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Strangled By Red Tape
Townhall.com ^ | May 21, 2013 | Daniel J. Mitchell

Posted on 05/21/2013 8:39:02 AM PDT by Kaslin

I’ve shared some nightmare stories of excessive and mindless government regulation.

  1. The Food and Drug Administration raiding a dairy for the terrible crime of selling unpasteurized milk to people who prefer unpasteurized milk.
  2. New York City imposing a $30,000 fine on a small shop because it sold a toy gun.
  3. The pinheads at the Equal Employment Opportunity Commission going after Hooters for not having any male waiters in hot pants and tight t-shirts.
  4. Indiana’s Department of Natural Resources is legally attacking a family for rescuing a baby deer.
  5. An unlucky guy who is in legal hot water for releasing some heart-shaped balloons to impress his sweetheart.

But the regulatory burden goes way beyond these odd anecdotes. We’re talking about a huge cost to the economy, and it’s been getting worse for the past 12 years.

Here are some comments on the President’s inauspicious record from the Wall Street Journal.

Team Obama is now the red tape record holder. …pages in the Code of Federal Regulations hit an all-time high of 174,545 in 2012, an increase of more than 21% during the last decade…the cost of federal rules exceeded $1.8 trillion, roughly equal to the GDP of Canada. These costs are embedded in nearly everything Americans buy…at $14,768 per household, meaning that red tape is now the second largest item in the typical family budget after housing. Last year 4,062 regulations were at various stages of implementation inside the Beltway. The government completed work on 1,172, an increase of 16% over the 1,010 that the feds imposed in 2011, which was a 40% increase over 722 in 2010. …the Obama Administration did not break the all-time record of 81,405 pages it set in 2010. But the 78,961 pages it churned out in 2012 mean that the President has posted three of the four greatest paperwork years on record. And to be fair, if Mr. Obama were ever to acknowledge that this is a problem, he could reasonably blame George W. Bush for setting a lousy example. Despite the Obama myth that the Bush years were an era of deregulation, the Bush Administration routinely generated more than 70,000 pages a year in the Federal Register.

If those numbers don’t make you sit up and take notice, how about these ones?

My personal “favorite,” as you can imagine, is the regulatory burden of the income tax.

  1. The number of pages in the tax code.
  2. The number of special tax breaks.
  3. The number of pages in the 1040 instruction booklet.

Today’s Byzantine system is good for tax lawyers, accountants, and bureaucrats, but it’s bad news for America. We need to wipe the slate clean and get rid of this corrupt mess. And you know how to make that happen.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS:

1 posted on 05/21/2013 8:39:02 AM PDT by Kaslin
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To: Kaslin

great post!


2 posted on 05/21/2013 8:43:08 AM PDT by Mr. K (There are lies, damned lies, statistics, and democrat talking points.)
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To: Kaslin

Nothing to see here. Just the liberal Democrat administration making sure the big corporations have no competition.


3 posted on 05/21/2013 8:44:17 AM PDT by aimhigh (Guns do not kill people. Abortion kills people.)
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To: Kaslin

“The only answer, needless to say, is to throw the entire mess in the trash can and replace it with a simple and fair flat tax.”


4 posted on 05/21/2013 8:46:57 AM PDT by Rennes Templar (The true Obama persona is emerging, the one from his first Presidential debate.)
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To: Kaslin
The more regulation there is the more corruption there is. It is a natural law of government. When you have to get something okayed by a bureaucrat then the market is being hampered.The bureaucrat does not have to provide efficient service to get paid and he can get paid more by delaying or putting more snags in your project unless you satisfy him over and above the bare rules, which might be ambiguous in the first place. Government inspectors and bureaucrats who issue permits for this and that, especially for business and construction like to have their lawns mowed and their cars washed at the lowest level and like airline tickets and garages to be added to their homes at a higher level etc, and sometimes substantial addition to their net worth.

You cannot reduce corruption by adding a level of anticorruption overseers because the nature of their function puts them in position to demand a portion of the rake-off in order to sign off on what the people they are overseeing are doing. The more layers the more corruption.

5 posted on 05/21/2013 8:49:54 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
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To: Rennes Templar; Principled; EternalVigilance; phil_will1; kevkrom; Bigun; PeteB570; FBD; ...

May I remind you that the so-called “Flat Tax” is still an income tax, and will require that the IRS stay in place? I can make the case that the IRS would be even more aggressive under the Flat Tax regime than it is today.

The FairTax, on the other hand, abolishes the IRS! It is true that a Federal agency would be stood up to monitor each state’s tax collection activities. However, the Feds would have no interaction with private citizens or businesses; they would only be able interact with state sales tax agencies.

A much leaner, cleaner, cheaper and, of great import, far less intrusive system.

See http://www.fairtax.org for more information.


6 posted on 05/21/2013 8:26:36 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Taxman

So long as the private banking cabal euphemistically known as the federal reserve is the source of money by fiat loan to the Treasury (fiat because they create the loan out of thin air), how the tax revenues collected to post to the federal reserve balance sheet is actually irrelevant. Abolish the federal reserve and have the tresury issue our money, then you can fix things by using a fair tax or sales tax or flat tax. If the US Treasury issues our money, even the present IRS would not prevent our moving to solvency.

American dollars are created by debt issuance. So we the people will never get out of debt so long as the private banking cabal issues our debt for monetary exchange.


7 posted on 05/21/2013 8:32:58 PM PDT by MHGinTN (Being deceived can be cured.)
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To: Rennes Templar

A Flat Tax never stays flat.

Here’s the lasting solution:
http://www.fairtax.org/site/PageServer?pagename=FAQs


8 posted on 05/21/2013 10:38:22 PM PDT by Hostage (Be Breitbart!)
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To: Hostage

The Fairtax would require an invasive national bureaucracy and I would hate to see how they enforce it. Plus it preserves making the ‘rich’ give bonuses to the ‘poor’ and a ot of other crap. and the prebate is most idiotic thing ever devised


9 posted on 05/21/2013 10:42:56 PM PDT by GeronL (http://asspos.blogspot.com)
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To: GeronL

Well you haven’t taken the time to understand the FairTax including its Rebate.

Let’s say you thought of the idea to eliminate the income tax and to replace a means of generating federal government revenue by a tax on retail spending.

But say further you wanted to ensure that no American would pay any federal tax on essentials of living. How would you suggest this be done?


10 posted on 05/22/2013 12:24:04 AM PDT by Hostage (Be Breitbart!)
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To: Kaslin; red irish; fastrock; NorthernCrunchyCon; UMCRevMom@aol.com; Finatic; fellowpatriot; ...
+

Freep-mail me to get on or off my pro-life and Catholic List:

Add me / Remove me

Please ping me to note-worthy Pro-Life or Catholic threads, or other threads of general interest.

11 posted on 05/22/2013 12:30:58 AM PDT by narses
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To: narses

One of the BEST things about the Fair tax is that in gives the power of taxation back to the People. If we don’t like what’s going on in DC, we can vote with our dollars.

The Fair Tax incentivizes the Federal Government to get the hell out of the way and let the economy grow, thus leading to more tax revenue. Real jobs must be created for the growth of tax revenue to appear.

The WORST thing about the FAIR TAX is that is doesn’t address the massive overspending. What needs to happen is that there needs to be a spending priority list based on the Constitutionally proscribed Federal powers, along with language preventing spending more than is taken in on penalty of removal, and criminal charges. Lock the tax rate.


12 posted on 05/22/2013 3:49:02 AM PDT by Big Giant Head
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To: Taxman

Fairtax is the only thing that makes sense.


13 posted on 05/22/2013 4:56:21 AM PDT by HANG THE EXPENSE (Life's tough.It's tougher when you're stupid.)
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To: GeronL

The prebate is the genius of the whole system if we use it to replace all other forms of welfare ie Social security, ssdi, ssi, afdc, food stamps, farm subsidies etc every US citizen will get their check and that amount should be set as the official poverty line. Everyone would be free to work and spend every dollar buying taxed stuff or saving. We could have open borders all who came would pay taxes without any prebate. The taxes generated on the underground (under the table) workers would help as well.


14 posted on 05/22/2013 7:23:38 AM PDT by scottteng (Tax government employees til they quit and find something useful to do)
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To: scottteng

Insanity. Leftists/GOPEs would extend it to illegals too.

Crazy.


15 posted on 05/22/2013 1:25:52 PM PDT by GeronL (http://asspos.blogspot.com)
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To: Hostage

The prebate is ridiculous. It is not a good replacement for the income tax, it sounds exactly like the income tax turned into a welfare program


16 posted on 05/22/2013 1:27:59 PM PDT by GeronL (http://asspos.blogspot.com)
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To: GeronL

The tax rebate is set to rebate on spending at a level for the essentials of living. Grandparents on Social Security will get $196 monthly as a tax rebate for taxes paid in monthly spending. So will Warren Buffett and Bill Gates III receive the same $196 per month.

It’s the same tax rebate for everyone and it can’t be changed because of the uniformity clause of the US Constitution; same as social security taxes have to be uniform. The FairTax calls for repeal of the 16th Amendment and abolishes the Income Tax code. Therefore, it is impossible to rebate one person more than another.

The difference between a social security pensioner and a wealthy person is that it will leave Social Security beneficiaries about 100% untaxed whereas for Warren Buffett and his class it won’t even reach a 1% tax rebate in terms of their spending. So in terms of a percentage of spending there is a difference but not in the actual nominal amounts.

Let me ask again: if you wanted to design a federal tax system that never taxes any American on the essentials of living, how would you see that it could be done?


17 posted on 05/22/2013 2:18:21 PM PDT by Hostage (Be Breitbart!)
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To: Hostage

It’s a minimum guaranteed income. I can drop out and other FReepers will pay for my living expenses. Nice for me.

It is a socialist dream come true.


18 posted on 05/22/2013 3:37:43 PM PDT by GeronL (http://asspos.blogspot.com)
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To: Kaslin

Remember when the Paper Work Reduction Act was going to stop all this?


19 posted on 05/22/2013 3:45:54 PM PDT by PeterPrinciple
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To: GeronL

Nonsense. You can’t live on $196 per month.

The $196 amount is a rebate on taxes, it represents a cut in taxes, a return in taxes already paid for the month. It has nothing to do with socialism. Conservatives are for tax cuts and the tax rebate is a tax cut. Trying to twist a tax cut into some sort of socialist scheme is absurd.

I’ll ask a third time: to guarantee that AMERICANS PAY NO FEDERAL TAXES on spending below the level of essentials of living (the poverty line), how do you suggest it be done?


20 posted on 05/22/2013 5:06:37 PM PDT by Hostage (Be Breitbart!)
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To: GeronL

You have made a series of outrageous statements on this thread attempting to trash the FairTax concept.

All you have done is demonstrate that you do not know what you are talking about.

Read the legislation!

Study the FairTax website: http://www.fairtax.org!

Educate yourself re: FReedom!

And then come back and ask sensible questions and posit sensible responses.

Until you can do that, stay the Hell away!


21 posted on 05/22/2013 6:32:56 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: MHGinTN

I agree that the Fed needs to be abolished.

First things first: FairTax and then noFed!


22 posted on 05/22/2013 6:34:33 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Taxman

So long as the abolition of the ‘federal reserve’ is part of the Fair Tax legislation, I could support that.


23 posted on 05/22/2013 6:44:58 PM PDT by MHGinTN (Being deceived can be cured.)
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To: MHGinTN

I believe that there has to be separate legislation.


24 posted on 05/22/2013 8:36:29 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Hostage

How do people who pay no taxes get the rebate?

It is a check from the government to everyone.

It is abject surrender to socialism


25 posted on 05/22/2013 8:53:56 PM PDT by GeronL (http://asspos.blogspot.com)
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To: GeronL

> “How do people who pay no taxes get the rebate?”

You’re either really dense or you are a heckler. The FairTax is a tax on retail ***spending***. Let me say that again with more emphasis. The FAIRTAX IS A TAX ON RETAIL SPENDING. Everyone who spends pays tax under the FairTax code. There is no way to avoid it.

> “It is a check from the government to everyone.”
No, it is a tax rebate to everyone who spends; a tax cut.

> “It is abject surrender to socialism”
Nonsense! The FairTax is a return to the America where there was no income tax, a much better and freer America.


26 posted on 05/22/2013 10:25:38 PM PDT by Hostage (Be Breitbart!)
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To: Hostage

The Fairtax is over complicated and will require a massive bureaucracy to track and print all those checks.

If you don’t owe it, don’t send it to DC in the first place. This whole scheme is plain stupid.

The Fairtax is still progressive, some will pay for others checks. That alone should give people pause.


27 posted on 05/22/2013 10:28:45 PM PDT by GeronL (http://asspos.blogspot.com)
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To: GeronL

> “The Fairtax is over complicated and will require a massive bureaucracy to track and print all those checks.”

Nonsense again. The federal government under GW Bush in 2008 ***twice*** printed tax rebate checks as a stimulus/ More than 140 million checks went out both times without a hitch. Your argument here is dead on its face.

> “If you don’t owe it, don’t send it to DC in the first place. This whole scheme is plain stupid.”

Take a look in the mirror. You’re like the people that complained the FairTax would take away their mortgage deduction. Hello? There is no income tax under the FairTax, therefore no deductions needed!

I asked you THREE TIMES on previous posts in this thread how you would accomplish prohibiting federal taxes for any spending below the poverty line meaning the level of spending for the essentials of living and you have no reponse.

> “The Fairtax is still progressive, some will pay for others checks. That alone should give people pause.”

Nonsense yet again. No one is paying for anyone else’s check. 99.9% of everyone spends to the level of poverty and most spend beyond. The only people that do not spend to the level of poverty are the mentally ill, the homeless and those in a coma in a clinic. They are not qualified rebate receivers under the FairTax.

As for the progressivity of the FairTax, it is that way by design of a uniform tax cut known as the Tax Rebate. It leaves old people on Social Security pensions untaxed while barely noticeable by the wealthy. And it is the same for everyone, rich or poor.

In conclusion, you haven’t got an argument of merit, not even close.


28 posted on 05/22/2013 11:13:13 PM PDT by Hostage (Be Breitbart!)
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To: Hostage

I am aFRaid that you have engaged one of the Nattering Nabobs of Negativism who lurk on these threads.

HST, and since he/she is not taking our advice to educate him/herself re: the FairTax, I’d suggest you keep answering his/her questions/snarky comments in the hope that other FReepers will read your well thought out comments and thereby become more knowledgeable.

Keep up the good work!


29 posted on 05/23/2013 9:27:16 AM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Kaslin

Fair Tax can take the money out of politics. They won’t like it (politicians) but will be good for the people.

everyone will have skin in the game, and let the states use the money before sending it to the feds.

teeman


30 posted on 05/23/2013 11:39:18 AM PDT by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world.)
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To: Kaslin

The federal government is an out-of-control, unwieldy behemoth. I’m working for peaceful secession in Texas.


31 posted on 05/23/2013 1:59:51 PM PDT by austingirl
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