Tag Archives: United States government

Should the U.S. implement austerity measures?

From Michael Smith, Chair of Department of Social Sciences at Emporia State University: “Video is now available for the debated hosted by Murad Gündüz Jalilov on behalf of Up to Us and the Public Administration Club: Should the U.S. implement austerity measures due to the size of the national debt? Featuring Dr. Max Skidmore of UMKC and Mr. Bob Weeks of wichitaliberty.org.”

View below, or click here to view at YouTube. The video was recorded in a challenging acoustical environment. An audio recording that I captured and processed for clarity is available at Debate: The National Debt.

WichitaLiberty.TV: David Bobb, President of Bill of Rights Institute

In this episode of WichitaLiberty.TV: David Bobb, President of The Bill of Rights Institute, talks about civic education and the importance of humility. View below, or click here to view at YouTube. Episode 110, broadcast February 21, 2016.

Shownotes

Debate: The National Debt

Max Skidmore and Bob Weeks in the beautiful ballroom at Emporia State University.
Max Skidmore and Bob Weeks in the beautiful ballroom at Emporia State University.
This is an audio recording of a debate on the theme “Should the U.S. implement austerity measures due to the national debt?” The event was sponsored by Up To Us, a nationwide campus competition in which students create thought-provoking, fun campaigns to raise awareness about a critical issue affecting their future — the long-term national debt. This event took place at Emporia State University on February 15, 2016. Participants were Bob Weeks of Voice for Liberty at wichitaliberty.org and Professor Max Skidmore of University of Missouri, Kansas City. Michael Smith of ESU was the faculty coordinator, and Rob Catlett of ESU was the moderator.

Partners in Up To Us include:
Peter G. Peterson Foundation. The Peter G. Peterson Foundation is a nonprofit organization whose mission is to increase public awareness of the nature and urgency of key fiscal challenges threatening America’s future and to accelerate action on them.

Clinton Global Initiative University. Building on the successful model of the Clinton Global Initiative, which brings together world leaders to take action on global challenges, the Clinton Global Initiative University (CGI U) was launched to engage the next generation of leaders on college campuses around the world.

Net Impact. Net Impact is the leading nonprofit that inspires a new generation to work within and beyond business for a sustainable future. Net Impact empowers student and professional leaders to act locally through a vibrant chapter network and connect globally online and through Net Impact’s flagship conference.

WichitaLiberty.TV: Journalist, novelist, and blogger Bud Norman on presidential politics

In this episode of WichitaLiberty.TV: Journalist, novelist, and blogger Bud Norman joins host Bob Weeks to discuss presidential election politics. View below, or click here to view at YouTube. Episode 108, broadcast February 7, 2016.

Shownotes

Abengoa, Kansas ethanol plant operator, may seek bankruptcy

A company that has a taxpayer-guaranteed loan may be entering bankruptcy. Will taxpayers have to pay?

(Updated November 30) Spanish energy giant Abengoa has taken preliminary steps that could lead to bankruptcy filing.

Of relevance to Kansas — and the country at large — is the Abengoa cellulosic ethanol plant near Hugoton. That plant received a $132.4 million loan guarantee from the United States government under the same program that benefited Solyndra. That company cost taxpayers over $500 million when it defaulted on its taxpayer-guaranteed loan.

Does a bankruptcy filing by Abengoa place U.S. taxpayers on the hook for the company’s guaranteed loan? If so, are taxpayers liable for the entire $132.4 million or some smaller portion?

The answer is this: We don’t know. I’ve asked for, and have received the loan guarantee agreement. It’s unclear to me what would happen if Abengoa entered bankruptcy.

Following, reporting from the Wall Street Journal. It mentions “debt-fueled expansion,” some of which is a liability of the U.S. taxpayer.

Spain’s Abengoa Files for Creditor Protection
The company’s debt-fueled expansion in the boom years is handicapping growth today

MADRID — Spanish renewable energy and engineering firm Abengoa SA said on Wednesday that it is filing for preliminary creditor protection, an initial step that could lead to the largest bankruptcy case in the country’s history.

The potential demise of Abengoa is an extreme example of a Spanish company whose debt-fueled expansion during the country’s boom years has handicapped its ambitions for growth today.

The company is one of the world’s top builders of power lines transporting energy across Latin America and a top engineering and construction business, making massive renewable-energy power plants in places from Kansas to the U.K.

Continue reading at Wall Street Journal.

WichitaLiberty.TV: Congressman Mike Pompeo

In this episode of WichitaLiberty.TV: Congressman Mike Pompeo talks about the Middle East, politics in Washington, and domestic issues. View below, or click here to view in high definition at YouTube. Episode 101, broadcast November 29, 2015.

Shownotes

WichitaLiberty.TV: Lack of information sharing by government, community improvement districts, and the last episode of “Love Gov”

In this episode of WichitaLiberty.TV: Do our governmental agencies really want to share data and documents with us? Community Improvement Districts and homeowners compared. And, the last episode of “Love Gov” from the Independent Institute. View below, or click here to view in high definition at YouTube. Episode 95, broadcast September 20, 2015.

WichitaLiberty.TV: Michael Tanner of Cato Institute on deficits, debt, and entitlements

In this episode of WichitaLiberty.TV: Michael Tanner of the Cato Institute talks about his new book “Going for Broke: Deficits, Debt, and the Entitlement Crisis.” View below, or click here to view at YouTube. Episode 90, broadcast August 2, 2015.

Tanner’s page at Cato is here. Video of a book forum on “Going for Broke: Deficits, Debt, and the Entitlement Crisis” is here. Video of Tanner at the Wichita Pachyderm Club is here. A good discussion of the book on C-SPAN is here.

‘Love Gov’ humorous and revealing of government’s nature

A series of short videos from the Independent Institute entertains and teaches lessons at the same time.

Lov Gov trailer exampleThe Independent Institute has produced a series of humorous and satirical videos to present lessons about the nature of government. The Institute describes the series here:

Love Gov depicts an overbearing boyfriend — Scott “Gov” Govinsky — who foists his good intentions on a hapless, idealistic college student, Alexis. Each episode follows Alexis’s relationship with Gov as his intrusions wreak (comic) havoc on her life, professionally, financially, and socially. Alexis’s loyal friend Libby tries to help her see Gov for what he really is — a menace. But will Alexis come to her senses in time?

There are five episode (plus a trailer). Each episode is around five minutes long and presents a lesson on a topic like jobs, healthcare, and privacy. The episodes are satirical and funny. They’d be really funny if the topic wasn’t so serious. I recommend you spend a half-hour or so to view the series.

The link to view the video series is here.

Corporate income tax rates in U.S. and other countries

Over the past two decades most large industrial countries have reduced their corporate income tax rates. Two countries, however, stand out from this trend: France and The United States.

In Abolish the Corporate Income Tax economist Laurence J. Kotlikoff writes “I, like many economists, suspect that our corporate income tax is economically self-defeating — hurting workers, not capitalists, and collecting precious little revenue to boot.”

Top Marginal Corporate Income Tax Rate in G7 CountriesHigh taxes in America cause companies to invest overseas in order to escape these high American taxes. For example, Apple takes steps to minimize the income tax it pays, as do most companies. In Calculating Apple’s True U.S. Tax Rate law professor Victor Fleischer explains and estimates what rate Apple pays:

The whole point of the Senate hearing was to show how Apple shifts substantial amounts of its economic profits from the United States to Ireland, where they are taxed at a rate close to zero. Those profits are then sheltered in Ireland and untaxed unless Apple decides to bring the cash back to the United States.

These overseas profits create deferred tax liabilities that will not be taxed until the cash is repatriated. But Apple is reluctant to repatriate its overseas cash; it would rather lobby for another tax holiday and bring the cash back tax-free. An added benefit of a tax holiday for Apple is that it would provide a quick jump in reported earnings when the accounting entry for the deferred tax liability is reversed. …

Thus, Apple’s “true U.S. tax rate,” according to my own calculation, was 8.2 percent.

The corporate income tax rate in the United States is 35 percent. So how does Apple pay such a lower rate to the U.S? It locates operations overseas. It earns profits overseas, and pays taxes there.

Using the visualization.
Using the visualization.
If corporate tax rates were lowered, we’d see more economic activity here rather than overseas. That would help workers in America, as they can’t easily move their capital and investments overseas to take advantage of lower tax rates. But the wealthy — like Apple’s shareholders — can do that, and they have.

Using data gathered by Tax Policy Center at Brookings Institution, I’ve prepared an interactive visualization of corporate income tax rate trends over time. Click here to open the visualization in a new window.

WichitaLiberty.TV: United States Congressman Mike Pompeo

In this episode of WichitaLiberty.TV: Congressman Mike Pompeo talks about risks to America from overseas, Benghazi, congressional scorecards, the Grant Return for Deficit Reduction Act, and labeling food with genetically engineered ingredients. View below, or click here to view at YouTube. Episode 78, broadcast March 15, 2015.

Cato Institute scholars respond to the 2015 state of the union address

Cato Institute scholars Alex Nowrasteh, Aaron Ross Powell, Neal McCluskey, Mark Calabria, Bill Watson, Chris Edwards, Gene Healy, Chris Preble, Julian Sanchez, Pat Michaels and Trevor Burrus respond to President Obama’s 2015 State of the Union Address. View below, or click here to view in high definition at YouTube.

Video produced by Caleb O. Brown, Austin Bragg and Tess Terrible.

Corporate income tax rates in U.S. do not help our economy

Over the past two decades most large industrial countries have reduced their corporate income tax rates. Two countries, however, stand out from this trend: France and The United States.

In Abolish the Corporate Income Tax economist Laurence J. Kotlikoff writes “I, like many economists, suspect that our corporate income tax is economically self-defeating — hurting workers, not capitalists, and collecting precious little revenue to boot.”

Top Marginal Corporate Income Tax Rate in G7 CountriesHigh taxes in America cause companies to invest overseas in order to escape these high American taxes. For example, Apple takes steps to minimize the income tax it pays, as do most companies. In Calculating Apple’s True U.S. Tax Rate law professor Victor Fleischer explains and estimates what rate Apple pays:

The whole point of the Senate hearing was to show how Apple shifts substantial amounts of its economic profits from the United States to Ireland, where they are taxed at a rate close to zero. Those profits are then sheltered in Ireland and untaxed unless Apple decides to bring the cash back to the United States.

These overseas profits create deferred tax liabilities that will not be taxed until the cash is repatriated. But Apple is reluctant to repatriate its overseas cash; it would rather lobby for another tax holiday and bring the cash back tax-free. An added benefit of a tax holiday for Apple is that it would provide a quick jump in reported earnings when the accounting entry for the deferred tax liability is reversed. …

Thus, Apple’s “true U.S. tax rate,” according to my own calculation, was 8.2 percent.

The corporate income tax rate in the United States is 35 percent. So how does Apple pay such a lower rate to the U.S? It locates operations overseas. It earns profits overseas, and pays taxes there.

Using the visualization.
Using the visualization.
If corporate tax rates were lowered, we’d see more economic activity here rather than overseas. That would help workers in America, as they can’t easily move their capital and investments overseas to take advantage of lower tax rates. But the wealthy — like Apple’s shareholders — can do that, and they have.

Using data gathered by Tax Policy Center at Brookings Institution, I’ve prepared an interactive visualization of corporate income tax rate trends over time. Click here to open the visualization in a new window.

Kansas was an earmark donor state

The practice of federal earmark spending was not kind to Kansas, as data shows Kansas was an earmark donor state.

Detail of stairway in Kansas Capitol.
Detail of stairway in Kansas Capitol.
The former practice of earmarking federal spending was seen as a way for members of Congress to demonstrate their political prowess by bringing the federal bacon back home to the district or state. Data gathered and analyzed by Brandon Arnold of Cato Institute shows that states differ greatly in the dollars sent to Washington as federal income taxes and the earmarks received.

Data for 2009, one of the last years for earmarking, along with Arnold’s calculations of a earmark ratio, shows that the value of this ratio varies from 25 percent to 1,104 percent. This ratio is calculated by first determining the proportion of total federal income taxes paid by a state. Use that to calculate the state’s proportional share of earmark dollars. Then, compare to earmarks actually received.

For 2009, the earmark ratio for Kansas was 81.9 percent. Based on the state contributing 0.9 percent of total federal taxes paid, Kansas should have received $173 million in earmarks. It actually received $142 million.

Arnold’s article contains other interesting find, such as comparing a state’s earmark ratio with it having members on appropriations committees.

I’ve presented Arnold’s data in an interactive spreadsheet. View the data below, or click here to open it in a new window, which may work best in most cases. This is a spreadsheet in Google Docs format. You may manipulate and save the data as your own copy.

For Kansas Senator Roberts, earmark reform not worthy of his vote

Kansas Senator Pat Roberts promotes his fiscal conservatism, but failed to vote in favor of earmark reform in a recent close vote.

In 2012 an amendment to a Senate bill was offered that would have dramatically reformed the earmark process.

United States Senator Pat Roberts of Kansas.
United States Senator Pat Roberts of Kansas.
The vote was On the Amendment S.Amdt. 1472 to S.Amdt. 1470 to S. 2038 (Stop Trading on Congressional Knowledge Act of 2012).

The purpose of the amendment, according to Congress.gov, is “to prohibit earmarks.” Although offered in 2012, the short title of the amendment was “Earmark Elimination Act of 2011”

United States Senator from Kansas Pat Roberts voting with Democrats and against Republicans on earmark reform. 2012.
United States Senator from Kansas Pat Roberts voting with Democrats and against Republicans on earmark reform. 2012.
The nub of the amendment was “It shall not be in order in the Senate to consider a bill or resolution introduced in the Senate or the House of Representatives, amendment, amendment between the Houses, or conference report that includes an earmark.”

The amendment was rejected by a vote of 59 to 40. Among Democratic Party members, the vote was 44 to 7 against the amendment. For Republican Party members, the vote was 33 to 13 in favor of the amendment.

One of the 13 Republicans who voted against this reform-minded amendment was Pat Roberts of Kansas.

Corporate income tax rates in U.S. are self-defeating

Over the past two decades most large industrial countries have reduced their corporate income tax rates. Two countries, however, stand out from this trend: France and The United States.

In Abolish the Corporate Income Tax economist Laurence J. Kotlikoff writes “I, like many economists, suspect that our corporate income tax is economically self-defeating — hurting workers, not capitalists, and collecting precious little revenue to boot.”

Top Marginal Corporate Income Tax Rate in G7 CountriesHigh taxes in America cause companies to invest overseas in order to escape these high American taxes. For example, Apple takes steps to minimize the income tax it pays, as do most companies. In Calculating Apple’s True U.S. Tax Rate law professor Victor Fleischer explains and estimates what rate Apple pays:

The whole point of the Senate hearing was to show how Apple shifts substantial amounts of its economic profits from the United States to Ireland, where they are taxed at a rate close to zero. Those profits are then sheltered in Ireland and untaxed unless Apple decides to bring the cash back to the United States.

These overseas profits create deferred tax liabilities that will not be taxed until the cash is repatriated. But Apple is reluctant to repatriate its overseas cash; it would rather lobby for another tax holiday and bring the cash back tax-free. An added benefit of a tax holiday for Apple is that it would provide a quick jump in reported earnings when the accounting entry for the deferred tax liability is reversed. …

Thus, Apple’s “true U.S. tax rate,” according to my own calculation, was 8.2 percent.

The corporate income tax rate in the United States is 35 percent. So how does Apple pay such a lower rate to the U.S? It locates operations overseas. It earns profits overseas, and pays taxes there.

Using the visualization.
Using the visualization.
If corporate tax rates were lowered, we’d see more economic activity here rather than overseas. That would help workers in America, as they can’t easily move their capital and investments overseas to take advantage of lower tax rates. But the wealthy — like Apple’s shareholders — can do that, and they have.

Using data gathered by Tax Policy Center at Brookings Institution, I’ve prepared an interactive visualization of corporate income tax rate trends over time. Click here to open the visualization in a new window.

Voice for Liberty Radio: U.S. Rep. Mike Pompeo on Benghazi, Ukraine, and Boko Haram and the continuing threat of Islamic terrorism

Voice for Liberty logo with microphone 150United States Representative Mike Pompeo of Wichita has been appointed to the Select Committee on the Events Surrounding the 2012 Terrorist Attack in Benghazi. I spoke with him today in his Wichita office on this topic and a few others.

On the composition of the committee — seven Republicans and five Democrats — Pompeo explained that the majority party usually has a majority on committees of this type. A “Select” committee like this has a very narrow charter. The committee will have staff and counsel, and will deliver a report. After that, the committee will disband.

Critics of this committee point to the several committees that have already held hearings on this matter and the thousands of documents produced. What can this committee accomplish? Pompeo said that despite all the previous activity, we do not know everything. The Ben Rhodes email that was supplied just last week is an example.

Pompeo said the administration has not been very cooperative. The committee wants to learn what decisions were made on September 11, 2012, how were the decisions made, and by whom.

While the committee operates in a political environment, Pompeo said that the six other Republicans on the committee (the Democratic members have not been named) are “workhorses,” who will work to come to a factual conclusion. It may be, he said, that conservatives will disappointed in the output of the committee, in that the facts show that there was no wrongdoing or malfeasance. If that is what the facts show, that’s what will be in the committee’s report, he said.

It is not known whether Democrats will boycott the committee. Pompeo said it’s important that Democrats participate in the committee proceedings, as this will best serve the American public interest. The decision will be made by Nancy Pelosi, the Democratic leader.

As for the committee being a “witch hunt” or simply a political operation, Pompeo reminded me that Speaker John Boehner was reluctant to call for the formation of this special committee. Pompeo said that the Republican members of the committee, except for chair Trey Gowdy, are members with low profiles, and not widely known by Americans.

On the situation in Ukraine, Pompeo said the situation remains incredibly intense. The Russians have fomented strife in the region, with a propaganda campaign to create the predicate for a Russian invasion. Western Europe has begun to recognize the risk and has started to implement a few more sanctions. Putin’s goal is to reconstruct Greater Russia, he said.

On the subject of Boko Haram, the radical Islamist group that has captured young girls in Nigeria, Pompeo said this is another example of how the war against Islamic terrorism is not over. He said that today there are 8,000 Al-Qaeda in Syria. In 2001, on September 10, there were 200 in Afghanistan. The threat today is far greater than it was 13 years ago, and the Obama administration has thrown in the towel, he said.

Shownotes

Mike Pompeo Congressional office.
Twitter at @RepMikePompeo
H.Res. 567: Providing for the Establishment of the Select Committee on the Events Surrounding the 2012 Terrorist Attack in Benghazi