NATIONAL CENTER FOR POLICY ANALYSIS
DAILY POLICY DIGEST
Monday, June 05, 2006
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IN TODAY'S DIGEST
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   o    Death tax repeal would raise federal revenues, say
        observers... WALL STREET JOURNAL

   o    About one-third of U.S. counties use some electronic voting
        systems... USA TODAY

   o    Journalists can't decide whether we face an ice age or
        warming... BUSINESS AND MEDIA INSTITUTE

   o    Europe's social philosophers and academics want to undermine
        marriage... UNITED FAMILIES INTERNATIONAL/NATIONAL REVIEW
        ONLINE

   o    Unpaid internships may be bad for individual careers... NEW
        YORK TIMES

   o    Property rights are necessary to reap the benefits of
        globalization... SWISS FEDERAL INSTITUTE OF TECHNOLOGY
        ZURICH

   o    Congress should kill the death tax... NATIONAL CENTER FOR
        POLICY ANALYSIS

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DAILY POLICY DIGEST
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DYING FOR DOLLARS
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The House has already passed a permanent repeal of the estate tax and    
the Senate takes up the debate this week. Under current law, the    
so-called death tax is scheduled to go away in 2010 for one year only,    
then return in 2011.

The Joint Committee on Taxation (JCT) has issued some contradictory    
numbers, according to the Wall Street Journal. First, according to the    
JCT:

   o    From 2011, after the estate tax is restored, through 2015,
        it is expected to collect $236 billion.

   o    The JCT claims permanent repeal would cost about $600
        billion over 10 years.

However, the JCT's calculations aren't anywhere close to reality.    
And the JCT's own numbers prove it, says the WSJ.

The current death tax repeal bill contains a compromise that    
eliminates what is called the "step-up-basis at death on capital    
gains." Under current law, the value of inherited assets is "stepped    
up" to the market price at the time of death. This means that no    
capital gains tax is applied to the increase in its value over the    
original owner's lifetime. The change would require that the current    
15 percent capital gains tax be paid on the full increase in value from    
the time of purchase. (By comparison, death tax rates are as high as    
50 percent.)

The government would get a share of the gain of heretofore    
sheltered assets.

   o    JCT has calculated that changing this capital gains
        treatment of inherited assets would raise $50 billion to
        $60 billion a year -- more than the death tax actually
        raises each year.

   o    The capital gains change would bring in $293 billion over
        five years.

Inexplicably, says WSJ, Joint Tax estimates that the combination    
of these tax changes would do the opposite and cost the government    
about $45 billion more than the tax is expected to raise.

Source: Editorial, "Dying for Dollars," Wall Street Journal, June    
5, 2006.

For text (subscription required):

http://online.wsj.com/article/SB114946486603871066.html

For more on Taxes:

http://www.ncpa.org/pi/taxes/

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SEVERAL LAWSUITS TARGET E-VOTING
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Electronic voting machines, adopted widely after the disputed Florida    
ballot count in the 2000 presidential election, are under legal attack,    
say observers.

Lawsuits have been filed in at least six states, the most recent    
last week in Colorado, to block the purchase or use of computerized    
machines.

Voter Action, a nonpartisan advocacy group, led the challenge    
filed Thursday against the state of Colorado and nine counties, as well    
as similar lawsuits in California and Arizona this spring and New    
Mexico last year. Court actions by others targeted the devices in    
Florida, Ohio and Pennsylvania.

   o    Most of the suits argue that the machines are vulnerable to
        software tampering, don't keep an easily
        recountable printed record and may miscount, switch or not record
        votes and even add phantom votes.

   o    About one-third of the United State's 3,114 counties use
        some electronic systems, according to Election Data
        Services, a consulting group. It says half the counties
        use optical scanners that read dots or marks that voters
        pencil in on ballots.

   o    The rest vote by other means, mostly hand-counted paper
        ballots in smaller communities but also lever-type
        machines in New York and Connecticut.

No case yet has claimed intentional manipulation of electronic    
vote data. System defenders say most problems occur because of hasty    
set-up before elections or poor training of poll workers.

Electronic voting, in use for more than a decade, didn't catch fire    
until Congress passed the Help America Vote Act in 2002. It overhauled    
election standards and required states to replace old voting methods    
such as punch cards, which fouled up the 2000 election in Florida.     
Congress also gave states more than $300 million to replace outdated    
systems.

Source: Patrick O'Driscoll, "Several lawsuits target e-voting;    
Devices disputed in at least 6 states," USA Today, June 5, 2006.

For text (subscription required):

http://www.usatoday.com/printedition/news/20060605/1a_lede05.art.htm

For more on Government:

http://www.ncpa.org/pd/govern/govdex.html

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FIRE AND ICE
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The Business & Media Institute (BMI) conducted an extensive analysis of    
print media's climate change coverage back to the late 1800s.

It found that many publications now claiming the world is on the    
brink of a global warming disaster said the same about an impending ice    
age -- just 30 years ago. Several major ones have reported on three or    
even four different climate shifts since 1895.

In addition, BMI found:

   o    Several publications warned in the 1970s that global cooling
        posed a major threat to the food supply. Now,
        remarkably, global warming is also considered a threat to
        the very same food supply.

   o    The media continue to point to glaciers as a sign of
        climate change, but they have used them as examples of
        both cooling and warming.

   o    The media treat global warming like it's a new idea. In
        fact, British amateur meteorologist G. S. Callendar
        argued that mankind was responsible for heating up the
        planet with carbon dioxide emissions -- in 1938. That was
        decades before scientists and journalists alerted the
        public about the threat of a new ice age.

   o    Longtime readers of the New York Times could easily recall
        the paper claiming "A Major Cooling Widely
        Considered to Be Inevitable," along with its strong support of
        current global warming predictions. Older readers might
        well recall two other claims of a climate shift back to
        the 1800s -- one an ice age and the other warming again.
        The Times has warned of four separate climate changes
        since 1895.

Newspapers that pride themselves on correction policies for the    
smallest errors now find themselves facing a historical record that is    
enormous and unforgiving. It is time for the news media to admit a    
consistent failure to report this issue fairly or accurately, with due    
skepticism of scientific claims, says BMI.

Source: R. Warren Anderson and Dan Gainor, "Fire and Ice," Business    
and Media Institute, May 17, 2006.

For text:

http://www.businessandmedia.org/specialreports/2006/fireandice/FireandIce.pdf

For more on Global Warming:

http://eteam.ncpa.org/issues/?c=science

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EUROPEAN SOCIAL PHILOSPHERS AND ZOMBIE MARRIAGES
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In his recent article, "Zombie Killers: A.K.A. Queering the Social,"    
Stanley Kurtz shows that the intent of the leading far left social    
philosophers and academics in Europe and the United States who are    
pushing for the legalization of same-sex "marriage" truly is to    
radically transform and undermine the time-proven institution of true    
marriage.

Consider just some of what these "leading thinkers" are advocating:

   o    Traditional marriage and the natural family are in reality
        "zombie categories," which may appear to be alive
        but are in reality dead.

   o    "Marriage 'in the traditional sense' is disappearing. It is
        the gays who are the pioneers in this
        respect...the prime everyday experimenters."

   o    The clear negative impact on children from this slide into
        "zombieism" is really good for them because it will
        actually equip them to better deal with the
        consequences of the "the normal chaos of love" in the brave new
        world of the "post-familial family."

   o    In these circles, those who want to try to "recuperate the
        old values of family" are now considered
        "reactionary."

For many, these ideas and concepts may seem so radical, so    
misguided and so contrary to commonsense that no one could possibly    
take them seriously. But they are making a big mistake in assuming    
that, says Kurtz.

Certainly, we see these ideas and concepts circulating more widely    
at the United Nations and various international conferences. From    
there, they are increasingly filtering down to influence the debate on    
legalizing same-sex "marriage" and other related family issues in    
countries around the world, says Kurtz.

Source: Sharon Slater, "Same-sex 'Marriage' Advocates Really Do    
Intend to Undermine Marriage," United Families International, June 1,    
2006; based upon: Stanley Kurtz, "Zombie Killers: A.K.A., 'Queering the    
Social,'" National Review Online, May 25, 2006.

For text:

http://www.unitedfamilies.org/Slater_Undermining_Marriage.asp

For Kurtz text:

http://article.nationalreview.com/?q=MTU4NDEzNTY5ODNmOWU4M2Y1MGIwMTcyODdjZGQxOTk=

For more on Social:

http://www.ncpa.org/pd/social/social.html

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TAKE THIS INTERNSHIP AND SHOVE IT
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A national survey by Vault, a career information Web site, found that    
84 percent of college students in April planned to complete at least    
one internship before graduating, with about half being unpaid. It is    
often taken for granted that working without pay is the best possible    
preparation for success, but that may not be the case says Anya    
Kamenetz in the New York Times.

However, the growth of unpaid internships may be bad for individual    
careers, considering the risks an intern is likely to face, including:

   o    Opportunity costs, including lost wages and living expenses
        that pose significant challenges for the two-thirds
        of students who need loans to get through college.

   o    Duties that range from the menial to quasi-professional --
        unpaid internships are not jobs, only simulations.
        And fake jobs are not the best preparation for real
        jobs.

   o    No learning that work is a routine of obligation, relieved
        by external reward, where you contribute value to a
        larger enterprise.

   o    An overidentification with employers, perhaps explaining why
        young workers are less likely to organize. Less
        than 5 percent of young people hold a union card,
        compared with an overall national private-sector union rate of
        12.5 percent

Columbia University's Teachers College found that compared to    
unpaid internships, paid placements are strongest on all measures of    
internship quality. This shouldn't be too surprising, says Kamenetz --    
getting hired and getting paid are what work, in the real world, is all    
about.

Source: Anya Kamenetz, "Take This Internship and Shove It," New    
York Times, May 30, 2006

For text (subscription required):

http://www.nytimes.com/2006/05/30/opinion/30kamenetz.html

For more on Economy:

http://www.ncpa.org/iss/eco/

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DOES FINANCIAL INTEGRATION SPUR ECONOMIC GROWTH?
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Does international financial integration boost economic growth?     
According to a recent study by economists Moritx Schularick and Thomas    
M. Steger, international capital market integration fostered economic    
growth significantly in the historical period, but no longer does so    
today. Schularick and Steger argue that the historical period (roughly    
1870 - 1914), in stark contrast to the post-World War II period, was    
characterized by:

   o    Low differentials in property rights protection between
        countries

   o    A (comparably) stable monetary environment

   o    A higher degree of net capital mobility

   o    Substantial (net) capital movements from rich (core) to poor
        (peripheral) regions.

The results draw the conclusion that those economies which open    
themselves to the world economy need to first abolish domestic    
distortions to reap the benefits of globalization. More specifically,    
it seems especially important to establish good property rights in all    
economies participating in the world economy, say Schularick and    
Steger.

Source: Moritx Schularick and Thomas M. Steger, "Does Financial    
Integration Spur Economic Growth? New Evidence from the First Era of    
Financial Globalization," Swiss Federal Institute of Technology Zurich,    
Working Paper 06/46, March 2006.

For text:

http://www.cer.ethz.ch/research/wp_06_46.pdf

For more on Economics:

http://www.ncpa.org/iss/eco/

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