Category Archives: Treasury
More Sacred Bull
The president is sharing the sacrificial bull till the sacred cows come home. He has the Republicans where he wants em, continue building on his 24% grab of the economy or take the blame for a social security scare.
Don’t Tax You, Don’t Tax Me, Tax that Fellow Behind the Tree*
According to The IRS, 45% pay no income tax. The richest 1% earn 22% of all the money and pay 38% of all the federal income taxes. The richest 5% pay 60% of all the income taxes.
You could squeeze them for more but, as Walter Williams points out, the rich are smart with their money. Since 1960, whether the top marginal rate was 91% or 35%, the government take never varied more than 15-20 percent of GDP.
Rule of Law
The president has ruled the Defense of Marriage Act unconstitutional and ordered the Justice Department not to defend it.
What is the DOMA you ask? Well, according to the WSJ…
it was passed in 1996 by large majorities in both houses of Congress and signed by President Bill Clinton.
The law says the federal government will only recognize marriages that are between a man and a woman. States can still allow same-sex marriages—and five states plus the District of Columbia have done so. But people married under those state laws aren’t accepted as married under federal law.
Same sex couples get unfavorable death tax treatment under the law…
For example, a woman inheriting money from her deceased same-sex partner doesn’t get the tax benefits that federal tax law allows for a person inheriting from a spouse.
A Washington Post editorial, however, points out the two edged swordiness of the president’s approach by asking if a future Republican president might refuse to defend Obamacare from constitutional challenges.
Don’t Let the Back Door Hit You
The FBI wants a “backdoor” to the web.
Since 9/11 the government has relied on phone wiretaps for national national security purposes. That practice, under the Bush administration, created an uproar (here’s a 2007 James Risen NYT story). With more sensitive information being encrypted on the web, the current administration wants to require that all internet communication be wire-tap friendly.
Apparently this would be a step backward, requiring an internet retrofit. Here’s Jack X. Dempsey, V.P. of an outfit called the Center for Democracy and Technology, in Monday’s New York Times:
“They are really asking for the authority to redesign services that take advantage of the unique, and now pervasive, architecture of the Internet,” he said. “They basically want to turn back the clock and make Internet services function the way that the telephone system used to function.”
Valerie Caproni of the FBI claims the government is just trying to preserve authority it already has.
“We’re not talking expanding authority. We’re talking about preserving our ability to execute our existing authority in order to protect the public safety and national security.”
Wouldn’t be the first enterprise seeking special favors to avoid being bypassed by technology.
