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As the deadline for many of the requirements in the Patient Protection and Affordable Care Act (ACA) approaches, new reports of unforeseen costs and regulatory complexities have come to light with seemingly increasing frequency. As Congress debates key provisions of the budget, many have called for a full or partial repeal of the ACA, and the White House itself recently delayed requirements for companies with more than 50 full-time employees to offer health coverage (or contribute to insurance exchange funds).
In this week's edition of the Taxpayer's Tab, NTUF examined a bill by Congressman Todd Young (R-IN) and Senator Daniel Coats (R-IN) that would affirm the White House's decision as law, as well as delay the Act's individual mandate for another year. The legislators' bills -- H.R. 2668 & S. 1488, respectively -- would postpone outlays scheduled to go towards new Medicaid funding, health exchange subsidies, and other administrative measures that the Congressional Budget Office estimated would amount to $28 billion in savings over the 2014-2018 timeframe.
Also featured this week:
Today’s Taxpayer News!
Fisker fail: The Department of Energy announced that it will auction off its remaining loan to the now closed electric vehicle manufacturer Fisker Automotive. The outstanding loan totals $168 million. This is the second DOE backed company to go bust. Read more in the Detroit News.
Metro malaise: The Washington DC metro system, which is already subsidized by the taxpayers, is in the process of building another line which will likely increase the per-trip cost for riders significantly, while “leaving riders and taxpayers around the region to pay the bill.” Read more in the Washington City Paper.
Food stamp fraud: A federal indictment was handed down against 10 Baltimore area business owners after they allegedly used food stamp debit cards to defraud the taxpayers. The fraud totaled nearly $7 million. Read more details in The Baltimore Sun.0 Comments | Post a Comment | Sign up for NTU Action Alerts
Seven Sound Principles for Internet Sales Taxation
Earlier this week, the House Judiciary Committee released seven very solid principles that should guide Congress as it considers the taxation of goods purchased on the Internet. Unlike the severely flawed Marketplace Fairness Act (MFA), which was passed by the Senate earlier this year, the outline offered by Chairman Bob Goodlatte (R-VA) and Subcommittee on Regulatory Reform, Commercial and Antitrust Law Chairman Spencer Bachus (R-AL), respects both the concerns of taxpayers and the sovereignty of states.
Their principles would keep taxes low, level the playing field for all businesses, preserve interstate tax competition, prevent out-of-state tax collectors from unaccountably auditing and harassing businesses and individuals, simplify the collection and remittance processes to minimize or eliminate compliance costs, and maintain an appropriate balance of power between state governments and the federal government. Based on these precepts, the many defects of MFA (that NTU has often highlighted) should disqualify it from further consideration.
If Congress chooses to advance Internet sales tax legislation, strict adherence to these principles would protect taxpayers from unfair and unconstitutional taxes, as well as from predatory, out-of-state tax collectors. NTU, on behalf of our 362,000 members, applauds Chairmen Goodlatte and Bachus for their thoughtful efforts.0 Comments | Post a Comment | Sign up for NTU Action Alerts
(AUDIO) Speaking of Taxpayers: NTU Rates Congress – Sept. 20, 2013
Subscribe to NTU's podcast "Speaking of Taxpayers" via iTunes!
NTU's Rating for the last session of the 112th Congress is out - Pete & Doug discuss Congress' performance, and how big names scored. Plus, what is the "Second Obama Express"?0 Comments | Post a Comment | Sign up for NTU Action Alerts
DC Mayor Gray Presents $300 Million Gift to Local Unions
Last week, following in the footsteps of his predecessors, Washington, DC Mayor Vincent Gray announced the signing of a Project Labor Agreement (PLA) for the construction of the $300 million DC United soccer stadium. His reasoning? The PLA ensures that District construction workers are paid federal Davis-Bacon wage rates.
However, according to TheTruthAboutPLAs.com:
…existing law called the Davis-Bacon Act governing federal, federally funded and DC-funded projects already requires above-market government-determined union scale wages and benefits to be paid to craft labor with or without a PLA. It’s a smokescreen to cover the fact it is a gift to unions [emphasis added].
The White House explains that a PLA is “a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project.”
But let’s get real. A PLA is nothing more than a corrupt scheme that removes competition from the construction bidding process and instead awards a contract to unionized construction workers.
Unfortunately, we’ve seen this game played in DC before with Nationals Ballpark. The end result? Eighty-five percent of construction workers and 95 percent of minority-owned contractors were left out of the work, and the project cost tens of millions of taxpayer dollars more than anticipated. Makes one wonder just how much the city actually cares about its workers.
From our support of Right-to-Work laws and public pension reform, it’s no secret that National Taxpayers Union is an outspoken proponent of fair labor laws that benefit workers, not just union bosses. Despite what may appear to be a well-intentioned effort to protect workers, Mayor Gray’s PLA for the DC United Stadium is nothing more than a kickback scheme to his union pals. The deal represents another example of just how dangerous backroom government dealings with unions can be – not only to taxpayers but to non-unionized construction workers struggling to find work in the Obama economy.
For more on the DC United Stadium PLA debacle, go HERE.0 Comments | Post a Comment | Sign up for NTU Action Alerts
Today, the Republican Study Committee released a health care bill that would repeal the Affordable Care Act, or “Obamacare,” and replace it with a number of market-based reforms and improvements to the tax code. You can read more about the legislation here and read NTU’s supportive letter to the bill’s author, Rep. Phil Roe (R-TN), here.0 Comments | Post a Comment | Sign up for NTU Action Alerts
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Today’s Taxpayer News!
Another “green” bust: An electric car charging company in Phoenix which was sponsored by the Department of Energy is considering bankruptcy after admitting the stations they installed are not making a profit and disclosing that DOE’s “EV Project” spent almost $100 million of taxpayer money to help prop up the fledgling company. Read more here.
Tattoo stamps? A Raleigh, NC tattoo parlor has been accepting SNAP cards (a.k.a. food stamps) totaling hundreds of dollars. Read more at Red Alert Politics.
HipsterCare: Watchdog News highlights a new, and quite psychedelic, ad from Oregon’s state agency administering the Affordable Care Act (Obamacare). The ad, part of a longer campaign to enroll Americans, costs taxpayers almost $10 million. The TV ads themselves total $3.2 million in taxpayer funds.0 Comments | Post a Comment | Sign up for NTU Action Alerts
With public approval of Congress at a consistent low, it's hard to give Members a complement or, rather, a comment on them doing something less badly. However, when it comes to their decreasing mail costs, some credit may be due.
In the first 6 months of 2013, House Members spent significantly less of their office allowances on franked mail (official letters that are permitted to be sent without postage), $8.8 million less than the same period in 2012. There are a few reasons for such a change, including:
The Interwebs: Politico reported that direct mail is being replaced with online communications (email and web ads). Comparing 2012 to 2013, Congress is following the mass migration of advertising dollars from print media (newspapers, magazines, and mailers) to social media (Facebook, Twitter, Google ads, etc.). The average Member who spent $2.2 million last year is now spending $3.6 million now and the reasoning is simple: online targeting is cheaper (if it costs anything at all) in reaching a larger audience.
Legislative Action and Sequestration: That same article cited an 18 percent cut in Members' Representational Allowances (annual budgets of Congress' office space, travel, salaries, and franking). Congress itself has passed legislation that has cut their own office benefits by at least 11 percent (via the Congressional Research Service (CRS)). And, yes, the automatic across-the-board cuts (sequestration) that big spenders are preaching will bring about Armageddon are forcing Congress to further cut their own allowances like the rest of the government. Millions of tax dollars have been saved and millions more will not be spent if this trend continues.
The Election Cycle: However, there is a factor that Politico does not address: getting reelected. Another CRS report delved into the limits of franking in relation to election season. If a Representative is a candidate in a primary or general election, they are prohibited from sending out official mail 90 days in advance. The Members then avoid violating the regulation by sending out more mass mailers in the first 6 months of the election year. No rules are broken but mail volumes for Quarters 1 and 2 spike, as seen in 2012 as opposed to 2013. One other thing to note: CRS believes mail volume between non-election and election years does not significantly change and, while I can agree with their research, I'm making more of a point on the timeliness of franked mail, not the quantity.
So what should taxpayers expect in 2014? My money is on registered voters getting more franked mailers in the first half of the year and a steadily increasing amount of emails and online ads as we get closer to November, compared to 2013. As far as federal spending, franking costs should be expected to further decrease as Hill offices discover that online communications produce better results at a much lower (if any) cost. This issue is also divided by political parties in that Republicans tend to send out more franked mail than Democrats. This too will likely decrease as technology gets better at delivering Members’ messages in better ways online.0 Comments | Post a Comment | Sign up for NTU Action Alerts
Today’s Taxpayer News!