A bill for hurricane relief passed the house at 422 to 0. This is all well and good, but tax breaks aren’t an efficient way of distributing goods to the needy. Economically, the only difference between giving a tax break for hurricane-related charitable donations and just raising taxes and giving the money directly is the fact that in the former case you can tax future generations through deficit spending. What ever happened to just giving them aid? I’m confused.
Is the problem really the lack of funds? After all, we are burning food aid from Great Britain and sending ice trucks in the wrong direction, it sounds like the problem has been due to too little logistics and too much red-tape.
Of course, I don’t know what a rich person can do with things like food and water. But a tax cut…
Guess what the South needs is more corporate welfare programs.
The Democrats seem to be testing a new frame:
“We need to make sure that federal contracts are awarded based on confidence and integrity instead of cronyism and greed. And at long last, we need to start putting the interests of the taxpayers ahead of the private contractor.”
—Henry A. Waxman (Rep. D CA)
This new frame—“putting taxpayers ahead of private contractors”—looks like an opening salvo in trying to reverse the tax cuts. It’s not likely to stick since Grover Norquist has almost half the house and senate (not to mention the President) in his back pocket.1