Capital Gains Taxes

Folks styling themselves conservatives want Treasury Secretary Steven Mnuchin to index capital gains taxes for inflation—and to do it by Executive Branch fiat.  Mnuchin, though, is reluctant to do so, not least because he’s unsure whether Treasury actually has the authority.  He’s also not convinced that Congress shouldn’t set such a requirement.

Mnuchin is right, though—this sort of thing should be determined legislatively rather than by Executive Branch regulation, Executive Order, or other diktat.  That’s the Conservative position.

Too, Congress should not be allowed to duck the matter: put the Congressmen on the record with their words and votes—every single one of them.

Regarding any allegedly lost revenue, Government must first demonstrate it needs the money rather than reducing spending by those $102 billion.

The Supremes Get One Right

Resoundingly so.  Janus v AFCME Council 31 is a case originating in Illinois concerning a public service union’s ability to collect a per centage of ordinary union dues—agency fees—from non-union members who work alongside the union’s bargaining unit in for a government agency.  A 40-year-old Supreme Court precedent, Abood v Detroit Board of Education, upheld this ability.

The Court’s opinion (a 5-4 majority) is summarized in the syllabus:

The State’s extraction of agency fees from nonconsenting public-sector employees violates the First Amendment. Abood erred in concluding otherwise, and stare decisis cannot support it. Abood is therefore overruled.

What Alito actually wrote is even more direct, and he wrote it at the outset of his opinion.

Under Illinois law, public employees are forced to subsidize a union, even if they choose not to join and strongly object to the positions the union takes in collective bargaining and related activities. We conclude that this arrangement violates the free speech rights of nonmembers by compelling them to subsidize private speech on matters of substantial public concern.

We upheld a similar law in Abood v Detroit Bd. of Ed….and we recognize the importance of following precedent unless there are strong reasons for not doing so. But there are very strong reasons in this case. Fundamental free speech rights are at stake. Abood was poorly reasoned.  …  Abood is therefore overruled.

Alito concluded his opinion even more forcefully.

This procedure [collecting an “agency fee”] violates the First Amendment and cannot continue. Neither an agency fee nor any other payment to the union may be deducted from a nonmember’s wages, nor may any other attempt be made to collect such a payment, unless the employee affirmatively consents to pay. By agreeing to pay, nonmembers are waiving their First Amendment rights, and such a waiver cannot be presumed.

The sad part of this resounding victory for individual liberty is that 5-4 vote; it should have been unanimous.  However, the liberal wing of the Court remained buried in its ideology that Government must be the solution.  Here, those four Justices held that an individual’s fundamental rights of free speech and free association must be held subordinate to the union’s government-created right to collect dues and “agency fees” from everyone whom it purports to represent in an employment unit.

The free speech problem arises when those agency fees are collected as a condition of employment by a government agency.  It isn’t possible for an inherently political entity to not engage in political speech, and so it isn’t possible for any negotiation—including over employment parameters—with that entity to not be inherently political in nature and so consisting of political speech.  Thus, forcing payment of an “agency fee” to the “representing” union is forced speech by the individual from whom the “agency fee” is collected.

The free association problem arises from the existence of any forced “agency fee” payment.  Such a mandate creates a forced association between the individual from whom the “agency fee” is collected and the union for and by which the money is collected.  This association occurs, tautologically, whether or not the individual might otherwise consent to, or actively seek, the association.  The forced nature of the association is maximally emphasized by the individual’s demonstrated objection to the association through his conscious decision to not join the union and further by his objection to paying the fee.

It’s unfortunate that the liberal wing does not see any of this.

The ruling can be seen here.

Rescissions and Politics

Senator Richard Burr (R, NC), recall, voted against a rescission of $15 billion  in unspent money because he wanted to preserve $15 million in unspent money in the Land and Water Conservation Fund.

The good Senator, objecting to The Wall Street Journal having called him out, wrote a Letter to the Editor, explaining himself.  The center of his argument is this:

The LWCF isn’t, as you suggest, a “slush fund” or a “land grab.” Nor is it a piggy bank Washington should raid at its convenience. Instead, it is a rare example of an effective government program that costs taxpayers nothing and benefits them entirely.

So, the Senator voted to tank a multi-billion dollar reclama of unspent money over a bit of trivium with a value of a bare one-tenth of one per cent of the total being reclama-ed.  Never mind that if the LWCF were all that useful, it would have been spending that pocket change, and that if it were that valuable, it could be restored in the next budget.

In any event, the money, not having been used by the LWCF and having been reclama-ed, would have been lost to the LWCF not at all.

Brilliant.

Privatize It

Among the proposals the Trump administration has offered for drastically restructuring and shrinking the Federal government is one for privatizing the US’ Postal Service.

Of course, the American Postal Workers Union opposes the move, but that’s just wind in the trees and nothing to take seriously.  The union claims that such a move would harm e-commerce and rural America as well as do away with regular mail and package service at affordable costs.  Because competition in the market place doesn’t drive down costs or spur innovation.  And because we all need our regular, daily fix of junk mail.

The administration’s proposal isn’t yet ready for prime time, though.

A privatized Postal Service could be structured like an investor-owned utility and continue to be regulated by the Postal Regulation Commission or another governmental body, “consistent with the existing models of privatization in Europe,” the plan said.

There’s no need for the postal entity to be a regulated monopoly, nor is there any rational reason to imitate Europe for the sake of imitating Europe.

Either privatize the USPS or don’t, but don’t waste even more money on halvesies.

Protecting US Technology

The Trump administration is moving toward a set of rules that would heavily restrict the People’s Republic of China’s ability to acquire American technology-developing companies and American technology.

Of course, there are objections to protecting our stuff.

Industry groups…are mainly concerned that the export controls could negatively affect their businesses by preventing them from using their technological edge.

If such groups were truly serious about this, they’d be truly serious about hardening their member companies’ facilities against hacking.

And

While many object to the investment restrictions, they are seen as having less practical impact because Chinese investment has fallen off so drastically.

This is short-sighted to the point of being disingenuously so.  The PRC’s investment has fallen off because, through theft, hacking, and their extortionate requirement of “sharing” technology and inserting backdoors into core software as a condition of doing business in the PRC, they’ve largely caught up.  When we get our edge back, the PRC’s “investment” efforts will pick back up.  The restriction objectors know this.