Tag: taxes

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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The Evil of the Residential Property Tax

According to the Case-Shiller index, home prices have increased 44 percent since February 2020. That’s just an average, of course, and some markets have seen increases in prices that are far higher. Even in middle-American housing markets, however—where home prices are supposedly more reasonable than on the coasts—prices have soared. In Cleveland, for example, the index is up 40 percent since early 2020. During the same period, the index rose 50 percent in Atlanta and 33 percent in Chicago. This sort of price inflation is not merely a product of the physical supply of housing. Demand for housing has been greatly inflated by nearly fifteen years of historic lows in interest rates, following by immense flows of newly created money during the Covid Panic. As economist Brendan Brown has noted, even as consumer price growth appeared low from 2008 to 2020, the effects of monetary inflation have long been visible in asset price inflation (e.g., home prices).

It is not at all surprising then that property taxes are rising as well. Fortunately for homeowners, though, property taxes have so far not kept up with market prices. According to an April report on property taxes from housing analytics company ATTOM,

$339.8 billion in property taxes were levied on single-family homes in 2022, up 3.6 percent from $328 billion in 2021. The increase was more than double the 1.6 percent growth in 2021, although smaller than the 5.4 percent increase the prior year.

The report also shows that the average tax on single-family homes in the U.S. increased 3 percent in 2022, to $3,901, after rising 1.8 percent the previous year.

At the individual state and local levels, some property tax hikes have soared. Michigan, for instance, has raised property taxes by levels not seen in 28 years. Some local governments are hiking property taxes by 20 percent or more.  In many areas, however, property tax increases have not even kept up with inflation. So, if home prices are rising at 40 percent or more on average, why are property tax collections not anywhere close? Much of the reason for these relatively modest increases is the fact property tax assessments are not instantaneous, but are only modified at often lengthy intervals. In other words, many homeowners may find that there is still plenty of property-tax related bad news still to come. Realtor.com reports, for example:

Property tax bills have been rising or are slated to go up as local governments capitalize on the surge in home prices over the past few years. And there is little recourse for homeowners stuck with the higher tabs.

“Most people should expect a property tax increase,” says Carl Davis, a research director at the Institute on Taxation and Economic Policy. “We’re seeing [property] assessments catch up with the market right now. That process will continue to unfold over the next few years.” Local governments are facing rising costs just like everyone else. And the wild price growth during the COVID-19 pandemic has presented municipalities with a golden opportunity to do something about it.

Kiplinger’s notes that state and local governments will be doing everything they can to translate rising home prices into more revenue:

Homeowners in areas that have experienced significant appreciation in home values should be prepared for the possibility that their local jurisdiction will raise rates to match higher assessments—even as home sales have leveled off, experts say. For local governments, inflation has driven up the cost of everything from public employees’ salaries to school supplies. In addition, in the wake of the COVID-19 pandemic, commercial property owners are struggling with a large number of vacancies, which has led to a decline in revenue from those sources.

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State Officials Promote Marijuana Gifting, Infused Baking And Safety Tips For The Holiday Season

State marijuana regulators across the country are marking the holiday season with messages about gifting cannabis as a present, making infused Christmas cookies and keeping products secure.

From California to New Jersey and New York to Virginia, regulatory bodies overseeing legal markets are engaging consumers on social media with holiday-themed posts, spreading the word about their respective marijuana laws and leaning into cannabis culture.

California’s Department of Cannabis Control (DCC), for example, shared an animated GIF on X (formerly Twitter) that looks like a grandmother holding baked goods decorated with a marijuana leaf, with text that asks followers about their “favorite cannabis holiday recipe.”

New Jersey’s Cannabis Regulatory Commission (CRC), meanwhile, is reminding adults that they’re allowed to “legally gift up to one ounce of cannabis to adults 21 years and older in New Jersey,” with details about the policy featured on a seasonal image of gifts, tree ornaments and pine twigs.

“Don’t forget though, it is illegal to transport cannabis across state lines,” the message adds, followed by a link to a government directory of licensed marijuana retailers.

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This Company Is Running a High-Speed Train in Florida—Without Subsidies

It comes as no surprise that President Joe Biden—who has reportedly ridden Amtrak trains over 8,000 times—supports pouring endless amounts of taxpayer money into the outdated, slow-moving system. In 2021, as part of the massive federal infrastructure law, the Biden administration gave Amtrak $66 billion, the largest government subsidy for passenger rail since the creation of Amtrak in 1971. But private companies, like Brightline in Florida, are trying to find profitable ways to bring passenger rail to the United States.

On September 22, Brightline opened service between Orlando and Miami. Topping out at 125 mph, it completes the trip in about three hours. For comparison, Amtrak takes roughly 6.5 hours to complete the same route, depending on the direction.

Brightline is the first privately funded intercity rail line in the U.S. in over 100 years, as well as the second-fastest train in the country (after Amtrak’s Acela line in the Northeast). It may not be truly high-speed rail by the global definition, but it’s certainly better than the region’s 80 mph Amtrak alternative.

Michael Reininger, CEO of Brightline, says that passenger rail can make commercial sense under certain conditions—such as in Florida, where it connects two populous, tourist-friendly cities that are over 230 miles apart. At that distance, Reininger says, “it is too far to drive and too short to fly. You can approximate the time of flying significantly, improve the time of driving, and you can offer it at a price point that makes it an economic proposition.”

In order to get the most out of $5 billion in private investments, Brightline had to be mindful of its bottom line—but others attempting to build high-speed rail in the U.S. don’t seem to care how much they spend and have no shame in asking for more taxpayer money.

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