Tag Archives: economics

In Which Illinois Got It Right

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Back in 2008, Illinois passed a law barring companies from collecting customers’ personal biometric information without their prior permission. Companies in Illinois also were required to develop a policy, and make it readily available, that laid out how those biometric data would be stored and when they would be destroyed.

Facebook was accused of violating that law when it decided to use its facial recognition technology to analyze users’ photos in order to create and store “face templates.” Users’ faces are plainly biometric data in this context, the data were taken by Facebook without the owners’/users’ permission, and in 2015, folks sued Facebook over its misbehavior.

Now comes a reckoning of sorts.

Facebook has agreed to settle a $550 million lawsuit brought on behalf of millions of Illinois users who claim the social network’s automated tagging feature powered by facial recognition technology violates their biometric privacy rights.

Good law, and mostly good outcome.

But maybe the class action group shouldn’t have settled. Settlements only bind the parties to the suit and are only as good as the promises of those parties. Facebook has a long history of finding ways to weasel-word around the terms of its settlements, violating their spirit if not their letter.  Court judgments, though, are permanent, binding on all parties to the suit, and binding also on everyone else within the court’s jurisdiction.

We’ll see on this one, but Illinois got this one right with its law.

Protections through Cuts

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That’s how President Donald Trump’s budget proposal represents support for his campaign commitment to protect programs like Medicare and Medicaid.

[The proposal] targets $2 trillion in savings from mandatory spending programs, including $130 billion from changes to Medicare prescription-drug pricing, $292 billion from safety-net cuts—such as work requirements for Medicaid and food stamps—and $70 billion from tightening eligibility access to federal disability benefits.

Medicare is threatened with bankruptcy nearly as badly as is Social Security, but that doesn’t mean Medicare would disappear—only that benefit payouts would be reduced to what payroll tax revenues could support, rather than what’s currently available from those tax revenues plus earnings and principle from its trust funds.

By tightening eligibility requirements and by requiring actual work, efforts toward being able to gain work, or doing forms of community service benefits those who actually need the benefits would be preserved.

The same situation exists for Medicaid: these State-run programs threaten the fiscal health of those States, and Federal transfers to those States, far from helping them, do nothing but reduce the States to dependencies of the Federal government.

One item in the proposed budget with which I disagree with Trump concerns the VA.

Winners in Mr Trump’s budget include the Department of Veterans Affairs, with a 13% increase next year….

This is a waste of money. The VA has repeatedly shown itself incapable of taking care of our veterans with any generality or reliability.  The VA needs to be completely disbanded and its budget (this year with that 13% increase) and putative future budgets converted to vouchers for our veterans so they can get the medical care and financial support they need at the time they need it from doctors, clinics, and hospitals that suit them.

Veteranos Administratio delende est.

Government Knows Better Than Owners

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That’s what the SEC is claiming with its latest shenanigan.

[T]he Securities and Exchange Commission wants to make it harder for small shareholders to get resolutions onto company ballots, known as proxies.

After all, the SEC says, with some accuracy,

responding to resolutions can pose an undue burden on companies, costing tens of thousands of dollars apiece for research, and printing and mailing of ballots.

However.

Corporate by-laws are set by the owners of the company, and the owners can, via their by-laws, set the parameters surrounding shareholder resolutions and thereby manage their own costs just fine, thank you.

Every one of the ills imagined by the SEC are capable of being handled by each business in its own way, whether by doing things the SEC wants to impose on all company owners, or with steps each company’s owners deem best for their specific situation.

Or they would be able to, did Government regulations, existing as well as proposed, not interfere so extensively with the way in which owners manage their property.

Leave alone, Jobs, Respect

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Ex-Chicago Mayor and ex-President Barack Obama Chief of Staff Rahm Emanuel (D) cried out in a Wall Street Journal op-ed earlier this month that Progressive-Democrats are “blowing their chance,” the central theme of which was that the current crop of Progressive-Democrat Presidential candidates seemed to be running against ex-Progressive-Democrat Presidents Bill Clinton and Obama, rather than the current President, Donald Trump.

A Letter to the Editor writer in Friday’s WSJ took issue with Emanuel’s piece; this part in particular drew my attention.

Donald Trump is on the edge of doing more for black Americans than Mr Emanuel’s party has done for decades. He’s leaving them alone, giving them jobs, showing them respect.

I agree with the letter writer (RTWT), but I do have one small correction here. Giving minorities things is what Progressive-Democrats—like Emanuel—do, in order to keep those minorities trapped in the Progressive-Democrats’ welfare cage. Trump is creating opportunity and helping black Americans—all minorities—get second chances after sometimes serious mistakes, find their own jobs, be able to make their own way.

And you bet Trump is otherwise leaving them alone. This is wholly unlike the Left, even more generally than its Party, which hektors, when not outright smearing, blacks for not adhering to Party, not voting correctly, and thereby being good blacks.

Opportunity, actual help rather than giving things, no soft bigotry of low expectations—that’s true respect.

There was this, also, from Emanuel in his missive:

The next nine months will present our raucous coalition a rare opportunity to establish a new Democratic “metropolitan majority” that could last for years.

This is very illuminating. It makes explicit the Progressive-Democrats’ utter contempt for tens of millions of Americans—those of us citizens who live in flyover country.

Taxes

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It seems Amazon isn’t paying enough corporate taxes to suit Progressive-Democrats.

In its annual regulatory filing with the Securities and Exchange Commission, Jeff Bezos’ sprawling e-commerce empire said it paid $162 million in federal income taxes on $13.3 billion of US pre-tax income, an effective tax rate of 1.2%. It deferred more than $914 million in taxes.

All perfectly legal, too, yet the hue and cry is loud. Matthew Gardner, Senior Fellow at the Institute on Taxation and Economic Policy, for instance:

This means that instead of avoiding 100 percent of its income tax liability, Amazon appears to have avoided only 94 percent of its tax bill last year[.]

Not at all.  Amazon, unless Gardner is going to allege actual tax fraud, paid 100% of its actual tax liability, after accounting for all of the credits, deductions, and other loopholes our byzantine tax code allows corporations.  Amazon just didn’t pay its “fair share,” whatever carefully nebulous sum that amounts to.

The hue and cry is accurate, though not in the way the Left would have us believe.  As someone almost said once, the fault is not in our corporatoins, but in our tax code.

Everything Amazon did was legal, and it would have been an abuse of the company’s fiduciary duty to its owners not to take advantage of the opportunities—Amazon’s tax bill and overall tax rate are an illustration of the failures of a tax code that has all of those vasty loopholes, gaps, deductions, credits, etc.

A single low, flat tax rate that treats all income identically, regardless of source, and that has no loopholes, gaps, deductions, credits, etc, would do wonders for our economy, increase the revenues ultimately remitted to Government, and enhance both private citizens’ and Government’s (in that order) ability to see to the least among us.

Mind you, that low, flat tax rate should be applicable only to personal income. Corporations should be assessed no income tax at all; they don’t pay those taxes anyway, not even that 1.2%: their customers, ultimately us individual persons, do in the form of higher prices.