Category: Article Share

These Reforms Would Simplify Our Messy Tax Code—and Level the Playing Field

Posted on by Lone Candle

“The U.S. tax code is broken. That’s mainly because it collects revenue in an arbitrary, distortionary, and unfair manner. At the heart of the problem are “tax expenditures”: credits, deductions, and loopholes that benefit the government’s favorite groups and behaviors.

…

It’s a patchwork of exceptions and preferences designed more by lobbyists than by public servants. Policymakers claim they are encouraging savings, promoting fairness, or aiding the poor. In reality, many tax expenditures—also known as tax breaks—serve no purpose beyond enriching powerful interest groups.

The solution is to return to first principles. We must begin by defining the tax base in a principled way. What should count as income? What should be taxed, and when? Only then can we properly distinguish between legitimate exemptions and unjustifiable giveaways.”

https://reason.com/2025/04/10/these-reforms-would-simplify-our-messy-tax-code-and-level-the-playing-field/

Markets Don’t Want More Coal. Trump Is Propping Up the Industry Anyway.

Posted on by Lone Candle

“Coal’s decline was not caused by a federal plot to transition away from coal, like Trump thinks, but rather by markets and innovation. Advancements in renewable energy technologies—which were, and continue to be, supported by subsidies—made the energy source more attractive to investors. Breakthroughs in horizontal drilling in the early 2000s brought a flood of cheap and abundant natural gas to the market. These technologies priced coal out, which lowered energy bills for consumers and significantly reduced greenhouse gas emissions in the United States.
The energy source is also not as cost-effective as the executive order claims. Coal plants are expensive to build and operate, and transportation costs can exceed the price of coal at the mine. These economic factors have informed investors and utilities not to build coal-fired power plants—the most recent large plant was built in 2013—which has made the current fleet of these power plants less efficient than other energy sources.

To be sure, some regulatory barriers, including federal air quality standards and state-level bans, have made coal less competitive. However, “it is the market that explains coal’s decline better than regulations,” Philip Rossetti, an energy policy analyst at the R Street Institute, tells Reason.”

https://reason.com/2025/04/10/markets-dont-want-more-coal-trump-is-propping-up-the-industry-anyway/

Opinion | Europe Needs Its Own Nukes

Posted on by Lone Candle

“If Washington truly abandons its role as the world’s police officer, Europe would struggle to counter Russian President Vladimir Putin’s army, at least in that time frame. Many European countries, especially Germany, have neglected their own military in recent decades. While Russia has converted everything to a war economy, parts of Europe have only just woken up from the dream of a peaceful world. Military experts proclaim that it will take more than four years to manufacture an arsenal of conventional weapons of the size needed to counter a Russian invasion. While most observers consider a Russian attack on Germany unlikely, even this is not an impossible scenario.

That’s why, to deter Russia, Germany and Europe need their own nuclear shield.”

…

“relying solely on France seems risky especially with French nationalist Marine Le Pen, a known Russia sympathizer, or another figure from her nationalist party potentially taking over the Élysée Palace in the near future. A broader European solution also involving Britain’s nuclear capabilities — and possibly Poland as a front-line state — would be far more prudent.”

https://www.politico.com/news/magazine/2025/04/08/nuclear-weapons-europe-defense-trump-00278754

Javier Milei’s Free Market Reforms Are Starting To Pay Off

Posted on by Lone Candle

“Argentina’s poverty rate fell sharply in the second half of 2024, according to official data released this week, marking a major milestone for President Javier Milei’s sweeping economic reforms.
According to the country’s official statistics agency, the National Institute of Statistics and Census (INDEC), the poverty rate fell to 38.1 percent between July 2024 and December 2024—down nearly 15 percentage points from the first half of the year. Household poverty also declined by 13.9 percentage points, hitting 28.6 percent. And extreme poverty was cut by more than half, falling from 18.1 percent to 8.2 percent.

It’s a major turnaround from the beginning of Milei’s presidency. When he took office in December 2023, he inherited a poverty rate of 41.7 percent, which quickly surged to 53 percent as his administration launched a “shock therapy” program to end Argentina’s economic misery.

One of the biggest drivers behind the poverty decline is the sharp drop in inflation. Annual inflation, which reached 276.2 percent a year ago—one of the highest in the world—dropped to 66.9 percent last month. Monthly inflation has also dropped, from 25.5 percent in December to just 2.4 percent in February.*

“These figures reflect the failure of past policies, which plunged millions of Argentines into precarious conditions while promoting the idea of helping the poor, even as poverty continued to increase,” Milei’s office said in a statement following the release of the INDEC report. “The current administration has shown that the path of economic freedom and fiscal responsibility is the way to reduce poverty in the long term.”

In other words, Milei’s bet on free market reforms is starting to pay off.”

https://reason.com/2025/04/02/javier-mileis-free-market-reforms-are-starting-to-pay-off/