Monday Map: Funded Ratio of State Public Pension Plans (Joseph Henchman, Richard Borean, Tax Policy Blog). It looks at the funding of state pension plans using the 3.2% 15-year Treasury Bond rate to discount pension obligations. This is a conservative rate, but a lot closer to reality than the 8% rate still used in some states.
Iowa’s pension obligations are only 43/% funded under this standard — and that’s better than most states. Public defined benefit plans are a menace and, ultimately, a lie.
Related Defined benefit badminton
Glenn Reynolds, Clean up the IRS:
Emails recovered by the House Ways and Means Committee demonstrate that the targeting of Tea Party groups — and of voter-integrity groups — was orchestrated from the top of the agency. Rather than being conducted by a few rogue employees in the Cincinnati office of the IRS, the Tea Party targeting was regarded by Lerner as something “very dangerous” politically, and she observed that “Cincy should probably NOT have these cases.”
The emails also reveal Lerner’s concerns that the Democrats might lose their Senate majority, and her hopes that the Federal Election Commission might “save the day” by interfering with right-leaning grassroots activity. The IRS also shared information with the FEC, something not permitted by statute, raising questions about just how politicized both agencies were.
Ms. Lerner, of course, is a former FEC staffer who may have used her position there to try to run politicians she didn’t like out of the business. So much for the “Rogue agents in Cincinnati” story.
Joseph Henchman, Detroit Free Press Explains Why Detroit Went Bankrupt. They list a lot of mistakes, but this one jumps out:
Outrageously high payments to incentivize economic development deals, with extensive bureaucracy slowing down approvals of everything.
I’m not at all convinced that Iowa can do this any better.
Martin Sullivan, U.S. Tax Exceptionalism (Tax Analysts Blog):
A new study from the OECD shows how the world is cutting corporate taxes and raising consumption taxes. By refusing to budge in this direction, the United States is becoming less competitive…
For economists this is a no-brainer. The corporate tax–with its arbitrary and excessive burden on the profits of certain businesses–is our most damaging tax. A broad-based consumption tax, like a VAT — which unlike the income tax is not inherently biased against saving and investment — causes the least harm to the economy.
Economists do favor consumption taxes, but there are two potentially insurmountable obstacles to a U.S. VAT. It would not be “progressive” enough for liberals, and conservatives and libertarians will suspect that it will just be on top of income taxes, rather than a replacement for them.
Kay Bell, Deadly flooding devastates Colorado
William Perez, Missing a Tax Document for 2012?
Leslie Book, IRS Issues New Guidance on Requests for Equitable Relief (Procedurally Taxing)
Jeremy Scott, The Faltering Financial Transaction Tax and the Future of Wall Street (Tax Analysts Blog):
Whether a tax on transactions is better than a tax on activities or a direct levy on banks isn’t really important. What is important is that the financial sector, which bears a disproportionate share of the blame for the deep recession that is still affecting employment and growth, share in the costs of insuring against future bailouts and be forced to restructure itself to better insulate the rest of the economy from excessive risk.
How about we stop bailing them out instead?
Peter Reilly, Occupy Wall Street Anniversary Focuses On Robin Hood Tax. That’s “a financial transaction tax of 0.5% that will raise hundreds of billions of dollars a year that puts people before profit and helps stabilize the financial markets.” Yeah, right.
I think Robin Hanson gets the real motivation for such a tax:
So somehow, conveniently, we just wouldn’t find that their unequal wealth evoked as much deeply felt important-social-issue-in-need-of-discussing moral concern in us. Because, I hypothesize, in reality those feelings only arise as a cover to excuse our grabbing, when such grabs seem worth the bother.
Why I favor pink flamingos. From KCCI.com:
Police say a rare copper sculpture from the front yard of a Des Moines home last week has been found cut into pieces at an area scrap metal yard.
The Des Moines Register reports that the abstract sculpture by the French artist Dominique Mercy had been valued at nearly $8,000.
Police say it was stolen sometime early Friday. Police found the sculpture at a scrap yard on Monday, but it had already been ruined.
The sculpture weighed between 40 and 50 pounds and was taken from the pedestal it sat on.