by | ARTICLES, BLOG, BUSINESS, ECONOMY, TAXES
According to Bloomberg’s monthly economist poll, 78% of respondents think that Congress will be successful with tax cuts prior to mid-term elections next year — though they may be less ambitious than what has been originally planned.
Trump has promised to make this a priority. Whether or not this is a permanent change to the IRC — much like the reforms of 1986 — remains to be seen. Bloomberg notes that “White House officials have said they’re still committed to a permanent tax revamp, and the plan is to start hearings and a markup of a tax bill after Labor Day so a version can get through the House in October and the Senate in November.”
Tax reform and cuts are an indispensable way to boost floundering GDP growth, which has remained below 2% now for several years. Healthy GDP growth — 3% or higher — is imperative to restoring confidence in our continuously weak economy of the last decade.
by | ARTICLES, BLOG, ECONOMY, OBAMA, OBAMACARE, POLITICS, TRUMP
Anthem announced today that it would discontinue individual insurance coverage plans in Virginia in 2018, the third major insurer to do so this year; Aetna and United Health announced their plans earlier in the year. For Anthem, this marks the 4th state change so far in 2017, after Indiana, Ohio, and Wisconsin.
In their press release, Anthem noted,
“Today, planning and pricing for ACA-compliant health plans has become increasingly difficult due to a shrinking and deteriorating Individual market, as well as continual changes and uncertainty in federal operations, rules and guidance, including cost sharing reduction subsidies and the restoration of taxes on fully insured coverage. As a result, the continued uncertainty makes it difficult for us to offer Individual health plans statewide in Virginia.” Anthem will “reduce its plan offering and will only offer off-exchange plans in Washington and Scott Counties and the city of Bristol, VA.”
According to the Richmond Times-Dispatch, the move would be significant: “More than 206,000 Virginians could lose their individual health insurance policies with the sudden withdrawal of Anthem Blue Cross Blue Shield in Virginia, the state’s largest insurer, from the federal exchange and individual market in 2018.” Anthem will still employer-based plans, as well as Medicare and Medicaid plans.
The move leaves just five insurers in Virginia — Optima, Kaiser, Piedmont, Cigna, and CareFirst. Some localities will be left with just one insurer choice next year. This move by Anthem is a big deal, and yet another major failure of the poor structuring of the entire Obamacare apparatus. Americans deserve better.
by | ARTICLES, BLOG, FREEDOM, GOVERNMENT, TAXES
A soda tax in Philadelphia, implemented specifically to raise revenue (not to fight obesity) has failed to bring in the projected funds promised by the tax wizards. The tax was supposed to raise some $92 million a year, but people have taken to purchasing their soft drinks outside of the city, because the tax that is levied is a 1.5-cent per ounce tax.
The Tax Foundation studied the tax and its effects and found that, “According to some local distributors and retailers, sales have declined by nearly 50 percent. This is likely primarily due to higher prices, which discourage purchasing beverages in the city. Earlier this year PepsiCo announced it was laying off up to 100 workers because of the tax, which the company blames for costing a 43 percent drop in business. Philadelphians are also no longer able to buy 12-packs or 2-liters of Pepsi products in grocery stores due to the tax.”
This loss of revenue has begun to create further problems with the city budget. The tax was first passed to fund pre-K programs, but “in practice it awards just 49 percent of the soda tax revenues to local pre-K programs. Another 20 percent of the soda tax revenues fund government employee benefits or city programs, while the rest of the money will go towards parks, libraries, and community schools.” Thus, in July, city officials had to lower their beverage revenue projections which in turn affects the pre-K programs that are supposed to be funded by the tax.
In the final nail of absurdity, the report found that “that the tax is 24 times higher than the Pennsylvania tax rate on beer.”
Folks, here’s a prime example of how people change their behaviors — even the simplest ones like buying soda — in response to egregious, illogical, taxes.
by | ARTICLES, BLOG, ECONOMY, NEW YORK, POLITICS, TAXES
Mayor DeBlasio released a new plan to add a “nearly 14 percent tax increase on high-income Big Apple residents” in order to raise money for various transportation projects. It is projected to raise $800 million/year and would be used to pay for subway repairs, bus system upgrades, and low-income train rides.
DeBlasio pitched a city income tax hike that “would raise the rate for individuals making more than $500,000 and married couples earning over $1 million from 3.876 percent to 4.41 percent.” That translates into ” an additional $2,700 levy on an individual earning $1 million a year, and an additional $8,000 on an individual earning $2 million.”
Using quintessential class warfare speech, DeBlasio invoked Obama’s favorite phrases about the “top 1 percent” who “can afford to do a bit more” arguing that “a transit system that works makes New York City’s economy strong and benefits us all.” What he forgot to mention is that New York City is already one of the top tax-heavy localities in the United States for high income earners, who fork over 50% of their income in combined city, state, and federal taxes. Ridiculous, money-grubbing schemes like these continue to be the reason why the wealthy continue their mass exodus from the area.
by | BLOG, TAXES
by | ARTICLES, BLOG, BUSINESS, ECONOMY, FREEDOM, OBAMA, OBAMACARE, POLITICS, TAXES
Centers for Medicare and Medicaid Services (CMS) have published data which projects that 1,332 counties (over 40%) will have only one health insurer on Obamacare in 2018 and 49 will have none. According to CNSNews, “the data comes from the Health Insurance Exchanges Issuer County Map, which shows projected issuer participation on the Health Insurance Exchanges in 2018 based on the issuer public announcements made prior to late July of 2017.”
Successful healthcare systems do not continuously lose insurers, accumulate massive debt, and leave citizens with little to no choice. Obamacare has continued to wreak havoc on our citizens. It has to go. We can do better.
by | ARTICLES, BLOG, FREEDOM, GOVERNMENT, POLITICS, RETIREMENT, SOCIAL SECURITY, TAXES
Last week, the Social Security Board of Trustees released their annual report on the long-term financial status of the Social Security Trust Funds. The news does not continue to bode will for the long-term survival of Social Security — but on the other hand, this is nothing that we haven’t heard before. Unfortunately, no one really wants to tackle the problem of reform.
Straight from their press release:
“The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected last year, with 77 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2028, extended from last year’s estimate of 2023, with 93 percent of benefits still payable.
In the 2017 Annual Report to Congress, the Trustees announced:
- The asset reserves of the combined OASDI Trust Funds increased by $35 billion in 2016 to a total of $2.85 trillion.
- The combined trust fund reserves are still growing and will continue to do so through 2021. Beginning in 2022, the total annual cost of the program is projected to exceed income. (emphasis added)
- The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – the same as projected last year. At that time, there will be sufficient income coming in to pay 77 percent of scheduled benefits.
“It is time for the public to engage in the important national conversation about how to keep Social Security strong,” said Nancy A. Berryhill, Acting Commissioner of Social Security. “People understand the value of their earned Social Security benefits and the importance of keeping the program secure for the future.”
Other highlights of the Trustees Report include:
- Total income, including interest, to the combined OASDI Trust Funds amounted to $957 billion in 2016. ($836 billion in net contributions, $33 billion from taxation of benefits, and $88 billion in interest)
- Total expenditures from the combined OASDI Trust Funds amounted to $922 billion in 2016.
- Social Security paid benefits of $911 billion in calendar year 2016. There were about 61 million beneficiaries at the end of the calendar year.
- Non-interest income fell below program costs in 2010 for the first time since 1983. Program costs are projected to exceed non-interest income throughout the remainder of the 75-year period.
- The projected actuarial deficit over the 75-year long-range period is 2.83 percent of taxable payroll – 0.17 percentage point larger than in last year’s report.
- During 2016, an estimated 171 million people had earnings covered by Social Security and paid payroll taxes.
- The cost of $6.2 billion to administer the Social Security program in 2016 was a very low 0.7 percent of total expenditures.
- The combined Trust Fund asset reserves earned interest at an effective annual rate of 3.2 percent in 2016.
The Board of Trustees usually comprises six members. Four serve by virtue of their positions with the federal government: Steven T. Mnuchin, Secretary of the Treasury and Managing Trustee; Nancy A. Berryhill, Acting Commissioner of Social Security; Thomas E. Price, M.D., Secretary of Health and Human Services; and R. Alexander Acosta, Secretary of Labor. The two public trustee positions are currently vacant.”
View the 2017 Trustees Report at www.socialsecurity.gov/OACT/TR/2017/.
by | ARTICLES, BLOG, CONSTITUTION, FREEDOM, GOVERNMENT, POLITICS, TRUMP
Daniel Mitchell from CATO put together a round-up over of articles over the last few days from various sources chiming in their opinion of Session’s expansion of asset forfeiture. It was published on International Liberty. The list is below; you should also read the article its entirety.
Writing for USA Today, Professor Glenn Reynolds correctly castigates the Attorney General for his actions.
David French of National Review is similarly disgusted.
Erick Erickson adds his condemnation in the Resurgent.
In a column for Reason, Damon Root of Reason adds his two cents.
Last but not least, the editors of National Review make several important points.
One last point of note that Mitchell included is that “the first two administrators of the federal government’s asset forfeiture program now want it to be repealed.”
