Dan Mitchell

Recent Posts From Dan Mitchell

Trump, Sanders, and Political Humor

Originally published at International Liberty ~ Ed.


After yesterday’s ponderous and detailed discussion of tax compliance, it’s time for some levity.

So let’s have some fun with Bernie Sanders and Donald Trump.

And we’ll start with the crazy Senator from Vermont. I’m surprised that I haven’t seen more Sanders-specific humor. I’m probably missing some examples, but a quick look through my archives reveals only the cartoon at the bottom of this post and the satirical poster included in this post.

A guy this crazy deserves more attention.

So here’s the Sanders version of the monopoly game, courtesy of Mark Perry, the must-read economist at the American Enterprise Institute.

The best part of the game is the description of how everyone decides the best option is to stop being productive and wait for handouts.

Dodd-Frank: A Wall Street-Supported Law Imposing Heavy Costs, Enabling Future Bailouts

Politicians specialize in bad policy, but they go overboard during election years.

It’s especially galling to hear Bernie Sanders and Hillary Clinton compete to see who can make the most inane comments about the financial sector.

This is why I felt compelled last month to explain why the recent financial crisis had nothing to do with the absence of “Glass-Steagall” regulations.

Today, I want to address Dodd-Frank, the legislation that was imposed immediately after the crisis by President Obama and the Democrat-controlled Congress.

I’m tempted to focus on the fact that the big boys on Wall Street, such as Goldman-Sachs, supported the law. It’s galling, after all, to hear politicians claim Dodd-Frank was anti-Wall Street legislation.

But there are more important points to consider, including the fact that the law doesn’t prevent or preclude bailouts.

Writing for today’s Wall Street Journal, Emily Kapur and John Taylor identify key problems with the Dodd-Frank bailout legislation.

Higher Taxes Are a Recipe for Higher Spending, not Lower Debt

Originally published at International Liberty ~ Ed.


With both Hillary Clinton and Bernie Sanders agitating for higher taxes (and with more than a few Republicans also favoring more revenue because they don’t want to do any heavy lifting to restrain a growing burden of government), it’s time to examine the real-world evidence on what happens when politicians actually do get their hands on more money.

Is it true, as we are constantly told by the establishment, that higher tax burdens a necessary and practical way to reduce budget deficits and lower debt levels?

This is an empirical question rather than an ideological one, and the numbers from Europe (especially when looking at the data from the advanced nations that are most similar to the US) are especially persuasive.

Beating the VAT Horse Until It’s Dead

Originally published at International Liberty ~ Ed.

This is a very strange political season. Some of the Senators running for the Republican presidential nomination are among the most principled advocates of smaller government in Washington.

Yet all of them have proposed tax plans that, while theoretically far better than the current system, have features that I find troublesome. Marco Rubio, for instance, leaves the top tax rate at 35 percent, seven-percentage points higher than when Ronald Reagan left town.

Meanwhile, both Ted Cruz and Rand Paul (now out of the race) put forth plans that would subject America to value-added tax.

This has caused a kerfuffle in Washington, particularly among folks who normally are allies. To find common ground, the Heritage Foundation set up a panel to discuss this VAT controversy.

You can watch the entire hour-long program here, or you can just watch my portion below and learn why I want Senator Cruz to fix that part of his plan.

Accelerating on the Path to Greece with Bernie Sanders (Hey New Hampshire: This is What You Voted For)

Originally posted at International Liberty ~ Ed.

Remember when I wrote a week ago that I was somewhat optimistic about entitlement reform? Well, given what just happened in New Hampshire, I must have been smoking crack. It would now be more accurate to say something will happen with entitlements, but it will be deform rather than reform.

That’s because a Bernie Sanders nomination victory followed by a win in November might pave the way for a massive expansion of government. Much of this would be a result of a single-payer healthcare scheme (oh, and don’t forget that the Republican victor in New Hampshire also has endorsed government-run healthcare).

Now that we have to take Senator Sanders seriously, let’s investigate his agenda.

Holman Jenkins of the Wall Street Journal is not a fan of the Vermont Senator’s statism.

His socialism is farcical in a country that can’t afford the entitlements it already has. …Mr. Sanders, far from being a radical departure, is merely a perfection of what Democrats have offered since the Clinton era, namely denial. Ignore the problem. If forced to acknowledge it, insist there’s no problem because the rich will pay. In the meantime, savage every reform proposal as an attack on “unmet needs.” Collect the political rents from serving as defender of every spending interest in our overcommitted republic. …Bernie…, for all his exotic pretenses, is just another machine Democrat.

Why Do Hillary Clinton and Bernie Sanders Want to Undermine Jobs and Investment in America?

This was originally published at International Liberty ~ Ed.


What’s the difference between Bernie Sanders and Hillary Clinton?

I suspect that most people would cite differences in personal ethics, but I’m a policy wonk so I actually think the leading candidates for the Democratic presidential nomination are two peas in a pod.

The only real difference is that Sanders is more open about his statist beliefs and is more anxious to adopt bad policies as quickly as possible.

But since I don’t want to become Greece, I have a hard time being impressed by politicians who bicker about the best route and best speed to get to the wrong destination.

Consider, for example, their views on corporate taxation. And let’s look specifically at the issue of how to deal with corporate inversions.

First, some background. The Wall Street Journal opines about the logical argument – and fiduciary obligation – for companies to escape America’s awful corporate tax system.

Very Timely Humor Poking Fun at Libertarians


Originally published at International Liberty ~ Ed.


Northern Virginia just got buried by more than two feet of snow.

This has two implications. First, I’m going to have a fun time shoveling my driveway.

Second, I’m going to add to my collection of humor that pokes fun at libertarians.

A Reaganesque Recipe to Reinvigorate China’s Economy?

This was originally published at International Liberty. ~ Ed.


The long-term trend in China is positive. Economic reforms beginning in the late 1970s have helped lift hundreds of millions of people out of abject poverty.

And thanks to decades of strong growth, living standards for ordinary Chinese citizens are far higher than they used to be. There’s still quite a way to go before China catches up to western nations, but the numbers keep improving.

That being said, China’s economy has hit a speed bump. The stock market’s recent performance has been less than impressive and economic growth has faltered.

Is this the beginning of the end of the Chinese miracle?

If you asked me about six months ago, I would have expressed pessimism. The government was intervening in financial markets to prop up prices, and that was after several years of failed Keynesian-style spending programs that were supposed to “stimulate” growth.

But maybe my gloom was premature.

The War against Cash, Part II

This is part two of a series that originally ran at International Liberty. ~ Ed.


I wrote yesterday that governments want to eliminate cash in order to make it easier to squeeze more money from taxpayers.

But that’s not the only reason why politicians are interested in banning paper money and coins.

They also are worried that paper money inhibits the government’s ability to “stimulate” the economy with artificially low interest rates. Simply stated, they’ve already pushed interest rates close to zero and haven’t gotten the desired effect of more growth, so the thinking in official circles is that if you could implement negative interest rates, people could be pushed to be good little Keynesians because any money they have in their accounts would be losing value.

I’m not joking.

Here’s some of what Kenneth Rogoff, a professor at Harvard and a former economist at the International Monetary Fund, wrote for the U.K.-based Financial Times.

The War Against Cash, Part I


This is the first in a two-part series, originally published at International Liberty. ~ Ed.


Politicians hate cash.

That may seem an odd assertion given that they love spending money (other people’s money, of course, as illustrated by this cartoon).

But what I’m talking about is the fact that politicians get upset when there’s not 100 percent compliance with tax laws.

They hate tax havens since the option of a fiscal refuge makes confiscatory taxation impractical.

They hate the underground economy because that means hard-to-tax economic activity.

And they hate cash because it gives consumers an anonymous payment mechanism.

Let’s explore the animosity to cash.

It’s basically because a cashless society is an easier-to-tax society, as expressed by an editorial from the U.K.-based Financial Times.

Dan Mitchell


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