Credit Cards, Tax Increases and George Carlin
The Federal Trade Commission sues a credit card issuer that lowered credit limits after profiling its customers’ purchases.
Political observers predict significant tax increases in the next presidential administration.
People around the world mourn the death of controversial comedian George Carlin.
1. PRIVACY
The Federal Trade Commission sues a credit card issuer that lowered credit limits after profiling its customers’ purchases.
CEI Expert Available to Comment: Senior Fellow Eli Lehrer on the logic of flagging certain purchases:
“I’d doubt that there’s any firm social science that shows that pool players are bad credit risks but it’s pretty certain that getting divorced, going out drinking every night, buying a boatload of Amway products, pawning your possessions and the like all correlate with financial distress… In fact, I would see this kind of scoring as a net-benefit to consumers: the more companies can distinguish between ‘good’ and ‘bad’ consumers, the better they can treat ‘good’ consumers and the more they can focus on turning ‘bad’ consumers into good ones.”
2. TAXES
Political observers predict significant tax increases in the next presidential administration.
CEI Expert Available to Comment: Special Projects Counsel Hans Bader on the likely economic effects:
“A big tax increase is likely during the next administration, with self-employed people in many areas facing marginal tax rates of ‘60% or higher’ as a result. That’s likely to be a boon to tax lawyers and accountants, who have expertise in helping heavily-taxed individuals find tax shelters. It should also fuel increased demand for tax-exempt municipal bonds among people in higher tax brackets.”
3. LEGAL
People around the world mourn the death of controversial comedian George Carlin.
CEI Expert Available to Comment: Technology Policy Analyst Cord Blomquist on Carlin’s unusual place in legal history:
“Like [Lenny] Bruce and [Richard] Pryor, Carlin’s controversial material invoked the ire of authorities who sought to make examples of the comedian for violating obscenity laws. In 1972, Carlin was arrested in Milwaukee for performing his ‘seven words’ routine, which describes at length the words that are banned on television and radio. In a fantastic case of legal irony, Carlin’s ‘seven words’ routine was eventually broadcast over the air, resulting in a landmark Supreme Court case. In 1978, the Court ruled 5-4 in the case of FCC v. Pacifica Foundation—or the ‘Carlin case’ as it now commonly called—that the Federal Communications Commission had the right to regulate the airwaves to prevent children from hearing profanities—striking a huge blow against free speech.”