Ron and Ed last spoke to Dan Mitchell in May of 2020 when Covid was in full swing. For this show, we get an update on the results of the C-19 spending policies and bring the conversation to current tax policies and proposals. Dan opines on his blog International Liberty on a far range of subjects. This was a fascinating conversation.
A Bit More About Dan Mitchell…
Daniel J. Mitchell is a cofounder of the Center for Freedom and Prosperity and the Center for Freedom and Prosperity Foundation. He is one of the nations leading experts on tax reform and supplyside tax policy. In addition to tax policy, Dr. Mitchell is a trenchant observer of economic developments and an expert on Social Security privatization particularly the fiscal policy impact of reform and what the US can learn from other nations that have created personal retirement accounts. Dr. Mitchell’s byline can be found in such national publications as the Wall Street Journal, New York Times, and Investors Business Daily. He holds a Ph.D. in Economics from George Mason University and masters and bachelors degrees in economics from the University of Georgia. Mitchell was a senior fellow with the Cato Institute and The Heritage Foundation, and an economist for Senator Bob Packwood and the Senate Finance Committee.
Use these show notes to follow along with the audio:
Segment one:
Should Congress raise the debt ceiling? That was Ron’s FIRST question for Dan today on the show. Just moments prior, government negotiations broke down so this is already turning out to be a great show.
“Our number one problem is not red ink. The most important thing to understand is that deficits and debt are the symptoms of the real problem which is too much government spending.” —Dan Mitchell
Dan talked about the Swiss “Debt Brake” on the show today. Here is an article from Cato with his byline about the topic. https://www.cato.org/commentary/how-swiss-debt-brake-tamed-government
There is a balanced budget criteria in the EU that is focused on deficits and debt. Does that stop the EU from having big, bloated, high tax governments? No. The spirit behind a balanced budget amendment is admirable but does not work in practice.
Segment two:
Dan publishes his thoughts almost every single day on his International Liberty blog. Check it out at this link https://danieljmitchell.wordpress.com/
Dan worries about Universal Basic Income (UBI) because he thinks about the horrible impact the welfare state has had on poorer people. UBI is the welfare state on steroids.
For background, China is much better off today than they were under Mao. But they’re still way behind the United States (based on IMF, World Bank, OECD numbers) Dan penned, “More Failure for China’s Industrial Policy” https://danieljmitchell.wordpress.com/2023/05/04/more-failure-for-chinas-industrial-policy/
Here is more from Dan on Basic Income — “The Horrendous Tax Implications of Basic Income” — https://danieljmitchell.wordpress.com/2023/05/03/the-horrendous-tax-implications-of-basic-income/
Segment three:
Hey Dan, will that extra $80M help the IRS? “It will make the IRS more effective at squeezing money out of small businesses and individuals.”
Dan Mitchell mentioned this on the show today. The @TaxFoundation has great research on the compliance burden of overall income tax. More here https://taxfoundation.org/
“The tax gap almost certainly is more likely to be more prevalent in cash based businesses.” —Dan Mitchell
Segment four:
Dan opined on his 11th theorem of government today. Image is attached and more at this link https://danieljmitchell.wordpress.com/2023/05/17/big-business-vs-free-enterprise/
“In my fantasy world, we would have separation of business and state. In the real world, I’ll be happy if we can simply block the left’s ESG agenda so that big companies will be forced to earn money in the market rather than steal money via politics.” https://danieljmitchell.wordpress.com/2023/05/17/big-business-vs-free-enterprise/
On the rule of law and how it is not applied equally across bank failures… ”If they touch a hot stove, we want them to burn a finger.” —Dan Mitchell
A big THANK YOU to Dan Mitchell for joining us today. Check out the Center for Freedom and Prosperity here: https://freedomandprosperity.org/
Here is Dan’s Eleventh Theorem of Government:
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
Click the “FANATIC” image to learn more about pricing and member benefits.