State and Local Spending Since 1962: DC, Alaska, Delaware, New Mexico and New York Growing Fastest Relative to Income
Marc JoffeCensus data shows, on average, state and local government spending as a percentage of personal income rose sharply between 1962 and 1977, but then flattened out in the years leading up to 2020. However, there is substantial variation across jurisdictions: while some states have seen little overall change in the percentage of income devoted to government spending since 1962, others experienced dramatic growth.The animation below shows how state and local government spending have evolved in all fifty states and DC since 1962. Spending data comes from the Census Bureau ’s Annual Survey of State and Local Governm...
Source: Cato-at-liberty - February 28, 2023 Category: American Health Authors: Marc Joffe Source Type: blogs
Which States Are Best for Remote Workers?
Scott Lincicome and Ilana BlumsackRemote work has proliferated as a work arrangement since the COVID-19 pandemic began in 2020. While its popularity has declined since its Spring 2020 peak, remote work remains far more common today than it was before the pandemic (see Figure 1). Research from Nicholas Bloom and othersfound that last month, nearly 13 percent of workers were fully remote, and an additional 28 percent worked in a hybrid arrangement.!function(e,i,n,s){var t= " InfogramEmbeds " ,d=e.getElementsByTagName( " script " )[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].p...
Source: Cato-at-liberty - February 28, 2023 Category: American Health Authors: Scott Lincicome, Ilana Blumsack Source Type: blogs
SCOTUS Tackles Unconstitutional, and Unwise, Student Loan Cancelation
Clark Neily andNeal McCluskeyWhen President Bidenannounced that he would unilaterally cancel up to $20,000 of federal student debt for almost everyone holding any, he may have thought his action unstoppable. No one, he might have concluded, would have standing in court to block him. But the legal sailing hasn ’t been so smooth, with two courts finding that the plaintiffs had standing, and the U.S. Supreme Court set to hear their cases tomorrow. If the Supreme Court agrees that the plaintiffs have standing, Biden’s declaration is in big trouble, because it’s clearly unconstitutional.It ’s also terrible policy.Biden ...
Source: Cato-at-liberty - February 27, 2023 Category: American Health Authors: Clark Neily, Neal McCluskey Source Type: blogs
Makers and Takers
Speaker of the House Marjorie Taylor Greene recently twitted this: The entire population of the earth is about 8 billion. The population of China is about 1.4 billion. With that as background, let ' s consider her other recent proposal, a " divorce " between the red and blue states. Okay, let ' s try that. This is from the Brookings Institution. In case that ' s difficult to read, 71% of U.S. GDP is generated in counties won by Joe Biden. Here ' s another fun fact. These are the states that are most dependent on the federal government, i.e. they get back more in federal spending than they pay in...
Source: Stayin' Alive - February 24, 2023 Category: American Health Source Type: blogs
The State of Taxes: How the Feds Fund (and Don ’t Fund) Spending
Adam N. MichelThis tax season, the IRS expects to receive more than168 million individual tax returns, which will take Americans approximately2 billion collective hours to complete. As we file our taxes, it is natural to wonder where the $4.9 trillion the Federal government collected last year came from and what it funds.Government data shows that the federal tax system is highly progressive. The highest-income Americans pay a disproportionate share of income taxes and face the highest average tax rates across all federal taxes. We are also lucky to live in a relatively low-tax country, but Congress continues to spend well...
Source: Cato-at-liberty - February 23, 2023 Category: American Health Authors: Adam N. Michel Source Type: blogs
A Crime Bigger than the Murdaugh Murders
Paul MatzkoThe Cato Institute has advocated for tort reform for decades. As the CatoPolicy Handbook put it in 2017, tort litigation creates an incredible quarter of a trillion dollar annual bill that is ultimately footed by consumers. While such litigation is an important means for holding companies liable for bad behavior, in excess it is a growth ‐minimizing and innovation‐stymyingcancer.The latest example of the costs of excessive litigation comes from a surprising source: the murder trial of Alex Murdaugh in the low country of South Carolina.Murdaugh himself stole millions in settlement money f...
Source: Cato-at-liberty - February 21, 2023 Category: American Health Authors: Paul Matzko Source Type: blogs
CBO on Medicare and Social Security
Chris EdwardsNew Congressional Budget Officeprojections show that federal budget deficits will rise from $1.41 trillion in 2023 to $2.85 trillion by 2033. In 2023, federal spending of $6.22 trillion is 29 percent higher than federal taxes of $4.81 trillion. By 2033, projected spending of $9.95 trillion would be 40 percent higher than taxes of $7.10 trillion. Deficits are projected to explode even though Republican tax cuts are set to expire after 2025.Without budget reforms, accumulated federal debt held by the public will almost double from $26 trillion in 2023 to $46 trillion by 2033. That vast expansion in debt willunde...
Source: Cato-at-liberty - February 15, 2023 Category: American Health Authors: Chris Edwards Source Type: blogs
Federal Tax Revenue Remains Strong, According to the CBO
Adam N. MichelThe Congressional Budget Office (CBO) released an update to itsbudget and economic projections, reflecting changing economic conditions and new legislation.The report shows that U.S. federal revenues are projected to remain at or above historic levels. In 2022, revenues reached a two‐decade high of 19.6 percent of gross domestic product (GDP). At a time of historically high revenues, it should be clear to policymakers that uncontrolled spending is the primary culprit for persistent deficits and debt.The strong revenue growth —both in recent years and projected—does not support claims by some that ...
Source: Cato-at-liberty - February 15, 2023 Category: American Health Authors: Adam N. Michel Source Type: blogs
Wisconsin Medicaid Expansion — Is the Risk Worth the Reward?
Marc JoffeIn his new budget, Governor Evers is once again proposing that Wisconsin expand its Medicaid program to take advantage of additional subsidies available under the 2010 Affordable Care Act. Senators and Assembly Members should carefully consider the long ‐term risks of expansion before accepting this proposal.From a short ‐term budgetary perspective, Medicaid expansion seems like a great deal for Wisconsin. The federal government covers 90% of the costs for providing medical care for individuals in the expansion population compared to60.66% (in 2024) for those currently eligible for Medicaid an...
Source: Cato-at-liberty - February 15, 2023 Category: American Health Authors: Marc Joffe Source Type: blogs
Coloradans Might Soon Get Increased Access To Medically Assisted Mental Health Services
Jeffrey A. SingerThe Colorado legislature is seeking ways to address Coloradans ’lack of access to mental health services amidst a national mental healthshortage. On February 9, the Colorado House of Representativesvoted 56 –6 to passHB1071. The bill creates a new category of mental health specialists called Prescribing Psychologists, or RxPs.States require clinical psychologists to have a doctoral degree (either Ph.D. or PsyD), which takes roughly 5 to 6 years to obtain after getting an undergraduate degree. Most states thenrequire that they do at least one year of postgraduate clinical traini...
Source: Cato-at-liberty - February 13, 2023 Category: American Health Authors: Jeffrey A. Singer Source Type: blogs
Stock Buybacks: Misunderstanding Fuels Bad Tax Policy
Adam N. MichelTuesday night President Bidenproposed a fourfold increase to the recently passed 1% tax on stock buybacks. The existing excise tax went into effect barely a month ago and taxpayers are still facing uncertainty over how the existing tax will be implemented.The original buyback excise tax was included in theInflation Reduction Act of 2022, went into effect at the beginning of 2023, and is estimated toraise about $74 billion over ten years. The tax is still being implemented by the IRS and a recent Congressional Research Servicereport notes that “a number of repurchase issues still need clarific...
Source: Cato-at-liberty - February 8, 2023 Category: American Health Authors: Adam N. Michel Source Type: blogs
The New Deal and Recovery, Part 23: The Great Rapprochement
George SelginWhat finally brought the Great Depression to an end? We ' ve seen that, whatever it was, it took place not during the 30s but sometime between then and the end of World War II, when a remarkable postwar revival occurred instead of the renewed depression many feared. We ' ve also seen that, while postwar fiscal and monetary policies weren ' t austere to the point of preventing that revival, they alone can ' t explain it, because they can ' t explain the reawakening of private business investment from its decade-and-a-half-long slumber.Animal SpiritsTo get to the bottom of that reawakening, we must first recall ...
Source: Cato-at-liberty - February 7, 2023 Category: American Health Authors: George Selgin Source Type: blogs
President Biden ’s Anti‐Growth Agenda
David BoazE. J. Dionne writes in the Washington Post that President Biden will focus his State of the Union speech on “how to make the economy grow for everyone.” That’s a good topic. Unfortunately, Dionne ’s column illustrates that Biden’s policies will not do that.Dionne mentions “policies that see robust government investments, worker rights and a green tech economy as the path to a new American century. ” And he recommends further initiatives such as “paid leave, universal pre‑K and child care, health coverage expansions, a beefed ‐up child tax credit, and steps to make housin...
Source: Cato-at-liberty - February 7, 2023 Category: American Health Authors: David Boaz Source Type: blogs
Biden ’s Student‐Debt Forgiveness Plan Is Illegal
Thomas A. BerryIn 2003, Congress enacted theHEROES Act ( “HEROES” stands for Higher Education Relief Opportunities for Students). As implied by its name and timing, the law was enacted as a reaction to the Iraq War. Several of thefloor statements from members of Congress reveal that a primary motivation for the Act was to ensure that military members could have their student loan payments deferred while serving their country.Now, the Biden administration is attempting to use the HEROES Act to achieve a policy goal that is far different, and far more sweeping, than anything the law has been used for in th...
Source: Cato-at-liberty - February 6, 2023 Category: American Health Authors: Thomas A. Berry Source Type: blogs
New Pennsylvania Governor Hopes to Trim Pension System Investment Costs
Marc JoffePennsylvania ’s new governor, Josh Shapiro, hopes to end state pension funds’ reliance on external managers who often charge high fees and place funds in opaque “alternative investment” vehicles. As thePhiladelphia Inquirer reported in late January, Shapiro told reporters: “We need to get rid of these risky investments. We need to move away from relying on Wall Street money managers.” If Shapiro is successful, Pennsylvania’sState Employees ’ Retirement System (SERS) andPublic School Employees ’ Retirement System (PSERS) may achieve better returns with less risk, which is good for both public emp...
Source: Cato-at-liberty - February 6, 2023 Category: American Health Authors: Marc Joffe Source Type: blogs
