Congress: Please pass the Dream Act, and comprehensive immigration reform.
Tonight, Fox News will undoubtedly be highlighting the report by the CBO and the JCT that the passage of the Dream Act “would increase budget deficits by $25.9 billion over the 2018-2027 period, boosting on-budget deficits by $30.6 billion and decreasing off-budget deficits by $4.7 billion over that period.” At least in part, the calculations are clearly incorrect because the report does not take into account the provisions of the new tax bill.
Here’s the pertinent portion of the report that deals directly with the tax effects (pages 15-16 of the pdf):
Higher revenues, according to JCT’s estimates, would largely stem from increased reporting of employment income by people who would legally be allowed to work under the legislation. That increase in reported wages would cause increases in receipts, mostly in the form of Social Security taxes, which are categorized as off-budget. In addition, CBO and JCT estimate that an increase in the number of people paying penalties associated with not having health insurance would increase revenues by $0.7 billion over the 2018-2027 period.
Those increases in revenues would be mostly offset for two reasons. First, increased reporting of employment income would result in increases in tax deductions by businesses for labor compensation, including those businesses’ contributions to payroll taxes. As a result, corporations would report lower taxable profits and pay less in income taxes. Noncorporate businesses, such as partnerships and sole proprietorships, also would report lower taxable income, which would decrease individual income taxes paid by the partners and owners. The decrease in income tax receipts would total $3.8 billion over 10 years. Second, CBO and JCT estimate that there would be a $1.2 billion decrease in revenues over the 2018-2027 period associated with increases in the nonrefundable portion of the premium assistance tax credit provided through the health insurance marketplaces established under the Affordable Care Act.
The new tax bill would increase the bottom line cost because it does away with the heath insurance penalties (an increase of $0.7 billion), but decrease the bottom line cost because, by lowering the tax rates on businesses, the tax decreases the $3.8 billion that the CBO/JCT estimates will be lost if the Dream Act is past due to increased business tax deductions.
Going one step further, the CBO/JCT estimates that the Dream Act will cost the federal government $11.8 billion in subsidies for health insurance purchased through the marketplaces. (Pages 10-11 of the pdf.) Of course, this assumption is incorrect, since it does not factor in the reduction of the subsidies anticipated as a result of the tax bill.
Finally, the report anticipates that passage of the Dream Act “would increase outlays for the . . . child tax credits, which are refundable, by $5.5 billion over the 2018-2027 period.” (Page 12 of the pdf.) Of course, this is now incorrect since the tax act first increases the amount of the child tax credit, but then lowers the threshold when it phases out.
I will update this posting when I can get better numbers from the CBO on the tax bill. Suffice it to say, however, the headline numbers on the CBO/JCT report on the Dream Act are simply wrong.
are actually quite relaxed. Here is an actual horse’s ass on the way to a voting place.
California begins accepting permit applications for the sale of recreational marijuana. As California embraces legal marijuana, many cities and counties just say “no.” A weed wonderland in the California desert. Los Angeles power brokers of pot crank up the kook. By legalizing recreational marijuana sales, Los Angeles will “set the tone for the rest of the country.” Got a criminal record? Los Angeles might help you get into the pot biz — or ban you. Why California cannabis rules promise a bumpy ride.
Sessions hints at crackdown on recreational pot.
Why it’s getting easier for marijuana companies to open bank accounts. Marijuana businesses, excluded from finance, face unusual risks. What 3 marijuana heavyweights are doing to become the P&G of pot. New study says marijuana legalization reduces alcohol use. Medical marijuana took a bite out of alcohol sales. Recreational pot could take an even bigger one. How tax reform could push more states to legalize marijuana.
The user guide to legal pot in all Canadian provinces, territories. Former head of Canada drug squad now leads national marijuana business. Canada could make billions from legal pot. Legalization of marijuana unlikely to kill Canada black market right away. This is the formula Canada is using to figure out how legal weed will boost its economy. Survey says nearly half of Canadians want marijuana legalization delayed. Ontario says communities can’t say no to marijuana stores. Alberta municipalities grappling with legal weed. Nova Scotia will sell marijuana in liquor stores.
Come for the race relations were great until President Obama, and the all-the-women-are-lying. Stay for the bonus Soros quotes.
There is one consolation: The average age of the voters expressing unfortunate views.Younger people will create a better America.
Donald Trump, Jr., has claimed that the attorney-client privilege allows him to dummy up before a Congressional committee concerning a meeting with Daddy because there was an attorney in the room at the time. Quite apart from being laughable on its face, there appears to be a more fundamental problem that Junior faces with respect to his assertion of attorney-client privilege. It seems that the attorney-client privilege may not be a bar to a Congressional inquiry in the same way that it is in the context of a judicial proceeding. See The Attorney-Client Privilege in Congressional Investigations. That is, even if the communication was a legitimate attorney-client communication, Junior could still be compelled to testify.
Highlights of California rules and regulations for the legal marijuana market.
California marijuana rules are heavy handed, but signal end of prohibition. A California marijuana prohibition that makes sense.California weed entrepreneurs will make $5.2b in 2018 with almost no banks to put it in. San Francisco report weighs health risks raised by legal pot. Rush of pot grows splits rural California before legal sales.
New Colorado cannabis rules go into effect January 1.
New Jersey poised to legalize cannabis but some urge caution. New Jersey legal marijuana may also mean car insurance gets high. 62% of New York want legal marijuana, poll shows. Candidates for Connecticut governor back legalizing and taxing marijuana. New Hampshire lawmaker: Let’s end the failed war on weed.
Marijuana legalization advocate rules out Democratic bid for Florida governor.
Will Canada plan to get high go up in smoke? Canada marijuana industry enters consolidation phase. Saskatchewan pot survey suggests legal weed be regulated similar to alcohol. Quebec unveils marijuana legalization plan.