Author: bruce smith

Warning: “Sin Taxes” May Be Hazardous to the State

Cascade Commentary

Summary

Oregon’s cigarette tax has become an “essential” source of funding for government programs and services completely unrelated to smoking, a prime example of why a “sin tax” is bad public policy. (more…)

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Tobacco Revenues Prove Addictive

Oregon Economic Opportunity Project

Preface

In 1765, the British Parliament passed the Stamp Act, taxing every sheet of printed paper used in the American colonies. The proceeds were to be used to help pay the rising cost of stationing thousands of British troops on the Appalachian frontier to defend the colonies. Many colonists found this tax to be outrageous not because of its economic cost (which was small), but because it was explicitly being used by England to raise revenues without the approval of the colonies. The resulting opposition to the Stamp Act was so great that a year later, the tax was repealed.

Like the Stamp Act, revenues from Oregon’s cigarette tax (more…)

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Aiding poverty in Africa: Giving ‘til it hurts

Cascade Commentary

Summary

International commitments to increase foreign aid to African nations ignore the causes of poverty in those countries: corrupt governments and a lack of economic freedom. So long as those problems aren’t addressed, foreign aid will fail to improve the situation. (more…)

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In Defense of Wal-Mart

QuickPoint!

Recently, there has been a lot of debate around Wal-Mart’s plans to open stores in Milwaukie, Gresham and Cedar Mill. Many are worried that a Wal-Mart would hurt the local economy, and are attempting to block the company’s plans. However, this does a disservice to the communities.

As a recent New York Times article points out, instead of (more…)

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Hybrid Tax Credits Promote Inefficiency

QuickPoint!

Companies buying hybrid gas-electric cars might be saving more on their taxes than on fuel. The State of Oregon now offers businesses tax credits worth thousands of dollars when they purchase hybrid vehicles. The underlying rationale has been to promote fuel-efficiency, yet cars with higher gas mileages are not rewarded with a larger tax credit. Instead, the size of the credit is based on the (more…)

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A License to Kill (Competition)

Cascade Commentary

Summary

Occupational licensing boards often make licensing requirements arbitrarily difficult, limiting the competition within a profession. This drives up prices and keeps qualified individuals out of certain lines of work. Oregon should adopt a system of occupational certification, which give consumers the freedom to choose between certified and non-certified service providers. (more…)

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Congress Tilts at Windmills

QuickPoint!

Last Thursday, the Senate approved an energy plan requiring large utilities to generate 10% of their electricity from renewable sources by 2020, financed in part by a small increase in electricity rates. Since renewables currently account for only 2 percent of electricity production, this would be a five-fold increase.

About half of all utility customers already have (more…)

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