Category Archives: The Welfare State

Either You Want Government Out of Your Bedroom or You Don’t

One way we libertarians often describe ourselves are individuals who don’t want the government in our bedroom or our boardrooms. Those on the Left typically agree with the former while disagreeing with the latter while those on the Right typically believe the reverse. Yet when it comes to the federal government mandating that all health insurance policies provide “free” contraception via Obamacare, suddenly the Left wants the government in the bedroom while the Right correctly wants no part of it.

President Obama seems to believe (or more likely, wants us to believe) that by decreeing that contraception be free that it will be. No, birth control devices cost no money to develop, test, produce, or distribute; somehow these products are immune from the notion that there is no such thing as a free lunch*. This is the kind of policy that causes health insurance to go up in price because now everyone pays just a little more on their premiums whether everyone wants or needs contraception or not.

Much of the debate on this mandate has centered around the idea that Catholic and other religious organizations should be forced to either directly or indirectly provide contraception in their healthcare plans. Like Brian Lehman writes at United Liberty, this is missing the point. As a pro-choice libertarian atheist, I too am offended by the notion that I must pay for coverage I don’t want or need**. Why don’t I have a right to choose the level of coverage that suits my family’s healthcare needs?

Some healthcare providers may determine that offering the coverage is more cost effective than covering unplanned pregnancies and all that entails. Others may come to a different conclusion. In a more perfect world, individuals would be able to shop around for the right coverage independent of employers or the government. This would take the politics out of the issue except for those who insist that contraception is a right. (Here’s a hint: it isn’t.)

Contraception is a good thing and we are very fortunate to live in a time when we can better plan if or when we want to have children but those who choose to be sexually active should take responsibility for providing it. Is it really too much to ask to buy your own condoms, pills, shots, or whatever? If for some reason you cannot afford contraception, there are organizations that offer these products and services at little or no cost. When did your orgasm become my responsibility?

I think it’s time for my friends particularly on the Left to make a decision: do you really want the government in your bedroom? I sure as hell don’t!

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Reducing OWS Economic Equality Demands to Their Absurd Conclusions

While I’m sympathetic and agree with some of Occupy Wall Street’s grievances, too many of their solutions are fatally flawed. Louis DeBroux over at United Liberty has written some grade A quality snark concerning OWS’s demands for economic equality. DeBroux says he had an epiphany while watching some of the ESPN coverage concerning the NBA lockout: what if the NBA adopted the OWS model?

The most obvious reform he mentioned would be to pay all the players equally regardless of talent and contribution to his team. But why stop with pay? Why not change the rules of the game itself in the name of fairness:

This new equality should not be limited to just to salaries though; it should extend to the basketball court. While winning is fun, losing just stinks. It makes the losers feel like, well, losers. Sometimes players even cry when they lose. It hurts their self esteem and makes them feel inferior to the winners. To solve this horrible injustice, I propose that at halftime of each game, the total points scored by that time be redistributed equally among the players of both teams. Then, with one second left on the clock, just before the game ends, the head referee will call time out and the official scorekeeper will once again redistribute the points evenly among the players of both teams.

Think how great this would be! Everyone that plays will be the high scorer. Never again will an NBA player experience the sadness of losing! Every team will be the L.A. Lakers or Boston Celtics, and no team will have to feel like the Washington Wizards or Toronto Raptors. Every team will go 82-0, and every player will be an MVP! It’s perfect! Just like PC-kiddie-soccer leagues, everyone is a winner and everyone gets a trophy. Isn’t this awesome?

Obviously, this would be the death of sports if such changes were implemented. As awful as that would be, DeBroux points out life and death consequences if the notion of competition was taken out of our culture completely:

There might be the occasional sacrifice that hits closer to home when little Sally, who always wanted to be a surgeon but could never quite remember the names and anatomical characteristics of the various human organs, accidentally mistakes the aorta for the appendix and snips that sucker right out of there. Oops! That’s gonna make a mess! Alas, poor mom, we loved you and will miss you, but the loss of your life was the acceptable price for keeping Sally’s self-esteem intact by letting her become the surgeon she always wanted to be, even if she never quite mastered the minutiae of performing surgery.

We would be all worse off to be sure, but hey, at least we would all be equal!

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

Part 1
Part 2

The challenge of creating an economically sound, simpler, and more just tax code, be it the existing code, 9-9-9, a flat tax, or a sales tax will remain an impossibility if tax revenues is the only focus of any reform. The problem that dwarfs any notion of how tax policy is implemented is how the money is spent by the government.

As I write this, the national debt is approaching $15 trillion. That’s $47,810 per citizen or $132,927 per tax payer.

Even more staggering, the sum total unfunded liabilities for Social Security and Medicare is just over $116 trillion. The prescription drug part of Medicare is over $20 trillion by itself!

Other than the Federal Reserve creating money out of thin air, what tax policy can possibly begin to support this kind of spending? It seems stupid to even pose the question.

Yet the only answer the Obama administration seems to have to pay down the debt or turn the economy around is to raise taxes on the wealthy and continue the reckless spending. The Republicans for their part offer modest tax cuts and modest spending cuts that will have no noticeable impact on the debt.

It’s high time that we as citizens tell our public servants that the out of control spending has to stop. We must demand serious structural reforms to entitlement programs or phase them out over time.

We must also recognize the difference between military spending and true national defense spending. We can no longer afford to police the world. It’s time to tell Iraq, Afghanistan, South Korea, Japan, and others that they are now responsible for their own national defense and domestic security.

That’s just a start; there’s a great deal more spending that should be cut. But before any significant cuts can be made, we need to decide just how much government we want in our lives and what we are each willing to pay. For those who believe that individuals who make under a certain income level should be spared from paying any taxes at all (i.e. too small to tax) maybe it is you who should be out front in demanding a whole lot less government.

The Challenge of Creating an Economically Sound, Simpler, and More Just Tax Code (Part 2 of 3)

Part 1

Is an economically sound, simpler, and more just tax code even possible?

The truth of the matter is that there are too many people on the Left and the Right who do not want a simpler tax code that treats everyone equally.
It’s probably not because the defenders of the existing system necessarily think the existing code is good economic policy nor does a better job funding the federal government. The most likely reasons why there is so much resistance have to do with political pandering, vote buying/special interests, and social engineering.

It’s not too difficult to figure out why the Left panders to the working poor because the poor always outnumber the wealthy regardless of how well the economy is doing overall. What would happen if there was such a tax code where everyone paid the same rate without any tax credits or loopholes and without any hidden or embedded taxes? I’m guessing it would be more difficult to raise taxes on the evil rich if it meant that everyone received the same percentage tax hike. When it comes to the tax code, equality is the very last thing the Left wants.

If there is anything I agree with the Occupy Wall Street crowd or the Left more generally it’s the special treatment politically connected individuals and businesses receive via the tax code and/or subsidies. So you say you want to get money out of politics or do something about the role of corporate lobbyists in Washington?

I do too.

The simple answer IMO is to eliminate all taxes on business and all subsidies that benefit business. If there are no taxes or subsidies, there is no reason for businesses to lobby for special tax treatment or subsidies; the main reason most industries send lobbyists to Washington in the first place. If we would like to go any further in limiting influence of special business interests, maybe just maybe we should get the government out of regulating just about every aspect of business* and restrict the government to its limited constitutional powers. What a novel concept!

Finally there’s the social engineering aspect of the tax code. Frankly, I’m not sure if those on the Left or the Right are worse when it comes to using the tax code as a tool to encourage the American people to engage in particular activities. Even with Perry’s flat tax plans, there are a handful of deductions that are sacred cows. The home interest, charitable giving, and state and local taxes are preserved for those who earn up to $500K. Those who earn under $50K can choose not to file under the 20% rate with a $12,500 per family member deduction (which would eliminate all if not most tax liability under the existing rate for those in this tax bracket). With these deductions as part of the plan, the Perry plan can hardly be called a flat tax.

While I’m critical of keeping these deductions in place (he probably could get by with a smaller rate without the deductions), it’s not difficult to figure out why Gov. Perry keeps them in place. Voters would raise all sorts of hell at the thought these deductions would go away. Maybe there’s a good argument to make that charitable giving should be deducted since these funds help people who might otherwise be on government assistance.

But the home interest deduction? Why is that held sacred? Is there some sort of right for homeowners to get a break because they choose to buy a home rather than rent? I suspect that the realtor and home building lobbies and those in government who truly believe that every person should buy a home perpetuate this notion to a point to where now home owners think they are entitled to this special treatment.

Perhaps the most sacred cow of all of the deductions is the child tax credit. This deduction is a feature of every tax reform I mentioned in part 1 (even the Fair Tax prebate is based on family size). In the last presidential debate, Rick Santorum said in so many words that the federal government should promote families via the tax code.

Is this really the sort of thing the government should be concerned with? Should the amount of taxes an individual pays have anything to do with marital status or number of dependents s/he is supporting? Is it fair to make a single person pay more taxes because s/he doesn’t have dependents?

I don’t think there is an answer that will satisfy everyone.

Part 3
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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.

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