James Pethokoukis

What is tax-crazy Illinois thinking?

January 11, 2011

The news just gets worse and worse from my home state (via The Tax Foundation):

llinois’ legislature is currently considering an alternative to the initial tax increase proposed last week. Instead of pushing for a 75% increase in the personal income tax and a 49% increase corporate income tax, this proposal would raise the individual income tax rate to 5% and the corporate rate 9.5%. While this proposal is more modest than the first, but it still hurts the competitiveness of Illinois when it comes to maintaining and attracting new business.

The tax deal and Obama’s reelection chances

January 5, 2011

It looks like Robert Gibbs will be leaving the White House to run his own consultancy and work on Obama’s 2012 campaign. Ruy Teixeira, a politics guys not an econ guy, thinks the Obama-Republican tax deal makes it far more likely that campaign will be a successful one:

Obama hits 2011 with a needed running start

December 23, 2010

The author is a Reuters Breakingviews columnist. The opinions expressed are his own

Obama pivots as liberal dream collapses

December 20, 2010

Well, that was quick. America’s supposed generational shift toward an embrace of high-tax, high-service Big Government didn’t even make it a full two years. The new public policy consensus — built around favorite liberal issues of the environment and income inequality — promoted by Washington elites has been a flop with the public.

Congress throws a tea party

December 17, 2010

Overall, a pretty good day for those who believe in low taxes and less spending. Here is the money graph from my upcoming Reuters Breakingviews column:

The conservative case for a VAT

December 16, 2010

Over at NRO, Duncan Currie gives it his best shot:

Despite being more efficient than an ordinary sales tax, a VAT carries significant administrative costs, and piling it on top of the present U.S. tax structure would be a mistake. But using the VAT to eliminate a sizable amount of distortionary U.S. income taxes would yield a far more growth-friendly system than the one we have today. Over the long run, America must reorient its economy away from consumption and toward investment while boosting its dangerously low savings rate. A VAT is certainly not the only way to promote those objectives, but it should at least be part of the conversation.

Is the Obama-GOP tax deal about to collapse?

December 9, 2010

Things may be going swimmingly in the US Senate, but not so the House:

WASHINGTON (Reuters) -House of Representatives Speaker Nancy Pelosi will not bring President Barack Obama’s current proposed tax plan up for a vote in her chamber, an aide said on Thursday.

Economists weigh in on Obama-GOP tax deal

December 8, 2010

The always enlightening David Gitlitz of  High View Economics likes the cut of its gib:

Who is right on tax deal, Paul Ryan or Jim DeMint?

December 8, 2010

OK, I’ve already laid out the expanded Jim DeMint argument for voting against the Obama-GOP tax compromise.  So how does the GOP leadership see things? If I was John Boehner or Paul Ryan or Eric Cantor or some other top GOPer,  I might counter with something like this:

Is DeMint crazy to oppose Obama-GOP tax deal? No.

December 8, 2010

For many conservatives, the thumbs-up from Rep. Paul Ryan of Wisconsin is reason enough to support the Obama-GOP tax deal — well, that and the fact so many liberals are in a purple rage about it. And certainly there is nothing wrong about letting individuals and businesses keep more of their money — even for a little while. But Sen. Jim DeMint of South Carolina, another lover of tax cuts and hater of bloated big government, says he will oppose  and even filibuster the ginormous stimulus package. Here is DeMint on the Hugh Hewitt radio show: