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Tag Archive: Mercatus Center


Ranking Known State Subsidies To Private Businesses

 

 

 

 

 

” While corporate welfare, whether in the form of subsidies or bailouts, is more often associated with the federal government, state governments also regularly use generous, targeted subsidy packages to entice corporations to locate within their borders. As these charts show, corporate welfare is a significant problem at the state level, with New York State leading the rest.

  This week’s charts use data from the Subsidy Tracker 2.0 dataset compiled by Good Jobs First, a government accountability and smart-growth advocacy group, to display the states (plus the District of Columbia) that disperse the highest amounts and numbers of subsidies, along with the top parent corporations that cumulatively benefit from these subsidies. 

  Comprehensive data on total state assistance to private businesses have long been hard to access, since the relevant information has been inconsistently scattered among various government reports and websites. The Subsidy Tracker project is an ambitious effort to compile state data on subsidized projects, amounts, beneficiaries, and outcomes in one location. The dataset distinguishes between 11 types of subsidies, including tax credits and rebates, property tax abatements, low-cost loans, infrastructure assistance, and enterprise zones. The dataset is a constantly updated work-in-progress; while it does not yet contain every single state subsidy, it is one of the most comprehensive sources of state subsidies assembled so far. Additionally, the database compilers decided to count sales tax exemptions on business purchases of inputs as a “subsidy.” However, some economists argue that applying sales taxes to input purchases would inefficiently favor vertically integrated firms over firms that purchase inputs from other businesses. Therefore, this kind of sales tax exemption is not a “subsidy,” but an efficient tax policy. Despite these important limitations, the dataset can give us an early glimpse of the rough value of the  subsidies that each state issues. The User Guide provides further details on the methodology.

  The first chart displays the states known to have extended cumulative subsidies exceeding $1 billion, according to the dataset. In the top portion, the states are ranked, left to right, from the highest amount of subsidies to the lowest amount of subsidies. In the bottom portion, the equivalent number of deals are displayed for each state. 

  New York state clearly leads the pack, extending a known 71,759 subsidy deals worth $21.71 billion. The second highest corporate beneficiary in the dataset, Alcoa, received a plum deal from the Empire State in 2007, raking in an astounding $5.6 billion to build an aluminum plant. “

Veronique de Rugy at Mercatus has much more on state funded corporate welfare

 

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From The Mercatus Center

 

 

 

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   Keep this graph handy for when those bogus claims from the Statists lamenting the power of “big money” pop up .

 

 

 

 

 

 

 

 

 

Waste, Fraud, And Abuse In Federal Spending

 

 

 

 

 

” The federal government spent over $100 billion in taxpayer funds improperly in 2012— one element of that notorious “waste, fraud, and abuse” in federal spending that we hear so much about. Scholars at the Mercatus Center recently released a chart that shows the breakdown of these improper payments across federal programs.

  Perhaps not surprisingly, the lion’s share of this improper is in three largest healthcare entitlement programs: Medicare Fee-for-Service, Medicare Advantage (Part C), and Medicaid. Combined, these programs account for a whopping $61.9 billion in improper payments. To put that in perspective, $61.9 billion is more than the entire 2014 budget for the Department of Homeland Security. In other words, we’re talking about real money.”

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State Fiscal Condition: Ranking The 50 States

 

 

 

 

” New research from Sarah Arnett examines states’ abilities to meet their financial obligations in the face of state budget challenges that have far outlasted the Great Recession. Fiscal simulations by the Government Accountability Office suggest that despite recent gains in tax revenues and pension assets, the long-term outlook for states’ fiscal condition is negative (GAO 2013). These simulations predict that states will have yearly difficulties balancing revenues and expenditures due, in part, to rising health care costs and the cost of funding state and local pensions.

  Arnett uses four different indices to analyze state solvency using each state’s fiscal year 2012 Comprehensive Annual Financial Report data. She then weights these four indices to create the State Fiscal Condition Index below. “

 

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Mercatus Center Presents Freedom Rankings State By State 

 

States_Of_Freedom

 

 

 

 

The Effects Of Sequestration On Federal Spending

 

 

 

 

” While the sequester is widely advertised as cutting spending over a ten year period, there is no actual reduction in overall spending levels. Rather, the sequester slows the overall growth in spending slightly between 2013 and 2023, with spending increasing by $2.40 trillion during that time period. Spending grows 51 percent, or $1.81 trillion, with sequestration between 2013 and 2021, the period when automatic spending procedures are to be enforced.”

 

 

 

Yikes !

Mercatus Center at George Mason University