Thursday, January 26, 2012

Newest Fox News piece: President Obama's strange definition of fairness

My newest piece at Fox News starts this way:

During his State of the Union address Tuesday night, President Obama pushed for higher tax rates on what he called “the wealthiest Americans.” 

He declared: “Tax reform should follow the Buffett rule: If you make more than $1 million a year, you should not pay less than 30 percent in taxes.” As usual, the president motivated the higher taxes with references to “fair play” and getting the wealthy to pay their “fair share” of taxes.

“Fairness” was the codeword of the State of the Union address, not the chronic problem of lingering high unemployment, something the president never even mentioned. 

Of course, Obama emphasized “fairness,” but his newest attacks on the wealthy not paying their “fair share” very conveniently comes right after Mitt Romney revealed that he has averaged paying a 14 percent tax rate over the last two years.

Unfortunately, some Republicans come across as confused about capital gains taxes. Romney pushes a weak defense . . . .

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Friday, July 27, 2007

Even Canadians Think that Extra Taxes on "Unhealthy" Foods are a Bad Idea

It is not even clear to me that there is either an externality or mistakes being made. If people are properly anticipating the risk, imposing the tax actually means that they will be eating "too little" of these "bad" foods. The problem is undoubtedly caused because the insurance premium doesn't vary with the risks that people take, but the most direct solution is to make them pay for their health care. I have two problems with the tax. 1) Not all individuals are likely to be equally affected by these unhealthy foods. 2) Even if everyone was about equally affected, how likely is it that the government would pick the right tax and not one that were "too high." On the other hand, it is much easier to know what the cost of the medical services are. Having a tax that is "too high" is just as bad as not having the right level of a tax.

Many adults in Canada oppose implementing extra taxes on specific foods in order to reduce both consumer demand and health problems, according to a poll by Angus Reid Strategies. 50 per cent of respondents think the proposal is a bad idea, while 43 per cent consider it a good idea. . . . .

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