An effective flat tax

2006/04/19 at 09:33

As a firm believer in progressive taxation, I find this article really disheartening. The heart of the matter:

A decade ago, when publishing magnate Steve Forbes ran for president, he vowed to deliver a new era of prosperity with just a simple change in the federal income tax: Instead of people with more money paying higher rates, all would pay the same “flat” tax rate — unleashing “the fantastic growth waiting to burst forth in our economy.”
Forbes’ “flat tax” plan was dismissed as simplistic by many mainstream economists and viewed with horror by the legions of special interests that benefit from all the deductions and loopholes that flat tax advocates would eliminate.
But this weekend, as millions of Americans faced the perennial deadline for filing their federal tax returns, most of them were operating in something very close to the world Forbes and other flat-tax visionaries proposed. Without any fanfare or philosophical debate, millionaires and middle-class Americans now pay taxes at almost the same rates.*

In addition to outlining briefly the history of U.S. federal taxation and explaining how we’ve gone from sharply progressive taxation to the current situation, the article asks the most important question: What have we gained from this change?

Advocates of the flat tax have long argued that it would stimulate economic activity and thus ultimately benefit everyone. Bush shares that view, though he has not officially advocated a flat tax.
And in recent years lower tax rates do seem to have contributed to healthy economic growth. The economy has been producing goods and services at a rising pace since the end of the 2001 recession. Unemployment is a low 4.7 percent.
But the health of the economy as a whole has not translated into gains for most workers. Because of global competition, the decline of manufacturing, weaker labor unions, immigration and other factors, most workers have not been able to obtain higher pay.
Instead, “flatter” income tax rates have contributed to an economic landscape that David Kelly, economic adviser to Putnam Investments, likens to an hourglass. Some from the traditional middle class are rising into the top, while others are being squeezed out into the bottom.
Average family net worth has continued to grow, in large part because of rising home prices, but at a rate that sagged from 29 percent between 1998 and 2001 down to 6 percent between 2001 and 2004. And for most Americans, whatever nominal pay increases they got in the last three years were more than offset by higher costs of things such as health care.
Meantime, the disparity between the wealthiest Americans and everyone else has grown.

Okay, so that bit is not a direct cause and effect analysis, but the general gist is that this flattening of effective taxation rates has been one contributing factor to the trend of the rich getting richer of the last few years.
* The article mentions income tax, dividend taxation, and social security and medicare taxes, but it’s a little too general on the details for me. I’d like to see a more detailed breakdown on the types of taxes paid by each income group.

A Connecticut Yankee in King Arthur’s Court by Mark Twain

2006/04/18 at 22:26

I just completed the Librivox public domain audiobook of A Connecticut Yankee in King Arthur’s Court by Mark Twain. I thoroughly enjoyed it. It is a good tale, plus it contains large doses of political science and social and political commentary.

Referential vs. experiential bloggers

2006/04/17 at 10:10

Over at kottke.org, guest blogger Greg Knauss proposes that bloggers fall into two categories:

The referential blogger uses the link as his fundamental unit of currency, building posts around ideas and experiences spawned elsewhere: Look at this. Referential bloggers are reporters, delivering pointers to and snippets of information, insight or entertainment happening out there, on the Intraweb. They can, and do, add their own information, insight and entertainment to the links they unearth — extrapolations, juxtapositions, even lengthy and personal anecdotes — but the outward direction of their focus remains their distinguishing feature.
The experiential blogger is inwardly directed, drawing entries from personal experience and opinion: How about this. They are storytellers (and/or bores), drawing whatever they have to offer from their own perspective. They can, and do, add links to supporting or explanatory information, even unique and undercited external sources. But their motivation, their impetus, comes from a desire to supply narrative, not reference it.

I’m definitely primarily a referential blogger. The primary reason for this is that I’m introverted and am therefore reluctant to share my personal life with people whom I don’t know well.
But Greg’s observations are timely for me, as I wrote an experiential blog post just last night. Writing that post felt kind of strange to me. Now I see why. But, I do think I’ll try to write more experiential posts.

Busy weekend

2006/04/16 at 22:47

We had a crazy weekend. Katie’s mother and aunt had been scheduled to move on Saturday, so we had planned to go to San Antonio to help with that. However, their move got postponed until Tuesday, so we drove down to help prepare for the upcoming move.
On Saturday evening, we celebrated a belated Passover Lite with Katie’s dad’s cousin and his wife, Bob and Paulina Polunsky. Hannah spent the night at the Polunskys’, and Samuel, Katie and I stayed in a hotel (we’d planned for both kids to stay with Polunskys, but alas, that didn’t work out).
During the night, the Easter/Passover bunny visited the kids at the Polunskys, so after an Easter breakfast of fried matzah at their house, we wrapped up our work for Mawmaw and Allie and hit the road home. I have to return on Tuesday to help with the rescheduled move.

Blog redesign

2006/04/12 at 21:11

I’m in the midst of deploying a blog redesign (blue=old, purple=new). If you see any problems with purple pages, plesae let me know in the comments of this entry.

Of lawnmowers and video games

2006/04/11 at 15:11

A while back, I read an interesting Fast Company article about how the manufacturer of Snapper power lawn equipment turned down Wal-Mart as a retail outlet. This interesting piece shows the muscle that Wal-Mart–and in this case, I think, the big home improvement outlets–can exert over their suppliers. Or not, in this case.
Today, there’s an article about the influence that Wal-Mart holds over video game developers:

Publisher sales reps inform Wal-Mart buyers of games in development; the games’ subjects, titles, artwork and packaging are vetted and sometimes vetoed by Wal-Mart. If Wal-Mart tells a top-end publisher it won’t carry a certain game, the publisher kills that game. In short, every triple-A game sold at retail in North America is managed start to finish, top to bottom, with the publisher’s gaze fixed squarely on Wal-Mart, and no other.

Crazy.

TV Defender

2006/04/08 at 07:30

Whenever I spend time browing our ReligiousResources directory or reviewing submitted sites, I’m amazed at what I find. My latest find is TV Guardian:

TVGuardian® technology automatically filters offensive language from the programs you and your family watch. TVGuardian® is a device you plug into your TV and it removes the bad language (cursing and profanity). It works with Cable, Satellite, DVD players, VCR and over the air channels. TVGuardian® makes movie time, family time again.

So, you can watch shows and movies that contain offensive language but feel secure that you’re protecting your and your children’s fine sensibilities. Here’s an idea: if that stuff offends you, don’t watch it!

Web site redesign

2006/04/07 at 22:06

I’m happy to report that today I launched a new design for ReligiousResources.org. I’m pleased with the design, but visitors to the site will not see the biggest improvements: I’ve completely reprogrammed the admin functionality (managing listings, etc.). But that change should make life much better for Susan, and will hopefully make the site more useful.

Gacking cats

2006/04/05 at 13:55

This is the funniest Ask MetaFilter thread ever.
A while back, Norman started making pre-gacking noises while we were sitting in the living room with guests. He was on the carpet, of course. Katie was a little late on grabbing him to move him onto the kitchen floor. He completed the job right as Katie was turning around with him, projecting cat vomit across the room and down my mother’s leg.

Collecting

2006/04/03 at 11:27

When I was reading this ask.metafilter.com thread the other day, something I’ve been thinking about for a while finally clicked. What caught my eye was that a few respondents mentioned the volume of music, in gigabytes, that they had downloaded from emusic.com back when it offered unlimited downloads.