Gongol.com Archives: April 2017
April 27, 2017
White House says it will propose biggest tax cut ever
Everyone like the idea of a tax cut, but it's not always the right prescription. If indefinite tax cuts led to infinite growth, then we should cut the rates to zero. But they don't, and so we shouldn't. The fact is that if we're going to spend 20% or 21% of GDP on the Federal government, then we need to collect taxes within a percentage point (or two, at most) of that amount in order to have a sustainable budget. But we don't: The Federal government only takes in about 17.5% of GDP as revenues (usually taxes). Economic growth can make up a small gap, but not a big one. Borrowing against the future only creates conflict between generations and raises the ultimate cost of our borrowing.
Separation of powers is good for its own sake
The House Oversight Committee requested information from the White House about Michael Flynn. The White House is stonewalling the request. So now, regardless of partisan alignments, the House has a reason to stand up for itself and insist on its own authority to conduct an investigation -- for the good of the institution. That's a good thing.
Spinning around and around on NAFTA
First, the President said we were cutting out of NAFTA. Then he got a couple of angry phone calls and decided to reverse course. Free trade is a much bigger and more important principle than that, and it deserves far more serious consideration than he has given the matter.
The network announced a whole bunch of layoffs, and the ultimate cause is that people have more choice than ever about getting programming without the channel bundles. So a whole lot of people who used to pay for ESPN (as part of cable or satellite TV bills) but rarely or never watched it...still don't watch it, but now they don't pay for it, either.
United revises its rules to offer a whole lot more than before in order to bump passengers voluntarily. The market will take care of the rest.
