by U-g-g-B-o-y-(-Photograph-World-Sense-)
In Which Mr. Deling Responds to Someone Who Might Be Professor Todd Henderson
[Via Grasping Reality with Both Hands]
I had published a link and a long excerpt from Michael O’Hare’s rant after reading University of Chicago Law Professor Todd Henderson.
And now somebody purporting to be University of Chicago Professor Todd Henderson writes:
I’m shocked and saddened at the personal nature of these attacks. Wow.
As for Mr. Deling’ attacks…
I would like to note for the record that I have not made any attacks, or indeed comments at all–that all I did was to republish pieces of Michael O’Hare’s attack. And I was thinking if I had any comments worth reading or any time to write them down, and deciding that I did not.
But being called “Deling” makes me think I have no choice.
So here is the rest of the comment by Professor Henderson (or the guy purporting to be him):
let me make just two observations. First, according to several tax sites, my taxes will go up by thousands, not down. I’m not a tax lawyer, so I’m not sure why.
Second, his [i.e., Michael O'Hare's] attempted budget leaves out a large category–education and daycare. This year, they will come close to $60,000, which is about $165 per day. Subtract this from the crude budget and that leaves $80 per day for five people.
But all this avoids the question of why we think the government will better allocate some part of whatever my income is.
So here is what I have to say:
Back in 2000, the U.S. government’s long-term budget was out of balance–although not by all that much. The government had, you see, made promises–very popular promises–for Medicare, Medicaid, and Social Security without proposing sufficient funding streams to pay for those promises. So back in 2000, looking forward, we had a choice: raise taxes, or “bend the curve” by cutting the growth of spending.
Instead of doing either of these, we elected George W. Bush. Two wars. A big (and ill-advised) defense buildup that is very unsuited to protecting us from Al Qaeda and company. A huge unfunded expansion of Medicare. Plans for the unfunded expansion of Social Security that came to nothing. However, instead of raising taxes George W. Bush reduced them.
This simply does not work. As Milton Friedman liked to say, to spend is to tax. If the government spends somebody will pay for it. And if you don’t levy the taxes to pay for it now all that means is that the person who owes the taxes does not know it yet.
So unless Professor Henderson (or whoever) has plans for serious cuts to Medicare, Medicaid, Social Security, and National Defense–and I see none on offer–his last point about government allocation is simply moot. George W. Bush has already allocated it with his defense buildup and Medicare Part D. Taxes are going up over the next decade–barring cuts of 1/3 to Medicare, etc. They can either go up smartly or we can pretend they don’t have to go up, in which case they go up stupidly. The argument for small government was lost long ago, and was lost again and anew in the past decade with Medicare Part D and the wars of George W. Bush. I believe Todd Henderson was a deserter in that war–a supporter of George W. Bush, and of his unfunded Medicare Part D expansion, and of his wars of choice. So I don’t think he has standing to make the small government argument–some people do, but he does not.
But Mr. Henderson’s (or whoever’s) comment and his post were, overwhelmingly, not an argument for a small government.
They were an argument that whatever taxes were paid, he should not have to pay more than he is currently paying because it is unfair: he is not “rich”.
As best as Michael O’Hare could determine (and Professor Henderson or whoever it is does not challenge him), the Henderson annual family budget is this:
$455,000 a year of income, of which:
- $60,000 in student loan payments
- $40,000 is employer contributions to 401(k) and similar retirement savings vehicles
- $15,000 is employer contributions to health insurance
- $60,000 is untaxed employee contributions to tax-favored retirement savings vehicles
- $25,000 building equity in their house
- $80,000 in state and federal income taxes
- $15,000 in property taxes
- $10,000 for automobiles
- $55,000 in housing costs for a $1M house (three times the average price in the Hyde Park neighborhood
- $60,000 in private school costs for three children
- $35,000 in other living expenses
And of this budget, Professor Henderson (or whoever) writes:
Like most working Americans, insurance, doctors’ bills, utilities, two cars, daycare, groceries, gasoline, cell phones, and cable TV (no movie channels) round out our monthly expenses. We also have someone who cuts our grass, cleans our house, and watches our new baby…. [W]e have less than a few hundred dollars per month of discretionary income. We occasionally eat out but with a baby sitter, these nights take a toll on our budget. Life in America is wonderful, but expensive. If our taxes rise significantly… the (legal) immigrant from Mexico who owns the lawn service we employ will suffer, as will the (legal) immigrant from Poland who cleans our house a few times a month. We can cancel our cell phones and some cable channels, as well as take our daughter from her art class at the community art center…
[More]
His family has an income greater than 99% of all Americans. He contributes more to retirement savings than most Americans make in a year. His mortgage is more than the median income for Americans. Same with how much he spends on private education for his children. He has $100,000 a year going for retirement!
He makes choices about where to spend his money that are at levels simply beyond the reach of almost every other American.
His family’s discretionary income ($80 a day) is greater than the poverty level for a family of five, with 3 children under 18 (which is $25,603 according to the latest figures – PDF, page 55).
Think about that. The amount of money his family can spend on whatever they want each day – dinner out, new shoes, a movie, etc. – is greater than the total amount of money a similar family in poverty has to spend on everything they need – food, clothing, housing, utilities, etc.
And over 14% of all Americans are below the poverty level. One in seven in America must make do on less each day for necessities than this family has to spend on frivolities.
Yet, instead of being happy, he is sad. OMG, he might have to cancel their cell phones. How about just putting a little less away in retirement savings, like maybe only $50,000 a year?
My family never came close to his income but it was still pretty high, perhaps putting us in the top 10%. We worked really hard for that money, just like this guy. And I was glad every day for the fact that I had money left over for retirement, to go out to dinner, to not have to worry about a roof over my head.
Because I knew I was doing better than most people.
After paying for his million dollar house, socking away huge amounts for retirement , paying for his cars and paying for private school, he only has $35,000 or so for personal expenses. Here is someone in the top 1% and he is complaining about paying the baby sitter.
Sounds like an ass to me. Just an example of how having a education does not necessarily make one smart. Being able to think rationally does not seem to be a requirement for a law degree.
I guess the rich really are different than the rest of us.