic values, must be ready to share in the effort of sustaining peace on its borders, and in the world.

Categories: On the Blog

How Repealing And Replacing Obamacare Would Help Restore Booming Economic Growth

Somewhat Reasonable - September 02, 2014, 8:01 AM

One of the biggest drags on economic growth under President Obama has been Obamacare, enacted on a strictly partisan basis in 2010. That drag has come primarily from the sweeping overregulation of Obamacare.

The biggest culprit has been the employer mandate, which requires all employers of 50 or more full time workers to buy them health insurance with the terms and benefits as specified by the federal government. That is effectively a tax on employment of well over $10,000 a year per worker for family coverage.

Even for employers that already provide health insurance, the employer mandate will likely be a big tax increase on employment.  That is because the mandated health insurance will most likely cost more than what the employer is already providing. That results first because the government responds to political pressure to require generous benefits most people will think the employer is paying for, to be include in the mandated health insurance. That drives up the cost of the mandatory health insurance.

Secondly, the mandated health insurance is subjected to costly overregulation involving guaranteed issue and community rating. Guaranteed issue requires insurers to sell their health insurance to everyone that applies, regardless of how sick and costly they are when they first apply, such as those who already have cancer or heart disease. That is like requiring fire insurance companies to sell their fire insurance to buyers who call up after their house has already caught on fire.

Community rating requires health insurers to sell that insurance at the same standard rates as for everyone else, regardless of how sick and costly the buyers are when they first apply for the insurance.   That is like requiring fire insurers to sell fire insurance at the same standard rates as for anyone else, to buyers after their houses have already caught on fire.

Of course, the standard rates for such fire insurance are going to be very high. The same will be true for health insurance subject to such regulation. There are better, far less costly ways of assuring that health insurance is available to everyone, including those with costly preconditions.

This employer mandate employment tax is reducing job and wage growth. Moreover, to further avoid that costly tax on employment, millions of workers across the country have been reduced to part time work of 29 hours a week or less, because the definition of a full time worker in the Obamacare legislation is 30 hours a week or more. That is driving down the net wages and incomes of middle class and working people, and increasing inequality as a result. Small companies around the 50 worker threshold are also restraining growth and employment for the same reasons. All of this has been killing economic growth, stunting the recovery, and greatly extending the misery of the recession well beyond previous recessions.

The individual mandate is increasing costs of health insurance in the individual health insurance market as well, for the same reasons. President Obama was quick to claim credit for Obamacare for supposedly restraining the growth of health costs. But that health cost slowdown he cited actually started back in 2003, when Health Savings Accounts (HSAs) were adopted by the then GOP Congress, as I will explain below. Barack Obama was an Illinois State Senator back then, and Obamacare was just a gleam in his eye.

So both the employer mandate and the individual mandate are effective tax increases, which are a drag on economic growth. Obamacare is financed by another half trillion in tax increases, which are also anti-growth.

How to Repeal and Replace Obamacare

But Obamacare can be replaced by free market, Patient Power, health care reforms based on sharply expanding patient power, control and choice over their own health care, which would assure health care for all (unlike Obamacare), with no employer mandate, no individual mandate, and sharply reduced taxes, federal spending and regulation. That would reverse the above anti-growth effects of Obamacare, and contribute to booming economic growth and recovery. Such Patient Power reforms have long been advocated by John Goodman, long time President of the National Center for Policy Analysis in Dallas.

The centerpiece of such Patient Power reforms would be to extend the same tax preference for employer provided health insurance to everyone, in the form of a refundable, universal, health insurance tax credit for all of roughly $2,500 per year ($8,000 for family coverage) for the purchase of private health insurance. The credit would not be meant to pay for the entire cost of such insurance, but only to help pay for it, just as the tax preference for employer provided insurance does not pay the entire cost of such insurance, but only helps pay for it.

There would be no government mandate of any sort to use the credit to buy any particular insurance with any particular terms or benefits. Each worker would be free to use the credit to buy the health insurance of the worker’s own choice, such as Health Savings Accounts (HSAs), discussed further below.

Workers would even be free to choose to use the credit to buy into coverage through Medicaid if they desired. The credit amount is equal to the CBO estimated average cost of adding one additional person to Medicaid coverage. This one feature assures coverage for all those with any pre-existing condition, because they could always choose Medicaid coverage, which includes anyone regardless of any pre-existing condition. But few would be expected to choose Medicaid, because of the fundamental problems of Medicaid as discussed below. Indeed, people would also be free to choose to use the credit to leave Medicaid for the purchase of any private health insurance of their choice, including HSAs.

The $2,500 credit would effectively operate as a reverse penalty in terms of lost opportunity cost for failing to use it. The taxpayer would effectively then leave $2,500 on the table in terms of his personal finances.

But socially, the amount of any unused credits would be sent to local safety net hospitals and clinics serving the poor in the local area. For example, if 1000 people in Dallas did not use the credit to buy any health insurance, $2,500,000 would be sent to safety net hospitals and clinics in Dallas specializing in serving the poor.

The second component of the Patient Power reforms would be to transfer control over Medicaid to the states, with the federal financing of the program provided through fixed, finite, block grants to each state, as under the enormously successful 1996 welfare reforms of the old, New Deal, Aid to Families with Dependent Children (AFDC) program. Currently, the federal financing for Medicaid is provided under a matching federal financing formula, paying more to each state the more the state spends on Medicaid. That is like the federal government paying the states to spend more on Medicaid.

Under the fixed, finite, block grant formula, the state knows that if its redesigned, state, Medicaid program costs more, it is going to pay 100% of the difference. But if the program costs less, it would keep 100% of the savings. These are ideal incentives for each state to weigh the costs against the benefits for Medicaid spending, and only pursue the spending that was worthwhile.

Preferably, each state would use its power under the Medicaid block grants to provide assistance to the poor through health insurance vouchers that could be used by the poor to supplement the universal health insurance tax credit to help the beneficiary to purchase the private health insurance of his or her choice, including HSAs. The voters of each state would then be free to determine how much assistance at what income levels would be necessary to assure that the state’s poor could buy essential health insurance, which would be very different for Mississippi and Louisiana than for New York and California, given their widely varying health cost structures, and income distributions.

Such Medicaid reform would be enormously beneficial for the poor. Medicaid currently pays so little to the doctors and hospitals to provide essential health care to the poor that they often face grave difficulties in finding timely, essential health care under the program. But with private health insurance purchased with the help of the universal health insurance tax credit, supplemented for the poor with Medicaid health insurance vouchers, the poor would enjoy the same health care as the middle class, because they would have the same health insurance as the middle class, which is forced by competitive market pressures to pay enough to the doctors and hospitals to ensure that those covered by the insurance can get timely, essential health care. This would mean an enormous gain for the poor as compared to the current Medicaid program.

As another safety net component of the Obamacare replacement plan, states would also be free to use a limited part of the Medicaid block grant funds to set up Uninsurable Risk Pools for those uninsured who had contracted costly preexisting conditions such as cancer or heart disease while uninsured. Any uninsured who could not obtain health insurance in the market for this reason would be able to obtain full coverage from the Uninsurable Risk Pool for an affordable fee based on the applicant’s ability to pay, which is necessary for the pool to serve as a safety net program. State taxpayers and part of the Medicaid block grant funds would subsidize the pool to cover all costs not covered by the fees charged to those covered by the pool.

Over 30 states have set up similar Uninsurable Risk Pools, and they have proven by experience to be a low cost means of covering those who could not obtain coverage in the market because of costly pre-existing conditions. That is because only a very small percentage of the population ever becomes truly uninsurable in the private market.

These reforms would assure universal health care for all. Everyone would have the universal health insurance tax credit, the poor would receive additional assistance to purchase private coverage, and everyone would continue to be backed up by Medicaid and the Uninsurable Risk Pools as safety nets. By contrast, Obamacare fails to achieve universal coverage, as CBO projects that even after 10 years, Obamacare would still leave 30 million Americans uninsured, and without any assured access to health care.

Health Savings Accounts

The health cost control functions of Obamacare would also be achieved far more effectively through HSAs and market competition. With an HSA, instead of all the money going to an insurance company, the insured pays only enough to purchase coverage with a high deductible, around the range of $5,000 to $6,000 a year or more. The health insurance then pays for all health care costs above that annual deductible.

The substantial cost savings from purchasing such high deductible insurance is then saved in the HSA to pay for health costs below the deductible. Whatever is not spent from the HSA can be withdrawn after a year and spent on anything, or saved tax free for health care in future years, and for retirement. Consequently, whatever the worker spends on health care from his HSA is effectively his own money.

That will leave him with full market incentives to control costs. He will question what health care is necessary, seek second opinions, and explore less costly alternatives. Moreover, since the patients now have full market incentives to control costs, doctors and hospitals will compete to control costs, the more patients in the marketplace have HSAs.

These HSA incentives have proven very effective in controlling costs in the real world. The Republican Congress passed modern HSAs in 2003. Since then, HSA coverage has been exploding, doubling year after year. Today, 30 million Americans have HSAs. And the slowdown in the growth of health costs first buds after HSAs were passed, and builds along with that growth in HSA coverage.

These HSAs are the classic Patient Power reform, because the patient has maximum power, choice and control over the HSA funds. The Patient Power alternative to Obamacare would expand the HSA option throughout the entire health care system. Workers even with employer provided coverage could use the universal health insurance tax credit to purchase preferred health insurance of their choice, which would include HSAs. This gives workers a market check on the power of employers over their health insurance, as the incentive of employers is to choose the coverage that works best for them rather than their employees. The universal credit could also be used to opt out of Medicaid for HSAs.

Also under the Medicaid block grants, the poor could use the health insurance vouchers to purchase HSAs if they prefer. Retirees should also be assured of the freedom to choose HSAs under Medicare Part C. Through these reforms, virtually everyone would enjoy the freedom to choose HSAs if they prefer. That, and the market competition between the alternative choices among the different insurers in all these markets would restrain the growth in health costs far more effectively than Obamacare, which only works to increase health costs.

Booming Economic Growth Through Health Care Reform

Repealing and replacing Obamacare with the above Patient Power reforms would further contribute to booming economic growth, in addition to previous reforms I have advocated in recent weeks in this column. Repealing Obamacare would automatically involve a tax cut of 16% in the capital gains tax, and in the taxation of corporate dividends. That would promote the capital investment that creates jobs and increases wages. It would also cut the top rate of the Medicare payroll tax by roughly one fourth, which would also create jobs and increase wages.

It would also end the effective taxation involved in the employer mandate and the individual mandate, again increasing jobs and wages. The millions of Americans now reduced to part time work would be liberated to find full time jobs again, restoring millions of middle class incomes. The restrained growth of health costs would also liberate businesses to invest more in job creation, and directly increase wages. That would result both from repealing the cost increasing effects of Obamacare, as well as from the cost restraining features of the replacement reforms.

[First published at Forbes.]

Categories: On the Blog

Ten Things Homeschoolers Think During Back To School Season

Blog - Education - September 02, 2014, 1:20 AM

An anthropological look at this curious, intelligent, frededom-loving tribe.

1. But I’m not even done with last year’s math book!

Don’t worry. Public schoolers aren’t, either. And their books are four grades behind. 2. Like my back-to-school outfit?

3. Mom bought way too many school supplies to compensate for “not being a real teacher.”

You don’t need to compensate, mom. Research shows homeschoolers whose parents have just a high school diploma still do better than the average public schooler. 4. And the four-pack of pianos.

5. School? What school?

6. Goodbye, friends. See you next summer.

7. Here’s my school uniform, same as the summer uniform.

We know homeschoolers don’t ever work in pajamas. Just like telecommuters. 8. Ya’ll enjoy school. I’ll over here making robots, real log cabins, and probiotic-filled food. And playing Settlers of Catan.

9. Can I get a science credit for watching a home birth?

10. Maybe it’s time to get a bigger bus.

Photo By: Allan Henderson Photo By: Eric Gelinas Photo By: tony puyol Photo By: dr_tr Photo By: David Goodman Photo By: Ingo Bernhardt Photo By: Liz Photo By: M 93 Photo By: anthony kelly Photo By: ShelahD [First published at The Federalist.]

Ten Things Homeschoolers Think During Back To School Season

Somewhat Reasonable - September 02, 2014, 1:20 AM

An anthropological look at this curious, intelligent, frededom-loving tribe.

1. But I’m not even done with last year’s math book!

Don’t worry. Public schoolers aren’t, either. And their books are four grades behind. 2. Like my back-to-school outfit?

3. Mom bought way too many school supplies to compensate for “not being a real teacher.”

You don’t need to compensate, mom. Research shows homeschoolers whose parents have just a high school diploma still do better than the average public schooler. 4. And the four-pack of pianos.

5. School? What school?

6. Goodbye, friends. See you next summer.

7. Here’s my school uniform, same as the summer uniform.

We know homeschoolers don’t ever work in pajamas. Just like telecommuters. 8. Ya’ll enjoy school. I’ll over here making robots, real log cabins, and probiotic-filled food. And playing Settlers of Catan.

9. Can I get a science credit for watching a home birth?

10. Maybe it’s time to get a bigger bus.

Photo By: Allan Henderson Photo By: Eric Gelinas Photo By: tony puyol Photo By: dr_tr Photo By: David Goodman Photo By: Ingo Bernhardt Photo By: Liz Photo By: M 93 Photo By: anthony kelly Photo By: ShelahD [First published at The Federalist.]
Categories: On the Blog

An Anti-Cronyism Solution to Dodd-Frank

Somewhat Reasonable - August 31, 2014, 10:00 AM

The Financial Stability Oversight Council (FSOC), the unelected oversight group created by the Dodd-Frank Act to monitor and regulate firms deemed to pose systemic risk to the economy (ie. “too big too fail”), has decided begun to expand its remit beyond what even the law’s authors had imagined.

Conceived as a means of circumscribing the actions of the large financial institutions whose failures could crater the economy, the FSOC is now sticking its label on any financial services firm they can get away with. This week they finished their investigation of MetLife, an insurer. Even though MetLife poses no systemic risk to the economy by any empirical measurement, it is likely to be enveloped by the grubby hands of FSOC anyway.

The MetLife episode demonstrates the huge difficulties in administering an extremely complex regulatory mechanism. Rather than looking for actual systemic risks, FSOC just wants to control as much of the economy as it can. Barney Frank has feigned surprise at this turn of events and has apparently said he never envisioned such a wide scope for FSOC. Well, Mr. Frank, this is what happens when you hand a huge amount of nonspecific powers to a virtually unaccountable organization.

The whole idea behind Dodd-Frank is wrongheaded. It relies on the idea that systemic risks can be accurately calculated before a financial shock is experienced. The solution it prescribes is more red tape for the financial services industry to stumble over. It is unlikely to succeed in anything but choking off economic growth and expanding government power over the economy at the expense of the people.

There is an alternative solution to dealing with vulnerable, systemically important institutions: nationalize them.

The very idea of nationalization naturally raises the bile in the throats of any supporter of the free market, but bear with me on this one.

I propose a law that would require any large financial institution seeking emergency funds from the federal government, as happened during the financial crisis through the Troubled Assets Relief Program (TARP) and government subsidized mergers, to instead be taken over by the government. The law would also stipulate a process by which the firm would be broken up into smaller pieces and sold back to the market as quickly as possible.

This radical proposal would be better than what has occurred for two reasons. First, in terms of the actions of the big banks, they would necessarily factor the prospect of being cracked open and sold off piecemeal into their future risk calculations. This would mean firms would take actions less likely to cause systemic shocks to the economy and removes the perverse incentive from banks like Goldman Sachs to deliberately make themselves systemically necessary as a sort of insurance policy. When a firm is too big too fail, that means it does not need to factor the true risk of failure into their calculations. My proposal allows for a mechanism to deal with firms that are systemically important in an orderly way that does not promote bad actions from the institutions in question.

Second, my proposal would prevent the sort of concentration that the government’s response to the financial crisis produced. The big banks were glutted with federal cash to keep them afloat while smaller banks were left largely in the lurch. The result has been that the big institutions that were at the center of the financial collapse have only gotten larger and more profitable, while the smaller institutions with no such blame getting sunk or, if they survive, playing on an even more unfair field.

There is nothing wrong with big banks. There is something wrong with those big banks using their political clout to skew the free market in their favor. My proposal is a means by which the people can reassert control over their economy without giving undue regulatory powers to the government.

My proposal could find support on both sides of the aisle in Congress. For the left, the policy is punitive against firms that take risks while being extremely important to the economy. For the right, it benefits Main Street and only takes effect when institutions are at risk of going under and taking everyone with them.

The government is not to be trusted when it comes to regulating the economy day-to-day. It’s ability to interfere should be strictly defined and the steps it may take clearly delineated. My proposal demands very specific actions in response to specific shocks. In the end, the economy benefits from fewer systemically risky firms, the taxpayers benefit from not writing a blank check to crony-capitalist bankers, and the industry benefits from a more level playing field.

Categories: On the Blog

Rational Thinking About Irrational Numbers

Somewhat Reasonable - August 30, 2014, 12:51 PM

I am drawing this reference from this article from someone who I look up to and admire – Dr. Roy Spencer.

In the last 100 years, the amount of CO2 in the air has increased from three molecules per 10,000 molecules of air, to four molecules out of 10,000 molecules of air.

Which means we are being asked to believe the increase of one molecule of CO2 out of 10,000 molecules of air in the last 100 years is causing catastrophic climate change that threatens mankind.

This is all fascinating to me, given Secretary of State John Kerry’s comments on the immense threat of a catastrophe based on out of control climate, when we have groups like ISIS and Hamas running around.

Seems to me that there is a lot of inconsistency here. The idea from John Kerry is that CO2-induced warming is an imminent national security threat. So he is saying the increase of one molecule of CO2 per 10,000 molecules of air in the last 100 years is a threat on par with what is going on in the Middle East? How can that even be close. The real threat when it comes to CO2 is the agenda that paints it as a threat. One, it makes us more reliant on an unstable area of the world. Two, the policies limiting its use starve the lifeline of our economy. As I have opined before, it’s the global warming agenda that is the major threat, not global warming.

I for one am much more concerned about Hamas, ISIS, etc., than CO2, except that it’s the focus of an agenda that is stopping our nation from progressing.

But think about what is going on here. Hamas fires untold amounts of rockets into Israel. Israel tries to protect itself. Hamas uses its citizens to protect its missiles. Israel uses its missiles to protect its citizens. But Israel is ripped up and down. How does that hook into CO2? Which is a bigger threat to global stability: an organization like Hamas or ISIS, or the increase of one molecule of CO2 out of 10,000 molecules of air in the last 100 years? Why would anyone be even thinking about the latter, given the example of the former, unless of course the absurdity of blaming Middle East problems on climate change is the goal? (Better tell that to Jacob and Ishmael, and everyone that followed.)

But let’s really put this whole CO2 scare (scam) in perspective, okay?

Here is the infamous hockey stick graphic, the last 50 years of warming based on the most reliable temperature measurements versus tree rings that decided to show cooling instead of warming. This, of course, has stirred up the angst of Dr. Michael Mann when people suggested there was something very wrong with switching the way one measured temperatures after 950 years when that way no longer agreed.

Now here is the real hockey stick, the increase in GDP per capita since the coming fossil fuel age really took off over the last 100 years.

That is a real correlation. No switching measurement horses midstream. During the time of the increase of one molecule of CO2 per 10,000, earth’s per capita income went up. And think about how many more people there are now against 1900.

But let’s look more closely at this in the U.S., since we naturally want to lead the world to a brighter tomorrow.

It is estimated that the U.S. has averaged 20% of the CO2 input from man over the last 100 years . Assuming all the increase of CO2 is man-made, that would mean in 50,000 molecules of air, the U.S. has added one molecule of CO2 in the last 100 years, while the global GDP skyrocketed.

How much is that a year? Well we have to divide the figure above. One molecule per 50,000 in the last 100 years means we have averaged one molecule of CO2 for every 5,000,000 molecules of air per year. So we are asked to believe that is changing the climate?

But wait, let’s think locally to act globally (I have a sweatshirt that says that).

300,000,000 people. How many molecules of CO2 does the average American add to the atmosphere every year?

One molecule of CO2 out of every 1,500,000,000,000,000 molecules of air each year.

Why you selfish capitalist pig. You are destroying the planet by your very existence (though the plants love you – I saw a tree hug a human the other day).

You may say, “Joe, this is an absurd exercise.” Exactly. You must fight the absurd by showing how absurd it truly is. And nothing in our national debate today comes even close to this agenda when put in proper perspective, yet we have people trying to say this threatens our way of life. It threatens theirs, given the gravy train of $165 billion spent on climate change in the past 20 years at the expense of the American people as a whole.

So here is the question to, let’s say, Leonardo DiCaprio, given he flies around the world and makes movies with untold amounts of energy use: Do you really believe the U.S. or the rest of the globe, given the absurdly small amount of CO2 that has been added to the air, is actually changing the climate in any measurable way? Do you understand how irrational that is given the actual numbers?

Another question: Given the major problems facing man today, one of which exemplified above, how can any rational person try to even address this issue as being remotely a problem?

Final questions for inquiring minds: Was the iceberg that sunk the Titanic caused by global warming? How long did you train to hold Kate Winslett so she didn’t fall off the boat? Are you going the way of Brando, and when can we expect you to tip 250, 300 lbs? You understand that weight gain means more of a carbon foot print.

Stellllllllllaaaaaa.

I figure he might have the answer to those last three, because he certainly doesn’t the others – nor do any of the people pushing this agenda.

[Originally published at The Patriot Post]

Categories: On the Blog

Warren Buffett Knows Less Government Means More Economic Activity

Somewhat Reasonable - August 29, 2014, 1:17 PM

Remember the “Buffet Rule?”

The Buffett Rule is part of a tax plan proposed by President Barack Obama in 2011.  The tax plan would apply a minimum tax rate of 30 percent on individuals making more than a million dollars a year.

Remember for whom it’s named?

The Buffett Rule is named after American investor Warren Buffett, who publicly stated in early 2011 that he believed it was wrong that rich people, like himself, could pay less in federal taxes, as a portion of income, than the middle class, and voiced support for increased income taxes on the wealthy.

Remember what Buffett 2012 said – in his New York Times editorial?

Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.”

But he has to know that potential investors do exactly that all the time.

Untaxed US Corporate Profits Held Overseas Top $2.1 Trillion

Foreign profits held overseas by U.S. corporations to avoid taxes at home nearly doubled from 2008 to 2013 to top $2.1 trillion, said a private research firm’s report….

Well, flash forward to Warren Buffett 2014.

Warren Buffett’s Berkshire Hathaway is expected to help finance Burger King’s pending acquisition of Canadian doughnut-chain Tim Hortons.

The deal will allow Miami-based Burger King to claim Canada as its new legal home for tax purposes….

And why is Canada a more favorable tax locale than the U.S.?  Because everywhere on the planet is.

U.S. Corporate Tax Rates Are the Highest in the Developed World

Buffett’s corporate tax move is called an “inversion.”

Tax inversion, or corporate inversion, is the relocation of a corporation’s headquarters to a lower-tax nation, or corporate haven, usually whilst retaining its material operations in its higher-tax country of origin.

Does Buffett 2014 know this?  He’s not a dumb guy.  But here’s your Joke of the Day: He ludicrously claims:

…(T)he deal was not about taxes, saying that the combined company would be based in Canada because of Tim Hortons’ “strong roots” north of the border.

Of course in May Buffett said:

“I will not pay a dime more of individual taxes than I owe, and I won’t pay a dime more of corporate taxes than we owe. And that’s very simple.”

Indeed it is very simple.  And you can’t blame Buffett 2014 for the sentiment.  But you may certainly blame Buffett 2012 for his contradictory sentiment – and for wishing to impose its inanity upon us all.

So the Buffett Rule fails the Reality Test – per Buffett his own self.  Just as do all the Left’s attempts at reverse engineering the economy and human nature.

This is just and yet another example of (at least) a couple of empirical facts.

1) The greater the government involvement in the marketplace – the more warped and damaged the marketplace becomes.

2) The private sector’s wealthiest members will always outsmart, outpace and outdistance whatever the oft-talentless government hacks try to throw at them.

The government damage is instead done to those who can least afford to absorb it.

The Buffetts already have theirs.  But the tens of millions of Americans looking for work and new opportunities desperately need the Buffetts parking their $2.1 trillion overseas to bring it on home.

And until the government makes it more attractive to do so – those tens of millions of Americans will continue to suffer.

While the Buffetts jet set – and Buffett Rule champion President Obama golfs.

[Originally published at RedState]

Categories: On the Blog

Separation of Powers Alert: Obama Seeks Climate ‘Treaty’ without Senate Ratification

Environment Suite - In The News - August 29, 2014, 12:45 PM
“The Obama administration is working to forge a sweeping international climate change agreement to compel nations to cut their planet-warming fossil fuel…

Separation of Powers Alert: Obama Seeks Climate ‘Treaty’ without Senate Ratification

Stuff We Wish We Wrote - Homepage - August 29, 2014, 12:45 PM
“The Obama administration is working to forge a sweeping international climate change agreement to compel nations to cut their planet-warming fossil fuel…

Rupert Darwall - Good-Bye, Treaty

Environment Suite - In The News - August 29, 2014, 12:07 PM
‘I am speaking on behalf of the United States of America because my negotiators cannot,” Abigail Borah, a youth delegate to the 2011 Durban climate…

Rupert Darwall - Good-Bye, Treaty

Stuff We Wish We Wrote - Homepage - August 29, 2014, 12:07 PM
‘I am speaking on behalf of the United States of America because my negotiators cannot,” Abigail Borah, a youth delegate to the 2011 Durban climate…

Cameron Smith

Out of the Storm News - August 29, 2014, 11:23 AM

Cameron Smith is the principle of  Smith Strategies LLC, a regular columnist for the Alabama Media Group and a senior fellow with the R Street Institute.

Prior to founding Smith Strategies, Cameron was vice president and general counsel of the Alabama Policy Institute, where he managed all policy, legal and communications operations.

Previously, Cameron had a number of posts in both the U.S. House and U.S. Senate. He was legislative counsel for Sen. Jeff Sessions, R-Ala., on the Senate Judiciary Committee. He ran the House Intellectual Property Caucus and was counsel to Rep. Tom Feeney, R-Fla. He also served as counsel to Rep. Geoff Davis, R-Ky., where his primary legislative project was the REINS Act, which would provide significantly more accountability for Congress regarding the impacts of federal regulation.

Cameron is a graduate of Washington and Lee University and the University of Alabama School of Law. He is a member of the Tennessee and Alabama bars. He resides with his wife, Justine, and their three sons in Vestavia Hills, Ala.

Email: csmith@rstreet.org

Syndicate content