Two mainstream think tanks have published new studies on immigration and race in America that come to the typical, safe conclusions. But a look at the data inside shows something more interesting.
A new Cato Institute report defending immigration begins by contending that immigrants are unlikely to negatively affect states’ fiscal health. But within the study’s findings, Cato may have inadvertently provided a new reason to oppose immigration.
Using state budgets as a proxy for the quality of economic institutions from 1970-2010, the authors of the Cato study assert that “a larger share of immigrants at the state level is correlated with slower state revenue and spending growth in the short-term, measured by total per capita government revenue and expenditure growth.” In other words, the more immigrants there are in a state, the less the state tends to take in in taxes and the less it spends on services. This is hardly groundbreaking; we have always known that immigration is linked to welfare chauvinism.
President Biden has just unveiled a new $2.3 trillion “infrastructure” plan, but a shockingly large portion of this bill is actually unrelated to infrastructure.
The plan includes massive subsidies for corporations as well as state and local governments, and comes right after the administration’s proposed increase in the corporate tax rate, which would raise the rate from 21 percent to 28 percent.
There’s $300 billion for manufacturing, $100 billion for electric utilities, $100 billion for broadband, $174 billion for electric vehicles, and a whole lot more. A significant portion of this spending is directed at subsidizing big corporations.
President Biden’s $1.9 trillion “American Rescue Plan” could soon become law.
The budget-busting legislation, sold as emergency COVID response and “stimulus,” passed the Senate over the weekend. But even the liberal-leaning fact-checking website PolitiFact is pointing out that almost all of the bill’s spending is unrelated to the health effects of COVID-19.
“Total spending directly on COVID-19’s health impacts ranges from $100 billion to $160 billion,” fact-checker Jon Greenberg writes. “At the high end, direct COVID-19 spending represents about 8.5% of the bill’s $1.9 trillion cost.”
Congress “spent as never before, doing so ostensibly without a care” in 2020, greatly contributing to what is now a $3.1 trillion deficit, Sen. Rand Paul, R-Kentucky, argues in his annual wasteful spending report.
At the same time, initial 15-day lockdowns to stop the spread of the coronavirus turned into nearly year-long lockdowns, Paul said, “wreaking havoc on Americans’ health, sanity, and economy, while also empowering petty tyrants across the country.”
President Donald Trump is right: There’s a lot of ridiculous gimmicks and wasteful projects in the new massive spending bill.
And the good news is there’s something that Trump can do about it, even though he recently signed the huge COVID-19 stimulus and omnibus spending bill into law.