Tag: taxes

How Biden Hobbled His Own Infrastructure Push

With President Joe Biden’s poll numbers continuing to sag and most Americans still dour about the state of the economy, the White House is understandably trying to change both narratives by pointing to the supposedly transformational benefits of Biden’s 2021 infrastructure spending package.

There’s just one little problem with that plan: finding actual evidence.

Biden is frustrated about how long it is taking to turn that $1 trillion into new construction sites that would serve as convenient backdrops for reelection campaign press conferences, according to CNN. “There’s immense frustration” in the fact that it could be years before some communities see real benefits from the tranche of spending that Biden and Congress authorized two years ago, one unnamed White House official tells CNN.

“He wants this stuff now,” says another.

Impatient children have only another few days to wait for Christmas, but Biden will likely be waiting quite a bit longer to see any significant benefits from the infrastructure bill. Too long, perhaps, given that the clock is ticking rapidly toward the 2024 presidential election.

Some of the reasons are beyond the president’s control, of course. The government is simply not very efficient at doing much of anything, and major infrastructure projects take time to plan, organize, and execute. You can’t actually fix anything by simply dumping money on it, no matter how many times that approach is tried.

However, Biden does bear significant culpability for at least some of the delays that are now frustrating his White House and campaign teams. From the tightening of “Buy American” rules for federal procurement to mandates that limit the ability of nonunion construction shops to bid on these projects, the infrastructure bill Biden signed in November 2021 is loaded with provisions that were always going to slow its implementation and limit its effectiveness.

The outcome was predictable from the start. “Making waivers for Buy America provisions harder to obtain reveals the contradictory aims of Biden’s infrastructure policy,” Reason‘s Christian Britschgi wrote in April 2022. “The president wants to make ‘historic’ investments in infrastructure, but he’s also deeply committed to regulations that ensure those investments will buy as little infrastructure as possible.”

Rules requiring contractors to use American-made stuff in federally funded projects have been on the books for decades. That’s one of the reasons why American mass transit projects are much more expensive than similar projects built in other parts of the world. The infrastructure bill doubled down on those problems by expanding those requirements to cover even basic materials like copper wiring, drywall, and lumber.

“The quick implementation of Buy America requirements for such a broad range of materials will cause delays in project delivery while states, contractors, manufacturers, and suppliers continue working to determine how best to track and verify these materials,” Washington state Secretary of Transportation Roger Millar warned federal officials in a letter last year.

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Chicago Mayor Brandon Johnson calls for reparations funding to reduce violent crime

Democratic Chicago Mayor Brandon Johnson insisted to CNN that funding for reparations in his new budget will help get to the root of the city’s record violent crime epidemic.

While speaking to network anchor Poppy Harlow on “CNN This Morning” Wednesday, Johnson acknowledged the high crime rate in Chicago and declared that the “full force of government” is required to solve it, including the city throwing $500,000 at reparations programs. 

Harlow prompted his answer by citing Chicago Police Department statistics revealing that although “the murder rate is down from 2022,” “all other forms of violent crime, Mr. Mayor, are up from a year ago, up 17% overall.”

“Are Chicagoans going to be safer in 2024?” the anchor asked. 

Johnson, who has been mayor of the Democrat-run city for about seven months, claimed the solution to the problem lies with a major government response, and the “full out community safety plan,” he claimed, “not only gets at the root causes of violence in the city of Chicago,” but makes “critical investments.”

He listed the investments: “A quarter of a billion dollars to address homelessness, $100 million for violence prevention. We added 80 million more dollars to our youth employment program of which we hired 25,000 young people just this summer. That’s a 20% increase from the previous year.”

Johnson also touted his proposal “to hire 4,000 additional young people this summer,” adding, “We have stood up an entire office dedicated to re-entry. So individuals who are returning to our communities who have been incarcerated because of failed policies will have a welcoming space for them.”

He then spoke about city funds being diverted to providing reparations for its African American community. “I’ve added a half a million dollars for restoration and reparations to address, again, the cycle of violence, which looks like school closings, closing of mental health facilities, of which I’ve invested in now. We’re going to open up two mental health clinics that were closed from two previous administrations ago.”

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Illegal Immigrants With Anchor Babies Using Up More Welfare Than American Citizens

Households that are headed by illegal immigrants and have U.S.-born children are more likely to use welfare than are homes led by U.S.-born individuals, according to a recent report by the Center for Immigration Studies (CIS).

At least 59.4 percent of illegal immigrant-led homes use one or more welfare programs, compared with 39 percent of households headed by people born in the United States, according to the Dec. 19 report.

High rates of welfare use among illegal immigrants “primarily reflect their generally lower education levels and their resulting low-incomes, coupled with the large share who have U.S.-born children who are eligible for all welfare programs from birth,” the report reads.

“More than half of all illegal immigrant households have one or more U.S.-born children.”

Children born to illegal immigrants in the United States, also known as “anchor babies,’ are considered to have automatic birthright citizenship even though the U.S. Supreme Court hasn’t explicitly ruled on the matter. Illegal immigrants can’t access most welfare programs, a restriction that eases for their children who are born in the country.

“The American welfare system is designed in large part to help low-income families with children, which describes a large share of immigrants,” CIS states in the report.

A dozen states offer Medicaid to all low-income children regardless of immigration status. Such children also have access to various government food and meal programs.

Programs such as Temporary Assistance for Needy Families, the Women, Infants, and Children nutrition program, free or subsidized lunch and breakfast for students, and Medicaid for children (Children’s Health Insurance Program) were “explicitly created for minors,” the report states.

The CIS report is based on data from the U.S. Census Bureau’s 2022 Survey of Income and Program Participation (SIPP).

“The reality is that illegal immigrants are included in the SIPP, a large share of them are poor, and they or their U.S.-born children have welfare eligibility; and many take advantage of this eligibility,” CIS stated.

“A very large share of immigrants come to America, have children, struggle to provide for them, and so turn to taxpayers for support. This can be seen as especially problematic given that there is already a large number of Americans who are also struggling to provide for their children.”

According to data from the Federation for American Immigration Reform (FAIR), the total number of U.S.-born children of illegal aliens in the United States as of June stood at 5.78 million, a population more than two times that of Chicago.

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US Announces $250 Million Arms Package for Ukraine

The Biden administration announced a new $250 million weapons package for Ukraine that the White House said will be the last until Congress approves new spending for the proxy war.

The arms package uses the Presidential Drawdown Authority, which allows the US to ship weapons straight from US military stockpiles. The Pentagon still has over $4.1 billion in PDA funds for Ukraine but lacks the funds to replenish the arms as US stockpiles have been significantly depleted.

White House National Security Council spokesman John Kirby said last week that once the new arms package was announced, “We will have no more replenishment authority available to us, and we’re going to need Congress to act without delay.”

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Break the Cycle: In 2024, Say No to the Government’s Cruelty, Brutality and Abuse

“The greater the power, the more dangerous the abuse.”—Edmund Burke

Folks, it’s time to break the cycle of abuses—cruel, brutal, immoral, unconstitutional and unacceptable—that have been heaped upon us by the government for way too long.

Here’s just a small sampling of what we suffered through in 2023.

The government failed to protect our lives, liberty and happiness. The predators of the police state wreaked havoc on our freedoms, our communities, and our lives. The government didn’t listen to the citizenry, refused to abide by the Constitution, and treated the citizenry as a source of funding and little else. Police officers shot unarmed citizens and their household pets. Government agents—including local police—were armed to the teeth and encouraged to act like soldiers on a battlefield. Bloated government agencies were allowed to fleece taxpayers. Government technicians spied on our emails and phone calls. And government contractors made a killing by waging endless wars abroad.

The president became more imperial. Although the Constitution invests the President with very specific, limited powers, in recent years, American presidents have claimed the power to completely and almost unilaterally alter the landscape of this country for good or for ill. The powers amassed by each successive president through the negligence of Congress and the courts—powers which add up to a toolbox of terror for an imperial ruler—empower whoever occupies the Oval Office to act as a dictator, above the law and beyond any real accountability. The presidency itself has become an imperial one with permanent powers.

The cost of endless wars drove the nation deeper into debt. Policing the globe and waging endless wars abroad hasn’t made America—or the rest of the world—any safer, but it has made the military industrial complex rich at taxpayer expense.

The courts failed to uphold justice. Time and time again, the Supreme Court failed to right the wrongs being meted out by the American police state. A review of critical court rulings over the past decade or so, including some ominous ones by the U.S. Supreme Court, reveals a startling and steady trend towards pro-police state rulings by an institution concerned more with establishing order and protecting the ruling class and government agents than with upholding the rights enshrined in the Constitution.

The Surveillance State rendered Americans vulnerable to threats from government spies, police, hackers and power failures. Thanks to the government’s ongoing efforts to build massive databases using emerging surveillance, DNA and biometrics technologies, Americans became sitting ducks for hackers and government spies alike. Billions of people have been affected by data breaches and cyberattacks. On a daily basis, Americans were made to relinquish the most intimate details of who we are—our biological makeup, our genetic blueprints, and our biometrics (facial characteristics and structure, fingerprints, iris scans, etc.)—in order to navigate an increasingly technologically-enabled world. The Department of Homeland Security, which has led the charge to create a Surveillance State, has continued to deploy mandatory facial recognition scans at airports and gather biometric data on American travelers. Police were gifted with new surveillance gadgets. The Corporate State tapped into our computer keyboards, cameras, cell phones and smart devices in order to better target us for advertising. Social media giants such as Facebook granted secret requests by the government and its agents for access to users’ accounts. And our private data—methodically collected and stored with or without our say-so—was repeatedly compromised and breached.

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‘Severe revenue decline’: California faces a record $68 billion deficit — here’s what is eating away at the Golden State’s coffers

California is dealing with a revenue shortfall partly due to a delay in 2022-2023 tax collection. The IRS postponed 2022 tax payment deadlines for individuals and businesses in 55 of the 58 California counties to provide relief after a series of natural weather disasters, including severe winter storms, flooding, landslides and mudslides.

Tax payments were originally postponed until Oct. 16, 2023, but hours before the deadline they were further postponed until Nov. 16, 2023. In line with the federal action, California also extended its due date for state tax returns to the same date.

These delays meant California had to adopt its 2023-24 budget before collections began, “without a clear picture of the impact of recent economic weakness on state revenues,” according to the LAO.

Total income tax collections were down 25% in 2022-23, according to the LAO — a decline compared to those seen during the Great Recession and dot-com bust.

“Federal delays in tax collection forced California to pass a budget based on projections instead of actual tax receipts,” Erin Mellon, communications director for California Gov. Gavin Newsom, told Fox News. “Now that we have a clearer picture of the state’s finances, we must now solve what would have been last year’s problem in this year’s budget.”

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EVERYONE LOVES A GENEROUS GOVERNMENT UNTIL THEY HAVE TO PAY FOR IT

Governments, like individuals, can spend liberally with great generosity, or they can be frugal. Everyone receiving government money loves the state’s free-spending generosity, as it is “free money” to the recipients.

But there is no such thing as truly “free money,” a reality discussed by Niccolo Machiavelli in his classic work on leadership and statecraft, The Prince, published in 1516. In Machiavelli’s terminology, leaders could either pursue the positive reputation of being liberal in their spending (not “liberal” in a political sense) or suffer the negative reputation of being mean, i.e. miserly, tight-fisted and frugal.

Machiavelli pointed out that the spending demanded to maintain the reputation for free-spending liberality soon exhausted the funds of the state and required the leader to levy increasingly heavy taxes on the citizenry to pay for the state’s largesse.

Once we examine this necessary consequence of liberal spending, it turns out the generous government is anything but generous, as it is eventually forced to impoverish its people to support its spending.

It is the miserly leader and state that is actually generous, for it is the miserly leader / state that places a light burden on the earnings and livelihoods of the citizenry.

As Machiavelli explained, taxes and the inflation that comes with free spending both rob everyone, while the state’s generosity is a political process that necessarily distributes the largesse asymmetrically:

If he is wise he ought not to fear the reputation of being mean, for in time he will come to be more considered than if liberal, seeing that with his economy his revenues are enough, that he can defend himself against all attacks, and is able to engage in enterprises without burdening his people; thus it comes to pass that he exercises liberality towards all from whom he does not take, who are numberless, and meanness towards those to whom he does not give, who are few.

The profligate state and leader fail, for their resources are squandered.

We have not seen great things done in our time except by those who have been considered mean; the rest have failed. A prince, therefore, provided that he has not to rob his subjects, that he can defend himself, that he does not become poor and abject, that he is not forced to become rapacious, ought to hold of little account a reputation for being mean, for it is one of those vices which will enable him to govern.

Machiavelli understood that the positive reputation generated by profligacy decays as quickly as solvency. Everyone loves getting “free money” from the state until the bill comes due: the decay of purchasing power (i.e. inflation), higher taxes and fees, and the ever-increasing burdens of interest to be paid on soaring state debts that squeezes out all other spending.

And there is nothing wastes so rapidly as liberality, for even whilst you exercise it you lose the power to do so, and so become either poor or despised, or else, in avoiding poverty, rapacious and hated. And a prince should guard himself, above all things, against being despised and hated; and liberality leads you to both. Therefore it is wiser to have a reputation for meanness which brings reproach without hatred, than to be compelled through seeking a reputation for liberality to incur a name for rapacity which begets reproach with hatred.

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3 Out Of 5 Illegal Alien Households Are Supported By Taxpayer-Funded Welfare

A new analysis by the Center for Immigration Studies (CIS) reveals that almost 60% of all illegal aliens households in the United States are benefiting from at least one form of taxpayer-funded welfare benefits.

Breitbart reports that the study, written by CIS’ Steven Camarota and Karen Zeigler, found that illegal aliens households, as well as legal immigrants, use “significantly more” welfare than actual American citizens. Of illegal aliens currently occupying land in the U.S., 59% are on welfare that is funded by legal American citizens; 52% of legal immigrants are also using welfare. Meanwhile, less than 40% of American citizens use welfare.

Among the most common forms of welfare for illegals are food stamps, Medicaid, and the Earned Income Tax Credit.

“This is primarily because the American welfare system is designed in large part to help low-income families with children, which describes a large share of immigrants,” the study explains.

“Compared to households headed by the United States-born, immigrant-headed households have especially high use of food programs (36 percent vs. 25 percent for the U.S.-born), Medicaid (37 percent vs. 25 percent for the U.S.-born), and the Earned Income Tax Credit (16 percent vs. 12 percent for the U.S.-born),” CIS continues.

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California Psychedelics Ballot Measure Could Undermine Marijuana Taxes, State Officials Say

The California Legislative Analyst’s Office (LAO) released its review this week of a prospective ballot initiative to legalize psychedelics, outlining not only the plan’s policy implications but also its potential fiscal impacts on the state—which the report calls “various” and “uncertain.”

The measure, which proponents submitted the final language for earlier this month, would allow adults to legally grow, possess and use substances like psilocybin, LSD, MDMA, DMT, ibogaine and mescaline. A person would need a healthcare practitioner’s recommendations to purchase psychedelics at regulated stores.

As filed, the so-called Psychedelic Wellness and Healing Initiative of 2024 refers to “entheogenic” plants and substances, and it includes cannabis among them.

That approach, LAO said in its review, could cost hundreds of millions of dollars in potential tax revenue to the degree it affects the state’s existing marijuana market.

“If the interpretation and implementation of the measure causes a large share of cannabis businesses and consumers to shift from the existing legal cannabis market to the new market created by the measure,” the report says, “it could result in a net reduction of hundreds of millions of dollars in cannabis-related tax revenue.”

On the other hand, LAO added, the change could in fact lead to more revenue for the state.

“If there is not such a shift, the measure could result in a net increase in tax revenue,” the office said, “as people selling currently illegal entheogenic plants or substances or providing related services could begin doing so legally under state law and therefore pay sales and personal income taxes.”

Analysts noted that the potential increase in tax revenue, however, “is significantly smaller than the potential revenue reduction.”

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Ford E.V. Battery Plant in Michigan Named Worst Economic Development Deal of 2023

Each year since 2018, the Center for Economic Accountability (CEA)—a nonpartisan think tank opposed to corporate welfare—has named its Worst Economic Development Deal of the Year, a dishonor awarded to the most egregious misuse of taxpayer funds nominally intended to spur economic growth.

This year, the ignoble honor goes to Michigan, which has awarded over $1.75 billion to Ford Motor Co. and Contemporary Amperex Technology Ltd. (CATL), a Chinese battery manufacturer. The two companies are jointly developing a factory in Marshall, Michigan, that would build lithium iron phosphate batteries for the automaker’s electric vehicle (E.V.) lineup.

In its announcement, the CEA breaks down what the state has pledged so far, which includes $630 million worth of road paving and site development; grants from various state funds of $210 million, $120 million, and $36 million; and a 15-year tax abatement valued at $772 million. Other estimates have put the total amount at $2.2 billion.

Last month, facing strong economic headwinds, Ford announced it was “re-timing and resizing some investments.” While the Michigan plant was originally intended to create 2,500 jobs, Ford changed its pledge to 1,700 jobs and lowered its potential output by 40 percent, estimated to shrink the company’s financial investment by $1 billion or more.

Since Ford originally pledged $3.5 billion, Michigan’s contribution to the project could be nearly as much as what Ford plans to spend on its own factory. Gov. Gretchen Whitmer, a Democrat, told reporters that Michigan’s investment may be “resized” as well, and “as Ford has had to make some changes…the state’s role will change as well.”

Of course, the deal’s merits were questionable from the start. When the project was first announced, Whitmer’s office claimed it would have “an employment multiplier of 4.38, which means that an additional 4.38 jobs in Michigan’s economy are anticipated to be created for every new direct job.”

This is a fanciful notion. Tim Bartik of the W.E. Upjohn Institute for Employment Research has estimated that a more typical multiplier on a local or state level is between 1.5 and 2. Last month, Bartik calculated the estimated benefits of Michigan’s proposed investment; while he was broadly positive, he noted that a 4.38 multiplier was “very high,” and “if the Ford project had a more typical multiplier—2.5 rather than 4.38—the project’s gross benefits would be less than the incentive costs.”

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