Category: Government and Politics

The central argument over the right to smoke versus the right to have “smoke free air” is an issue of property rights, i.e. who owns the air. In a public place, all citizens have equal rights to the air, just like they have equal access to the land and facilities. Continue reading “Who Owns the Air?” →

City Councilwoman Joyce Sheperd, who is co-sponsoring legislation which would ban all smoking in Atlanta parks, was quoted in the Atlanta Journal-Constitution as saying, “I’m amazed that people will smoke around children and not think twice about it.” She implies that the ban will provide a protection to children, which is currently needed. Let’s examine the validity of that argument, whether such a protection is, in fact, needed and whether the government is in a position to provide that protection effectively. Continue reading “Smoking Around Your Kids” →

In the U.S., national excise taxes are placed on fuels, tobacco, alcohol, tires, airline tickets, telephone calls, firearms, Tanning Salons, coal, heavy trucks, vaccines, ship voyages and air cargo. Some of these go toward services related to the industry, for example the TSA for airline tickets. Others go to the general fund. States have their own excise taxes, often on the same products. Taxes on gambling exist, for example the lottery tax. Additionally, excise taxes on sugar, pornography, prostitution and even on “bad” food have been proposed. These are on top of regular sales tax. Continue reading “Taxes for Some More than Others: Excise Taxes” →

Don’t smoke, don’t drink, don’t eat fatty foods, don’t drink sugary sodas and don’t hire prostitutes, or you’ll pay. This is the message the ever increasing number of “sin taxes” sends to the American people. It seems like a fair compromise, paying a little more to indulge in “bad” behavior. It’s like a parent telling their child, “Well you can have some ice cream, but first you have to clean your room.” But are we really just children who need to be told how to behave by a wiser older government? Continue reading “Does the Government Tax Us Into Good Behavior?” →

In a business, a hard working successful employee is rewarded. Take the example of sales. If an employee makes a large sum of money for the company, they will be rewarded with bonuses and raises. They will receive part of the money they earned back. If an employee makes no sales, they will be fired. This system benefits both the employee and the business, as it aligns their interests and makes them work together toward a common goal. Continue reading “Rewarding Failure” →

Imagine a scenario. Your child has worked hard their whole academic career, and they’ve gotten a full ride scholarship to a top 10 University. You’ve saved up for their college, so now you have a relatively large sum of money to use as you see fit. Do you, beaming with pride, reward your child by buying them a car? Or do you take the money, and buy a car for your other child who dropped out of college and is living in your basement? After all, the successful child doesn’t really need it as much; they will do just fine in life. You can even take it a step further. You can ask the successful child to send home part of their paycheck after college to help support their less ambitious brother. Continue reading “Punishing Success” →

If your employer offered a bonus for increasing your sales over the month, would you work harder? Incentives have a powerful effect on effort and productivity. People tend to try and do what is in their best interest, and nowhere is this phenomenon more pronounced than the realm of economics. The very concept of work relies on a value for effort system. The harder you work, the more difficult your skill, the greater your product, the more you are compensated. Whether it manifest in the form of hourly wages (the longer you work the more you make) or the form of high paid professions (the harder your skill is to master, the more you make) this value system is paramount to all economic systems. As this truth is applied to a system of taxation and governance, unexpected consequences often arise. Continue reading “A Novel Idea: Rewarding Success and the Incentive Tax” →

Pay or Play

Pay or play is another name for the Employer “Shared Responsibility” Mandate of the PPACA. This will require employers to offer “affordable” health insurance to full-time (30 or more hours per week) employees or risk penalties. Businesses that employ less than 50 full-time employees are exempt. “Affordable” health insurance has been broadly defined as not to exceed 9.5% of an employee’s W-2 wages. Continue reading “What Does the PPACA Ask of Employers?” →

Pre-Existing Conditions

Starting in 2014, the PPACA will no longer allow insurance plans to deny coverage based on the existence of pre-existing conditions. Additionally, charging higher rates to any individual on the basis of preexisting conditions will be prohibited. Plans must offer comprehensive coverage with an actuarial value of 65 percent of total allowed cost and with out-of-pocket limits no higher than those permitted for high-deductible health plans accompanying health savings accounts. Continue reading “Regulating Insurance: Pre-Existing Conditions, 25-Year-Old Dependents and More” →

Excise Tax on Medical Equipment

A 2.3% excise tax on medical devices will be implemented to help pay for the PPACA. This tax is applied on total revenue and not to profits. The tax is projected to generate $29 billion in revenue over the next decade.  This tax applies to a variety of items, from replacement joints to imaging equipment. A bill to repeal this tax is being discussed in the House of Representatives. Continue reading “Paying for the PPACA: Some Aspects of the Law Designed to Increase Government Revenue” →