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It's rather odd to hear Cato complaining about tax breaks. It's even odder to hear them talk about one persons tax break as another persons tax burden. They see
by jshen 13y ago
It's rather odd to hear Cato complaining about tax breaks. It's even odder to hear them talk about one persons tax break as another persons tax burden. They seem to be very selective with where they apply this logic.
- jerf 13y agoWhy? Tax breaks are just a subsidy. I'd call it a subsidy in disguise, but it's hardly even "in disguise". When they aren't going to the Good Guys (TM) people have no problems calling this corruption.
- jshen 13y agohttp://www.cato.org/publications/commentary/why-bush-tax-cuts-worked http://www.cato.org/publications/commentary/why-bush-tax-cut... Notice how they don't apply the logic that these tax cuts were someone else's tax burden.
- danielweber 13y agoI have no idea about Cato's overall position on this, but broad tax cuts are a different policy beast from targeted tax cuts for the connected. C.f. the best way to repeal an unjust law is to make it get applied everywhere. If the governor's son has to spend 2 years in jail for pot possession, the pro-legalization should want him treated like every other person; if he gets a special exemption, then what they see as an unjust law can continue.
- jshen 13y agoYou seem to conflate targeted cuts with corrupt cuts. They aren't necessarily the same. Cato has supported targeted cuts in the past.
- Kequc 13y agoWhat a rag. Here they are talking about the Keystone Pipeline, a proposed way of pumping oil in north america to the shore where it can be exported at a profit. They cite job creation as a benefit of public funding for the pipeline, as well as the environment. I can't believe this is on the front page of hacker news. http://www.cato.org/blog/climate-impact-keystone-xl-pipeline http://www.cato.org/blog/climate-impact-keystone-xl-pipeline
- jcampbell1 13y ago> They cite job creation as a benefit of public funding for the pipeline That is not stated or implied anywhere in the linked article. The Keystone Pipeline is a private project.
- Kequc 13y agoyou're right, apologies for that
- anonymoushn 13y agoThis isn't particularly odd. Creating a tax break for some people is the same as lowering the "default tax rate" and creating an extra tax for all the other people. For instance, a tax break for being married is the same as an extra tax on singleness.
- jshen 13y agoI think you missed my point which was that Cato only applies this logic for cuts they don't like, and they never mention it for cuts they do like.
- anonymoushn 13y agoFair enough. This is a good point. Do you have any example of Cato not applying this logic for cuts they do like? You gave an example about a general tax cut, but I think the concept behind supporting a general tax cut is that the supporter believes that the tax cut will not increase the debt load in the medium term because it will stimulate the economy, so nobody will actually have to pay to cover the taxes that are not being paid there. While I may not agree with this belief, it is more or less mainstream economics, and seems to be in line with the case made in the Bush tax cuts article.
- jshen 13y ago"I think the concept behind supporting a general tax cut is that the supporter believes that the tax cut will not increase the debt load in the medium term because it will stimulate the economy" History is pretty strong evidence that this idea is flatly wrong. So these tax cuts are a tax burden for someone else. I'd also argue that things like the large cut in the capital gains rate is not a tax cut that applies to most people. In fact, it's a rather targeted tax cut for the wealthiest.