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Wednesday, 12 March 2008 12:10 |
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My friend and former boss, Dick Armey, had a great line about those who get in bed with Big Government: When you make a deal with the devil, you're the junior partner.
That came to mind when I read this story about the latest nanny-state nonsense here in Minnesota, a scheme to "track" childhood obesity in children. Though it was voted down this time, no doubt it will be back.
The idea of government tracking Fat Kids reminds me of the Kamp Krusty episode of the Simpsons, where Bart, Lisa, and Co. depart for said camp, while Martin, the chubby kid, is furious at being packed off to "Fat Camp," calling himself "daddy's chubby little secret." This was an especially funny Simpsons, though in the Nanny State version Martin will be going to Government-mandated Fat Camp, while his Parents are shipped off to Feeding Your Child re-education camps.
The more government encroaches into every corner of our lives in innocuous, even seemingly positive ways, like providing health care, the more control it will demand of our lives. After all, if Government is going to provide us health care, it will want to do so as cheaply as possibly. Therefore, it will tell us: Lose Weight. Exercise. Stop Eating Red Meat. Avoid the Demon Rum....Or Else. If you doubt me, think of the smoking and Transfat bans already in law. Think it's going to get better as waves of Baby Boomers start retiring and Medicare starts cracking under trillions in unfunded liabilities?
Back to the story, the last thing we need is Government keeping lists of Fat Kids, Packer Fans Who Drink, People Who Own Motorcycles, Gun Owners Who Like to Shoot Stuff, and other "dangerous" behaviors that could increase health care costs or otherwise add to the cost of Government. So, if we want to maintain our liberties, we, as free citizens, had best be careful what we ask government to do for us.
Remember: When you make a deal with the devil, you're the junior partner, and the junior partners get only what's left over.
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In his state of the state speech Wednesday, Minnesota Governor Tim Pawlenty put on the table an idea that has been long-awaited and desperately needed in Minnesota: Tax Reform. Give that man an attaboy!
While the devil is always in the details, it's a very important intellectual leap. Minnesota Democrats remain fixated on raising taxes to spend more money, a disastrous approach in a high tax state that's already in a recession and perpetually struggles with economic competitiveness despite its many natural advantages.
Furthermore, Republicans have about played out the string on tinkering around the edges with tax cuts. The reason tax cuts have lost much, though not all, of their political saliency, is because voters have heard the same song for a quarter-century. It's time to take the next step and fundamentally change the tax code. As the Governor pointed out yesterday, we have a 1960s tax code for a 21st century economy and society.
It's time to make Minnesota's (and America's) tax code, fair, flat, and simple so our economy grows and creates jobs while our citizens keep more of their money and make more of their own decisions.
What should a tax reform plan look like:
- It must be pro-growth and pro-jobs.
- It must treat all citizens fairly, which in my book means equally.
- It should tax all income, but only one time, thus after you've paid your income taxes, government doesn't get a second bite at the apple on capital gains, dividends, etc.
- It must have a generous family allowance.
- It must be simple, easily understood, and direct, no more hidden taxation and special interest loopholes.
- It must have a one-page form that can be filled out without need of tax accountants.
The key step will be to make sure that sound thinking people are appointed to the Governor's tax reform commission. While I'm all for appointing folks who create jobs in the private sector, the commission mustn't turn into "what's good for big business is good for Minnesota."
This is an opportunity to put Minnesota on sound economic footing for a generation. We need appointees who can think beyond the bottom line of today's Fortune 500 and think about what will work for entrepreneurs and employers whose names we have not yet heard.
It's a critical debate and an exciting opportunity. |
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The front page of last Thursday’s St Paul Pioneer Press business section featured two important stories that should clue in most any sensible person about what ails Minnesota's economy. The top story is titled, “Lawmakers Brace for Bad Economy.” The subtitle is “State experts paint gloomy picture of what’s to come.”
At the bottom of the front page is a story titled, “Ethanol giant picks Sioux Falls for new HQ.” The story is about US BioEnergy’s decision to leave Inver Grove Heights for South Dakota.
Let me quote a key paragraph:
“One factor in the cost of business was that South Dakota, unlike Minnesota, levies no corporate or personal income taxes, he acknowledged.”
Seems like a clear case of cause and effect to me. However, the government folks quoted in the story seem to think the answer to an economic slowdown in a high tax, big government state is…add more government.
According to the State’s Economist, a Perpich appointee, we aren’t spending enough money on education, job training, or research. According to a spokeswoman for the State Employment and Economic Development department, the government has many fine programs including “its proposed SEED program to encourage rural entrepreneurs.”
No offense, but more government programs paid for by higher taxes aren’t the solution; it’s more of the same.
Minnesota already has the nation’s second-highest corporate income tax rate. We have among the highest income tax rates, and if the DFL had imposed its will over Governor Pawlenty’s vetoes, we would have the highest individual income tax rate in the country. Property taxes are high, and rising.
As legislators return for the session this week, and the Governor returns from the McCain campaign trail, I hope we will see very clear and specific plans from all parties for getting the Minnesota economy back on track. After all, we're losing jobs to South Dakota (insert your punchline about them here). If we can't win that competition, can we really compete with Arizona or Texas, China or India?
The economy is issue number one right now, and Minnesotans deserve serious proposals and a serious debate about how to solve the problem. I’m sure the approaches will be very different, but the public never loses when there’s an honest debate about big issues.
Instead, I fear we’ll see only political games from the Democrat majorities in both the House and Senate. Rather than addressing our economy, they’ll spend their time trying to damage Governor Pawlenty politically by attempting, yet again, to override his veto of their tax increases and dumping Lieutenant Governor Molnau as Transportation Commissioner.
House and Senate Republicans must, therefore, rise to the occasion and put forward proposals that demonstrate their understanding of what ails Minnesota, a bloated state government paid for by an anti-growth, job-killing, punitive tax code. By pushing tax cuts and tax reform that will grow the economy and create jobs, while shrinking the growth of state government, the minority will have earned the trust and respect of all Minnesotans. And good policy makes good politics. |
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Years it took the United States Government to reach the level of spending $1 trillion in a single year: 198
Additional years it took the United States Government to reach the level of spending $2 trillion in a single year: 14
Additional years it took the United States Government to reach the level of spending $3 trillion in a single year: 7
The tongue-in-cheek good news: The time for hitting $4 trillion doesn't appear to be halving again, at least according to the newest budget numbers. We won't be hitting $4 trillion in 2012.
But anyone who doubts the importance of controlling spending and the growth of government, not just drop-in-the-bucket earmarks, but the entitlement programs -Social Security, Medicare, Medicaid, Ag - that will soon overwhelm the budget and destroy our prosperity, is seriously delusional.
I'm glad liberals are concerned about the cost of the War on Terrorism. I'd take their concerns more seriously if they had anything to say about the trillions-with-a-T in future Medicare and Social Security liabilities that are about to crash down upon us like a tsunami.
Sometime before the 2008 elections, I hope the politicians will begin offering serious solutions for what they plan to do about all of this. Assuming this faint hope doesn't materialize on its own, we will have to demand that they give us solutions.
If you want some bedtime budget reading, go here. |
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