Why do these top 0.1 percenters get a pass from the Occupied Movement and Twitter Left?

The ridiculous non-candidate charade in presidential primary elections

image_thumb[1]

via The ridiculous non-candidate charade – The Washington Post.

Richard Cobden on John Stuart Mill’s greatest mistake

Image

Would a referendum on euthanasia pass in New Zealand?

A New Zealand First MP along with his populist leader have proposed that the morally tricky question of euthanasia be addressed in New Zealand by a referendum rather than by a vote on a private member’s bill in Parliament.

Although about 80% of the public support euthanasia when asked about it in principle, when the 120 members in New Zealand Parliament elected by proportional representation are asked to vote on it in practice with procedures for safeguards, be last time this was tried in 2003 the Bill failed by three votes. The reason why it failed to pass was a substantial number of MPs who voted against the bill was reservations about abuse.

A badly drafted bill may offer insufficient assurances to some MPs about preventing abuse and ensuring people who are depressed are not offered options that are not in their best interests.

Others have moral or religious objections. The religious objections were summarised by Blackstone, in his Commentaries on the Laws of England, where he wrote that suicide was also a spiritual offence:

…in evading the prerogative of the Almighty, and rushing into his immediate presence uncalled for

If a referendum was to fail, that would make our morally timid MPs even more timid about ever passing a bill on euthanasia.

There is a considerable risk that a referendum on euthanasia will fail because people don’t know exactly what they are voting for. Because of that they will listen to those  who opposed euthanasia who will point to the risk of abuse. A referendum strengthens the hands of those that oppose euthanasia. They can play to the lack of detail on what exactly is to be approved.

Many people have very strong views on exactly when and when not euthanasia is permissible because of their views about the sanctity of life and the risk of abuse. The recent High Court judgement on an unsuccessful application  are an exception to the criminal law on assisted suicide said that:

The sanctity of human life principle underpins the criminal law relating to culpable homicide. It was said by Blackstone to be the first rule of English law.

When making an exception to the first rule of law, people want to know exactly what they are voting for and exactly what safeguards apply the proposed exceptions. A Referendum does not offer that indispensable option. Writing on a Bill on end of life choice is legally and morally tricky.

Many Bills have failed such as recently in the Scottish Parliament and in 2003 in the New Zealand Parliament because they were badly drafted and were considered by many  to offer insufficient protection of the vulnerable against abuse and melancholy.

Even when courts rule favourably on the matter, such as in Canada with its recent Supreme Court decision under its Bill of Rights, that court suspended its judgement upholding the right to euthanasia for 12 month so that the Canadian Parliament could work out the ever so vital details by passing a Bill. As the Supreme Court of United Kingdom recently ruled:

… unless the court can be satisfied that any exception to the subsection can be operated in such a way as to generate an acceptably small risk that assistance will be afforded to those vulnerable to pressure to seek to commit suicide, it cannot conclude that the absolute prohibition in the subsection is disproportionate to its legitimate aim.

That is the essence of reservations about end of life choice. Blackstone’s ratio applies to standards of proof in criminal proceedings: it is better that 10 guilty go free than one innocent suffer.

Those with reservations about end of life choice have the same concerns that motivated Blackstone’s ratio. Their reservations are focused on few cases of abuse not justifying the benefits of going gently into that good night by making exceptions from an absolute prohibition under the criminal law against assisted suicide for the terminally ill despite they being of sound mind and independent judgement.

Mises on why economics analysis is so unpopular

Milton Friedman on the essence of the Age of the Worker

Why the Women’s World Cup doesn’t harm host city economies the way the Men’s World Cup does

image

via Why the Women’s World Cup doesn’t harm host city economies the way the Men’s World Cup does – The Washington Post.

The Nordics use optimal tax theory to fund their welfare states

Efficient taxes gather more revenue and therefore are capable of funding a larger public sector with less political resistance from groups who are net taxpayers. The so-called neoliberal reforms of the 1980s and 1990s actually saved the welfare state by putting it on a revenue raising structure that provoked less political resistance.

A switch to more efficient taxes through tax reforms allows governments to raise the same amount or larger amount of revenue for the same level of political resistance from taxpayers. This is because less revenue and output is wasted by discouraging labour supply, investment, savings and investment in capital with high marginal rates of tax on narrower tax basis. Everyone gains from converging on more efficient modes redistribution.

The Nordic countries have been on to this application of optimal tax theory to expanding the size of government and the welfare state for a long time. The Nordics have high but flat taxes on labour income, low taxes on business income and a high, broad-based consumption tax be it called a VAT or GST as illustrated by a just published Tax Foundation report.

To begin with, the USA has a smaller government because it relies more income taxes than on consumption taxes.

Governments in Europe switched towards consumption taxes such as the VAT or GST because this allowed them to raise a large amount of revenue with broad-based taxes at low rates. A VAT or GST exempts exports and business to business transactions from taxes so that reduced taxpayer resistance.

Scandinavian income taxes raise much more revenue than in the USA because they are rather flat. That is, they tax most people at these high rates, not just high-income taxpayers. The top tax rate in the Scandinavian countries cuts in at about one and a half times average income or less rather than eight times average income as in the USA.

The marginal income tax rates including this top income tax rate cuts in a low level of income is also rather high in the Nordic countries relative to the USA’s top income tax rate with the exception of Norway.

Nonetheless the Nordic countries are alert to not killing the goose that laid the golden egg. Company taxes are relatively low in Scandinavian countries as compared to the USA so that businesses do not flee to other jurisdictions.

Top marginal tax rates on dividends and capital gains are not above-average in the Nordic states but their taxes on less mobile tax bases such as from labour and consumption are much higher.

A large welfare state such as those in the Nordic countries require a significant amount of revenue, so the tax base in these countries must be broad. This  also means higher taxes on consumption through the VAT or GST and higher taxes on middle-income taxpayers.

Business taxes are a less reliable source of revenue because of capital flight and disincentives to invest. Thus, the Nordics do not place above-average tax burdens on capital income and focus taxation on labour and consumption.

via Sources of Government Revenue across the OECD, 2015 | Tax Foundation and How Scandinavian Countries Pay for Their Government Spending | Tax Foundation.

Once were British

How do presidential candidates spend $1 billion?

via How Do Presidential Candidates Spend $1 Billion? – NationalJournal.com.

What It’s Like to Be Declared Dead by the US Government

In 2011, the Office of the Inspector General conducted an audit of the Death Master File, and found that, from May 2007 to April 2010, 36,657 living people (12,219 per year) had been prematurely added, nulling them legally dead. After probing deeper, officials estimated that between 700 and 2,800 people were erroneously declared dead every month since the list’s inception. Over the file’s 35-year history, the Inspector General suspects that more than 500,000 Americans have been affected.

via What It’s Like to Be Declared Dead by the Government.

Corporate welfare in New Zealand – 2015 budget update

I have updated my 2014 report on corporate welfare for the 2015 budget. My report was published today by the Taxpayers’ Union.

My key finding was that corporate welfare increased in the 7th budget of the National Party-led Government from $1.178 billion in its 2014 budget to $1.344 billion in the 2015 budget – see figure 1 and table 1.

Figure 1: Corporate welfare, Budgets 2008/09 to 2015/16

Source: New Zealand budget papers, various years.

Table 1: Corporate welfare in Budgets 2008/09 to 2015/16, $million

08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Arts, Culture & Heritage

3

11

19

10

29

4

4

42

Commerce and Consumer Affairs

6

6

6

6

7

7

6

7

Communications

0

25

39

150

178

205

215

190

Economic Development

372

419

446

379

332

284

280

297

Finance

16

44

3

108

15

210

0

0

Primary Industries

700

0.3

14

0.0

43

65

77

180

Science and Innovation

0

4

0

0

0

112

219

269

Tourism

76

94

119

113

98

124

124

121

Transport

578

530

376

510

680

119

255

239

Total $million

1,751

1,134

1,022

1,277

1,382

1,130

1,178

1,344

Source: New Zealand budget papers, various years.

Corporate welfare has ranged between about $1 billion and $1.4 billion per year in each of the seven budgets presented by the current National-led Government – see Table 1 and Figures 1 and 2.

Figure 2: Corporate welfare, Budgets 08/09 to 15/16 by Vote

Source: New Zealand budget papers, various years; note: Vote Commerce and Consumer Affairs omitted in all years from Figure 2.

The predominant recipient of corporate welfare in this year’s budget, and all of those since 2008 is KiwiRail. Vote Transport accounts for a third of all corporate welfare – see Figures 3 and 4. Vote Economic Development is the next largest source of corporate welfare and accounts for 28% of the total since 2008 – see Figures 3 and 4.

Figure 3: Distribution of total corporate welfare across votes, 2008/09 to 2015/16

Source: New Zealand budget papers, various years.

Figure 4: State-owned enterprise welfare, Vote Transport and Vote Finance (KiwiRail), Budgets 08/09 to 15/16

Source: New Zealand budget papers, various years.

$280 – $450 million in corporate welfare has been under the patronage of the Minister for Economic Development over the last eight budgets – see Figure 5. In this year’s budget, corporate welfare under the Minister’s hand has increased slightly from $280 million to $297 million.

Figure 5: Corporate welfare, Vote Economic Development, Budgets 2008/09 to 2015/16

Source: New Zealand budget papers, various years.

Up until the 2013/14 budget, science and innovation spending was targeted at research that would not find private sponsors because it could not capture the returns from their discoveries – see Figure 6. Figure 6 shows that there is being rapid growth within Vote Science and Innovation of various forms of start-up and commercialisation grants in recent budgets.

Figure 6: Corporate welfare, Vote Science and Innovation, Budgets 08/09 to 15/16

Source: New Zealand budget papers, various years.

Figure 7 shows that the Government is getting back into the business of subsidising agriculture. The Primary Growth Partnership (PGP) is an R&D grants programme for the primary industry sector. There are 18 PGP programmes underway with a funding commitment from government and from industry combining to $708 million by 2017.

Figure 7: Farm welfare, Vote Primary Industries, Budgets 08/09 to 15/16

Source: New Zealand budget papers, various years.

Figure 8 shows that the National Party-led government is a major investor in ultrafast broadband – going where private entrepreneurs fear to tread.

Figure 8: Corporate welfare, Vote Communications, Budgets 08/09 to 15/16

Source: New Zealand budget papers, various years.

The corporate welfare in the Budget 2015 adds about six percentage points to the company tax rate. Should these corporate indulgences should continue or should the company tax rate drop six percentage points?

If that six percentage points on top of the company tax rate was renamed a business subsidies levy, how many businesses would want to pay it rather than developing their own business under much lower company tax rate?

How to argue for doing nothing about global warming when arguing for a climate club enforced by green tariffs!

The best case I’ve seen recently for doing nothing about global warming was put by those arguing with the greatest sincerity and considerable technical skill that the next international climate treaty should be built around a climate club of those that comply with its obligations with green tariffs on those who do not join.

I have long argued that green tariffs are the only reason to do anything about climate change. Much better to collect the revenue ourselves than let it go into the pockets of a foreign taxman.

William Nordhaus has proposed climate clubs as a way of overcoming free riding in international climate negotiations. Specifically, the international climate treaty should authorise members to impose green tariffs on non-members to encourage them to impose their own carbon taxes and carbon emission targets. This has been done before with the Montréal protocol on CFCs. To encourage the phase-out of CFCs countries that did not commit to do so simply could not trade in those goods with members of the club.

image

via Climate Deal Badly Needs a Big Stick – NYTimes.com.

4%! A 4% global green tariff is all that is necessary under a climate change treaty that proposes that a carbon price of $50 to apply globally! A 4% green tariff is hardly worth worrying about considering tariffs used to be much much higher than that.

image

Given all the stories of why woe and doom touted out by the climate alarmists, climate salvation and the keys to environmental heaven should cost much more than 4% tax?! Your sins are forgiven for a 4% green tariff! Big problems such as a climate crisis are not solved with a 4% green tariff.

I think this green tariff of 4% is an own goal. It reinforces the clear message from the economics of climate change that global warming is actually a small economic problem not a large one.

For developed countries, global warming will be at most a minor irritant. For developing countries, their best solution and the solution they have most control over is to develop faster and become a developed country.

The British empire was one of the last colonialists out of the block

via 40 more maps that explain the world – The Washington Post.

Rise of private R&D and the fall of public R&D

via Corporate R&D Spending Offers Glimmer of Economic Hope – Bloomberg Business.

Previous Older Entries Next Newer Entries

Bassett, Brash & Hide

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Truth on the Market

Scholarly commentary on law, economics, and more

The Undercover Historian

Beatrice Cherrier's blog

Matua Kahurangi

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Temple of Sociology

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Velvet Glove, Iron Fist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Why Evolution Is True

Why Evolution is True is a blog written by Jerry Coyne, centered on evolution and biology but also dealing with diverse topics like politics, culture, and cats.

Down to Earth Kiwi

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

NoTricksZone

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Homepaddock

A rural perspective with a blue tint by Ele Ludemann

Kiwiblog

DPF's Kiwiblog - Fomenting Happy Mischief since 2003

The Dangerous Economist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Watts Up With That?

The world's most viewed site on global warming and climate change

The Logical Place

Tim Harding's writings on rationality, informal logic and skepticism

Doc's Books

A window into Doc Freiberger's library

The Risk-Monger

Let's examine hard decisions!

Uneasy Money

Commentary on monetary policy in the spirit of R. G. Hawtrey

Barrie Saunders

Thoughts on public policy and the media

Liberty Scott

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Point of Order

Politics and the economy

James Bowden's Blog

A blog (primarily) on Canadian and Commonwealth political history and institutions

Science Matters

Reading between the lines, and underneath the hype.

Peter Winsley

Economics, and such stuff as dreams are made on

A Venerable Puzzle

"The British constitution has always been puzzling, and always will be." --Queen Elizabeth II

The Antiplanner

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Bet On It

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

History of Sorts

WORLD WAR II, MUSIC, HISTORY, HOLOCAUST

Roger Pielke Jr.

Undisciplined scholar, recovering academic

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

Conversable Economist

In Hume’s spirit, I will attempt to serve as an ambassador from my world of economics, and help in “finding topics of conversation fit for the entertainment of rational creatures.”

The Victorian Commons

Researching the House of Commons, 1832-1868

The History of Parliament

Articles and research from the History of Parliament Trust

Books & Boots

Reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

European Royal History

Exploring the Monarchs of Europe

Tallbloke's Talkshop

Cutting edge science you can dice with

Marginal REVOLUTION

Small Steps Toward A Much Better World

NOT A LOT OF PEOPLE KNOW THAT

“We do not believe any group of men adequate enough or wise enough to operate without scrutiny or without criticism. We know that the only way to avoid error is to detect it, that the only way to detect it is to be free to inquire. We know that in secrecy error undetected will flourish and subvert”. - J Robert Oppenheimer.

STOP THESE THINGS

The truth about the great wind power fraud - we're not here to debate the wind industry, we're here to destroy it.

Lindsay Mitchell

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Alt-M

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

croaking cassandra

Economics, public policy, monetary policy, financial regulation, with a New Zealand perspective

The Grumpy Economist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

International Liberty

Restraining Government in America and Around the World