Taxes vs Subsidies

cropped-bob-shapiro.jpg   By Bob Shapiro

There’s a truism in economics that, if you want more of something you subsidize it, and if you want less of it then you tax it. A quick look at government policy here in the US shows that this is as true today as it ever was.

But, since Americans have been taught to have knee jerk reactions, let’s try just to look as dispassionately as possible, not considering whether any of the policies are “needed desperately,” “are for a good cause,” or some other worthwhile purpose. Let’s just look at what is.

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Putting Uncle Sam on a Diet

By Bob Shapiro

I have written several times that every Dollar that our government spends must come out of the private, productive sector of the US Economy. I have called for Balancing the Budget, setting a Dollar Limit on federal spending, and other measures to reduce government spending. The Heritage Foundation has put together a detailed plan for shrinking our federal government, outlining 106 specific proposals for cutting spending. Though there are some of their recommendations I do not agree with – they want to increase spending for the Department of Defense even though the US spends more than all other countries combined – there is a wealth of good ideas.

Please set aside some time to look at their proposals. I think you’ll be glad you did.

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US Business Taxes

cropped-bob-shapiro.jpg   By Bob Shapiro

Keynesian/socialist economists always tell us that, if we boost consumer spending, we’ll boost the Economy. They think that spending more will make Americans richer. They grow concerned when Americans save a little more and spend a little less, since they think that saving money makes us poorer.

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Rand Paul’s SOU Rebuttal

Senator Rand Paul, a likely 2016 Presidential candidate, has given a rebuttal to President Obama’s State of the Union Address. It offers a real opposing viewpoint, with specific policy suggestions, rather than the usual platitudes that too often mark opposition party remarks. Whether you support what he says (as I do) or not, you should read (or watch below) what he has to say.  –Bob

Re-Blogged From http://www.Reason.com

The full text of Sen. Rand Paul’s response to the president’s State of the Union address is now available—in advance of him actually giving the speech. Here it is, via Breitbart:

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Highway Federal Gas Tax

Another day, another news article supportive of raising the federal gas tax. This time it’s the Wall Street Journal. The article notes that there is strong public opposition to raising gas taxes, but then proceeds to give us the arguments in favor of it, but none against. So for the next reporter writing about raising the gas tax, here are some policy reasons against it.

Let me zero in on two points made by the Journal story.

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