A Viable Plan to Eliminate Income Taxes?

From George Will’s article “A National Sales Tax” at TownHall.com:

The power to tax involves, as Chief Justice John Marshall said, the power to destroy. So does the power of tax reform, which is one reason why Rep. John Linder, a Georgia Republican, has a 133-page bill to replace 55,000 pages of tax rules.
His bill would abolish the IRS and the many billions of tax forms it sends out and receives. He would erase the federal income tax system — personal and corporate income taxes, the regressive payroll tax and self-employment tax, capital gains, gift and estate taxes, the alternative minimum tax and the earned income tax credit — and replace all that with a 23 percent national sales tax on personal consumption.

The article continues:

Under his bill, he says, all goods, imported and domestic, would be treated equally at the checkout counter, and all taxpayers — including upward of 50 million foreign visitors annually — would pay “as much as they choose, when they choose, by how they choose to spend.” And his bill untaxes the poor by including an advanced monthly rebate, for every household, equal to the sales tax on consumption of essential goods and services, as calculated by the government, up to the annually adjusted poverty level.
Today the percentage of taxpayers who rely on professional tax preparers is at an all-time high. The 67 percent of tax filers who do not itemize may think they avoid compliance costs, which include nagging uncertainty about whether one has properly complied with a tax code about the meaning of which experts differ. But everyone pays the cost of the tax system’s vast drag on the economy.
Linder says Americans spend 7 billion hours a year filling out IRS forms and at least that much calculating the tax implications of business decisions. Economic growth suffers because corporate boards waste huge amounts of time on such calculations rather than making economically rational allocations of resources. Money saved on compliance costs would fund job creation.

You can read George Will’s full article at TownHall.com, and you can learn more about the Fair Tax plan at FairTax.org.
Walter Williams also wrote favorably about the national sales tax back in December, in his article “National Sales Tax.”

Atlas Shrugged Appears on Top 50 Novels for Socialists

Popular fantasy and science fiction writer China Miéville has recently published an online guide to socialist fantasy literature entitled Fifty Fantasy & Science Fiction Works That Socialists Should Read. Why would this be of interest to Rand admirers? Amusingly enough, Atlas Shrugged appears on the list, though it is described in less-than-favorable terms:

Ayn Rand?Atlas Shrugged (1957)
Know your enemy. This panoply of portentous Nietzcheanism lite has had a huge influence on American SF. Rand was an obsessive ?objectivist? (libertarian pro-capitalist individualist) whose hatred of socialism and any form of ?collectivism? is visible in this important an influential?though vile and ponderous?novel.

To view the rest of the recommendations, see the full list. (Though this list would be a much better choice!)

Putin Demotes Economic Advisor Andrei Illarionov

We’ve noted previously that Putin economic advisor Andrei N. Illarionov has been a vocal admirer of Ayn Rand’s novel Atlas Shrugged. It sounds like Putin has suddenly noticed that the principles in Atlas are, uh, incompatible with dictatorship.
From an article in the New York Times:

President Vladimir V. Putin on Monday abruptly reduced the responsibilities of a senior adviser who last week issued a sweeping criticism of the Kremlin’s leadership and expressed deep misgivings about the direction in which Russia was headed.
In a presidential decree released without further comment, Mr. Putin relieved the adviser, Andrei N. Illarionov, of his duties as Russia’s envoy to the Group of 8, comprising the world’s major industrialized nations and Russia. Mr. Putin reassigned those duties to a presidential aide who is seemingly a more loyal Kremlin insider, Igor I. Shuvalov.
Mr. Illarionov, 43, has been an economics adviser to Mr. Putin since 2000, and at times a vocal critic of the Kremlin’s course. Both the Kremlin and Mr. Illarionov’s spokeswoman said that for the moment he would retain his principal post. But his sudden removal as envoy to the Group of 8 carried an implicit rebuke.
In a long news conference here last week and then in an interview on an independent radio station, Mr. Illarionov issued a searing and comprehensive assessment of the state of affairs in Russia, saying the country had sharply shifted direction for the worse, and risked becoming a third world state.

See the full article for additional information. (Via Drudge)

Private vs. Government Aid for Tsunami Victims

The Ayn Rand Institute has published an op-ed, below, arguing that any help for Tsunami victims in Southeast Asia should come from private, not government, coffers.
Is such private fundraising really a practical solution? Consider this: Amazon.com alone has already raised well over $9 million (from 124,000 separate donors) in private funding for the Tsunami victims.
The money will be donated to the American Red Cross, which, according to at least one government source, is the same organization that will receive the initial funding from the U.S. government.

U.S. Should Not Help Tsunami Victims

By David Holcberg
As the death toll mounts in the areas hit by Sunday’s tsunami in southern Asia, private organizations and individuals are scrambling to send out money and goods to help the victims. Such help may be entirely proper, especially considering that most of those affected by this tragedy are suffering through no fault of their own.
The United States government, however, should not give any money to help the tsunami victims. Why? Because the money is not the government’s to give.
Every cent the government spends comes from taxation. Every dollar the government hands out as foreign aid has to be extorted from an American taxpayer first. Year after year, for decades, the government has forced American taxpayers to provide foreign aid to every type of natural or man-made disaster on the face of the earth: from the Marshall Plan to reconstruct a war-ravaged Europe to the $15 billion recently promised to fight AIDS in Africa to the countless amounts spent to help the victims of earthquakes, fires and floods–from South America to Asia. Even the enemies of the United States were given money extorted from American taxpayers: from the billions given away by Clinton to help the starving North Koreans to the billions given away by Bush to help the blood-thirsty Palestinians under Arafat’s murderous regime.
The question no one asks about our politicians’ “generosity” towards the world’s needy is: By what right? By what right do they take our hard-earned money and give it away?
The reason politicians can get away with doling out money that they have no right to and that does not belong to them is that they have the morality of altruism on their side. According to altruism–the morality that most Americans accept and that politicians exploit for all it’s worth–those who have more have the moral obligation to help those who have less. This is why Americans–the wealthiest people on earth–are expected to sacrifice (voluntarily or by force) the wealth they have earned to provide for the needs of those who did not earn it. It is Americans’ acceptance of altruism that renders them morally impotent to protest against the confiscation and distribution of their wealth. It is past time to question–and to reject–such a vicious morality that demands that we sacrifice our values instead of holding on to them.
Next time a politician gives away money taken from you to show what a good, compassionate altruist he is, ask yourself: By what right?
UPDATE: More on this subject from Terence Corcoran at Canada’s National Post:

If there’s an emerging lesson in the aftermath of the tsunami, it is this: Beware of aid efforts that must be trumpeted in press releases and hyped at news conferences. The bulk of world relief to tsunami victims, soaring to hundreds of millions of dollars, had been registered by private agencies collecting donations from individuals who sought no public recognition, issued no media release and made no effort to get their names into the papers. It was only after it became obvious thousands, if not millions, of individuals wanted to help that the world’s governments — in Ottawa and Washington and elsewhere — suddenly saw an opportunity. Absurdly, Ottawa announced it would “match” the private donations of individual Canadians — as if Ottawa got the money from some magic fountain behind Parliament Hill rather that from taxes on the same individuals who had already volunteered.

Milton Friedman on the Progress of Free Markets

From an article at the Australian reprinting Milton Friedman’s comments in the Hoover Digest:
After World War II, opinion was socialist while practice was free market; currently, opinion is free market while practice is heavily socialist. We have largely won the battle of ideas; we have succeeded in stalling the progress of socialism, but we have not succeeded in reversing its course. We are still far from bringing practice into conformity with opinion. That is the overriding non-defence task for the second Bush term. It will not be an easy task, particularly with Iraq threatening to consume Bush’s political capital.
Keep reading… (Hat-tip to Instapundit.)

A Paean to Freedom …and to Thoughtful Readers

Writing for Texas A&M’s The Battalion, op-ed columnist Mike Walters wraps up the semester with a ringing endorsement of freedom in his article “Individual rights make America great,” which includes this remark:

I’d like to congratulate those who read opinion articles and examine their subjects rationally – you are the thinkers of tomorrow. Only you have the power to create a morally successful path for our industries and nation. We face much evil in the world, evil seeking an easy path through life by taking what others have rather than producing it. Worse are those who inadvertently spread evil ideas by failing to examine them critically and spreading them regardless.
As you move on past college and into the world, remember that individual rights are the only things that will bring about a color-blind society, that allows people to keep the money they make, and give to charity if they wish. Individual rights are the only things that preserve the freedom that allows us to seek happiness.

…Followed by a terrific quote from Ayn Rand. See the full article for more.

Michael Milken, Privatizing Medical Research

Michael Milken, whose prosecution for violation of insider trading laws in the early 90s was condemned by many Objectivist commentators, is featured in a terrific cover article in this month’s Fortune magazine.
The article (available to subscribers of that magazine) begins:

The image on the oversized screen behind the podium was of a giant malignant tumor. The discussion was about prognostic indicators?doctorspeak for how much longer people with such tumors had to live. The prognosis wasn’t good, with life expectancy measured in months, not years. The presenter’s manner was cold, but it didn’t matter: This was no hospital bedside but a roomful of physicians, gathered for a seminar on prostate cancer at Houston’s prestigious M.D. Anderson Cancer Center. In the third row sat a tall, slight, unimposing man. The top of his middle-aged head no longer had hair; his eyebrows were thin. His nametag read dr. robert hackel, and all he could think about was how enormous the tumor looked onscreen. A tumor just like his own.
When the speaker, Donald Coffey, an esteemed prostate cancer expert from Johns Hopkins, was finished, Hackel made his way to the front. For 25 minutes he grilled Coffey on his presentation, asking technical questions about the research and its therapeutic implications. At what should have been the end of a friendly exchange between colleagues, Hackel turned to Coffey and said, “I am Mike Milken. I want to be cured.”
Coffey knew the name. It was 1993, and Michael Milken, the once-highflying junk-bond wizard had, a few years earlier, been a familiar face in the newspapers because of his high-profile indictment on securities violations. Only two weeks before, in fact, Milken?now wearing a phony ID badge with his middle name and father-in-law’s surname?had been released from prison, having served 22 months. Coffey was surprised not just by who his questioner was, but by the fact that he wasn’t a doctor. His toupee gone and his toothy grin somewhat modulated, Milken seemed more like a veteran lab scientist than a desperate patient. He knew much about the biology of cancer.
It was only when Milken began to speak rapturously about turning prostate cancer research on its head and starting “a Manhattan Project for cancer” that the financier sounded a bit naive. A real physician would have known better, thought Coffey. “The truth was, at the time, there was so little research?or anything else?going on in the field [of prostate cancer], it was as if Milken was speaking in tongues,” he says. Still, the good doctor listened politely.
Eleven years later many others are listening too. That’s because Milken has, in fact, turned the cancer establishment upside down.

How did he do this? In a word: privatization. Together with other high-profile entrepreneurs such as Intel’s Andy Grove, Milken started a private foundation to aggressively fund innovative research to cure prostate cancer. (Not to “understand” or “promote awareness” of prostate cancer ? to cure it.)
At first, establishment researchers were wary of the funding requirements, which include sharing the results of their research with other researchers before it goes through the lengthy process of getting published in peer-reviewed journals. But prostate cancer research had been mired in bureaucratic red tape for many years, and the prospect of receiving $100,000 in funding within 90 days ? rather than the 2-3 years required for government-funded research ? eventually won the researchers over to the merits of private funding.
Today Milken’s institution has funded so many new treatments and drug therapies that, had it sought to retain ownership of such treatments, it would be the world’s third-largest biotechnology company. (I’m paraphrasing from memory, here; I read the full story this morning but don’t have it handy.)
The result? Deaths from prostate cancer are declining steeply, and Milken himself is in seemingly full remission.
See the full story in Fortune for additional information.

On Calling a Spade a Shovel

An interesting posting to the OWL discussion group by Erik Herbertson, of Sweden:
I have a suggestion for especially those of you who are Americans. When you write about “liberals” of the American variety, i.e. welfare statists, it would be good if you used quotation marks to underscore that it’s a false liberalism. Ayn Rand used to do that. It’s also a point to state, if there’s room for it, the reasons.
In most countries in the world, except apparently in the U.S., the terms “liberal” and “liberalism” can be used in the sense we approve of, namely a position in favour of free markets, individual freedom and limited government.
Sure, “liberalism” can even in Europe (and my country Sweden) be used in the welfare statist meaning, but there’s no problem for me to attach my pro-capitalist, pro-individualist views to the word “liberalism”. The welfare statist variety of liberalism is often called “socialliberalism” in Scandinavia, or “sozialliberalismus” in German-speaking countries.
Free market liberalism sometimes is called neo-liberalism, classical liberalism, old liberalism (confusing for beginners :-)), laissez-faire-liberalism or Manchester liberalism, but also just liberalism or “pure liberalism”.
The Liberal parties throughout the world are not always the same as true liberalism. But in most countries, those parties who call themselves liberal are the most free-market-oriented.
The Liberal Party of Canada and the Liberal Democrats of UK belongs to the left wing of the Liberal International. But in especially the European continent and Eastern Europe, Liberal parties are the parties of low taxes, free markets and personal freedom, even though they are not libertarian (Partito Liberale in Italy is libertarian).
The Estonian Reform Party and Polish Freedom Union have libertarian leanings, and the Costa Rican Movimiento Libertario (libertarian) is a member of the Liberal International.
One can question if it’s wise for free-market-oriented liberals to cooperate with “social liberals” in an International, but I wanted to make a point about the orientation many Liberal parties have, an orientation you wouldn’t even expect from a U.S. Republican.
Even in Canada, there’s the provincial party “B.C. Liberals” (British Columbia), which is separate from the Liberal Party of Canada, and have a policy in favour of free enterprise and lower taxes. Consistent advocates of laissez-faire could question some of its implementations, but it seems that there’s a change in Canada over the meaning of “liberalism”.
In other English-speaking countries like Australia, New Zealand and South Africa, “liberalism” is often meant to be pro-capitalism and pro-individualism.
In France, “liberal” is almost always used in the correct way, and therefore the French left use it as a derogatory term :-). Good that the French at least are right about this terminology.
Erik Herbertson, true liberal

Wheeler: Election Signals End of 'Clintonian Perversity'

Prominent cultural analyst (and Ayn Rand admirer) Jack Wheeler sounds a note of optimism in his latest discussions of current events. Excerpts are included in the article “‘Clintonian childish perversity’ finally dies,” published at WorldNetDaily:

Dr. Jack Wheeler, whose death-defying adventures span the globe and whose achievements have inspired wide-ranging acclaim, has penned a positive, historically relevant analysis of the election, saying the days of “Clintonian childish perversity” are behind us.
On his unique intelligence website, To the Point, Wheeler analyzes the re-election of President Bush and declares the nation is now on a continuing upward trend of moral decency. […]
“The election of 2004 was the last gasp of the left’s attempt to maintain its stranglehold on American popular culture and moral values,” he writes. “George W. Bush leads a finally-maturing Boomer generation that leaves Clintonian childish perversity behind, with America’s youth demanding clear and decent moral standards. […]”

Longer excerpts are available in the full article at WND.