BAD ECONOMICS, BAD POLITICS
July 10, 2007
Sen. Carl Levin (D-Mich.) is a good example of what is wrong with the high tax Democrats. He is smart (Harvard Law) and articulate, but wants government to meddle in almost everything and has an uncanny ability to come up with "solutions" that only make things worse, says Richard W. Rahn, chairman of the Institute for Global Economic Growth.
- Sen. Levin's home state of Michigan has been at the bottom in comparative economic performance among the states in recent years primarily because they adopted the Levin/liberal/labor agenda of too much taxation, spending and regulation.
- As a result, he is near the bottom of the rankings from almost all of the taxpayer and free-market economic organizations, showing he has little appreciation of the dead weight loss caused by the American tax system.
- As companies move to other countries, rather than propose reduced U.S. corporate taxes (the world's highest) so American firms can better compete in the global marketplace, Sen. Levin wants to increase taxes and regulations on them.
- He is also one of the fathers of the Sarbanes-Oxley bill -- a disaster for publicly-owned companies that has seriously eroded U.S. competitiveness.
To make matters worse, he now wants price controls on certain fees charged by credit card companies, ignoring the fact that price controls always result in shortages and poorer service. Such issues are best left to the competitive market place where merchants and card companies can struggle to see who can offer the best combination of price and service. It is unfortunate that Levin et al., seem unable to pry themselves away from economic meddling and pushing for tax increases even when there is no case for them.
Source: Richard W. Rahn, "Bad Economics, Bad Politics," Washington Times, July 8, 2007.
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