Downsizing Blog
Regulations and Taxes: Democrats Then and Now
In recent decades, the Democratic Party has moved far to the left on economic policy. I have discussed the leftward shift on tax policy, which was illustrated once again by President Obama’s generally awful proposals in his new budge
Admitting FutureGen’s Failure
The Department of Energy (DOE) is admitting that it failed. Last week, it announced that it will stop development of FutureGen 2.0, a federally-financed, coal-fired power plant in Illinois. FutureGen, and its successor FutureGen 2.0, wasted millions of tax dollars, and was beset with multiple delays and cost overruns.
Obama’s Transportation Plan
President Obama proposed an expansive spending plan for highways, transit, and other infrastructure in his 2016 budget. Here are some of the problems with the president’s approach:
Rising Cost of Net Interest
One of the largest and fastest growing items in President Obama’s new budget is often overlooked. Net interest expenses will skyrocket over the next decade, growing by 250 percent.
Federal Infrastructure: Often Low Value
President Obama’s budget would raise taxes to fund a $478 billion infrastructure spending plan for highways, transit, and other items. The budget (on page 26) cites an International Monetary Fund study that “highlights the importance of choosing high-efficiency infrastructure projects based on rigorous benefit-cost analysis.”
The President’s 2016 Budget Request
The president released his budget request this morning. As expected, his plan is heavy on new spending and new taxes, and very light on structural reforms.
Cutting Spending Is the Best Approach
On Monday, the White House will release President Obama’s budget proposal for Fiscal Year 2016. The president is expected to reemphasize his previous fiscal approach of higher spending coupled with higher taxes, while completely ignoring the country’s long-term fiscal problems.
Expand Trade by Repealing Monopoly Unionism
Republicans say they favor cutting regulations to spur growth and create jobs. And they generally favor expanding international trade. They can attain those goals by reforming labor union laws.
Taxing Us to Spy on Us
Reading some Frederic Bastiat last night, I circled his observation that the government takes advantage of citizen passivity to increase its power, often by promising to “cure all the ills of mankind.” The government initiates “in the guise of actual services, what are nothing but restrictions; thereafter the nation pays, not for being served, but for being disserved.”
The Failed HealthCare.gov Launch
The launch of HealthCare.gov in 2013 was a disaster. A new report from the Health and Human Services Inspector General (IG) describes how the department mishandled the website’s construction. The department failed to follow federal contracting rules, and did not have a cohesive plan for the website. This led to cost overruns and project delays, and HealthCare.gov’s eventually rocky start.