Tag Archives: political economy

An EV Mandate Lawsuit

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California has enacted regulations restricting automobile emissions that are far stricter than national requirements. The Federal government is suing on the theory that Federal regulations, along with Federal law, preempt State regulations. If successful, this would render California’s regulations illegal and without force. The Federal government should win this suit easily, even if California drags it out and into the Supreme Court: our Constitution’s Supremacy Clause—this Constitution, and the Laws of the United States which shall be made in Pursuance thereof…shall be the supreme Law of the Land—is pretty dispositive.

On the other hand, no one is forcing the companies to build cars for sale in California in the first place. It’s expensive to do so, and those increased costs get spread across customers nationwide, because the car makers build all their cars to meet California’s requirements. Those car makers could both reduce their costs of production and so their prices charged the rest of their customers, if they simply built cars according to national standards and stopped selling in California. That would result in a increase in ex-California national sales that would swamp the per-car price reduction, which in turn would produce large aggregate increases in revenue, and profit.

Tax-Addicted Progressive-Democrats

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Party has never seen a tax or an increase in existing taxes they don’t like. Washington and New York present examples.

Washington demonstrates the desperation for ever more tax fixes that Party needs to feed its collective addiction for OPM. The State’s Party is determined to impose a 9.9% tax on household income over $1 million a year.

On Monday lawmakers in Olympia pulled an all-nighter to push through the legislation, which [Progressive-]Democratic Governor Bob Ferguson has said he will sign. The bill passed the House 51-46 and goes back to the state Senate.

Never mind that the State’s citizens have repeatedly rejected income taxes in referendum after referendum. What do Party politicians care about the wishes of the small people of their State.

Never mind, either, that the State’s constitution forbids any form of income tax. What do Party politicians care about laws, however foundational, that get in their way?

And never mind that the State’s Senate Majority Leader, Manka Dhingra (D), campaigned for office on her opposition to income taxes, and now in office, actively supports this one. What do Party politicians care about truth or honesty?

Next is New York.

Democratic senators want to increase the state’s top income tax rate by 0.5 percentage points on households making more than $5 million. That would raise the top state-and-local rate in New York City to 15.3%. They also propose to raise the state’s corporate tax to 9% from 7.25% on businesses with more than $5 million income and let New York City raise its corporate tax rate to 10.62% from 8.85%. All told, large businesses would pay a nearly 20% tax rate in New York City.

And this one:

Governor Kathy Hochul, Democratic legislators, and union leaders held a rally over the weekend in support of rolling back the state’s 2012 pension reforms that raised the retirement age to 63 and requires workers to contribute between 3% and 6% of their paychecks to their pensions. “I’m fighting for a fair pension plan,” the Governor declared.

I’m not sure France is a useful model to emulate in the areas of work and retirement.

Taxes are a far more powerful addiction for Party politicians than are nicotine, or sugar, or opioids for us average Americans. Worse, Party’s addiction is severely damaging to our nation, whereas nicotine, sugar, and opioid addictions do their primary damage to the users.

No They Don’t

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I’ll be brief.

The lede lays out the question.

Companies say President Trump’s climate overhaul makes it tough to frame their future emissions plans and prepare for what they see as inevitable environmental restrictions—particularly as their goals extend beyond the president’s term.

No, they don’t.

Quit planning their future emissions. Quit distorting business decisions away from simple economics and away from what’s optimal for the business’ owners—the shareholders.

Easy peasy, once business managers get up out of their deep defensive crouches and stop cowering in front of climate funding industry pushers.

The hard work, while remaining straightforward, is to engage those duck and cover energies and their existing lobbying budgets to getting the current Congress to codify in statute those Trump moves. Therein lies business planning stability and lower costs for business’ customers.

What He Said

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Mississippi’s Republican governor, Tate Reeves, had a few words to say in response to Vermont’s nominally Independent Senator, Bernie Sanders, the latter whom wants a moratorium on building data centers to support AI development or any other uses. Reeves’ words, though, have much broader implication, and I’ve repeated them below in their entirety.

I understand individuals who would rather not have any industrial project in their backyard. We all choose where to live, whether it’s urban, suburban, agrarian, or industrial. I do not understand the impulse to prevent our country from advancing technologically—except as civilizational suicide.
This instinct seems to infect the far left across lots of domains: immigration, crime fighting, and the national debt to name a few. You can tell they’re just sort of yearning to submit our society to outside forces: mobs, international councils, or communist China. Maybe they’re exhausted and just want a few years of taxpayer-funded rest before they shuffle off.
I don’t want to go gently. I love this country, and want her to rise. That’s why Mississippi has become the home of the world’s most impressive supercomputers. We are committed to America and American power. We know that being the hub of the world’s most awesome technology will inevitably bring prosperity and authority to our state. There is nobody better than Mississippians to wield it.
I am tempted to sit back and let other states fritter away the generational chance to build. To laugh at their short-sightedness. But the best path for all of us would be to see America dominate, because our foes are not like us. They don’t believe in order, except brutal order under their heels. They don’t believe in prosperity, except for that gained through fraud and plunder. They don’t think or act in a way I can respect as an American.
So, let’s see Americans (and Mississippians) dominate this space—no matter how many leftists want us to roll over and die instead.

That last is especially important; I’ll say it again:

So, let’s see Americans (and Mississippians) dominate this space—no matter how many leftists want us to roll over and die instead.

An Alternative Move

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Vice President JD Vance (R), in his new capacity as leader of President Donald Trump’s (R) newly formed anti-fraud facility, has paused transfer of some $260 million in Medicaid funding to Minnesota until that State begins to do a better job of accounting for how it spends those American taxpayer dollars. Minnesota’s Progressive-Democrat governor, Tim Walz, promptly claimed that Vance’s move was nothing more than a

campaign of retribution. Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota. These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state.

There is a valid concern buried under Walz’ manufactured hysteria—the loss of financial support for the groups of Americans he named. As Vance noted,

Vance…recalled his own experience growing up depending on government programs and said the money should be there for people and children who need it. “It’s disgraceful that fraudsters out there are taking advantage of programs like Medicaid[.]”

There is an alternative solution to a blanket cutoff, however temporary. Who the individuals are in those groups about whom Walz so piously pretends to care is known to the Federal government. Those $260 million should be sent directly to those individuals, entirely bypassing the State and the third parties Walz’ administration uses to distribute and funnel the money.

The shift would go a long way toward reducing the corruption in the State’s Medicaid facility by bypassing it entirely. Remaining fraud would be limited to the Federal government’s distribution facility, and that, as a one-time affair, would be minimal. The Trump I administration’s distribution of a one-time followed by a smaller one-time distribution of Wuhan Virus shutdown funds to American taxpayers shows the way.