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Epoch Times
a day ago
- Politics
- Epoch Times
The Great Depression, New Deals, and the Birth of Social Security
Herbert Hoover stood before a crowd of Republicans at Stanford University to accept the party's presidential nomination. It was Aug. 11, 1928, and America stood at the crescendo of the Roaring '20s. After the post-World War I depression, the country had dramatically rebounded under the Republican administrations of Warren G. Harding and Calvin Coolidge. America was the beacon of economic prosperity. 'We in America today are nearer to the final triumph over poverty than ever before in the history of any land,' Hoover announced. 'The poor-house is vanishing from among us. We have not yet reached the goal, but given a chance to go forward with the policies of the last eight years, and we shall soon with the help of God be in sight of the day when poverty will be banished from this nation.'
Forbes
2 days ago
- Business
- Forbes
Obama's Flirtation With Supply-Side Economics
In his first term as president, Barack Obama extended the reduction in the top rate of the income tax to 35 percent through 2012, two years past the 2010 expiration date that his predecessor, President George W. Bush, had set. Obama presided over the lowest estate tax rate since Herbert Hoover's time, 35 percent in 2010 and 2011. (In one year, 2010, the estate tax rate was zero for those who elected to take it.) And Obama temporarily cut the payroll tax rate by about fifteen percent. In our new book Free Money: Bitcoin and the American Monetary Tradition, we ask why gold peaked after a phenomenal rise, as Obama got going, and why Bitcoin, though founded in 2009, took into Obama's second term to sport extreme price appreciation. We ask why the Great Recession bottomed early in 2009 and never came back (though the recovery was slow). A big reason for these things is that Obama was coquettish, 2009-12, toward supply-side economics. The marginal rate of the income tax, the top estate tax rate, and the payroll tax are three classic targets of supply-side economic policy. These tax rates are to be cut as the top priorities of supply-side economics. The theory is that each of these tax rates distinctly discourages the production and the seizing of initiative in the economy; therefore, cutting them enhances economic activity to an uncommon degree. The primus inter pares of supply-side economics is the marginal rate of the income tax. In a graduated tax system, the marginal rate is that which hits only earners of highest income. Cutting this rate encourages economic activity in two distinct ways. First, a cut in the top rate is the most powerful among all possible rate cuts in a graduated scale, on a simple percentage basis. A cut of 4.6 points from 39.6 to 35 percent (that of the W. years), for example, increases marginal after-tax 'take-home' income from 60.1 cents to 65 cents on the dollar—an increase of 8.2 percent. In comparison, a cut in the bottom rate of 10 percent (that of the W. years) by 4.6 percentage points to 5.4 percent increases marginal take-home income from 90 to 94.6 cents on the dollar—an increase of 5.1 percent. Given progressive income taxes, equal rate cuts mean more at the top than at the bottom. Second, those who are subject to the highest graduated rates—the highest earners—by definition have the most ability and desire to avoid, legally, those rates. High earners do not even need the money. They can decline to earn, change the way they earn (taking advantage of lower rates elsewhere in the tax code), the timing, shelter the stuff, whatever. The highest earners are most adept when it comes to making money. They can slip the top rate because they have the savvy and inclination to do so, and because the tax code gives them ample opportunity to represent income beyond declaring it ordinary. (Forget about closing these loopholes without lowering rates—an inevitable lesson of tax history.) Obama maintained a cut in the marginal rate of the income tax through the entirety of his first term in office. Undoubtedly, this was a central component of this president's strategy to get re-elected. When the Republican opponent in the 2012 election, Mitt Romney, made his gaffe about 47 percent of the electorate's not having to pay any income tax, Obama must have smiled. Obama had ensured that by keeping the top earners' tax rate reduced, top earners paid an outsized share of income taxes. Low top tax rates, high top-earner tax revenue—he knew the verity would hold. Let us be clear: keeping top tax rates down got Obama to a second term. The estate tax is another classic supply-side target. Work and earn your whole life, have the government take it away: a major disincentive to acquire. A reduction in the estate tax prompts, once again, precisely those who are capable of succeeding greatly at enterprise to do just that. Lots of people succeeding at enterprise spells a good economy. Obama took the estate tax to zero. If one took the zero rate, heirs did not get the step-up basis in capital gains. If one did not take the zero, again Obama's rate (of 35 percent) was the lowest since 1932. Supply-side essence, from President Obama. Obama cut the employee portion of the social security tax. For decades, supply-siders have identified the social security tax as one of the best illustrations of the problem facing modern tax-heavy economies. Social security taxes, paid by employer and employee, are a 'wedge' that interposes itself at the place where employee and employer would normally meet to contract labor. Cutting the rate leads to greater employment, and greater returns to both parties, employer and employee. The Obama cut would have been more purely supply-side if it had included the employer side as well (and been permanent), but a rate cut is a rate cut. More people contracted to work because their take-home pay was greater because of the policy. And employers could settle at slightly lower wage rates because their employees were taking more home after-tax. Barack Obama giving a clinic on supply-side economics! One can say that tax cuts are Keynesian. It is true that every tax cut makes the beneficiary spend more than before. But the effect is the absolute least at the marginal rate, and the least in general when the cuts are in rates of a progressive tax system. The JFK tax cut of 1964 that reduced progressive tax rates remains an exemplar of Keynesianism—actually it doesn't, thanks to Kudlow and Domitrovic, JFK and the Reagan Revolution—because of misinterpretation. A cut in progressive rates disproportionately has supply-side, not demand-side effects. Obama maintained cuts in progressive tax rates. Obama did much of this without Republicans forcing his hand. The Tea Party sweep of 2010 brought in a new Congress in 2011, after Obama had settled on most of his accommodations of supply-side economics. Politicians in foxholes—which is to say facing re-election—may talk a Keynesian game (it soothes the chattering classes). But when they act, they take supply-side economics into their confidence.
The Hill
3 days ago
- Business
- The Hill
A lesson from Iowa on government reform: It's not just the taxes — it's the spending
Former President Herbert Hoover argued that governments have the instincts of a vegetable — that is, 'they keep spreading and growing.' Iowa Gov. Kim Reynolds (R) echoed Hoover when she stated that 'like any large organization, government is marked by bureaucracy's natural tendency to grow. If that growth isn't constantly checked and rechanneled toward its core function, it quickly takes on a life of its own.' This is why Reynolds has made reform of government a priority during her time in office. Fiscal conservatism is not just pro-growth tax reform, but even more importantly it must include limiting spending and reducing the size of government. Fiscal policy has been a significant part of Reynolds's agenda: 'We reduced taxes—saving Iowans more than $24 billion over 10 years. No more tax on retirement income. No inheritance tax. And starting this month [January 2025], Iowans get to keep even more of the money they earn, with a 3.8 percent flat tax — a far cry from the 8.98 percent of six years ago,' said Reynolds. Iowa's corporate tax rate, once the highest in the nation at 12 percent, has been reduced to 7.1 percent and will continue to decrease until it reaches a flat 5.5 percent. Not only will Iowa have eliminated the progressive income tax, but it will also have reduced the top tax rate by almost 60 percent. These reforms are grounded in common-sense budgeting ideas, which have prioritized spending control and government efficiency. These efforts have not only ensured budget stability with surpluses, full reserve accounts, and a Taxpayer Relief Fund with a $3.6 billion balance, but they have also enabled responsible tax reductions. During her Condition of the State address, Reynolds launched Iowa's DOGE task force, modeled after her efforts to reform state government. 'I like to say that we were doing DOGE before DOGE was a thing…,' she said. Prior to forming the DOGE taskforce, Reynolds was able to get two major state government reform laws passed. 'When we started our alignment work in 2022, state operations hadn't been reviewed in forty years — and it showed,' she said. 'Layers of bureaucracy had accumulated over decades, expanding government beyond its core function, keeping us from working effectively as one team, and hampering our service to Iowans. We were too big, too fractured, and too inefficient.' Both government reform measures worked to limit government and make services more efficient. 'We've transformed the way our State interacts with citizens, businesses, and entrepreneurs,' Reynolds said. 'We consolidated agencies (from 37 to 16), eliminated 1,200 burdensome regulations, remade legacy systems, centralized programs, and leveraged technology.' These reforms have already saved taxpayers $217 million, exceeding original projections just within the first 18 months. Prior to the reform, Iowa had 256 boards and commissions. Eighty-three of them have now been eliminated and others consolidated. In starting this reform, Reynolds asked basic questions that all policymakers should be asking about government — local, state, and federal. ' What is the core mission of each agency? How is it funded? How is it staffed and what does it own? Are the agency's programs working? How did the structure of the agency compare to other states? Where is there duplication or misalignment? What can we cut?' These questions align with the principles of priority-based budgeting, as outlined in the ALEC State Budget Reform Toolkit. Finally, Reynolds understands that conservative budgeting is at the heart of tax reform. 'But it's not enough just to cut taxes,' she says. 'You have to make them sustainable, especially if you want to keep bringing them down. The growth they create helps, but you also have to keep spending in check.' This is a lesson that many states and the federal government have yet to learn. Going into the 2026 legislative session, Reynolds is making property tax reform a priority. Across the nation, reforming property taxes appears to be the most difficult tax reform endeavor. Nevertheless, she understands that local governments must apply the same fiscal conservatism as well as undertake government reform measures in order to provide property tax relief. With the laudable goal of tax relief, spending must be addressed through priority-based budgeting. Regardless of the tax, it is government spending that drives high taxation.
Miami Herald
21-06-2025
- Entertainment
- Miami Herald
In 2026, the Party's in the USA. Here's Where to Celebrate
Whether you're a history buff, sports nut or road warrior, there are compelling reasons to visit the United States in 2026. That's because the nation will celebrate its 250th birthday, soccer will crown its world champion and America's Mother Road turns 100. So there's plenty to celebrate in 2026. Here's where to find the party. Philly is, quite literally, the birthplace of American democracy. Philadelphia's Independence Hall is the room where it happened – "it" being the signing of the Declaration of Independence and the U.S. Constitution. In addition to history, this Pennsylvania city will debut the Ministry of Awe. It's a former bank, now owned by a group of artists who have turned the six-story building into a traversable immersive work of art where you can make a deposit or a withdrawal of awe. How cool is that? For film buffs, 2026 also marks the 50th birthday of the first "Rocky" movie, so there will be Rocky-themed tours. And, of course, you'll want to run up the 72 steps of the Philadelphia Museum of Art. SheBuysTravel Tip: Here's how to spend a weekend with girlfriends in Philadelphia. And here are fun things to do with kids in Philly. This is the state on my to-do list for 2026. It will be my 50th state.. And the reason to visit: The opening of the Theodore Roosevelt Presidential Library honoring the nation's 26th president. I'm a sucker for a good presidential library. I love seeing the way their actions are portrayed in a positive light. (If you don't believe me, stop by the Herbert Hoover presidential library in West Branch, Iowa. It makes the president who presided over the Great Depression look like a great leader.) I was surprised to learn that Teddy, a strong leader and fierce conservationist who created five new National Parks, never had a presidential library. But, as the library notes on its website, "The world needs Theodore Roosevelt now more than ever." SheBuysTravel Tip: Check out these fun things to do in Medora, ND. Known as football to the rest of the world, the premier soccer championship will take place in North America, with games set for Canada, Mexico and the U.S. American host cities are: AtlantaBostonDallasHoustonKansas CityLos AngelesMiamiNew York/New JerseyPhiladelphiaSeattleSan Francisco Bay Area Philadelphia gets bonus points on the sports scorecard. It also will host the National Football League draft, the Professional Golf Association championship and the Major League Baseball All-Star series in 2026 – all over the course of eight weeks next summer. Route 66, America's legendary highway affectionately known as "The Mother Road," hits the century mark in 2026. The iconic Route 66 winds more than 2,400 miles from Chicago to Santa Monica. Immortalized in song, people have been getting their kicks on Route 66 since 1926. Route 66 became the go-to path for classic American vacations complete with neon-lit roadside motels, giant roadside attractions, and diner milkshakes. The highway winds through eight states: IllinoisMissouriKansasOklahomaTexasNew MexicoArizonaCalifornia Though it was officially retired from the U.S. Highway System in 1985, Route 66 never really went away. Instead, it became a living time capsule, lovingly preserved by fans, travelers, and small towns that keep its magic alive. Now, the road is gearing up for a coast-to-coast birthday bash. Expect vintage car parades, live music, food fests, and probably more than a few Elvis impersonators. SheBuysTravel Tip: When you want an affordable room for the night, choose a Signature Inn. There are two ways to answer this question: from the perspective of America's political leaders and from the perspective of its people. While the message from the White House is that not all visitors are welcome here, the destinations that were represented at IPW in Chicago in June 2025 made it clear that they welcome everyone, regardless of color or creed. And, of course, the people of America are warm and wonderful. Take, for example, the Mexican man in Chicago's heavily Hispanic Little Village neighborhood. He spoke little English, but when an Australian writer needed a ride to catch her bus, he stepped up. And, when he realized she had left her hat in his car, he again went out of his way to return it to her. That's Midwest nice and a warm American welcome. The post In 2026, the Party's in the USA. Here's Where to Celebrate appeared first on She Buys Travel. Copyright © 2025 SheBuysTravel · All Rights Reserved
Boston Globe
17-06-2025
- Politics
- Boston Globe
Today in History: June 17, O.J. Simpson charged with murder following highway chase
In 1775, 250 years ago, the Battle of Bunker Hill took place in Charlestown. Rebels, who had build a ramparts atop Breed's Hill, repulsed two waves of British army soldiers before running out of ammunition as the third wave breached their defenses and forced their withdrawal. Although a tactical defeat for the rebels, the battle became a rallying point showing the resolve and strength of the colonists. Advertisement In 1825, a crowd of 100,000, including some Revolutionary War veterans, gathered to commemorate the placing of the cornerstone of the Bunker Hill Monument. It would take years of fund-raising, however, before it was completed, in 1843. Advertisement In 1885, the Statue of Liberty, disassembled and packed into 214 separate crates, arrived in New York Harbor aboard the French frigate Isère. In 1930, President Herbert Hoover signed the Smoot-Hawley Tariff Act, which boosted US tariffs to historically high levels, prompting foreign retaliation. In 1963, the US Supreme Court, in Abington School District v. Schempp, struck down, 8-1, rules requiring the recitation of the Lord's Prayer or reading of biblical verses in public schools. In 1972, President Richard Nixon's eventual downfall began with the arrest of five burglars inside the Democratic headquarters in Washington, D.C.'s, Watergate complex. Also that year, after extinguishing the flames of an extensive fire at the Hotel Vendome in Back Bay, nine firefighters were crushed to death when part of the building collapsed. It was the deadliest tragedy for the Boston Fire Department. In 1994, after leading police on a slow-speed chase on Southern California freeways, O.J. Simpson was arrested and charged with murder in the deaths of his ex-wife, Nicole Brown Simpson, and her friend, Ronald Goldman. (Simpson was acquitted of the murders in a criminal trial in 1995, but held liable in a civil trial in 1997.) In 2008, hundreds of same-sex couples got married across California on the first full day that same-sex marriage became legal by order of the state's highest court; an estimated 11,000 same-sex couples would be married under the California law in its first three months. In 2015, nine Black worshippers were killed when a gunman opened fire during a Bible study gathering at Emanuel African Methodist Episcopal Church in Charleston, S.C. (Dylann Roof, a white supremacist, was captured the following day; he would be convicted on state and federal murder and hate crime charges and sentenced to death.) Advertisement In 2021, the Supreme Court, in a 7-2 ruling, left intact the entire Affordable Care Act, rejecting a major Republican-led effort to kill the national health care law known informally as 'Obamacare.' In 2021, President Joe Biden signed the Juneteenth National Independence Day Act into law, creating the first new national holiday since the establishment of Martin Luther King Jr. Day. Last year, the Boston Celtics won the NBA title, securing its record 18th banner, with a lopsided win over the Dallas Mavericks at the TD Garden. The win ended a dominating run through playoffs.
