A State Runs a Budget Deficit

Louisiana, run by Progressive-Democrats since Bobby Jindall was term-limited out of office, is facing a $1.5 billion deficit as “temporary” tax increases implemented earlier begin to expire.  Jay Dardenne, the center-left Republican Commissioner of Administration, Louisiana governor John Bel Edwards’ chief budget officer, says that “devastating” spending cuts would be necessary absent a renewal of the tax increases or enactment of other tax increases.

Devastating: among those are additional reductions in higher education. This is misleading from a State official whose State already objects to school choice and to successful voucher schools in the K-12 range—because they take money away from badly failing public schools.  Except they don’t.  The State funds the public schools on a per-student basis, but when a student leaves for a voucher school, he takes less than his full allotment of funds with him, leaving the “losing” public school fiscally net better off.

It’s misleading, too, because higher education has an inflated tuition and fee structure supported by all that government funding (the Feds are contributors to this inflation with their own money transfers to the higher ed institutions), leaving those students fiscally net worse off.

Other areas facing spending reductions are tear-jerker “child-welfare” programs and “other” state agencies.  Never mind that these facilities waste the funds allocated with their high bureaucratic overhead and middle-man frictions.  And in the case of welfare (not just child), through uncertain enforcement.

No, the only ones truly facing serious spending reductions are the lobbyists and the Progressive-Democrats’ (and too many Republicans’) cronies.

It’s past time for a $1.5 billion reduction in State spending.  Louisiana needs to leave the money in the citizens’ hands, and it needs to stop competing with the private sector in providing goods and services and in acquiring resources for its own (unnecessary) functioning.

Tax Deductions

Republicans disagree among each other about the deductibility on Federal personal tax returns of property and sales taxes levied by States, with most of the objections coming from Republicans whose constituents are in high-tax States (which is to say, primarily Progressive-Democrat-led States like New York and California).  I’ve written elsewhere about the nature of that beef.

In my infinite wisdom, I offer a couple of alternatives for compromise.

One is to allow Federal income taxpayers to deduct either their State’s property tax or its sales tax, but not both.  Another is to allow the deductibility of both, but only part of the taxes—say 50%—not all of them.

In either case, after a year or two for transition/adjustment by both the taxpayer and the State of which he’s a citizen, eliminate altogether the deductibility of State taxes on individual Federal income tax returns.

The NLMSM touts the deductibility as Federal government redistributions, but the plain fact is those redistributions are of the monies paid by citizens of other States laundered through the Federal government.

I repeat my chorus: there’s no reason the citizens of Texas or Illinois should pay for the spending decisions of New York or California.  It’s true enough that all the States are in the Union together, and we’re all bound to help each other.  But that’s a two-way street: no State should be creating itself a burden on the other 49 by being irresponsible in its spending and taxing and then demanding those others make it whole from its foolishness.

False Premise

Budget mavens, politicians, and the NLMSM have one regarding our national tax code.  The Senate is considering a budget that sets an outer bound on the size of Federal tax cuts.

A budget with a tax plan that is revenue-neutral would effectively pay for itself, meaning any reduction in tax rates would be offset by reducing breaks or other revenue-raising measures.

No.  “Revenue neutral” must also consider what’s done with the revenue collected.  Revenue neutrality can be achieved, also, with sufficient spending cuts so that revenue collected meets or exceeds spending outflows.

Additionally, there is an underlying assumption that is carefully ignored by the politicians, budget mavens, and the NLMSM.  That is that the Federal government needs the revenue collected.  None of these worthies deign establish that need.

Huzzah

Regular order—it lives, sort of, at least on spending measures, in the House.

The House on Thursday voted to send 12 appropriations bills to the Senate. The chamber approved four of these 2018 spending measures prior to its August recess, and the remaining eight were debated and passed as part of the broader Thursday vote. They had previously passed out of committee. This is the first time since 2004 that a House Republican majority has passed all of its individual spending bills….

Now all we need is for the Senate to figure out how to do its job and pass these bills.  However, with unreliable Republicans in the Senate like John McCain (R, AZ), Rand Paul (R, KY), and Lisa Murkowski (R, AK), The Wall Street Journal is almost as skeptical about that as I am.

Nonsense

The National Park Service is handing $100,000 to UC Berkeley in a “research” grant to “to ‘honor the legacy’ of the Marxist revolutionary group the Black Panther Party.”  Worse, it did so without following its usual competitive bidding process for research grant money.

This cooperative research project between the National Park Service (NPS) and the University of California, Berkeley (UCB) on the Black Panther Party (BPP) is anchored in historical methods, visual culture, and the preservation of sites and voices.  The project will discover new links between the historical events concerning race that occurred in Richmond during World War II and the subsequent emergence of the BPP in the San Francisco Bay Area two decades later through research, oral history, and interpretation.

Committed to truthfully honoring the legacy of BPP activists and the San Francisco Bay Area communities they served, the project seeks to document the lives of activists and elders and the landscapes that shaped the movement[.]

This is…nonsense.  To truthfully handle the legacy of the Black Panther Party domestic terrorists, the Department of Justice should be the ones conducting this “research.”  If the NPS is serious about finding out things concerning the relationship between the Black Panthers and American society, it should claw back those $100,000 and transfer them to DoJ.

NPS’ funding announcement can be seen here.