Tag: taxes

Congressional Researchers Warn That High Federal Marijuana Taxes Could Inhibit Industry’s Economic Potential

As the Biden administration’s marijuana scheduling review continues, the Congressional Research Service (CRS) has released a report cautioning that if cannabis is eventually legalized, lawmakers should consider the potential unintended consequences of imposing high federal taxes on marijuana products.

The non-partisan research body isn’t necessarily suggesting that federal legalization is imminent, but it pointed out that there are a number of comprehensive reform proposals that Congress may consider as the Drug Enforcement Administration (DEA) completes its scheduling review and decides whether to follow the recommendation of the U.S. Department of Health and Human Services (HHS) by moving marijuana to Schedule III of the Controlled Substances Act (CSA).

As it argued in another recent report, CRS said it’s “likely that DEA will reschedule marijuana according to HHS’s recommendation,” based on past precedent. Meanwhile, lawmakers have put forward several federal legalization proposals that could expand on that incremental change, including legislation that would tax and regulate cannabis.

“Recreational marijuana’s potential economic effects may be a factor in any congressional actions on the substance,” the report says, caveating that federal data on the topic is limited given the ongoing prohibition of cannabis. Congress could collect additional data if it moved to require agencies like the Bureau of Labor Statistics (BLS) and Bureau of Economic Analysis (BEA) to start gathering such material, it said.

While federal data is generally limited, the U.S. Census Bureau did recently release its first report on state-level marijuana tax revenue following what the agency calls “a complete canvass of all state agencies” going back to July 2021.

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Watchdog: Afghanistan Has Received $11 Billion In Aid From US Since Withdrawal

A new watchdog report reveals that the country of Afghanistan has received a staggering $11 billion in foreign aid from the United States since the country’s collapse in August of 2021.

As Breitbart reports, the Special Inspector General for Afghanistan Reconstruction (SIGAR), John Sopko, issued his report on Monday.

Sopko says that the U.S. and its allies have been sending “cash shipments” of about $80 million to Afghanistan “every 10-14 days” since the Taliban took over the country shortly before the withdrawal of all American forces.

Sopko said that the United Nations has assured him that all of the money has been “placed in designated U.N. accounts in a private bank,” and is not being “deposited in the central bank or provided to the Taliban.”

The U.N. Assistance Mission in Afghanistan (UNAMA) similarly claimed that all of the cash shipments are being “carefully monitored, audited, inspected, and vetted in accordance with U.N. financial rules and processes.”

Despite these claims, Sopko’s report noted that the Taliban has stolen foreign aid before, and has also been able to prevent the poorest elements of a foreign population from receiving aid that has been designated for them; some of the Taliban’s methods for stealing foreign aid include “siphoning cash from U.N. shipments, or collecting royalties, or charging fees on cash shipments.”

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US to Transfer $320 Million in Precision Bombs to Israel

The Wall Street Journal reported on Monday that the Biden administration is planning a $320 million transfer of precision-guided bombs to Israel, a show of support for the Israeli onslaught despite the growing civilian death toll.

The report said the administration notified congressional leaders on October 31 that it intended to transfer Spice Family Gliding Bomb Assemblies, precision-guided air-to-surface munitions that can be fired by Israeli warplanes.

The bombs will be transferred from weapons manufacturer Rafael USA to its Israeli parent company, Rafael Advanced Defense Systems. It’s unclear what funds will be used for the transfer.

Israel receives $3.8 billion in annual military aid from the US, and the Biden administration is looking to provide another $14 billion to support the Gaza campaign. In the wake of the October 7 Hamas attack on southern Israel, the US began immediately shipping new military equipment to Israel.

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Tennessee to Pay $125,000 to Settle Lawsuit by Man Arrested for Posting Meme Mocking Dead Cop

The state of Tennessee will pay $125,000 to settle a First Amendment lawsuit filed by a man who was arrested and jailed for nearly two weeks for posting a meme mocking a dead police officer.

Joshua Garton, 29, was arrested in January of 2021 and charged with harassment following a Tennessee Bureau of Investigation (TBI) probe into a pseudonymous Facebook post that appeared to show two men urinating on the tombstone of an officer who was shot and killed in 2018. A judge dismissed the charges a month later, and Garton filed a federal civil rights lawsuit alleging malicious prosecution, false arrest, and First Amendment retaliation.

In a settlement agreement filed earlier this month, two TBI agents and 23rd District Attorney General Ray Crouch did not admit any guilt, but they agreed to pay Garton to avoid further litigation costs.

“First Amendment retaliation is illegal, and law enforcement officials who arrest people for offending them will pay heavy consequences,” Daniel Horwitz, Garton’s lead attorney, said in a press release issued Monday. “Misbehaving government officials apologize with money, and Mr. Garton considers more than $10,000 per day that he was illegally incarcerated to be an acceptable apology.”

The TBI, Tennessee’s lead investigative law enforcement agency, launched an investigation into the offending Facebook post at the request of 23rd District Attorney Ray Crouch. Agents visited the officer’s gravesite and quickly surmised that the picture Garton posted was fake. It was in fact a doctored photo of the cover of “Pissing on Your Grave,” a single by The Rites, which originally depicted two men urinating on the tombstone of punk legend GG Allin.

Despite knowing that no one had physically desecrated the grave, the TBI continued its investigation, soliciting tips on Twitter about Garton’s identity. When it finally nabbed Garton, TBI put out a press release, complete with mugshot, announcing his arrest for “manufacturing and disseminating a harassing photograph on social media.”

As Reason wrote when Garton was first arrested, it was unclear how a dead person could be criminally harassed under Tennessee law, which requires that the subject be “frightened, intimidated or emotionally distressed.”

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Cities Are Spending Absurd Sums on Modular Bathrooms

Philadelphia recently installed two Portland Loos: modular, stand-alone public restrooms first commissioned by Portland, Oregon. The single-stall metal structures are easy to keep clean and feature rounded walls to deter graffiti and walls that are louvered at the top and bottom to deter mischief inside stalls. However, despite these supposed benefits, cities regularly spend absurd amounts of taxpayer funds to purchase and install the bathrooms.

Philly plans to install six Loos over the next five years as part of the city’s public restroom pilot, which Philadelphia Health and Human Services launched in January 2021. The city has budgeted $1.8 million for six units, or $300,000 per unit, including installation costs.

According to a Portland Loo spokesperson who spoke with Reason, the total cost is around $200,000: up to $155,000 for the unit, including shipping, and between $30,000 and $80,000 for installation. Maintenance is about $14,000 annually.

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Congress Sneaks In Stealth $34,000 Pay Raise; Gaetz, AOC Among More Than 200 Lawmakers To Benefit

As House Democrats were set to hand power over to the Republicans following their midterm loss, they slipped in a provision into the House’s internal rules under the guise of aiding their less affluent members; a $34,000 allowance to ostensibly help with living expenses in Washington D.C.

A deep dive into the records by the Washington Free Beacon reveals that over 200 lawmakers, including the vociferous Rep. Alexandria Ocasio-Cortez (D-NY), have dipped into this taxpayer-funded pot, a sumptuous feast on the nation’s dime.

Ocasio-Cortez, who has previously lamented the costliness of D.C. living on a Congressperson’s salary, now enjoys taxpayer support for accommodations in a luxury building replete with amenities that seem more Silicon Valley than Capitol Hill.

Bipartisan handout

So far, 113 Democrats and 104 Republicans, including millionaire members like Rep. Katie Porter (D-CA) and House Minority Whip Katherine Clark (D-MA), have partaken in the program, drawing $1.4 million from taxpayers during the first half of 2023 alone.

Rep. Matt Gaetz (R-FL), a critic of past budgetary excesses (whose wife says she’s got a ‘chef husband’), claimed the largest share of the fund.

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Youth Smoking Nears Zero

New data from the Centers for Disease Control and Prevention (CDC) show youth smoking at a historic low, with just 1.9 percent of high schoolers lighting up in the past month. Youth vaping is also at its lowest level in a decade at 10 percent, and cigar use is down to 1.8 percent from 2.8 percent the previous year.

That’s good news from a public health standpoint, but the data raise questions regarding the Biden administration’s plan to ban menthol cigarettes and flavored cigars. A key argument for prohibition is that menthol cigarettes and flavored cigars appeal to youth, especially black youth, and banning them is essential to prevent future generations of addiction and outweighs the risks of illicit markets that are certain to follow. But the CDC data show that smoking rates among black high schoolers are so low they can’t be reliably calculated.

A smoke-free society is typically defined as one where cigarette smoking is below 5 percent of the population. Applying this standard to youth, the U.S. has achieved a smoke-free generation. With youth smoking all but eliminated, it’s hard to see menthol prohibition as anything other than an attempt to target adult consumers, particularly black smokers who are more likely to choose a menthol product.

Kids may have ditched cigarettes, but there are millions of adults who still use menthol cigarettes. Experiments in menthol prohibition in the European Union, Canada, and even Massachusetts aren’t promising examples for the United States. A study of the effect of menthol prohibition in Poland, which had the highest menthol consumption in the E.U. at almost a third of the cigarette market, found no statistically significant change in cigarette consumption after the ban. Canada, which had a far smaller share of menthol smokers at 11 percent of the population, did see 21.5 percent of menthol smokers quit after the ban was imposed. However, 19.5 percent of menthol smokers continued to source their preferred cigarettes through other channels, and 59 percent just switched to nonmenthol cigarettes. Massachusetts became the first state to ban all flavored tobacco products. The ban was a boon to neighboring states like New Hampshire and Rhode Island, which enjoyed a surge in cigarette sales. Massachusetts lost $116 million in cigarette tax revenue in the first 12 months of the ban, according to the Tax Foundation.

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Democrats Say They’re Fighting Inequality. But Many of Their Policies Favor the Rich.

In the grand ballroom of American politics, Democrats have long waltzed to the melody of progressivism while ridiculing Republicans’ preference for outdated tax cut tunes. Ironically, they don’t want to pay for their style of big government with higher taxes on ordinary Americans, which their expansionary ambitions would require. Instead, they loudly proclaim that they want to tax the rich. It remains to be seen how true this is.

Indeed, while Democrats profess their devotion to social justice and fight against income inequality, they often push for policies that favor the rich. Take their nonstop battle over the last five years to ease the tax burden of their high-income constituents.

The State and Local Tax (SALT) deduction cap, part of the 2017 Tax Cuts and Jobs Act (TCJA), placed a $10,000 limit on the amount of state and local taxes that can be deducted from federal taxable income. This move predominantly affected high earners in high-tax states like New York, California, and many others that are Democratic strongholds.

That’s a tax hike on the rich. This shouldn’t bother Democrats, who are usually happy to demonstrate their egalitarian chops by clamoring for that very thing. Yet this time, by demanding repeal of the SALT cap, they are on the front lines of a battle to restore tax breaks for the rich. As it turns out, when affluent Californians and Northeasterners felt the pinch, Democrats were ready to cha-cha for tax relief.

Contrast this with the refusal by moderate New York Republicans to vote for Jim Jordan (R–Ohio) for House speaker in exchange for doubling the deduction cap to $20,000 for individuals and $40,000 for married couples. Now, this might mean these guys really didn’t want Jordan as speaker, but they wouldn’t roll over even in exchange for tax cuts for their own constituencies.

Would New York Democrats be so principled? Back in 2021, 17 of 19 members of this delegation threatened to block a Democrat-sponsored infrastructure bill if the SALT deduction cap wasn’t entirely repealed. I would have been OK with that crony bill failing; I highlight this incident only to reveal some Democrats’ commitment to tax breaks for rich blue-state voters.

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NJ Gov. Murphy used thousands in taxpayer funds to party at Taylor Swift concert, stadium events: report

Democratic New Jersey Gov. Phil Murphy is asking the state Democratic Party to reimburse taxpayers after he used $12,000 in state funds at a Taylor Swift concert and other stadium events.

Murphy’s expenditures, first reported by Politico, were all for food and drinks at MetLife Stadium. When confronted with the spending, Murphy’s office reportedly said it was asking the state Democratic Party to pay back the state.

Murphy’s office says it had always expected the state party to cover the costs, but noticed it had failed to do so. The governor’s office then dipped into a $95,000 personal expense account set up for the office. That account is set up to pay for “Official Receptions, Official Residence, and Other Official Expenses,” and cannot be used for “personal purposes,” according to Politico.

“Once it was clear that there were outstanding bills that had not been paid, the state stepped up to meet this responsibility,” Murphy spokeswoman Jennifer Sciortino told the outlet in a statement. “We are pursuing reimbursement from the state party for costs incurred at MetLife Stadium.”

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Test Scores Are Plummeting Despite California Spending Wildly on Education

I’ve recently been investing in some long-deferred maintenance at my home and it should be no surprise to anyone that I’ve sought to receive as much quality work done for as little money as possible. When people spend their own hard-earned money on such projects, they measure success by results, such as a sparkling new kitchen. They don’t brag about how much they spent, but how much they got in return.

By contrast, state officials seem to delight in how much money they “invest” in different priorities, without worrying too much about outcomes. Sure, they sometimes pay lip service to results—but they don’t care enough about them to actually change the way they provide public services. (They’re not about to annoy the public-sector unions, which represent the people paid to provide those services.)

I’m not the only one to have noticed. State Sen. Steve Glazer (D–Orinda), in a July column about the $310-billion budget, complained that “we’ve already spent billions of dollars on the same problems—with very little to show for it.” He called on his fellow Democrats to ensure that the spending “actually improving the lives of the people we say we are committed to helping.” What a novel idea.

This dynamic is most pronounced in public education, which consumes more than 40 percent of the state’s general fund budget—plus local bond measures. Although lawmakers slowed education funding increases to close a $32-billion budget deficit this year, as of last year—during an unprecedented $97.5-billion budget surplus—they lavished public schools with money.

“The revised budget directs a total of $128.3 billion to education, lifts up the most critical needs including historic funding for school mental health, recruitment and retention of teachers,” boasted Superintendent of Public Instruction Tony Thurmond, following last year’s budget deal.

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