In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review December 12, 2012/ 28 Kislev, 5773

A budget solution that isn't very taxing

By Jack Kelly

http://www.JewishWorldReview.com | Here's a fascinating fact that ought to be guiding budget negotiations:

Since the end of World War II, federal tax revenues from all sources have averaged 19.6 percent of the gross domestic product, according to a study by the American Institute for Economic Research.

In the 63 years AIER studied (1947-2010), revenues exceeded 20 percent of GDP only once (20.6 percent in 2000), but have fallen below 19 percent 55 times.

Since 1947, federal personal income tax rates have ranged from 28 to 92 percent; corporate income tax rates from 35 to 53 percent; deductions and exemptions have been added and eliminated; FICA (payroll) taxes have been raised and cut, and the inheritance tax has ranged from 77 percent to zero.

Who gets taxed how, and by how much, are important questions which have moral implications, and can have profound economic consequences. But however high tax rates rose, revenues rarely -- and barely -- exceeded 19 percent of GDP.

If no matter how tax laws are changed, tax revenues will fall somewhere between 19 percent and 20 percent of GDP. Then the only way to increase tax revenue significantly is to grow the economy. So changes in tax policy should be judged by how the change would affect economic growth, because only this will make a significant difference in revenue.

We must have government, so we must have taxes to fund government. But we should remember, always, that taxes -- all taxes -- inhibit growth. As Jack Kemp said: "You get more of what you subsidize; less of what you tax." The higher tax rates go, the heavier is the government's foot on the brakes.

There are always two tax rates that produce the same amount of revenue, said economist Arthur Laffer. A low rate can generate significant revenue because there will be so much economic activity to tax. As rates rise, economic activity declines. When rates get too high, cutting them can produce more revenue. Presidents Harding, Kennedy, Reagan and George W. Bush each made major reductions in income tax rates. Each time, revenues rose substantially.

Although all taxes hurt, some harm growth more than others. Our individual income tax rates are low, both by our own post-WWII historical standards and by comparison with our chief international competitors. Our corporate income tax, on the other hand, is among the highest in the world.

It isn't just the effective tax rate that inhibits growth. A tax that is simple and clear, stable and perceived to be fair is better for the economy than a complex, constantly changing tax, even if it has a somewhat lower rate.

Tax rates aren't the only -- or these days the most important -- government policies that affect economic growth. It's stifled more by our mammoth budget deficits and an orgy of new federal regulations.

Bad things happen to an economy when debt exceeds 77 percent of GDP. When debt exceeds 90 percent, growth rates are cut by half. Our $16 trillion debt exceeds 100 percent of GDP.

The cost to business of complying with federal regulations was $1.7 trillion, the Congressional Research Service estimated in 2008. That burden has increased significantly during the Obama administration. When all Obamacare rules go into effect, it'll grow to at least $1.8 trillion, according to the Competitive Enterprise Institute. That's 74 percent more than all the revenue from the personal income tax last year ($1.034 trillion).

What should these facts tell budget negotiators?

• Because it's the effective ceiling on revenue, no matter how we manipulate the tax code, spending must be held below 20 percent of GDP. If the government keeps adding to our mammoth debt, it won't just exert more drag on the economy. It'll crash it entirely.

• Cutting corporate income tax rates could partly offset returning personal income tax rates to what they were before the Bush tax cuts.

• Making the tax code more simple and clear -- and then keeping it stable -- could partially offset the harm done by raising rates.

• Regulatory reform could boost the economy more than tax hikes or spending cuts would slow it down.

So Republicans should compromise on taxes if Democrats agree to real, substantial, and immediate restraints on spending, because, as the AIER study makes clear, that's the only way to reduce deficits.

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JWR contributor Jack Kelly, a former Marine and Green Beret, was a deputy assistant secretary of the Air Force in the Reagan administration.

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