All Posts Tagged With: "Disaster"

Default is Inevitable, Part II

Talking points are truly amazing things. They capture the essence of the obsessions of political operatives. The political news has recently been dominated by the talking points surrounding the debt ceiling debate, with the main terms of choice being the assorted variants of “apocalypse.”

First of all, failing to raise the debt ceiling would not automatically lead to a default on the national debt. The federal government would continue to collect revenue, and could use that revenue to pay debt obligations as they fall due, or in other words, pay the coupon interest on time. This would involve deep cuts to everything else, and if you are a professional politician that is synonymous with impossible, so there is an assumption that default would be the …


Gas Tax to Pay For Flood Damage?

Legislative Leaders in Iowa are continuing to talk about a special session of the General Assembly, which makes sense. The Governor is doing a good job of expressing the need to prioritize working on the current relief effort AND establishing a solid assessment of the costs before holding a session.

The bad news is, the only option being mentioned by the media (although there are almost certainly others) is an increase in the gasoline tax. That would be a bad idea. Better to raise the sales tax than the gasoline tax. Gas prices are already creating too much of a burden for everyone… a 1% increase in the sales tax with a well planned time-limit to cover flood related needs would be more appropriate. …


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