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Academic Insights for the Thinking World
Dear Mr. Gates:
You have, by dint of your intelligence and sincerity, become a major spokesman for wealthy Americans calling for higher taxes. Since the nation’s budgetary problems will only be solved by combining spending reductions with tax increases, this is a compelling claim.
However, the devil, as they say, is in the details. Allow me to call three details to your attention:
By Edward Zelinsky
The United States is in the midst of a “free lunch” campaign in which Republicans and Democrats alike promise painless resolution of our budgetary problems. As a result, neither party will have an electoral mandate for the hard choices necessary to tackle our fiscal quandaries. Both parties are squandering an important opportunity to mold public opinion and set the stage for meaningful budgetary discipline.
By Edward Zelinsky
President Obama’s National Commission on Fiscal Responsibility and Reform is reportedly forging an internal consensus concerning the federal Social Security system. The President’s bi-partisan deficit reduction commission is purportedly developing a package of reforms including higher retirement ages for Social Security eligibility, reduced cost-of-living adjustments for Social Security payments, and higher taxes.
by Edward Zelinsky
I live in Connecticut. The Nutmeg State’s 2010 election campaign is a prime example of the emerging domination of American politics by self-funding multimillionaires. This troubling trend has been exacerbated by what is euphemistically called campaign finance reform. The law of unintended consequences strikes again. There is, I suggest, a better way.
Former Connecticut congressman Rob Simmons had been the front-runner for the GOP nomination for the U.S. Senate until Linda McMahon declared her candidacy. Mrs. McMahon has never held public office. She is, however, along with her husband Vince, a founder of World Wrestling Entertainment (WWE) and a multimillionaire.
Are Greece’s fiscal woes relevant to the United States? Responding to the simmering national debate on this issue, Paul Krugman, writing in the New York Times, answers with an emphatic “no.” “America isn’t Greece,” Professor Krugman confidently tells us. With equal assurance, Charles Krauthammer on Fox News comes to the opposite conclusion. Given current trends in U.S. public finance, Dr. Krauthammer contends, Greece is our “future.” In a similar vein, former Fed chairman Alan Greenspan approvingly cites the analogy between Greece and the U.S. as setting “the stage for a serious response” to the United States’ budgetary challenges. The Greek experience is not inevitable, but it is instructive.
Nicholas Sarkozy, the president of France, has condemned as “disproportionate” Israel’s response to the flotilla bringing cargo to Gaza. Gaza today is controlled by Hamas, a terrorist organization which is dedicated to the destruction of Israel and which has repeatedly launched attacks on Israel and its civilian population. Israel had told the flotilla’s organizers to bring their goods to the Israeli port of Ashdod for inspection, with all civilian goods to be trucked subsequently from Ashdod to Gaza. The Israeli offer was rejected.
A federal value-added tax (VAT) is today’s magic bullet for slaying the federal budget deficit. A federal VAT would be a veritable cash cow, obviating the need for painful measures like serious spending reductions and middle class income tax hikes. A VAT would be more regressive and complex than its proponents acknowledge. Like most putative panaceas, a VAT should be rejected.
Edward Zelinsky looks at the bi-partisan rhetoric on health care and what the changes really mean.
Edward Zelinsky’s monthly column.
Edward Zelinsky looks at health care cost control.
Edward Zelinsky looks at taxes on online sales.
Edward Zelinsky looks at a way to control future Medicare costs.
Edward Zelinsky looks at the Obama Administration’s plan to send an additional $250 to social security recipients.
Edward Zelinsky applauds the IRS.
Edward Zelinsky looks at death panels.
Edward Zelinsky looks at disorderly conduct.