While cold weather, as a new AAA study reveals, can reduce the range of electric vehicles by roughly 40 percent, the prospect of being frozen out of its windfall from Washington kicked the industry’s lobbying team into overdrive this winter.
For more than a decade, you, the American taxpayer, have been responsible for funding that windfall through a federal tax credit of up to $7,500 for every luxury electric car sold in the country. Currently capped at 200,000 units per manufacturer, electric vehicle buyers were the beneficiaries of $4.7 billion between 2011 and 2017; absent a repeal, the Joint Committee on Taxation (JCT) projects that figure to total $7.5 billion between FY2018 and FY2022 alone. The Manhattan Institute, meanwhile, estimates that the elimination of electric car subsidies could save taxpayers $20 billion.
Only compounding the ever-growing cost to the American people, NERA Economic Consulting’s September study determined that in the No Cap Limit scenario sought by lobbyists for titans like Tesla and General Motors – both of whom have already hit the aforementioned 200,000 per-manufacturer threshold – “total personal income of all U.S. households decreases by $7 billion in 2020 and $12 billion in 2035” on top off “higher total electricity costs” for ratepayers. Overall, NERA concludes that between 2020 and 2035, the net present value reduction in personal income of all U.S. households would swell to a staggering $95 billion. Continue reading
By Mary Lou Lang • Washington Free Beacon
Several companies are relocating from the Empire State, numerous businesses have announced they are closing shop altogether citing economic reasons, and a new poll shows a third of New York residents plan to move because they can’t afford to stay.
A review of the New York Department of Labor WARN notices shows several companies are relocating to other states. Private sector employers that have more than 50 employees must file a notice before closing a plant and must also notify the state when they are laying off 33 percent of their workforce.
AllianceBernstein, an investment management and research company, announced in its latest filing more worker layoffs are planned in May as it is moving its corporate headquarters to Nashville, Tenn. The company has been transitioning to Tennessee and laying off its workers incrementally.
The company did not respond to a request for comment.
Another company, which makes artificial fingernails, announced it is moving its warehouse production to New Jersey and will begin Continue reading
By Inez Feltscher Stepman • The Federalist
Most Americans are still under the illusion that when they elect a president, he takes control over the executive branch and proceeds to implement his agenda by working with Congress. Sadly, “School House Rock” is out of date.
An enormous amount of policymaking these days goes through the administrative state – the alphabet soup of agencies that have been proliferating like weeds since Franklin Delano Roosevelt’s New Deal. The outsourcing of legislative and adjudicatory powers to agencies is bad enough, and cannot square with the separation of powers between legislation, judiciary, and executive that is delineated in the Constitution. To make matters worse, these agencies and the employees who staff them are also politically unaccountable to the elected representatives of the people, violating not just the wise guardrails of our Constitution, but also the very idea of self-government.
Today, it is nearly impossible to fire the 2.8 million federal bureaucrats who staff the executive agencies, from which they issue regulations and policy guidance that directly affect the lives of Americans every day. Continue reading
By Terry Jones • Investor’s Business Daily
Cutting Rules: Baseball season is winding down and, as it does, so is another grueling annual event: The U.S. government’s fiscal year. But this year, with just two months to go, something remarkable is happening: Regulations are being slashed at a record rate.
A new report by the American Action Forum (AAF) says that not only is President Trump meeting his deregulation goals, he’s exceeding them — in some cases, by a large amount.
“Collectively, executive agencies subject to regulatory budget remain on pace to double the administration’s overall saving goal,” wrote the AAF’s Dan Bosch. “On an individual basis, 12 of 22 agencies have already met or surpassed their savings target.”
“The Department of Labor enjoys the largest total savings of covered agencies with $417.2 million,” Bosch wrote. “The Department of Health and Human Services comes in second in savings … at Continue reading
Everyone’s still talking about the dramatic tumble in the price of Facebook stock which, if the estimates are reliable, had left its founder – Mark Zuckerberg – more than $10 billion poorer than he was at the start of the month.
It’s a big loss to be sure, but not as potentially significant as the one experienced at Tesla, the electric car company founded by Elon Musk. The price Tesla stock has dropped over 21 percent since the middle of June, and could spend the rest of the summer on a roller coaster ride that leaves investors dizzy.
It not only investors who should be cautious. The U.S. government has partnered, may partner, or is thinking about partnering with Musk on projects financed by tax breaks and tax dollars. That translates to our money, and we’re right to expect Uncle Sam to take good care of it.
By Michelle L. Price • Boston Globe
LAS VEGAS (AP) — A stamp that mistakenly featured the image of a Statue of Liberty replica in Las Vegas instead of the original New York Statue will cost the U.S. Postal Service $3.5 million in a copyright infringement lawsuit.
Las Vegas sculptor Robert Davidson, who created the replica Lady Liberty in the facade at the New-York-New York casino-resort on the Las Vegas Strip, sued the Postal Service five years ago over its 2011 ‘‘forever’’ stamp design.
The stamp featured the face of his Lady Liberty, which his attorneys argued in court filings was unmistakably different from the original and was more ‘‘fresh-faced,’’ “sultry’’ and even ‘‘sexier.’’
On Feb. 17, 2009, President Obama promised the sun and the moon and the stars. That was the day, five years ago, when he signed the $800 billion “American Recovery and Reinvestment Act.” President Modesty called it “the most sweeping economic recovery package in our history.” He promised “unprecedented transparency and accountability.” He claimed the spending would lift “two million Americans from poverty.” Ready for the reality smackdown?
The actual cost of the $800 billion pork-laden stimulus has ballooned to nearly $2 trillion. At the time of the law’s signing, the unemployment rate hovered near 8 percent. Obama’s egghead economists projected that the jobless rate would never rise above 8 percent and would plunge to 5 percent by December 2013. The actual jobless rate in January was 6.6 percent, with an abysmal labor force participation rate of 63 percent (a teeny uptick from December, but still at a four-decade low). Continue reading
George Landrith, President of Frontiers of Freedom, commended Congress for allowing the decades-old practice of wasting billions of taxpayer dollars subsidizing the wind industry to expire with the New Year.
“2013’s end marked the expiration of the investment and production tax credits for the wind industry. As we ring in the New Year, Congress took advantage of this opportunity and permanently ended these wasteful tax credits. These subsidies did nothing but hide the true costs of these projects, subsidized corporate rent seekers, and dramatically increased the cost of electricity for taxpayers.” Continue reading
How many times did the Obama Administration promise that GM would repay every dime of the taxpayer provided bailout? And how many times have you heard the lie that GM has fully repaid the federal government for the taxpayer provided bailout? The truth is the taxpayers lost $10 billion on GM, but GM CEO says the taxpayer took a risk like any other investor. That sucking sound you hear is the government taking $10 billion out of the taxpayer’s pocket.
by Todd Spangler
The General Motors bailout may have cost the government $10 billion, but GM CEO Dan Akerson rejects any suggestion that the company should compensate for the losses.
He says Treasury officials took the same risk assumed by anyone who purchases stock.
“I would not accept the premise that this was a bad deal,” Akerson said during a question-and-answer session at the National Press Club in Washington. He also said the government’s $49.5-billion aid to GM helped save billions of dollars in tax revenue and government social services. Continue reading
A week ago, the technology that assessed spending limits on debit cards for food-stamp recipients malfunctioned. As a result, there was no way for stores to tell how much value was left on individual cards. Many merchants refused to accept the cards until the problem was fixed.
Not wanting to risk having anyone go hungry, Walmart allowed people to use the cards. Unfortunately, the food-stamp recipients treated the stores’ generosity as a bonanza, and filled carts with much more than they were entitled to. As word got out, the two Walmarts quickly found themselves overwhelmed by other food-stamp recipients doing the same. Continue reading
If there’s an iron rule in economics, it is Stein’s Law (named after Herb, former chairman of the Council of Economic Advisers): “If something cannot go on forever, it will stop.”
Detroit, for example, can no longer go on borrowing, spending, raising taxes and dangerously cutting such essential services as street lighting and police protection. So it stops. It goes bust.
Cause of death? Corruption, both legal and illegal, plus a classic case of reactionary liberalism in which the governing Democrats — there’s been no Republican mayor in half a century — simply refused to adapt to the straitened economic circumstances that followed the post-World War II auto boom. Continue reading
“The preservation of the sacred fire of liberty and the destiny of the republican model of government are justly considered, perhaps, as deeply, as finally, staked on the experiment entrusted to the hands of the American people.” George Washington, First Inaugural Address, April 30, 1789
December 31, 2012
As we approach 2013 we also review some of our must read articles from 2012. Please see below for several timely pieces by George Landrith on various topics, such as, taxes, the fiscal cliff, the economy, jobs, the election process and results, foreign policy, government largess, energy, and the Constitution. Continue reading