Yesterday Hot Air posted an article about the loss of economic freedom in America.
The article reports:
For going on 20 years now, the Heritage Foundation and the Wall Street Journal have been putting together an annual Index of Economic Freedom by evaluating countries the world over based on ten criteria along the lines of property rights, government spending, freedom from corruption, trade freedom, and the like. They released the 2014 edition of their annaul Index today, and here’s the good news: Worldwide economic freedom has reached record levels, huzzah! The various governments of 114 countries took steps in 2013 that increased their citizens’ economic freedom, and 43 countries all over the world have now reached their highest ranking in the Index’s history. Awesome, right?
But, here’s the bad news: The United States is no longer among the relative elite of these economically free nations. Oof.
What happened? The article points out that a tax rate exceeding 43% cannot even keep pace with the government’s runaway spending. The article also cites the problem of over-regulation by the government which impacts economic and personal freedom.
The article concludes:
As I mentioned earlier today, the Obama administration is currently prepping for the president’s fifth State of the Union address by touting all the sweet executive actions they’ve freshly come up with to spur along the economy should Congress fail to act on their legislative proposals. Yet again, however, the Obama administration’s ideas all seem to center around ways to spend more taxpayer money, increase top-down federal intervention, and layer the regulations on even more thickly — i.e., take our economic freedom even further down the drain — and their only regret seems to be that this spitefully obstructionist ‘Republican’ Congress of ours hasn’t permitted them to do even more of the same.
In case you are under the age of forty, Rodney Dangerfield was a comedian whose tag line was, “I don’t get no respect!” Unfortunately, we seem to have elected a President who has the same problem.
“One of the things I intend to do as president is to restore America’s standing in the world. We are less respected now than we were eight years ago even four years ago.” That statement was made by President Obama in his first 2008 presidential debate. The problem with this statement is a lack of understanding of the fact that it would be good to be feared as well as respected. Sometimes respect is rooted in fear.
Today’s Wall Street Journal (no link–subscribers only) included an editorial entitled, “Portrait in Respect.” The editorial related to the problems the Obama Administration has had in trying to bring Edward Snowden back to the United States. Hong Kong said they could not return Mr. Snowden because of a technical glitch in the extradition request. Several news sources reported that Hong Kong was under pressure from China not to return Mr. Snowden. Since then, Mr. Snowden has fled to Russia, where the Russians have said that they will not send him back to America. Meanwhile it is a safe bet that the FSB (the new KGB) is downloading information from the four computers Mr. Snowden is traveling with.
Somehow I don’t think America has achieved the respect that was promised in the 2008 Presidential debate.
I think most of us would agree that the U. S. Tax Code has gotten a little bit out of hand. In 2005, the Tax Code was more than 9,097,000 words (according to a website called freedomworks the Bible contains 774,746 words). How did we get here?
The Tax Code is a tribute to the power of lobbying. Some of the intricacies have valid purposes–the mortgage interest deduction encourages home ownership, a stabilizing force in our society). Some of the intricacies have negative impacts on the values of our society–the marriage penalty for example. The Tax Code is a monstrosity that requires a professional to sort through for many Americans. Our current Tax Code written down weighs more than most toddlers!
Yesterday Big Government posted an article about an academic study showing that as tax rates were raised, tax evasion increases. They spent money to figure that out?
The article reports:
Macroeconomic and microeconomic modeling studies based on data for several countries suggest that the major driving forces behind the size and growth of the shadow economy are an increasing burden of tax and social security payments… The bigger the difference between the total cost of labor in the official economy and the after-tax earnings from work, the greater the incentive for employers and employees to avoid this difference and participate in the shadow economy. …Several studies have found strong evidence that the tax regime influences the shadow economy.
The article also states:
Indeed, it’s worth noting that international studies find that the jurisdictions with the highest rates of tax compliance are the ones with reasonable tax systems, such as Hong Kong, Switzerland, and Singapore.
Please follow the link to read the entire article. This is an obvious truth, but changing the Tax Code in America would result in something of a loss of power to those in Congress. Somehow, I don’t think that will happen until we change Congress, and even then I am not sure we have the leadership to do what is right.