While the media-driven scandals du jour roll on, President Trump quietly goes about reshaping the U.S. economy. Case in point: Last week, Trump directed the EPA to cut even more red tape for manufacturers. And he’s not done yet.
The idea is not to get rid of air quality standards, but to make sure that the science behind them is transparent and reliable — and not just part of someone’s political agenda, as has often been the case in the past.
The White House says that U.S. National Ambient Air Quality Standards constitute “outdated and unnecessary barriers to growth.” Under the new standards, EPA will process state-submitted plans within 18 months, for instance, giving regulated industries a clearer idea of what they can and can’t do, quickly. And the permitting process for individual projects will eventually be limited to a year. Continue reading
Chicago recently started taxing users of increasingly popular ride-sharing services so it could spend more on its increasingly unpopular mass transit rail service. This sort of thinking only makes sense to government officials.
When app-based ride sharing services Uber and Lyft started to catch on, cities thought they posed a dire threat to their local monopoly taxi services and tried to thwart them. But while ride sharing did cut into taxi ridership, it is also having a big impact on mass transit.
In Chicago, for example, ridership fell almost 4% in 2016 and another 3.5% last year. Ridership on weekends has plunged even further.
New York’s subway system lost ridership in each of the past two years, something that is virtually unprecedented in the city.
In Washington, D.C., ridership on its buses and subway system was down 12% in February, compared with two years ago. And in Boston, ridership dropped 3.3% from 2015 to 2017. Continue reading
By Elizabeth Harrington • Washington Free Beacon
The Treasury Department plans to eliminate nearly 300 outdated tax regulations, getting tax rules off the books that in some cases have not applied since the 1940s.
The department announced its proposal to eliminate unnecessary tax regulations this week, in compliance with two executive orders signed by President Donald Trump last year to reduce regulatory burdens and simplify the tax code.
“We continue our work to ensure that our tax regulatory system promotes economic growth,” said Secretary Steven Mnuchin. “These 298 regulations serve no useful purpose to taxpayers and we have proposed eliminating them.”
“I look forward to continuing to build on our efforts to make the regulatory system more efficient and effective,” he said. Continue reading
By Binyamen Appelbaum and Jim Tankersly • New York Times
WASHINGTON — A wave of optimism has swept over American business
leaders, and it is beginning to translate into the sort of investment in new
plants, equipment and factory upgrades that bolsters economic growth, spurs
job creation — and may finally raise wages significantly.
While business leaders are eager for the tax cuts that take effect this year,
the newfound confidence was initially inspired by the Trump administration’s
regulatory pullback, not so much because deregulation is saving companies
money but because the administration has instilled a faith in business
executives that new regulations are not coming.
“It’s an overall sense that you’re not going to face any new regulatory
fights,” said Granger MacDonald, a home builder in Kerrville, Tex. “We’re not
spending more, which is the main thing. We’re not seeing any savings, but
we’re not seeing any increases.”
The applause from top executives has been largely reserved for the
administration’s economic policy agenda. Many chief executives have been
publicly critical of President Trump’s approach to social and cultural issues,
Nancy Pelosi says Republicans have accomplished nothing in 2017, and no doubt she wishes that were true. But the House has already voted to repeal 13 Obama-era regulations, and President Trump signed his third on Tuesday. Now the GOP should accelerate by fully utilizing the 1996 Congressional Review Act.
Republicans chose the damaging 13 rules based on a conventional reading of the CRA, which allows Congress to override regulations published within 60 legislative days, with simple (50-vote) majorities in both chambers. Yet the more scholars examine the law, which had only been used successfully once before this year, the clearer it is that the CRA gives Congress far more regulatory oversight than previously supposed.
Spearheading this review is the Pacific Legal Foundation’s Todd Gaziano—who helped write the 1996 act—and the Heritage Foundation’s Paul Larkin. Their legal findings, and a growing list of rules that might be subject to CRA, are on www.redtaperollback.com. Continue reading
by Charlie Hoffmann • Washington Free Beacon
A Friday opinion piece in the Wall Street Journal has conservatives on Capitol Hill intrigued about the possibility of being able to roll back a plethora of regulations introduced during the Obama administration.
Kimberley Strassel’s column, “A GOP Regulatory Game Changer,” argues that the Congressional Review Act of 1996, or CRA, would grant congressional Republicans the ability to repeal onerous regulations passed by the Obama administration.
The accepted wisdom in Washington is that the CRA can be used only against new regulations, those finalized in the past 60 legislative days. That gets Republicans back to June, teeing up 180 rules or so for override. Included are biggies like the Interior Department’s “streams” rule, the Labor Department’s overtime-pay rule, and the Environmental Protection Agency’s methane rule. Continue reading
How often have you heard a Democrat prattle on and on about how well Barack Obama has done with the economy, given the mess he inherited? Usually, it’s some version of, “Things are getting better, but the economy the President started with was so awful, so he’s done as well as anyone could expect.”
When Ronald Reagan took over from Jimmy Carter in ’81, things were actually worse economically compared to when Obama took over from George W. Bush in ’08. Continue reading
by Richard A. Epstein
The latest government labor report indicates that job growth has slowed once again. It is now at a three-year low, with only an estimated 74,000 new jobs added this past month. To be sure, the nominal unemployment rate dropped to 6.7 percent, but as experts on both the left and the right have noted, the only reason for this “improvement” is the decline of labor force participation, which is at the lowest level since 1978, with little prospect of any short-term improvement.
The Economic Logic of Supply and Demand
One might think that these figures would be taken as evidence that a radical change in course is needed to boost labor market participation. The grounds for that revision rest on a straightforward application of the fundamental economic law of demand: As the cost of labor increases, the demand for labor will decrease. There are, of course, empirical disputes as to just how rapidly wage increases will reduce that demand for labor. Continue reading