Nationalism may be the first mover of stupid policy ideas, including trade protectionism and more recently, the call to exempt Olympic medal-winners from income taxes.
A few minutes ago, Mike Huckabee, a Republican and former candidate for president, chatted with Rep. Mary Bono Mack (R-Calif.) on his Fox News TV show. The two discussed how horrible it was that American athletes were subject to the federal income tax.
Mack lamented that for the medal-winners, their prizes (which include cash bonuses) came only after years and years of hard work. Huckabee agreed. LaPlante was appalled.
What then, I thought, about the business owner who works 60-80 hours a week for years on end before becoming an overnight success? How about a tax cut for them?
Both Huckabee and Mack extolled Olympic athletes as generating good will for the U.S. of A.–suggesting that in itself might qualify them for tax cuts. I’m sure Hollywood movies generate some good will (or at least notoriety) for the U.S. So does that mean that Tom Hanks will be henceforth exempt, as a matter of policy, from the federal income tax?
By that logic, we ought to exempt employees of Apple from taxes; I’m sure they generate more goodwill for America than a divers, swimmers, and gymnasts.
Don’t get me wrong. I think that federal income tax rates ought to be cut (and spending cut even more), and I applaud the dedication of world-class athletes, and marvel at their achievements.
But exempt them from taxes out of some notion that nationalism makes it the right thing to do? Instead of letting that idea in the game, we ought to eject it, immediately.