Posts Tagged government spending
A record 25 percent increase in the taxes against US small businesses — from costs associated with new health care law, to an increased Medicare tax, increased capital gains taxes and higher state and city taxes — is repealing any ability of these entrepreneurs to add jobs to their payroll. Read the rest of this entry »
Bloomberg News presents an analysis of the CBO by economist Amity Schlaes, in which she explains how the CBO comes to its conclusions via hand-picked assumptions fed to it by the writers of the bills it analyzes.
The CBO’s rules make it hard for the group to fulfill its own mandate. You’d think, for example, that the CBO would use its own parameters when it crunches numbers. Instead, the CBO must use the same mathematical assumptions supplied by the very lawmakers who wrote the bill the group is evaluating. No matter how improbable those formulas are. Read the rest of this entry »
Reason TV presents a short video offering 3 big reasons why Obamacare won’t cut the deficit:
1. Legislative Trickery. Congressional Democrats have pledged support for “the doc fix,” a permanent upward adjustment to the rates at which Medicare providers are reimbursed. As Speaker Nancy Pelosi has said, “We have made a commitment to do this. This is very important.” The cost of the “doc fix”? Some $247 billion over the next 10 years, wiping out any deficit reduction from health care reform.
2. Higher Premiums. In 2006, Massachusetts passed health care reform very similar to what President Obama just signed. The result? The Bay State now has the highest premiums in the country and cost about 33 percent more than expected.
3. Bad Accounting. The government is terrible at predicting how much programs will cost, especially when it comes to medical care. Initial 1960s’ projections of Medicare’s costs in 1990 had the program costing about $12 billion; the actual result was almost 10 times that amount. As a Joint Economic Committee report notes, “Major health care proposals have almost always cost more…than the highest cost estimates published while the legislation was pending.”
Now that the Democrats have passed their abomination in an effort to control the medical industry, they’re looking at the internet and licking their chops.
Democratic Representative Ed Markey writes a piece at Politico calling for Net Neutrality — because nothing will help the internets more than getting the government to tax and regulate it and use the money to pay for high-speed access for other people. Read the rest of this entry »
Dick Morris wrote a wonderful op-ed at Real Clear Politics outlining why passing Obamacare would spell doom for the Democrats. As they have, in fact, passed this monstrosity, I thought his article doubly significant:
The news media headlines would blare that Congress just voted to add tens or hundreds of billions to the deficit, and the big-spending, high-borrowing image of Congress will worsen. All pretense that Obamacare is not a reckless spending bill will be stripped away, and we will be face to face with the reality that it will add hugely to the deficit. Read the rest of this entry »
Damon Root at Reason Magazine references Independent Institute economist Robert Higgs, who argues that government spending and economic intervention harms development of the private sector economy. Higgs presents a solid case against government interference in the economy and Keynesian economics in general. Read the rest of this entry »
Writing at Reason, the outstandingly named economist Veronique de Rugy included this sentence in a column about the Value Added Tax, and why it won’t work:
Take President Obama’s first budget, released last year. In it, he assumed that most of the $600 billion coming from proposed cap-and-trade fees would be allocated to deficit reduction. A year later, his budget still assumes the revenue (even though the law is not yet passed)…
What? His budget includes revenues from Cap and Trade? He knows, doesn’t he, that Cap and Trade isn’t the law yet, and doesn’t stand a very good chance of becoming the law? Read the rest of this entry »