Critics of the President’s State of the Union address noted it did little to promote bipartisanship. Yet, it has already stimulated bipartisan agreement on one of the President’s education proposals. In the State of the Union, President Obama proposed free community college: “I am sending this Congress a bold new plan to lower the cost … Continue reading The SOTU and Bipartisanship
Programs for the Poor are Poor Programs
Ezra Klein (Wonkblog) has a brief interview with Georgetown’s David Super on how poorly programs for the poor have functioned (and how good HealthCare.gov appears by comparison). The alternatives discussed include outsourcing to private contractors (bad) and implicitly providing more resources (good).One alternative that is not discussed: providing benefits through a fractional negative income tax … Continue reading Programs for the Poor are Poor Programs
A Grand Bargain?
Tuesday, President Obama proposed a “grand bargain” as part of his jobs tour (a tour that marks the third anniversary of Vice President Biden’s “Recovery Summer” tour). The grand bargain is relatively simple: corporate tax cuts (to 28 percent), including a one-time lower tax on profits earned overseas that would arguably entice firms to repatriate … Continue reading A Grand Bargain?
The Big Winner in the Fiscal Cliff: Crony Capitalists
There is a wonderfully sad piece in the WSJ on the support for crony capitalism that were central to the fiscal cliff deal. A brief excerpt: In praising Congress's huge new tax increase, President Obama said Tuesday that "millionaires and billionaires" will finally "pay their fair share." That is, unless you are a Nascar track … Continue reading The Big Winner in the Fiscal Cliff: Crony Capitalists
Dancing on the Cliff
The Fiscal Cliff has been averted postponed, if not made worse. Big takeaways: Senate Majority Leader Harry Reid has once again proven himself to be incapable of leading the Senate. Is there any stronger rebuke than McConnell’s appeal to Biden as he searched in vain for a negotiating partner in the Senate? The Democrats have … Continue reading Dancing on the Cliff
Advice to the GOP: In the Spirit of the Holidays, Accept the Gift
The fiscal cliff debates seem to be at a standstill as we approach the end of the year. On the spending side, the proposal to change the indexing for Social Security seems to be quite positive. The use of the CPI-W has fueled growth in the real value of benefits and the substitution of a … Continue reading Advice to the GOP: In the Spirit of the Holidays, Accept the Gift
Fiscal Cliff Follies (Note to GOP: Every Spending Cut is a Tax Cut)
This is not helpful. Erick Erickson, a man of excessive influence among conservative Republicans, is pressing Republican Speaker John Boehner to take any increase in tax rates off the table in the fiscal cliff negotiations with Democratic President Barack Obama. This is unhelpful for two reasons. First, rates will go up anyway if a deal … Continue reading Fiscal Cliff Follies (Note to GOP: Every Spending Cut is a Tax Cut)