Today’s example of how the federal government has become too darn big is the U.S. Department of Agriculture’s Value-Added Marketing Grant program. This (relatively) little slice of corporate welfare will hand out approximately $56 million in taxpayer dollars this year to “producers of agricultural commodities” who can use the money “for planning activities and for working capital for marketing value-added agricultural products.”
Over the past few weeks, a number of pernicious myths have popped up regarding the Pentagon’s budget. Here I want to dispel these myths with an exhaustive, and exhausting, look at the details. The charts below, compiled with my colleague Charles Zakaib, should help.
The Washington Post reports that a doctor in Texas bilked Medicare and Medicaid out of $375 million. That’s a lot of money, but improper payments represent somewhere between 10 and 20 percent of total spending on these two health programs. Thus, more than $100 billion of taxpayer funds could be going down the drain each year.
That quote from a local government official in California sums up why banning earmarks won’t do much to rein in the size and scope of the federal government. The quote comes from a McClatchy Newspapers article on lobbying expeditions to Washington undertaken by local government officials who want federal taxpayers to pick up the tab for projects in their backyards.
Federal employee Jason Ullner portrays federal workers as victims in today’s Washington Post.
With seemingly every day bringing more bad news from Europe, many are beginning to ask how much longer the United States has before our welfare state follows the European model into bankruptcy. The bad news is: It may already have.
The Senate Energy and Natural Resources Committee held a hearing last week on the Department of Energy’s budget request for fiscal 2013. Chris Edwards tipped me off to a particularly galling exchange between Energy secretary Steven Chu and Sen. Al Franken (D-MN). Sen. Franken uses his allotted time to badger Chu about a federal loan that Energy conditionally committed to a Minnesota company in 2010 that apparently has yet to be approved.
The U.S. Postal Service has released a new five-year plan for congressional consideration that it says would get the beleaguered government mail monopoly on sounder financial footing and thus avoid a taxpayer bailout. The plan repeats previous suggestions (i.e., workforce reductions, postal network consolidations, elimination of Saturday delivery, elimination of the retiree healthcare benefit funding requirement) and proposes an increase in the price of a first-class stamp from forty-five to fifty cents.
As part of the payroll tax bill on Friday, Congress voted to tweak federal worker benefits. New federal hires will be required to make an additional contribution to their pension plans. While just a small change, federal worker unions railed against the bill as if were armageddon.
After catching flack from both fiscal conservatives and the transit lobby, House Speaker John Boehner has postponed consideration of a transportation bill. Fiscal conservatives (including my fellow Cato scholar Michael Tanner) objected to the bill’s deficit spending; transit interests (including Republicans from New York and Chicago), objected to the bill’s lack of dedicated funds to public transit.