spending Archives - The Minnesota Sun

Commentary: The Fed’s Interest Rate Hikes Have only Destroyed $398 Billion of the $6 Trillion It Printed

September 27, 2022September 26, 2022 Admin

“Our expectation has been we would begin to see inflation come down, largely because of supply side healing. We haven’t. We have seen some supply side healing but inflation has not really come down.”

That was Federal Reserve Chairman Jerome Powell on Sept. 21, speaking to reporters following the central bank’s meeting where the Federal Funds Rate was once again increased 0.75 percent to its current range of 3 percent to 3.25 percent in a bid to combat sticky 8.3 percent consumer inflation the past year.

U.S. Senate Passes Massive Tax and Spend Bill Targeting Carbon Emissions, Prescription Drug Costs, More

August 8, 2022August 7, 2022 The Center Square

The U.S. Senate on Sunday passed a $740 billion new taxing and spending bill that seeks to combat climate change and allow the government to control the price of prescription medications, among other things.

No Republicans voted for the bill, named the Inflation Reduction Act of 2022, in the divided 50-50 Senate, forcing Vice President Kamala Harris to break the tie. The measure must return to the House for a concurrence vote after senators passed several amendments Sunday. The House is expected to take the bill up again on Friday. If the House concurs, President Joe Biden has indicated he will sign it.

‘It’s An Absurd Argument’: Economists Take Apart One of Biden’s Favorite Talking Points

July 31, 2022July 30, 2022 Admin

The Biden administration’s oft-touted talking point that employment has boomed under the administration is misleading and instead simply a natural recovery from pandemic losses, economists told the Daily Caller News Foundation.

Facing consecutive quarters of negative gross domestic product (GDP) growth, sky-high inflation and plummeting consumer sentiment, the Biden administration has routinely cited a low unemployment rate and strong on-paper jobs creation as positive results of President Joe Biden’s economic stewardship. But the notion that these figures represent booming job creation is misleading since the economy has merely rebounded by adding back jobs that were lost during the pandemic and has still yet to reach pre-pandemic levels, economists told the DCNF.

Gubernatorial Hopeful Jensen Calls for ‘Phasing Out’ Minnesota’s Income Tax to Help Fight Inflation, Boost Economy

June 27, 2022June 26, 2022 Minnesota Sun Staff

Republican gubernatorial candidate Dr. Scott Jensen announced at a Thursday press conference his comprehensive plan to fight inflation.

Jensen’s “FIT” plan — “Fight Inflation Together” — comprises a variety of reforms and policies pertaining to taxes and spending. These include but are not limited to investigating wasteful government spending, vetoing tax increases and initiatives that increase the cost of living, eliminating social security taxes, and enacting deregulatory measures that allow businesses to obtain permits and licenses with less hassle.

Gov. Walz Offers Minnesotans $1,000 Checks to Spend Half of $9.2 Billion Surplus

June 21, 2022June 20, 2022 The Center Square

Gov. Tim Walz suggested sending half of the state’s $9.2 billion surplus back to taxpayers in a 15-minute special session.

Walz last weekend proposed sending individuals $1,000, and married couples $2,000.

Only Walz can call a special session, but he hasn’t after a GOP and DFL broad deal for $4 billion in tax relief and $4 billion in savings disintegrated in May as the regular session concluded.

Commentary: Recession Predictor 10-Year, 2-Year Treasuries Spread Inverts Once Again Amid Crushing Inflation

June 14, 2022June 13, 2022 Admin

The spread between 10-year and 2-year treasuries, a reliable indicator of incoming recessions that has predicted almost every recession in modern economic history, inverted once again overnight Monday amid financial markets turmoil with interest rates rising rapidly, the dollar strengthening and equities markets crashing.

That is almost certainly terrible news for President Joe Biden and Congressional Democrats ahead of the 2022 Congressional midterms. The White House has attempted to highlight relatively low unemployment numbers as signs of a healthy economy, with President Biden on June 3 declaring the latest jobs numbers as “good news.”

Minnesotans Demand Permanent Tax Cuts: ‘They’re Stealing from Us’

April 25, 2022April 24, 2022 Admin

Minnesotans are calling on Gov. Tim Walz and the Legislature to return the record-breaking $9.3 billion budget surplus to the people by permanently cutting taxes.

A crowd gathered inside the Minnesota Capitol rotunda Saturday for the “Give it Back Tax Rally.” The rally was hosted by the Center of the American Experiment and involved several speakers including multiple radio hosts and a former U.S. congressman.

House Passes Democrats’ Social Spending Bill After Congressional Budget Office Score

November 21, 2021 The Center Square

Congressional Democrats passed a $1.75 trillion social spending plan Friday, putting the bill’s fate in the hands of a deeply divided Senate.

The bill funds universal pre-kindergarten, climate change spending, Obamacare subsidies, an extension of the monthly child tax credit payment and more wide ranging spending items. House Republican Leader Kevin McCarthy spoke more than eight hours on the House floor overnight to delay the vote until Friday morning, but afterward it passed 220-213 along party lines with one Democrat opposed.

“We are very excited for what it does for the children, for the families,” House Speaker Nancy Pelosi, D-Calif., said in a press conference after the bill’s passage.

Senate Republicans Filibuster Government Funding Bill Over Debt Ceiling Provision With Three Days Until Shutdown

September 28, 2021September 27, 2021 Minnesota Sun Staff

Senate Republicans Monday filibustered Democrats’ bill to fund the government and suspend the debt ceiling, days before a potential federal shutdown and possible debt default.

Republicans vowed for weeks to oppose a debt ceiling increase and urged Democrats to put the provision in their filibuster-proof $3.5 trillion reconciliation bill. But Democrats have thus far refused to do so, and with their bill’s failure Monday, Congress now has just three days to pass a new funding bill to avoid a government shutdown set to begin Friday at midnight.

The Congressional Budget Office Says the Bipartisan Infrastructure Bill Will Increase Deficits by $256 Billion over 10 Years

August 6, 2021 Admin

The Congressional Budget Office estimated Thursday that the bipartisan Senate infrastructure bill will add $256 billion to the deficit over the next decade, undercutting its backers’ claims the spending had been offset.

In FY2020, the deficit hit a record $3.1 trillion. So far in FY2021, the deficit is $2.2 trillion. The national debt is climbing to $29 trillion for the first time in U.S. history.

U.S. Set to Hit Debt Ceiling Within Four Months, Congressional Budget Office Estimates

July 25, 2021July 24, 2021 Minnesota Sun Staff

The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.

The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.

“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.

California Spent $13 Million to Guard 120 Empty Homes

July 13, 2021July 12, 2021 Minnesota Sun Staff

The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.

In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.

In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.

Commentary: It is Time to Fight for the Rights of Independent Businesses

July 5, 2021July 16, 2021 Minnesota Sun Staff

As a very young man, I was fortunate enough to start my own company out of my apartment using a small amount of investment capital from friends and family. Over time, that business grew to have over 6,000 employees and revenues in excess of $2 billion. Over nearly a 40-year span, my team and I built what some would consider a remarkable track record, as measured by both sales and profits.

Because of my experience growing that business, I feel a special kinship with small, privately owned businesses and their owners. I also come from a middle-class background, one that shaped me into the person I am today. It is through both the lens of entrepreneur and member of the middle-class that I look through when reflecting upon this Independence Day.

Commentary: Price Stability, not Inflation, Will Get the U.S. Economy Back to Full Employment Sooner Rather than Later

May 18, 2021May 17, 2021 Minnesota Sun Staff

2020 and 2021 are two sides of the same coin: Price instability brought about by the dollar being either relatively too strong or too weak, which can lead to or exacerbate economic slowdowns, creating higher unemployment and worse if the conditions persist for too long.

In 2020, at the height of the Covid pandemic, the problems included the global economy being shut down plus local lockdowns resulting in a massive recession and a flight to safety into U.S. treasuries as interest rates collapsed, making the dollar too strong. With the onset of deflation, consumer prices plummeted in March and April 2020, with oil even dropping briefly below zero dollars for the first time in history, and a concurrent rise of unemployment as 25 million Americans lost their jobs.

Biden’s ‘American Jobs’ Plan Could Cost Taxpayers about $666,000 per Job Created

April 12, 2021April 11, 2021 Minnesota Sun Staff

President Joe Biden and VP Kamala Harris

President Joe Biden’s proposed $2 trillion American Jobs Plan could end up costing taxpayers more than $666,666 per job created.

The Washington Post gave Biden “two Pinocchios” for saying the American Jobs Plan, his infrastructure and jobs proposal, will create 19 million jobs. Both Biden and his Transportation Secretary Pete Buttigieg have made the 19 million jobs claim. The source of the statement is a Moody’s analysis, which CNN pointed out had estimated the U.S. economy would add about “16.3 million jobs over the same period if the infrastructure proposal does not get passed.”

New House Rules Carve-Out for ‘Climate Change’ Bills Exempted from Requiring Projected Price Tag

January 5, 2021January 4, 2021 Admin

House Democrats blocked a Republican attempt on Monday to require any proposed climate change legislation to also include its projected cost.

Under the Pay As You Go (PAYGO) rule, any additional government spending proposed must be accompanied by tax increases or separate cuts. After a push from several lawmakers in the Democratic Party’s progressive wing, however, the rules package for the 117th Congress states PAYGO will not apply to legislation relating to the necessary economic recovery or U.S. efforts to combat climate change.

Armstrong Williams Commentary: It’s Time to Talk About Recession

July 1, 2020June 30, 2020 Minnesota Sun Staff

Is America in a recession? It’s an unpopular question to ask, but it has now been over 3 months since COVID-19 restrictions were initiated and it is time for us to get realistic about where we are economically so that we can take the proper steps to minimize further damage to our economy. At this point, the unfortunate reality is that regardless of what we do, it is likely that it will take at least several years to see a partial recovery of economic loss and the time that it will take for a complete recovery remains unknown at this point.

Minnesota’s Legislative Deadline Passes with No Agreement on Infrastructure Proposal

May 19, 2020May 19, 2020 Minnesota Sun Staff

The Minnesota legislature failed to reach agreements on a major construction bill, tax relief, or state employee contracts before the midnight Sunday deadline for this session.

The lawmakers could still find a middle ground in a special June session.

Minnesota House Republicans Saturday blocked Democrat’s $2 billion bonding bill. Bonding bills must originate in the House and require a three-fifths majority, or 81 votes, to pass. The final tally fell six votes short.

Minnesota House Falls Short of Passing Mammoth $2.5 Billion Infrastructure Package

May 18, 2020May 18, 2020 Minnesota Sun Staff

A two-and-a-half billion dollar infrastructure spending package – touted as a top priority for 2020 by the DFL-controlled Minnesota House – fell short of the necessary three-fifths supermajority of votes needed Saturday.

With a final count of 75-58 along party lines the measure missed by a scant six votes.

Commentary: Alexis de Tocqueville’s Lessons in a Time of Pandemic

April 6, 2020April 5, 2020 Minnesota Sun Staff

The immediate challenge of COVID-19 has been cast as an examination of how individual Americans will fare should they be exposed to the virus. The effort to arrest the spread of the virus has brought unprecedented changes in the daily routines of all Americans. The limitation of activity is apparent when one walks outside. There is a marked silence, regardless of the time of day, almost eerie, that gives one pause.

The check on movement is accompanied by images of field hospitals and graphs showing curves and spreads displayed across news sites. While many are changing their daily routines to comply with the requirements of staying at home and practicing social distancing, a broader concern is the effect on our American democratic foundation.

Commentary: The U.S. Economy Will Weather the Chinese Coronavirus

March 17, 2020 Minnesota Sun Staff

President Donald Trump praised the Federal Reserve for cutting the federal funds rate to a range of 0 percent to 0.25 percent, and restarting quantitative easing with $500 billion of U.S. treasuries purchases and $200 billion of mortgage purchases in response to the Chinese coronavirus global pandemic.

“It makes me very happy and I want to congratulate the Federal Reserve,” he said. “That’s a big step and I’m very happy they did it.” Trump has been hounding the Fed for years to cut interest rates to make the dollar more competitive against trading partners’ currencies including the yuan, euro and peso. Now he gets his wish.

One Aspect of Trump’s New Budget Proposal Targets Waste, Fraud: Report

February 11, 2020February 11, 2020 Minnesota Sun Staff

One initiative in President Donald Trump’s fiscal 2021 budget, to be presented to Congress Monday, targets waste, fraud and abuse of taxpayer money.

States Across the Boards Plan to Increase Spending in Fiscal 2020

January 1, 2020December 31, 2019 Minnesota Sun Staff

State lawmakers nationwide are spending more money, but they are also replenishing rainy day funds in preparation for the next economic downturn, a new report determined.

Report: Government Wasted $230 Million on Failed Programs

December 2, 2019December 1, 2019 Minnesota Sun Staff

The U.S. government spent $33.9 million of taxpayer money on unused textbooks for Afghani children. The books are still sitting in decaying storage units in Afghanistan. American taxpayers also spent $16 million to improve the quality of Egyptian education.

Commentary: Skyrocketing Debt Too Important to Be Paired With Spending Deal

May 23, 2019May 22, 2019 Minnesota Sun Staff

by Justin Bogie Two major issues that Congress will be forced to confront in the coming weeks and months are the debt limit and the future of the Budget Control Act discretionary spending caps. A report from The Hill indicates that negotiations are underway between Congress and the Trump…

Lawmakers Eye a Huge Backdoor Spending Increase

April 16, 2019April 15, 2019 Minnesota Sun Staff

by David Ditch Members of Congress are promoting the concept of changing three programs from the discretionary category (requiring annual appropriations) into mandatory (auto-pilot) spending. Such changes would become a huge backdoor spending increase. Spending limits have come under relentless attack from both parties. In 2013, 2015, and 2018,…

Rick Manning Commentary: President Trump Versus Washington’s Spending and the Constituencies Who Fight for Them

March 19, 2019March 18, 2019 Minnesota Sun Staff

by Rick Manning In Washington, D.C., every spending program and tax break has a constituency that fights for it. This is why they exist, because somewhere, someone believes that Warren Buffett needs a wind production tax credit, and that opera programming should be taxpayer funded. These constituencies are tightly…

President Trump’s Executive Order Freezing Federal Pay Saves Taxpayers from Double-Digit Pay Increases

January 1, 2019December 31, 2018 Minnesota Sun Staff

by Rachel Greszler President Donald Trump issued an executive order effectively freezing federal pay for 2019 at current 2018 levels. Had the president not issued this executive order (and lacking congressional action on federal pay), federal workers would have received a 2.1 percent across-the-board pay increase, as well as a…

Commentary: Only Two Weeks Left for Republicans to Get It

December 9, 2018December 8, 2018 Admin

by Rachel Bovard There’s only one area where bipartisanship still reigns in Washington: avoidance. Republican and Democrat leaders this week held hands and used the funeral events for President George H. W. Bush as an excuse to move their funding deadline—which previously expired on December 7—two weeks forward, to December…

Chuck Schumer Demands Climate Concessions From Trump on Infrastructure Spending

December 9, 2018December 8, 2018 Admin

by Michael Bastach Senate Minority Leader Chuck Schumer told President Donald Trump that Democrats won’t cut a deal with him on infrastructure spending unless it includes a slew of policies aimed at fighting global warming. Schumer, the Senate’s top Democrat, called for, among other things, making green energy and…

REPORT: EPA Paid $14.5 Million For Foreign Nationals, Not Americans, To Work In Government Labs

September 28, 2018September 27, 2018 Admin

by Michael Bastach The Environmental Protection Agency (EPA) paid $14.5 million to foreign nationals to work at agency laboratories over the past 11 years that could have been awarded to U.S. citizens and permanent residents, according to federal investigators. EPA’s Office of Inspector General (OIG) found the agency’s cooperative…

Deceptive Tricks Congress Uses to Drive Spending Higher

September 24, 2018September 23, 2018 Admin

by Justin Bogie Congress is up to its old tricks again, trying to pass another massive spending bill that uses gimmicks and tricks to push deficit spending even higher. And it thinks it can hoodwink President Donald Trump into signing it. Next week, the House is expected to vote on…

Three Budget ‘Reforms’ That Would Make Matters Worse, Not Better

August 8, 2018August 7, 2018 Admin

by Dody Eid and Romina Boccia A congressional select committee on reforming the budget process recently held another public hearing, supposedly with the ultimate aim of designing a more transparent, accountable, and responsible budgetary process. Any such changes should also re-establish and enhance Congress’ power of the purse. But if those are…

Commentary: Trump, Reagan, and Big Government

July 29, 2018July 29, 2018 Admin

by Jeffery Rendall As I strolled through the excellent and memory-provoking exhibits at the Ronald Reagan Presidential Library (in Simi Valley, CA) the other day I was struck by how similar President Donald Trump’s approach to today’s politics is to the way Ronald Reagan handled the subject a half…

‘Pig Book’ Spotlights 232 Earmarks Amid Pork That Wastes Taxpayers’ Money

July 22, 2018July 21, 2018 Admin

by Katherine Rohloff All but a relative few farmers and other rural residents have had electricity and telephone service for a generation, but the U.S. government devoted $10 million in the current budget to a duplicative Rural Utilities Service program designed to help pay for energy costs. Taxpayers continue to finance the…

Commentary: The Ticking Fiscal Time Bomb Set in 1937 Could Tip America Into Despotism by 2030

July 13, 2018July 12, 2018 Admin

by Robert Osburn Celebrated this past July 4, America’s founding story of freedom is truly remarkable: unity, courage, integrity, and national integration (incorporating people from around the world). In most other places, the freedom story is bloody, exclusive, and, ultimately, tyrannical. Take Nicaragua, for one example: In 1979, the Sandinistas…

Senate Fails to Pass the Rescission Package

June 23, 2018June 22, 2018 Admin

By Printus LeBlanc When President Donald Trump signed the omnibus spending bill back in March, he did so reluctantly. The swamp knew the President’s feelings for the military and hid behind them to fill the omnibus with wasteful spending. The President signed it, hoping some of the spending would be…

Trump’s ‘Rescission’ Package Would Save Unspent Tax Dollars

May 9, 2018May 8, 2018 Admin

by Justin Bogie President Donald Trump on Tuesday submitted a special message to Congress requesting that $15 billion in unspent funding be rescinded. That’s a good first step toward re-establishing fiscal responsibility. Congress should embrace it and quickly adopt the president’s rescission package. Still, the package does nothing to claw back the…