Posted 8/12/10 to 8/21/10 (Ignore the page date above)
Maximize Tax Revenue - Harm the Economy
08/18/10 - Cato@Liberty by Daniel J. Mitchell
[edited] The goal of tax policy should not be to maximize revenue. At maximum revenue, the damage to the economy is so great that any higher tax rate raises no additional revenue, or even loses revenue.
Martin Feldstein of Harvard: As the tax rate rises, the “deadweight loss” rises, which is the real loss to the economy. As the rate gets close to maximizing revenue, the loss in production exceeds the gain in revenue.
I dislike budget deficits as much as anyone else. But, I would never give up say $1 billion of GDP in order to reduce the deficit by $100 million. National income is a goal in itself; that is our standard of living.
Deadweight Loss, Laffer Curve
(M)In Nov 1999, Martin S. Feldstein was the George F. Baker Professor of Economics at Harvard University and former President of the US National Bureau of Economic Research. He says more about the deadweight loss from taxes.
[edited] Traditional analyses of the income tax greatly underestimate deadweight losses by ignoring its effect on income and consumption. The full deadweight loss is easily calculated to be as much as 30% of total revenue.
The deadweight loss caused by increasing tax rates above current levels may exceed $2 per $1 of revenue increase.
AMG: Government activities and transfer payments had better be useful to the society, because economic output has already been lowered by 30% of the taxes currently collected. Further, $2 worth of production (jobs) will be destroyed for every additional $1 collected through increased tax rates.
Presidential Abuse of Office
08/16/10 - Pajamas Media by Bob Owens
Darrell Issa (R-CA) in a 37-page report accuses the White House of “an unprecedented number of public relations and propaganda efforts", some illegal.
The Obama Administration frequently used federal agencies to promote the President’s favorite programs, and used the entertainment community to embed propaganda in television programming and artwork.
Obama has used government resources to activate a sophisticated propaganda and lobbying campaign. This is an abuse of office and a betrayal of the pledge to create “an unprecedented level of openness in Government.”
Obama, Malfeasance
(v)Via Instapundit