Egypt

After a week of consideration regarding the events in Egypt, I believe that Egyptian President Hosni Mubarak should stay as prime minister until a new president is elected in the scheduled election in September. I also believe he has lost confidence of the people to run for re-election and even if he has not, a Mubarak victory in September will not be accepted as free, fair, and legitimate. But to hand over power now is not an endorsement of democracy, rather it would be an endorsement of mob rule.
Essentials of a true democracy must include free and fair election, an orderly transition of power, and that the elected are accountable to the people through the rule of law and through elections.

Iranian Protest 09

Peaceful revolutions are the exceptions, more commonly peaceful attempts at revolutions are crushed brutally. Against a totalitarian regime willing the hold on to power despite its people, willing to act with violence against its own people, these protests will come to no good, leaving only blood, deaths, and persectutions. Just like with Tiananmen square in 89. My heart goes out to freeom loving Iranians.

Tax Day Cometh

I did my taxes yesterday. Two days from now will be tax day, and many will turn out that day for a Tea Party protest. Here is a great summary of what taxes should be like from Bookworm Room:

Principles of Sound Tax Policy

¨ Simplicity. Administrative costs are a loss to society, and complicated taxation undermines voluntary compliance by creating incentives to shelter and disguise income.

¨ Transparency. Tax legislation should be based on sound legislative procedures and careful analysis. A good tax system requires informed taxpayers who understand how tax assessment, collection, and compliance works. There should be open hearings and revenue estimates should be fully explained and replicable.

¨ Neutrality. The fewer economic decisions that are made for tax reasons, the better. The primary purpose of taxes is to raise needed revenue, not to micromanage the economy. The tax system should not favor certain industries, activities, or products.

¨ Stability. When tax laws are in constant flux, long-range financial planning is difficult. Lawmakers should avoid enacting temporary tax laws, including tax holidays and amnesties.

¨ No Retroactivity. As a corollary to the principle of stability, taxpayers should rely with confidence on the law as it exists when contracts are signed and transactions made.

¨ Broad Bases and Low Rate. As a corollary to the principle of neutrality, lawmakers should avoid enacting targeted deductions, credits and exclusions. If such tax preferences are few, substantial revenue can be raised with low tax rates. Broad-based taxes can also produce relatively stable tax revenues from year to year.