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CHRIS EDWARDS, CATO INSTITUTE We have an uncompetitive federal corporate tax rate of 35 percent compared to Canada’s 15 percent. Our Roth IRA is inferior to Canada’s TFSA, as Amity Shlaes and I discussed in the Wall Street Journal. And while Serena Williams still tops rising star Eugenie Bouchard, we...
CHRIS EDWARDS, CATO INSTITUTE The House and Senate have passed bills cutting the federal corporate tax rate from 35 to 20 percent. This overdue reform will spur capital investment, strengthen the economy, and reduce tax avoidance. Republicans have long championed this reform, and President Trump had proposed an even lower...
CHRIS EDWARDS, CATO INSTITUTE In recent decades, the Democratic Party has moved far to the left on economic policy. I have discussed the leftward shift on tax policy, which was illustrated once again by President Obama’s generally awful proposals in his new budget (see here, here, and here). What about regulations?...
CHRIS EDWARDS, CATO INSTITUTE In catching up on news about the federal government today, I noticed that articles fit into three categories: bureaucracy, boondoggles, and bad behavior. On any given day, it seems, the Washington Post and other outlets have new tales of BB&BB to report. No wonder most Americans...
CHRIS EDWARDS, CATO INSTITUTE President Obama’s tax plan would create “A Simpler, Fairer Tax Code,” according to the official fact sheet. The president’s budget uses “simplify” numerous times in describing the plan, and the president declared in his State of the Union address “let’s simplify the system.” The president promised us ‘middle-class economics,’ but...
CHRIS EDWARDS, CATO INSTITUTE The Trump administration proposed privatizing the Power Marketing Administrations (PMAs) in its budget last year.  Cato has released a study discussing the PMAs and the advantages of privatization. https://tinyurl.com/yb4lsb39 The federal government has been in the electricity business since in the mid-20th century. Over time it has become clear that...
CHRIS EDWARDS, CATO INSTITUTE If you are interested in national issues such as defense, foreign policy, and trade, and want to hold public office, you should run for Congress. If you are interested in roads, beaches, subways, and policing, you should run for city council or the state legislature. The push...
CHRIS EDWARDS, CATO INSTITUTE Peggy Noonan’s op-ed on the weekend was titled “The VA Scandal Is a Crisis of Leadership.” Noonan discusses how President Obama “doesn’t do the plodding, unshowy, unromantic work of making government work.” Obama is not a good manager, and so scandals like the current one are...
CHRIS EDWARDS, CATO INSTITUTE The Bureau of Economic Analysis (BEA) has released data on worker compensation for 2016. The data show that wages and benefits for federal-government workers grew faster than for private-sector workers last year. Federal workers now receive 80 percent more compensation, on average, than do workers in...
CHRIS EDWARDS, CATO INSTITUTE This small news bite from the Washington Post yesterday caught my eye: Moving costs: Booz Allen Hamilton, the McLean, Va., consulting and government contracting giant, is receiving a $750,000 loan from a Maryland economic development fund and a grant of $250,000 from Montgomery County to relocate 750 Maryland workers from...
CHRIS EDWARDS, CATO INSTITUTE Large government projects often double in cost between when they are first considered and when they are finally completed. This pattern—call it “Edwards’ Law”—is revealed in story after story about highways, airports, computer systems, and other types of government infrastructure. It looks like New York’s World Trade...
CHRIS EDWARDS, CATO INSTITUTE The Office of Management and Budget has released new data on the amount of time Americans spend complying with the federal tax code. Tax Foundation summarizes the data here. Individuals and businesses spend 8.9 billion hours a year on federal tax paperwork, which is equivalent to 4.3...
CHRIS EDWARDS, CATO INSTITUTE I have posted an updated plan to cut spending by one fifth and balance the federal budget. These cuts are not the only ones needed, but they are a mix of reasonable reforms spread broadly across the government. A new poll discussed in Govexec.com finds that “Americans...
CHRIS EDWARDS, CATO INSTITUTE Under the U.S. Constitution, the powers delegated to the federal government are “few and defined,” as James Madison noted in Federalist 45, while the powers of the states “will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties, and...
CHRIS EDWARDS, CATO INSTITUTE Committee on the Budget United States House of Representatives Mr. Chairman and members of the committee, thank you for inviting me to testify. My comments will examine the history of federal debt and reasons to balance the budget and reduce debt going forward. Looking at federal debt compared to...
CHRIS EDWARDS, CATO INSTITUTE Last week I sat down to talk tax reform with Nick Gillespie, the editor-in-chief of Reason.com and an all-around guru of libertarian policy and culture. We covered individual and corporate taxes, and then pondered whether Republicans will follow up next year with spending cuts. Chris Edwards is...
CHRIS EDWARDS, CATO INSTITUTE President Donald Trump and congressional Republicans are proposing to cut the corporate tax rate. With any tax cut, members of Congress want to know how much revenue the government may lose from the reform. I do not think that cutting our 35 percent federal corporate tax...
CHRIS EDWARDS, CATO INSTITUTE Critics are saying that the Republican tax plan would give high earners the largest cuts. There has been a flood of news stories with that theme since the Tax Policy Center (TPC) released its analysis of the plan. The TPC summary says, “Those with the very highest incomes would receive the...
CHRIS EDWARDS, CATO INSTITUTE Did you know that the White House has a fleet of 19 helicopters? The Washington Post today discusses efforts to replace this fleet of aging Sikorsky’s with 21 new vehicles yet to be procured. The fleet is used by the president, vice president, and cabinet secretaries. The...
CHRIS EDWARDS, CATO INSTITUTE An op-ed in the Wall Street Journal today indicates that Edwards’ Law of Cost Overruns is an international standard. If a politician says that a project will cost $100 million, it will end up costing $200 million or more. The WSJ piece by Bent Flyvbjerg and Atif...