THE GAS PRICE CONUMDRUM

Recently, we have experienced another jump in gasoline prices causing outcries among consumers and prompting debates as to what ought to be done about the situation. These outcries and debates beg two questions: How “high” are gas prices? What, if anything, can be done about it?

To read further, check out my editorial with this title found on the right margin of the screen.

           

THE VIRTUES OF SCHOOL CHOISE

Besides the obvious one--freedom of choise--not to mention lower cost, the virtues of increasing educational choise by enabling private schools to compete for students on a fair basis with public schools are many. This from the Cato Institute:

Call me old fashioned, but I prefer to reach policy conclusions based on empirical research. So after comparing the performance of alternative school systems over the past 2,000 years, I surveyed the modern econometric literature on the subject for the Journal of School Choice. What I found is that the freest, most market-like education systems consistently outperform the sorts of state monopolies preferred by Ms. Weingarten and her fellow travelers. Appended below is the chart counting up how many studies favored education markets over state school monopolies, and vice-versa, in each of six outcome areas.

If Ms. Weingarten is aware of a similar weight of scientific evidence favoring her position, she should present it. Otherwise, why would anyone bother to heed her? More puzzling still, what was it about her alleged-dog-allegedly-bites-man op-ed that the WSJ thought worth publishing?

OUR PREMIER UNIVERSITIES AND ACADEMIC FREEDOM

UCLA fired a professor of 34 years for publishing a scientific report that they disagreed with--not based on the science but on the politics. The professor's report disputed a major finding of the California Air Resources Board (CARB) about air polution. After submitting his report to CARB, the professor (James Enstrom) was fired. Turns out two of the people associated with CARB were powerful UCLA professors and his report was in opposition to regulations that they were tying to get implimented. CARB had based their actions on a "scientific" report by someone who it turns out had purchased a PHD from a bogus university.

TAXES AND THE DEFICIT

If government had to raise taxes to cover all spending for 2011 it would need to more than double income tax collections (144% incr. needed).

If government only raised taxes on those making more than $250,000 their rates would have to be raised to over 100 percent. But even that wouldn’t do it because government would still need 30+% more from other tax payers than they are already paying. -- Curtis S. Dubay (Heritage Foundation)

“The American Republic will endure until the day congress discovers that it can bribe the public with the public’s own money.” -- Alexis de Tocqueville (philosopher)

"After that point the system will collapse under its own weight." -- David W. Dickey (economist/writer)

GOV REGULATIONS COST JOBS

'Hidden Tax': Govt Rules Cost Economy Nearly $2 Trillion

Tuesday, 19 Apr 2011 09:20 AM

By Mike Tighe

That staggering figure comes courtesy of Wayne Crews, policy vice president at the Competitive Enterprise Institute, who scrutinized the 81,405 pages of the Federal Registry. That catalog chronicles the nation’s regulations on businesses and state and local governments.
Crews' report, titled Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State, contends that government regulations cost the economy $1.75 trillion in 2008.

Amid all the debates about the nation's economy, hardly anyone pays attention to the cost of the rules, which Crews describes as the "hidden tax." After all, such costs don't end up on people's pay stubs or tax bills from state and local governments.

Crews' report notes: “Because such regulatory costs are not budgeted and lack the formal public disclosure of federal spending, they may generate comparatively little public outcry." That off-the-radar aspect of regulations makes them an inviting way for governments to raise Money, Crews contends.

“If regulatory costs remain largely hidden from public view, regulating will become increasingly attractive compared with increasingly unpopular taxing and spending,” Crews writes. “Rather than pay directly and book expenses for new initiatives, the federal government can require the private sector — as well as state and local governments — to pay for federal initiatives through compliance costs.”

Although Crews' report acknowledges that getting a precise tally of government regulation is impossible, he stresses that every new rule costs business owners and consumers more money.

The Daily Caller lists just some of the report's significant points, including the following:

·                       In 2010, federal agencies issued 3,573 final rules.

·                       Although agencies issued 3,573 final rules, Congress passed and the president signed into law a comparatively “few” 217 bills. Considerable lawmaking power is delegated to unelected bureaucrats at agencies, an abuse addressed recently in proposals such as the REINS Act.

·                       Proposed rules in the Federal Register have surged from 2,044 in 2009 to 2,439 in 2010, a jump of 19.3 percent.

·                       Almost 225 of the 4,225 rules now in the regulatory pipeline are “economically significant” meaning they wield at least $100 million in economic impact, an increase of 22 percent over 2009’s 184 rules.

·                       Given 2010’s government spending of $3.456 trillion, the regulatory “hidden tax” of $1.75 trillion stands at an unprecedented 50.7 percent of the level of federal spending itself.

·                       Regulatory costs exceed all 2008 corporate pretax profits of $1.463 trillion.

·                       Regulatory costs dwarf corporate income taxes of $157 billion.

© Newsmax. All rights reserved.

FUN WITH TAXES

This from the Cato Instutute:

According to tax publisher CCH, there are now 72,536 pages of federal tax code rules, regulations, and IRS rulings.

THE U.S. BUDGET

IF the Federal budget is cut by the proposed $38 billion, then Federal government outlays will RISE by $177 billion in FY 2011. See below. We're in a very, very bad and sad situation.


Source: Congressional Budget Office, Cato Institute

INCOME TAXES

Letter submitted to the Orange County Register:

Apr. 14, 2011

Dear Editor,

You recently published an article from The Associated Press that stated that “54 percent of Americans believe their tax bills are either somewhat fair or very fair, compared with 46 percent who say they are unfair.” What the article did not say was that 47 percent of Americans do not pay any income tax. So it should be no surprise to anyone that these people plus a few others are quite happy that most taxes are being paid by someone other than themselves. 

David W. Dickey

Mission Viejo

U.S.: A NATION OF DEPENDENTS

The chart below shows how dependent Americans have become on government money. The chart tells a very sad story and the situation is only getting worse. What the chart doesn't show is that it is largely government policies that are creating this pattern of rising dependence. Our government confiscates 40 percent of private resources, primary out of peoples incomes. Then it gives that money to someone else. These policies dictate that dependence on government MUST NECESSARILY rise. Money that is taken from wages and given to the government obviously cannot also be received by individuals as wages. (Further description of the graph and what it shows is provided below)



Source: Bureau of Economic Analysis, Credit Suisse

The graph was created by Credit Suisse’s chief economist, Neal Soss. The red line shows what share of personal income comes from wages — that is, what Americans earn from working. The blue line shows what share comes from transfer payments, which are made to individuals, usually by the federal government, through social benefit programs like unemployment insurance, disability insurance and Social Security. As you can see, the share of income that Americans earn by working has been falling, from more than two-thirds of their income in the mid-1950s to just over half of their income today. Meanwhile, they have been growing more and more dependent on money from social benefits programs, growing from about 4 percent in the mid-’50s to about 18 percent in February 2011.