Rahn:”Abolish the IRS”

Abolish the Internal Revenue Service? IRS Commissioner John Koskinen has said the government must have an IRS to collect the taxes to fund the government. Mr. Koskinen is right that no matter what kind of tax system we have, there needs to be a tax collection bureau. But those in favor of abolishing the present IRS are correct in that the United States certainly can get along perfectly well without the politicized, abusive and rights-trampling tax agency the IRS has become.

Mr. Koskinen and others who defend the IRS claim the problem is with the tax law, which is written by Congress. A tax system ought to be designed to obtain the necessary revenue with the least amount of damage to the economy and the civil liberties of the citizens. The present tax system gets a failing grade on both accounts. Promising special provisions to those who will provide campaign funds is a temptation that some politicians seem not to be able to resist.
Full Commentary by Richard Rahn @ Cato Institute http://www.cato.org/publications/commentary/abolish-irs

Scotland and North Sea Oil:Forbes blogger exposes secret report

For some years, the prospect of reclaiming control of North Sea oil deposits has been a cause among Scottish nationalists. The issue of North Sea oil was a factor in the push for regional autonomy in the 1970s and is a factor in the forthcoming vote on independence for Scotland. With revenues from North Sea oil, an independent Scotland would be wealthier than the region is now as a part of the United Kingdom.

At Forbes, Brett Arends notes that in the 1970s the English establishment scoffed at such arguments, claiming North Sea oil reserves were less than the Scots believed, and they disputed claims that Scotland should have control over the oil.

Mr Arends has found a report based on a secret study done in 1974 by economics professor Gavin McCrone which points out that the reserves are substantial, and an independent Scotland would “become one of the most prosperous countries in the world, comparable to Switzerland or Norway”

report can be read @ http://www.oilofscotland.org/mccronereport.pdf

Mr Arends quotes the report as noting “The full significance of North Sea oil… remains in large measure disguised from the Scottish public,” and has done a public service publicizing this report in the lead-up to the vote September 18 on independence for Scotland.

Read Mr Arend’s post @ http://www.forbes.com/sites/brettarends/2014/09/12/scottish-independence-englands-shameful-secret/

Shikha Dalmia:”Republicans Should Convert Obamacare Into a Free-Market System”

Many liberals have been not-so-secretly hoping to use Obamacare as a Trojan horse for implementing a Canadian-style single-payer health care system. But Republicans could slip in market-based reforms that they’ve always wanted into this horse if they’d stop playing hotheaded rebels—a la Sen. Ted Cruz—and wasting time on futile budget battles.

The very fact that Presidents Obama and Clinton last week thought it fit to have an hour-long tete-a-tete on TV to put a happy face on the law suggests that it might be in trouble.

The latest evidence is Health and Human Services figures showing that, thanks to all the onerous new regulations on insurers, young people—whose participation is crucial for the law’s success—will face massive premium increases when the much anticipated insurance exchanges are rolled out across the country today.

Men under 27 would see their premiums rise nearly 100 percent on average and women 62 percent. Manhattan Institute’s Avik Roy notes that even Obamacare’s generous subsidies won’t be enough to cover these added costs.

The upshot will be that many young people—who are two-thirds of the roughly 40 million uninsured—will prefer to pay the penalty ($96 in the first year) rather than buy coverage, especially since they can always do so when they fall sick. That’s because Obamacare bans insurance companies from turning away patients with pre-existing condition or charging them rates much above what others pay—the so-called community rating mandate.

After pointing out problems with the new healthcare system, Ms Dalmia proposes a reform strategy:

However, if Republicans play smart, they can use the moment of Obamacare’s reckoning to erect a market-based, patient-centered system that they’ve long advocated. How?

One big obstacle to this goal has been the lack of options for individuals to purchase coverage independently of their employers. Obamacare’s insurance exchanges, essentially on-line shopping malls where consumers can compare plans and prices, could overcome that, if they were properly constructed. But currently they are not.

They are larded with excessive mandates and regulations that’ll inflate premiums and limit coverage options for individuals. Republicans should start focusing on deregulating the exchanges so that insurers can offer more customized packages that genuinely serve customer needs at affordable prices.

Full column by Shikha Dalmia @ Reason http://reason.com/archives/2013/10/01/republicans-should-convert-obamacare-int

Veronique de Rugy on “Bipartisan Corporate Welfare”

On June 7, the Senate Banking Committee voted to back Fred Hochberg’s second term as president of the U.S. Export-Import Bank without bothering to ask the Obama administration about the future of that expensive, inefficient New Deal–era agency. The vote, in which 28 Republicans joined 54 Democrats in supporting Hochberg, was not a good sign for anyone hoping that the GOP’s latest promises of fiscal restraint would prove more trustworthy than all the broken promises before.

The bank, also known as “Ex-Im,” provides taxpayer-backed loans, loan guarantees, and insurance to foreign companies, such as Air China, to buy products from some of the richest U.S. exporters, such as Boeing. It is a textbook example of Washington’s bipartisan corporate welfare. Yet only two Republicans, Sens. Tom Coburn (R-Okla.) and Pat Toomey (R-Pa.), voted against Hochberg. In an online statement Toomey explained his reasons for withholding support. “I opposed his nomination due to serious concerns that the Ex-Im Bank is using taxpayer-backed loan guarantees to help some companies at the expense of other U.S. companies,” he said. “The way to help U.S. exports is to reduce the tax and regulatory burden on businesses, not to pick winners and losers.”
Full column by Veronique de Rugy @ Reason http://reason.com/archives/2013/09/23/bipartisan-corporate-welfare