Vae Victus

Classical Musings on a Modern World - Politics, Military Analysis, Dog Training, and More

Location: Chicago, IL

I am a consultant from chicago where I live with my wife, our dog, and two cats

Tuesday, September 13, 2005

Did the Hurrican wash away Tax cuts?

In today's WSJ, Brody Mullins reports that the House and Senate are postponing plans to extend Bush's tax cuts. Currently, they are scheduled to expire in 1998. Mostly, the argument is that the politics are too dangerous now with the Katrina recovery in process.

While I understand the need to be politically savvy, actions like these concern me. There are all ready enough Senators and Congressmen who think that they can campaign on free markets, lower taxes and lower spending, and then, when elected, proceed to legislate much differently. One way around this could be to join the tax cuts with a larger scale Louisiana/Mississippi economic development plan. If the Federal Governement (i.e., taxpayers) have to rebuild the cities and businesses, then the Federal Government should be able to do it the right way. In this case, they should take up Jack Kemp's idea of making a "tax free enterprise or empowerment" zone in the area.

There are two things that support this. First, the free market always builds things faster and more effectively than the government - especially the goverments of Louisiana and New Orleans! Second, Even before the government entities had prepared to respond, the various companies that do business there were already preparing their logistics to bring in the goods and supplies that would be needed. We should put this free market energy to use, and give the proper incentives to make Louisiana and Mississippi's recovery one that also serves to build their economies.


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