Category Archives: Commentary

The VAT as a replacement or add-on to the income tax

From the Heritage Foundation. (H/T ECM)

Excerpt:

Revenue-neutral tax reform involving a VAT substituting for income tax raises a number of concerns, but its one advantage might be that it would reduce or even eliminate the net bias against saving. Such a reform would quickly begin to raise the level of private savings and the private saving rate.

The same cannot be said of adding a VAT to the current tax system. Adding a VAT would not have the same beneficial effects as substituting a VAT because, obviously enough, the anti-savings biases of the current system would remain intact.

Even more telling, a massive VAT-based tax hike would slash the after-tax purchasing power of individuals and families. As they adjusted to the new tax, an early casualty would be private saving.

[…]VAT proponents who seek massive new sources of revenue—whether in the short run to pay for President Obama’s spending surge or to address the nation’s unsustainable long-term fiscal imbalance—sometimes misapply arguments that have some validity in the context of a revenue-neutral tax reform. A good example is the argument that a VAT would increase private saving.

However, as an add-on tax, the VAT would not improve saving incentives as some suggest but would instead hammer private savings for an extended period as individuals and families slash their saving rates to sustain current consumption in light of the VAT’s higher prices.

I am pro-VAT, but only if it is revenue-neutral and is coupled with a cap on federal spending, indexed to inflation. A freeze would be better still!

What’s your view of taxation? Do you like a flat tax or the FAIR tax? Which taxes would you cut and which ones would you raise? What effect would it have on working families and their employers?

What is the real agenda of the global warming alarmists?

From Investors Business Daily.

Excerpt:

Nothing makes fools of more people than trying to predict the weather. Whether in Los Angeles or London, recent predictions have gone crazily awry. Global warming? How about mini ice age?

The sight of confused and angry travelers stuck in airports across Europe because of an arctic freeze that has settled across the continent isn’t funny. Sadly, they’ve been told for more than a decade now that such a thing was an impossibility — that global warming was inevitable, and couldn’t be reversed.

This is a big problem for those who see human-caused global warming as an irreversible result of the Industrial Revolution’s reliance on carbon-based fuels. Based on global warming theory — and according to official weather forecasts made earlier in the year — this winter should be warm and dry. It’s anything but. Ice and snow cover vast parts of both Europe and North America, in one of the coldest Decembers in history.

A cautionary tale? You bet. Prognosticators who wrote the U.N.’s Intergovernmental Panel on Climate Change, or IPCC, global warming report in 2007 predicted an inevitable, century-long rise in global temperatures of two degrees or more. Only higher temperatures were foreseen. Moderate or even lower temperatures, as we’re experiencing now, weren’t even listed as a possibility.

Since at least 1998, however, no significant warming trend has been noticeable. Unfortunately, none of the 24 models used by the IPCC views that as possible. They are at odds with reality.

Karl Popper, the late, great philosopher of science, noted that for something to be called scientific, it must be, as he put it, “falsifiable.” That is, for something to be scientifically true, you must be able to test it to see if it’s false. That’s what scientific experimentation and observation do. That’s the essence of the scientific method.

Unfortunately, the prophets of climate doom violate this idea. No matter what happens, it always confirms their basic premise that the world is getting hotter. The weather turns cold and wet? It’s global warming, they say. Weather turns hot? Global warming. No change? Global warming. More hurricanes? Global warming. No hurricanes? You guessed it.

Nothing can disprove their thesis. Not even the extraordinarily frigid weather now creating havoc across most of the Northern Hemisphere. The Los Angeles Times, in a piece on the region’s strangely wet and cold weather, paraphrases Jet Propulsion Laboratory climatologist Bill Patzert as saying, “In general, as the globe warms, weather conditions tend to be more extreme and volatile.”

Got that? No matter what the weather, it’s all due to warming. This isn’t science; it’s a kind of faith. Scientists go along and even stifle dissent because, frankly, hundreds of millions of dollars in research grants are at stake. But for the believers, global warming is the god that failed.

Why do we continue to listen to warmists when they’re so wrong? Maybe it’s because their real agenda has nothing to do with climate change at all.

Click through to find out the real agenda of the global warming alarmists. What it means for you is higher unemployment and higher energy costs and higher taxes, for global warming “research”, i.e. – hiding the decline.

Are Christians too involved in politics?

Here’s a thought-provoking post I missed at the Life Training Institute blog, about the new Wayne Grudem book on politics and the Bible.

Intro:

I’m thoroughly enjoying Wayne Grudem’s Politics According to the Bible. Finally, here’s a Christian theologian who connects the dots: Christian belief is not just about John 3: 16, but transformed living which includeds the transformation of government. True, political success can’t save souls eternally (only the gospel does that), but it can promote a more just society for the weak and oppressed. To that end, Christians should exert significant influence on government.

Grudem begins by challenging five wrong views regarding Christians and government: 1) Government should compel religion. 2) Government should exclude religion. 3) All government is evil and demonic. 4) Do evangelism, not politics. 5) Do politics, not evangelism.

[…]Most helpful to the pro-life cause is Grudem’s refutation of #4—namely, the faulty view that Christians should do evangelism not politics. Sadly, well-intentioned leaders like John MacArthur and Cal Thomas have discouraged pro-life Christians from engaging the culture through politics.

I am not a big fan of John MacArthur and Cal Thomas for the reasons stated, and I don’t think that either is really much of an evangelist in any case, since I never see them referenced as authorities on apologetics, which is really the means by which evangelism occurs in the real world.

In his book, Grudem refutes MacArthur and Thomas:

I agree that one significant way that God restrains evil in the world is through changing people’s hearts when they trust in Christ as their Savior (see 2 Cor. 5:17). But we should not turn this one way into the only way that God restrains evil in this age. God also uses civil government to restrain evil, and there is much evil that can only be restrained by the power of civil government, for there will always be many who do not trust in Christ as their Savior and many who do not fully obey him.

Klusendorf also referenced this post by evangelical Joe Carter.

Excerpt:

Consider that for more than two decades the number one issue on the agenda of the evangelical wing of the religious right has been abortion.

The bitter irony is that this is perceived as the “number one” political issue for evangelicals when it really isn’t one of our top priorities. If evangelicals–and Christians in general–truly cared about this issue, abortion on demand would not be the law of the land.

Imagine if every Christian in America vowed not to cast a vote for any candidate of any party for any office if they supported or condoned the killing of the unborn. Imagine if every pastor in America had the courage to stand in the pulpit and deliver the Gospel-centric message that God abhors this slaughtering of the innocent and that for the church to tolerate this sin is a fecal-colored stain on the garment of Christ’s bride.

But it will never happen because the evangelical church isn’t committed as the church to rectifying this grave injustice. We never have been.

I was having a talk with someone recently who was telling me that sometimes the religious left pushes policies that are inconsistent with the Bible, like wealth redistribution or encouraging Christians to condone sexual immorality instead of setting up boundaries on sexuality by making clear statements of what the Bible says and explaining why what the Bible says is true using real objective evidence. Yes, I support policies that are consistent with what the Bible says – but I don’t look to politics to push non-Biblical policies.

Grudem’s book is must reading for Christians looking for a comprehensive Biblical view of politics, including social AND economic issues.