Here are three common-sense principles.
- Higher taxes are misguided. They undermine prosperity and finance bigger government.
- Bailouts also are misguided. They facilitate corruption and encourage moral hazard.
- And international bureaucracies are misguided. They promote statism and squander money.
So what’s the “perfect storm” of bad policy?
How about when international bureaucracies offers a bailout in exchange for higher taxes?
Here are some very unpleasant details from Reuters about how the International Monetary Fund is working with other international bureaucracies to coerce Cyprus into raising taxes in order to provide a bailout.