Monthly Archives: October 2011

Peter Schiff to OWS: “I Am the 1% Let’s Talk”

Here’s a very fascinating video taken at New York’s Zuccotti Park where Peter Schiff has a dialogue with some of the Occupy Wall Street protesters. Schiff brought a sign that read “I Am the 1% Let’s Talk,” and talk they did.

One of the things that occurred to me watching this was how little true discussion is going on between the OWS movement and their critics. Notice how some of the protesters say things like “you rich people” or “you Republicans” etc. Just as its unfair for these protesters to lump everyone into these groups is a mistake, I think it’s also a mistake to assume that all of these protesters are clueless and don’t have some legitimate grievances.

Kudos to Peter Schiff for going out among the protesters and having this much needed conversation. There seems to be some common ground concerning these grievances; the real differences are what the solutions should be.

The Challenge of Creating an Economically Sound, Simpler, and More Just Tax Code (Part 1 of 3)

If there is one positive thing Herman Cain has contributed to the national debate it would be this renewed discussion about tax reform. While I am skeptical of some of the specifics of his 9-9-9 plan, if nothing else, Cain has forced the other candidates to come out with proposals of their own. Gov. Rick Perry in a seemingly desperate move to remain relevant proposed an alternative 20% flat tax – a single rate that’s less than the sum of all of Cain’s 9’s.

Before I was aware of and became a supporter of the Fair Tax (a 23% consumption tax that would replace the income tax, payroll tax and all other federal taxes; Gary Johnson and Herman Cain* both support the Fair Tax) I was a supporter of the Flat Tax as proposed by Steve Forbes in his 2000 presidential bid. If we must be subject to an income tax, it seems only fair that everyone pay the same tax rate. None of these proposed plans are perfect but at least everyone is subject to the same rates.

But apparently my definition of “fair” differs quite a bit from those who think a “progressive” tax (i.e. the more you make, the more the government will take) is fair. Take this article from Politico for example:

Taxing the poor has become a badge of honor among conservatives. When Occupy Wall Street protesters launched their cry of “We are the 99 percent,” the right-wing blogosphere responded, “We are the 53 percent,” meaning the 53 percent of American households that they say pay federal income taxes.

Conservatives have become fixated on the notion that largely because of the Earned Income Tax Credit — passed under Ronald Reagan and expanded under Bill Clinton — almost half of all Americans pay no income taxes.

Perry launched his presidential campaign expressing dismay at the “injustice that nearly half of all Americans don’t even pay any income tax.” And he was not alone. Every major candidate — Rep. Michele Bachmann (R-Minn.), Mitt Romney and Cain — has suggested that too many of the working poor aren’t paying income taxes, a position The Wall Street Journal describes as “GOP doctrine.”


The argument is disingenuous. Working poor people do pay taxes. They pay a larger portion of their incomes in payroll taxes and sales taxes than the wealthy. And they pay property taxes indirectly in their rental costs. Poor workers pay about one-eighth of their incomes in taxes, on average.

For the sake of argument, I will assume that the author’s assertion is correct that the working poor pay a greater share of their incomes than the wealthy counting both direct and indirect taxes. Indeed there are all sorts of hidden taxes that are embedded in every good or service we all buy.

Regulations on business (which the author of this article undoubtedly supports) that contributes to the overall cost of employing a worker** are potential earnings the worker might otherwise be paid. » Read more

Quote Of The Day

Marks, Percy, “Under Glass”, Scribner’s Magazine Vol 73, 1923, p 47

The idea is, of course, that men are successful because they have gone to college. No idea was ever more absurd. No man is successful because he has managed to pass a certain number of courses and has received a sheepskin which tells the world in Latin, that neither the world nor the graduate can read, that he has successfully completed the work required. If the man is successful, it is because he has the qualities for success in him; the college “education” has merely, speaking in terms’ of horticulture, forced those qualities and given him certain intellectual tools with which to work-tools which he could have got without going to college, but not nearly so quickly. So far as anything practical is concerned, a college is simply an intellectual hothouse. For four years the mind of the undergraduate is put “under glass,” and a very warm and constant sunshine is poured down upon it. The result is, of course, that his mind blooms earlier than it would in the much cooler intellectual atmosphere of the business world.

A man learns more about business in the first six months after his graduation than he does in his whole four years of college. But-and here is the “practical” result of his college work-he learns far more in those six months than if he had not gone to college. He has been trained to learn, and that, to all intents and purposes, is all the training he has received. To say that he has been trained to think is to say essentially that he has been trained to learn, but remember that it is impossible to teach a man to think. The power to think must be inherently his. All that the teacher can do is help him learn to order his thoughts-such as they are.

Hat Tip: “JKB”, in a comment over at EconLog

TBD Names Doug Mataconis Among “The 51 D.C. Journalists with the Most Klout”

Liberty Papers contributor Doug Mataconis has been named by a D.C. website called TBD as one of “The 51 D.C. Journalists with the Most Klout.”

According to the website the criteria for making this distinguished list is as follows:

If Twitter is a popularity contest, then Klout is the judge. Using an algorithm that factors “true reach,” “amplification,” and “network impact,” the website assigns every tweep a score, on a scale of 1 to 100. It’s not perfect, but nonetheless, here’s how Klout scored notable members of D.C.’s press corps.

Doug made the list at number 46 with a score of 74. This is what the site had to say about Doug:

Doug Mataconis: 74
“Lawyer, libertarian, Yankee fan. Very Opinionated, ‘Hell bound sinner,’ blogger.” Sample tweet: “OMG the extent to which these people don’t understand what Senate Reconciliation means is incredible #EconDebate.” Followers: 5,456

In addition to writing here* at The Liberty Papers, Doug is a contributor to Outside the Beltway, writes at his own blog called Below the Beltway, and as mentioned above, very active on Twitter with an impressive following.

On behalf of all of us here at The Liberty Papers, congratulations Doug!

» Read more

Ron Paul Unveils “Restore America” Plan

LAS VEGAS – Republican presidential candidate Rep. Ron Paul unveiled his economic “Plan to Restore America” in Las Vegas Monday afternoon, calling for a lower corporate tax rate, a cut in spending by $1 trillion during his first year in office and the elimination of five cabinet-level agencies.”


Paul does get specific when he calls for a 10 percent reduction in the federal work force, while pledging to limit his presidential salary to $39,336, which his campaign says is “approximately equal to the median personal income of the American worker.” The current pay rate for commander in chief is $400,000 a year.

Based on Dr. Paul’s speech, there’s not a whole lot not to like. Cutting $1 trillion of government spending in the first year would be a very good thing IMO.

As a Gary Johnson supporter, I can’t help but get more than a little annoyed each time one of Paul’s supporters, member of his campaign staff, or the congressman himself makes the claim that Dr. Paul is the only candidate in the race who would balance the budget. Gov. Johnson has promised a balanced budget, not merely in his first term but in his first budget in virtually every debate, interview, and speech he has given since he announced his candidacy.

That criticism aside, I hope this plan is given serious consideration by the primary voters and debated among the candidates.

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