Tag Archives: spending

Federalism and State Taxes

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A Wall Street Journal editorial opens with this:

One great benefit of America’s federalist Constitution is policy competition among the states. Voters in Florida don’t have to live under New York’s laws, and Americans and businesses can vote with their feet by moving across state lines.

The editors proceeded to a description of State-level tax laws and the mobility of us Americans and our businesses in leaving States with high taxes in favor of States with, often markedly, lower taxes. But that lede overstates the case.

Federalism applies, often, with State taxes, but State-level business regulations are a different matter. It’s only necessary to see the outsize impact on our auto industry, for instance, or our pork industry, that California’s regulations have on vehicle requirements and on how hogs must be raised to see the lack of federalism in our regulatory environment.

With specific regard to California’s fuel requirements, there’s this from the Federal government’s EPA:

The Clean Air Act allows California to seek a waiver of the preemption which prohibits states from enacting emission standards for new motor vehicles.

The Federal government has long granted that waiver, and during the Biden administration, the feds made their latest move—overtly to refuse to rescind the waiver, effectively nationalizing a State regulation at the expense of federalism.

On the California’s hog-raising regulation, the Supreme Court upheld that regulation, which mandated the minimum space in which hogs must be raised, anywhere in the United States, in order for them to be marketable in California. The Court nationalized this State-level regulation—again at the expense of federalism.

If we’re going to preserve our federalist structure of governance, federalism must be restored to State regulations, as well as State-level taxes. Don’t look for any of that to happen under any Progressive-Democratic Party-dominated Federal government, though.

Energy Subsidies

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This table shows the size of the subsidy for the indicated energy source along with the size of the subsidy per trillion BTU produced by that energy source.

Million$/ TrillionBTU Million $ Trillion BTU
Solar 4.153 7,522 1,811
Geothermal 1.665 353 212
Wind 0.947 3,592 3,791
Coal 0.072 873 12,033
Biomass 0.06 312 5,171
Nuclear 0.048 390 8,065
Oil & Nat Gas 0.033 2,304 68,804

The table is constructed from data in the EIA report, Federal Financial Interventions and Subsidies in Energy in Fiscal Years 2016–2022.

Notice that the Solar subsidy is orders of magnitude greater than those for coal or for oil and natural gas. The wind subsidy is similarly bloated.

Despite these actual facts, the Mainstream Left keeps pushing the myth of too much subsidy for hydrocarbons.

 

H/t: DrBob2 at The Motley Fool.

Federal Government Shutdowns

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I’ve written a few times (the latest here) about the results of Federal government shutdowns. Progressive-Democratic Party politicians always and everywhere are in full-throated panic-mongering about the disaster that is a shutdown. Far too many Republican Party politicians timidly accept the Leftist Party’s claims and seek to do anything, even on bended knee, to avoid a shutdown.

I have a challenge for them, and for all you out there in reader land.

Here are two graphs, the first from Macrotrends showing our GDP growth rate from year to year from 1961 through 2022, and the second from stastica showing GDP levels over the more focused period of 1990-2022.

My challenge is this: find, in either graph, the Federal government shutdowns of 2013, 2018, and 2018-2019.

As an aside, as I write this late Saturday, the House passed a 45-day, keep the government open, funding bill; the Senate then passed the House bill and forwarded the thing to President Joe Biden (D). The bill omitted any spending cuts, steep or otherwise, and dropped any aid for Ukraine.

This, in light of the above, represents a surrender to the Progressive-Democrats forced by the allegedly Republican Chaos Caucus led by Zoo Master Matt Gaetz (R, FL), who have offered nothing beyond “No” to any bill on offer, including the prior Republican-led House stop-gap bill that included significant cuts to spending—which would have given time to work out the remaining appropriations bills with even deeper and broader spending cuts. Gaetz might as well have joined Progressive-Democrat Congressman Jamaal Bowman in deliberately pulling a Congressional office fire alarm in an attempt to stall any House action at all.

Furloughs and Redundancy

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If the government is partially shut down by Progressive-Democratic Party Congressional politician obstructionism, millions of federal employees could face furloughs, some federal offices may close or work shortened hours.

Those furloughs and closures would give us some interesting data on the usefulness/criticality of those furloughees and offices. Here’s what Slate found regarding these items during the Obama “shutdown” some 10 years ago:

Notice a couple of things here regarding Progressive-Democrat President Joe Biden’s threat to stop paying our military members and Party politicians’ threats regarding the VA (right click on the graph and select Open Image in New Tab to get a bigger image). One is the Veterans Affairs level of furloughing: all of 4%. That’s not importantly different from the ordinary absentee rate due to illness, vacation, and so on.

Then look at the Defense line and the Note at the bottom of the graph, the latter which says Department of Defense total includes military personnel. Half of civilian personnel have been furloughed. The civilian furlough rate of 50% is a strong indication of how many of those civilians really are needed in the Pentagon and elsewhere in DoD. The military side of DoD can easily continue being paid out of current tax law-driven revenues flowing in to the government.

Finally, notice the furlough rate at so many of those Federal Agencies. That’s also a very strong indication of how many employees are truly unnecessary. Certainly, short-term furloughs overstate the degree of redundancy, but they give a very good index into how many truly are excess.

Who Restricts What in K-12 Education?

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Cogently put by Keri Ingraham, Discovery Institute’s American Center for Transforming Education Director in her Tuesday Wall Street Journal op-ed:

[M]ost “public” schools aren’t public at all.
In most communities, children are restricted to a single assigned school based on their home address and arbitrary boundary lines. Private schools often have academic, behavioral or other admissions standards, but they don’t keep children out simply based on where they live.

There’s this bit, too:

The cost of tuition is the primary barrier to parents who want to enroll their children. Nine states—Arizona, Arkansas, Florida, Indiana, Iowa, Ohio, Oklahoma, Utah, and West Virginia—have enacted universal or near-universal school choice into law, thus the financial barrier for families to enroll their children in private schooling—whether traditional, online, hybrid or micro schools—is crumbling.

But the Left and their teacher unions coterie object to lowering those cost barriers, which would free children from the chain link fencing around cheap, but badly ineffective, public schools. It’s those schools with their heretofore captive populations, after all, where the unions hold sway and collect their vig.

The Left and those unions bleat about how a child’s education ought not be based on the child’s family’s ZIP code.

Yet here they are.