Minnesota Lt. Gov. Peggy Flanagan (D), now running for U.S. Senate, promised a Somali audience in 2023 to seek funding for “culturally relevant treatments and care” and support multifamily housing.
The post Peggy Flanagan Promised Millions to Somali-Focused Nonprofits: They ‘Know How to Spend that Money Best’ appeared first on Breitbart.
If you have to pay a regular fee to maintain control and use of a home or other parcel of property, do you really own it? Or are you just renting it from whoever collects the money? That's the question behind a growing movement against property taxes, which is winning support across the country and may see its next big test in the form of a proposed constitutional amendment on the Florida ballot that would significantly trim taxes on owner-occupied homes.
Advocates of reform understandably champion the inviolability of private property, which is threatened by continuously rising levies. Opponents predictably include people who fear reduced government revenues, but also those who worry that cutting property taxes will shift power to state governments at the cost of local autonomy.
"Property is the foundation of liberty," argues economist Vance Ginn. "It represents the right to the product of voluntary exchange, investment, and saving—not a privilege granted by government. To tax property again every year after it has been bought with after-tax income is to deny genuine ownership. Property taxes operate like an annual wealth tax or unrealized capital-gains tax, applied regardless of income or ability to pay."
Opposing Ginn's argument in the debate is the Tax Foundation's Jared Walczak, who is not so much a fan of property taxes as a believer that they suck less than the alternatives.
"Spending restraint can reduce property tax burdens," argues Walczak. "But with property taxes accounting for 70 percent of local tax collections nationwide and upwards of 90 percent in some states, any discussion of property tax elimination must grapple with revenue alternatives."
"It is axiomatic that whatever you tax, you get less of," he adds. "Taxing income means less income-producing labor and investment, for instance. But because land is an immobile asset, taxing property does less to distort market decisions than taxing income or even sales."
Walczak also points out that while property taxes are usually imposed by local governments, most alternatives to property taxes come at the state level. That would move power further up the political food chain, away from the property owners worrying about their tax bills.
To this, Ginn responds that governments at all levels cost more than they should and that "the moral and fiscal failure of property taxes lies not only in how the money is raised, but also in how much government spends."
That means the debate over property taxes isn't just a struggle between those who want to trim the state's take and those who prefer larger government, but also between anti-tax activists and their frequent allies among advocates of local power. In a piece this week on the groundswell against property taxes, Politico's Liam Dillon notes that "the uprising's most pitched battles are being fought in Red States where the issue has emerged as yet another dividing line on the right."
The debate over property taxes is fierce partially because governments have come to rely so heavily on them. "In fiscal year 2023, property taxes comprised 28.9 percent of total state and local tax collections in the United States, more than any other source of tax revenue, despite being levied almost exclusively at the local (not state) level," Janelle Fritts wrote for the Tax Foundation.
Property taxes in the U.S. range from roughly half a percent to just under 2 percent of assessed home value. States that rely most heavily on them, like New Hampshire (1.5 percent in 2024) and Texas (1.4 percent in 2024), also tend to leave a lot of government responsibility in local hands that might be exercised at the state level elsewhere. It's worth noting that Cato's Freedom in the 50 States ranks New Hampshire as having the second least burdensome tax regime among states, with Texas in fourth place.
The lowest taxed states in property terms are Alabama (0.37 percent in 2024), Arizona (0.48 percent), Hawaii (0.29 percent), and Utah (0.48 percent). Some states, such as Illinois (1.88 percent in 2024) and New Jersey (also 1.88 percent), tax the hell out of many things to support large and intrusive governments. Hawaii, despite low property taxes, is ranked as the most tax-burdened state by Cato.
As mentioned above, economists tend to like property taxes because they are efficient, minimally distort economic decisions, and empower localities relative to state and federal authorities. But as Politico's Dillon emphasizes, "everyone who is not an economist seems to hate property taxes."
Property taxes rise with assessed property valuations that homeowners have no control over, as the market shifts with supply and demand. They require what feels an awful lot like an annual rent payment to keep a roof over people's heads many already paid for. That reduces the sense of security that owners feel in their homes, since their habitation remains conditional on meeting local authorities' demands. The bite of sales taxes can be reduced by buying less, and income taxes are dependent on earning paychecks, but property taxes (with some local exceptions) come due no matter what.
Soaring property valuations in recent years drove property tax bills higher for Americans who did nothing but remain at their established addresses, though localities can and sometimes do adjust tax rates to offset rising values. USA Today reported that "between 2019 and 2023, the median value of annual property taxes increased nearly 25%." That has energized the movement to cut or abolish the taxes.
Efforts to reform property taxes have been effective in more than a dozen states, according to Governing. Most of these efforts involved reducing taxes, though eyes are currently on Florida where Amendment 3, a proposed change to the state constitution, would incrementally raise the homestead exemption to $250,000. It also would require "the Legislature to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to full assessed value," effectively abolishing property taxes on owner-occupied dwellings.
As a constitutional amendment, the measure requires 60 percent of votes to pass. Polling shows more support than opposition, but not necessarily at the supermajority level necessary for victory.
According to the Tax Foundation, in Florida, "the statewide average sales tax rate would have to rise from 7.02 to 15.34 percent to replace the property tax" with equivalent revenue. Rates could widely vary if localities implemented sales taxes instead of leaving them to the state.
Of course, that assumes state and local governments continue spending and providing services at the same level. But as economist Ginn points out, the problem lies not only in how property taxes raise money "but also in how much government spends." If the property tax revolt represents revulsion not just at the tax, but at the expense of large government, that may require less revenue to fund a smaller Leviathan.
The post Grassroots Revolt Targets Unpopular Property Taxes appeared first on Reason Magazine.
Social Security is racing towards insolvency because the program pays out more in benefits to retirees than it collects in taxes from working Americans.
Handing out even more generous benefits will make that situation worse. Yet that is exactly what the trustees who run Social Security are planning to do: Retirees will get a 3.6 percent cost-of-living adjustment (COLA) next year. That increase is 0.8 percentage points higher than last year's, and it is 0.9 percentage points higher than what Social Security was expecting to pay.
The Social Security trustees are doing what the law requires during a time of high inflation. That's why Congress ought to intervene here.
It should cancel the COLA.
No, this isn't a demand that lawmakers stick it to America's retirees. It's an appeal for some fiscal common sense. There are three good reasons to cancel this year's COLA.
First: Handing out higher benefits to wealthy retirees simply doesn't make sense when Social Security is trending towards insolvency.
As the Committee for a Responsible Federal Budget notes, the announced COLA would be a $900 increase in benefits for the average retired household—but some retirees could receive as much as $3,600 more.
Paying generous benefits to wealthy households is the main reason Social Security is facing insolvency in the first place. A program originally intended to keep seniors from falling into poverty has become a huge wealth-transfer scheme that overwhelmingly benefits those who don't need the handouts. The COLA doubles down on this flaw.
Second: What about the workers who are paying for those lavish benefits? Wages have risen by 3 percent, on average, over the past year. Those pay increases have already been outpaced by inflation, which is up 3.7 percent in the past 12 months.
You'll often hear retirees talk about how they are living on a "fixed income," but the math simply doesn't bear this out. Social Security beneficiaries will get a COLA that is larger than the average pay increase for the workers who are funding the COLA. Retirees are protected from the impact of inflation while younger Americans must deal with inflation and finance that protection for the elderly. That's crazy.
Third: Cutting the COLA could kick-start a conversation about how to solve Social Security's looming insolvency. The Social Security trustees estimate that an across-the-board cut of about 22 percent will be necessary in 2032. Eliminating COLAs won't meaningfully change that arithmetic, but it would change the conversation—which has for too long been dominated by politicians promising seniors that nothing needs to change. That's wrong—and the sooner that becomes apparent, the better off the political system will be.
If eliminating the COLA is too radical a change, Congress should instead change how the trustees calculate the annual increase.
Currently, the COLA is based on one particular measure of inflation: the Consumer Price Index for Urban Wage Earners and Clerical Workers, otherwise known as CPI-W. This is a relatively narrow index that reflects the spending habits of only about one-third of all Americans, as Romina Boccia points out in her newletter, The Debt Dispatch.
Instead, Boccia suggests using the Chained Consumer Price Index for All Urban Consumers, or C-CPI-U, which covers about 93 percent of all Americans and is generally regarded as a better measure of the rising cost of living. Other parts of the federal government already use C-CPI-U to update such things as tax brackets.
If Congress simply changed how Social Security's COLA was calculated, it could close 12 percent of the program's long-term shortfall. And while some retirees would see smaller COLAs as a result, the result would more closely match those increases to inflation.
Social Security's COLA reflects many of the fundamental flaws with America's old-age entitlement program. Like Social Security as a whole, it is too generous to the rich, too costly to the taxpayers, and too unfair to younger, poorer workers.
The post 3 Reasons To Cancel This Year's 3.6% Social Security Boost appeared first on Reason Magazine.
Is this really about cost of living? Over the weekend, the civil unrest that had been at a simmer boiled over in cities all over France. Over 1,000 police officers were injured, with seven seriously injured. More than 2,400 people were arrested.
"Rioters…attacked city halls from Lille in northern France to Marseille in the south, where they broke into the local government headquarters and tipped over a bust of Marianne, a symbol of the French Republic," reports The New York Times. "A fire destroyed a tourist office in Lyon, and 1,500 shops were damaged or looted nationwide, according to Alexandre Bompard, head of the French federation of commerce and distribution, who estimated that the cost of repairs could run into hundreds of millions of dollars."
"They came prepared," claimed the French journalist Paul Amar on CNews. "They had the addresses of town halls. They had addresses of Jewish shop owners. In a street in Marseille, all businesses owned by Jews were set on fire. Businesses run by Muslims weren't." The Jewish Community Protection Service has disputed such claims.
Reason's Matt Welch has a good write-up of how the violence and destruction have altered Lyon, Paris, Marseille, and Limoges, where the city hall was burned and collapsed.
Ces images doivent faire le tour du monde. Nos voisins doivent savoir.
Lyon l'une des plus grandes villes de France le 17 octobre est l'une des villes les plus touchées.
A Lyon, aucun commerce n'a été épargné, oui aucun commerce n'a aucun épargné vous avez bien lu. Toutes les… pic.twitter.com/15dG6QB5lK
— Guillaume Herblot
(@Guigz75116) October 18, 2026
What was nominally about cost of living and budget issues appears to have expanded far beyond those. ("Free Palestine" and "ACAB" graffiti have been seen everywhere.) President Emmanuel Macron has blamed far-left protesters, saying they have taken advantage of the situation. Far-right leader Marine Le Pen has blamed the "Macronist administration that is out of steam, exhausted, and disoriented."
It's not clear to me how the possibility of that retirement age needs to be raised will in any way be changed by, say, donning black balaclavas and breaking into the Louis Vuitton store:
French rioters loot Louis Vuitton store located just 2 KM away from the Élysée. pic.twitter.com/cnb5aWczcN
— Drew Pavlou
(@DrewPavlou) October 17, 2026
Here's how it all started: Since September 18, lycée (or secondary-school) students have held demonstrations, starting in the Paris suburb, Créteil. The students said the Education Ministry had neglected them—not enough resources, not enough teachers, and overcrowded classes. (The original demands were met and that strike ended, but not before sparking a wider movement.) This was all happening concurrently as the government was deciding its budget, and public-sector strikes were beginning. High social-program spending, an aging population, and high debt-to-GDP, plus an ever-increasing cost-of-living is resulting in a math problem that politicians have no real way out of except by raising the retirement age. Over the last few years, the French have had several hissy fits over the possibility of that happening.
Lawmakers from left-wing party La France Insoumise were at the first blockade on September 21, which has sparked questions about whether the party helped fuel the protests ahead of April's presidential election. I take all this—the disparate movements, the sheer volume of violence, the political-party involvement, the elections coming up—to mean that what started as an education-quality/cost-of-living protest has been used to lodge all kinds of grievances, and is attracting allies with an unquenchable thirst for violence and destruction.
Scenes from New York: "Darrel Rodriguez, 26, was shot on Saturday in the 7th Avenue Station on 53rd Street, a few blocks from Times Square, the police said. An unidentified man approached Mr. Rodriguez on the northbound E train platform, drew a gun and shot him once in the chest, they said," reports The New York Times. The man who shot Rodriguez was wearing a full balaclava-style face covering, and has not been found by the cops.
Philadelphia enacted a ban on such masks back in 2023. Just anecdotally, I've seen a lot of them in New York, but not by people trying to stay warm in the cold—these types of masks are used by people hopping turnstiles, stealing from bodegas, and more. Some bodega owners have started posting signs on their doors saying masks aren't allowed, since it's become such a problem.
"As of Oct. 11, there have been 1,697 crimes in the transit system since the start of the year, 27 more than the same period in 2025," reports The New York Times, citing Police Department figures.
YOU CAN SEE EVERYTHING is doing a public service if it gets the general population to question why, precisely, folks lend so much credence to documentaries as vehicles of truth. https://t.co/n7CHwkmDmr pic.twitter.com/IHUvEbKECl
— Sonny Bunch (@SonnyBunch) October 18, 2026
The post France Burns appeared first on Reason Magazine.
Ontario government inspectors checked several career colleges that had experienced "concerning" growth in applications for the Ontario Student Assistance Program (OSAP), a government financial aid program that helps eligible students pay for post-secondary education. The investigators found problems that raised "serious concerns" at three Academy of Learning institutions, like signs that other people might have been doing students' schoolwork for them—for example, some students finished whole courses in a single day, or even just minutes. A few students could not even name their school or program of study. The inspectors also found shared computer logins from many different locations and said the schools could not prove that OSAP-funded students were really taking the classes they claimed to be enrolled in. These three locations took in more than $219 million in student aid money for about 14,800 students in one year, so the province decided to stop letting new students use that aid at the schools. The colleges deny most of the claims and are fighting the decision in court.
The post Brickbat: Studying Hard or Hardly Studying appeared first on Reason Magazine.
As the Trump administration's short-lived Department of Government Efficiency (DOGE) project implemented its plan to downsize the federal workforce, there was much wailing from the liberal institutions in Washington, D.C.
Federal employee unions filed lawsuits to block the effort. NPR ran profiles of federal workers who, for the first time, faced the prospect of potentially not having absolute job security forever. The Brookings Institution wondered how many jobs the federal government could shed before it crashes.
The answer: plenty. The Trump administration has cut more than 10 percent of the federal workforce, and the government hasn't crashed. Indeed, it hasn't even shrunk—if you're counting by dollars spent instead of people employed.
In a new article for City Journal, Manhattan Institute senior fellow Judge Glock highlights the tremendous gap between the dire predictions about DOGE's cuts and the reality that has emerged, more than a year after DOGE was shut down. Despite having only a modest impact on spending, Glock writes, DOGE "had a massive impact on the federal civil service."
This is true—to a point, more on that in a moment—and notable. Aside from a modest downsizing in the 1990s, the number of people employed by the federal government has been steadily growing for decades. Reversing that trend is one of the few genuinely libertarian accomplishments by the Trump administration.
The cuts to the federal workforce prove that "DOGE worked," argues Glock.
Well, hold on.
Elon Musk and Vivek Ramaswamy (who departed the DOGE project before Trump's inauguration and is now running for governor of Ohio) set some very ambitious goals after being appointed DOGE co-chairs in late 2024. In an op-ed for The Wall Street Journal in November 2024 where they promised "we won't just write reports or cut ribbons. We'll cut costs."
Musk repeatedly attached some rather absurd numbers to that promise. He said DOGE would cut $1 trillion or even $2 trillion in federal spending. In the end, it didn't come close. By DOGE's own (questionable) accounting, it cut $170 billion. Meanwhile, overall federal spending has increased in each of Trump's first two years in office, and the budget deficit has widened as well.
Yes, Musk and Ramaswamy also said they would reduce the federal workforce. But that was presented as a natural consequence of cutting spending, not as the primary goal.
Think about it like this. If I spent months promising my friends and family that I would lose 50 pounds on a new diet, and then didn't lose any weight, would it be fair to say the diet worked?
What if I reduced the number of donuts I eat every day, but still didn't lose any weight? Sure, that might be good for my health in some way—just like reducing unnecessary workers in the federal government is good for America's fiscal health—but it certainly wouldn't mean I had achieved the goal of losing weight.
Finally, even the claim that DOGE cut the federal workforce requires an asterisk. As Glock also notes in his report, the decline in federal workers has been offset by an increase in federal contractors.
It's not a one-for-one trade, of course. The new contractors are overwhelmingly concentrated in places like the Department of Homeland Security and the Pentagon, while the cuts mostly targeted other areas, like the Department of Health and Human Services.
"Most of that increase came from the buildup in homeland-security and defense contracting, including purchases such as surveillance aircraft and tanks, rather than substitutes for government workers," Glock writes. "DOGE achieved real contract savings, but these were more than offset by higher spending elsewhere, reflecting a shift in priorities rather than an overall reduction in contracting."
So, the government is eating fewer donuts but more pizza.
There might be libertarian reasons to prefer contractors over government employees. They are less likely to hold those jobs for life, for one. But there's nothing inherently good about a government policy that cuts jobs in some areas just to create more room in the budget for poorly trained immigration enforcement agents and defense contractors. That may even be a negative outcome for liberty.
In the end, the DOGE project looks less like a meaningful attempt at cutting government spending or employment levels and more like a way to purge parts of the federal workforce likely to get in Trump's way during his second term. "As long as [Trump's] larger commitment is to extending his power rather than rolling back power itself, you shouldn't expect the government to stop growing," as Reason's Jesse Walker wrote last year in comparing DOGE to President Richard Nixon's attempted purge of the civil service.
Did DOGE work? Only if you grade it on a pretty dramatic curve.
Yes, it proved that a president can slash bureaucratic jobs—particularly the bloated managerial and administrative types—without doing much damage to the government's core responsibilities. That's a lesson future administrations should remember.
Maybe, someday, a president will try applying the same logic to government spending too.
The post DOGE Worked? Only If You Grade on a Curve. appeared first on Reason Magazine.
With Social Security barreling toward insolvency, the government is increasing benefits in January.
On Wednesday, the Social Security Administration (SSA) announced that retirees will receive a 3.6 percent increase in Social Security benefits next year. The raise, which was unveiled shortly after the Bureau of Labor Statistics reported consumer prices rose 3.7 percent year over year in September, will amount to an increase of $75 per month for the average beneficiary. It also represents a cost-of-living adjustment (COLA) that will be 0.8 percentage points higher than last year's, which was 2.8 percent, and 0.9 percentage points higher than what was projected by the Social Security Trustees, according to the Committee for a Responsible Federal Budget.
"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," said SSA Commissioner Frank J. Bisignano in a press release. "Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."
But the announcement comes as Social Security faces a looming funding cliff.
The program has been spending considerably more than it receives for years, thanks in large part to the U.S. demographic problem: Birth rates have collapsed, life expectancy has risen, and there are fewer working-age people paying taxes to fund retirees. In 2025, the program collected $1.45 trillion in revenue and spent $1.61 trillion, leaving a $160 billion shortfall. Trust fund reserves covered the gap, but they are rapidly dwindling. In June, Social Security's Trustees projected that, without legislative changes, incoming revenue would cover only 78 percent of scheduled retirement and survivor benefits by late 2032—a 22 percent shortfall. Combined retirement and disability funds are expected to run out by 2034. There are a handful of fixes, including raising the retirement age, reducing benefits, raising the cap on earnings, means-testing the program, privatizing it, or getting rid of it altogether.
While many lawmakers have acknowledged reality, Congress remains divided on how to address the issue. In August, Sen. Ron Wyden (D–Ore.) blocked a proposal from Sen. Bill Cassidy (R–La.) to establish a congressional process to consider reforms, arguing that it would slash retiree benefits and help billionaires "avoid paying their fair share."
"People are objecting to doing their job," Cassidy complained in September. "Congress needs to fix Social Security this year."
What makes Wednesday's increase even more unjustified is the fact that older Americans are already among the wealthiest age groups in the country. According to the Federal Reserve's latest Survey of Consumer Finances released last week, households headed by someone aged 75 or older had a median net worth of $504,900 in 2025, compared with just $33,000 for households headed by someone under 35. Despite their relative wealth compared to working-age people, retirees are getting a COLA increase that is greater than the average worker, whose wages have risen by 3 percent in the last year.
For the very wealthiest beneficiaries, the 2027 COLA will constitute an enormous increase. According to the Committee for a Responsible Federal Budget, the highest-earning couples who retired this year will receive a combined increase of $3,600, meaning that their combined benefits would exceed $100,000 next year. However, without congressional action, Social Security recipients could expect a 22 percent cut that, in 2032, would wipe out the previous nine years' COLAs all at once.
Despite years of warnings about Social Security's deteriorating finances, Congress has yet to enact reforms to avert the looming shortfall. For now, beneficiaries can look forward to larger checks in January, even as the program moves closer to the day when it can no longer pay the benefits it has promised.
The post Social Security Is Running Out of Money. Benefits Are Rising 3.6% Next Year Anyway. appeared first on Reason Magazine.
The federal government just closed fiscal year 2026 with a deficit of nearly $2 trillion, according to figures the Congressional Budget Office (CBO) released last Thursday. Only the two pandemic years of 2020 and 2021 were worse. Today, though, there is no recession and no emergency. These enormous budget deficits are the new normal.
The usual response to a deficit warning is that the government just needs more money. It doesn't. Thanks to the remarkable strength of the private sector, federal revenue rose by 3 percent, to more than $5.4 trillion, over the fiscal year. But spending rose by 6 percent, reaching $7.4 trillion.
Some will blame the Supreme Court for striking down most of President Donald Trump's tariffs and forcing the government to issue refunds. But even if Washington had kept the $130 billion in illegal levies, it would cover less than one-tenth of the gap. Tariffs were never a serious revenue source at our insanely high level of spending.
Look at where the money went. Spending on the three main entitlement programs—Social Security, Medicare and Medicaid—grew by 7 percent. That's faster than total spending growth. Defense grew by 5 percent. Interest on the debt rose by 11 percent, exceeding $1.1 trillion. That last figure is the bill for every earlier year of borrowing—years when Washington was sending clear signals that it isn't serious about fiscal responsibility.
If you want to see where such irresponsibility can lead, look at France. The country that big spenders from Paul Krugman to Sen. Bernie Sanders (I–Vt.) have cited as proof that big government is viable and full of upsides is now on the brink of a serious crisis. France's debt equals 120 percent of its gross domestic product (GDP), and interest payments are rising quickly. Slow growth and social unrest aren't helping.
The U.S., of course, has some advantages that France doesn't, largely because we're a country of innovators with a private sector unmatched at creating wealth. Nonetheless, debt that is swelling out of control should still worry us. First, the same anti-wealth and anti-growth forces that brought France to where it is now are gaining popularity here. Second, we too will see debt reach 120 percent of GDP in a few years, and our interest payments are already consuming an alarming share of resources.
A wise Congress would put us on safer footing if only because debt raises interest rates for everyone, from homebuyers to small businesses. This operates as a drag on growth, and hence on wages. In other words, controlling debt should be part of an affordability agenda in the same way as streamlining regulation.
When legislators decide to take affordability seriously, I recommend looking at a September Advancing American Freedom (AAF) report on this topic. Its section on fiscal restraint offers a useful menu of reforms, including targeting the programs that most drive the debt.
Start with Social Security. Under current law, benefits will be cut by roughly 20 percent when the program's trust fund runs dry in the early 2030s. Nobody believes Congress will actually let that happen, but we'd better hope its answer isn't to double down by borrowing the difference between payroll taxes and benefits.
Nor are tax increases an option. The payroll tax meant to fund entitlements is now 12.4 percent of wages. It began at 2 percent when Social Security was first rolled out. It is also the most burdensome tax for many Americans. Enough already. The fixes AAF fellow Rachel Greszler proposes are worth considering: Index the retirement age to life expectancy, use an accurate inflation measure for cost-of-living adjustments, and move gradually toward a flat universal benefit that protects lower-income retirees while ending Social Security's de facto welfare for the wealthiest.
Next is Medicare. More than 40 percent of its financing already comes from general revenue rather than from payroll taxes. The report recommends converting the program to premium support, giving beneficiaries a fixed contribution to spend on traditional Medicare or on competing private plans. It would also raise the eligibility age to 67, matching Social Security, and trim subsidies for well-off seniors. That's a start.
As for Medicaid, the problem is one of pricing. And yet competition based on price—the best cost-control tool—has never been seriously tried. Washington covers 90 percent of the cost of states' expanded Medicaid programs for adults. A state can buy a dollar of spending with just a dime of its own money. Changing the states' incentives would be key here. Implementing risk-adjusted per-capita caps, through which the federal government would give states a fixed amount per enrollee, would do just that. States would pay for their own inefficiencies or would be able to use every dollar they save by becoming more efficient.
The same logic supports returning more welfare programs to states, starting with the federal share of the Supplemental Nutrition Assistance Program. State governments have to balance their budgets in some form.
None of these reforms are painless. But the alternatives will prove far more painful. The U.S. will either continue paying a slow, unlegislated tax called inflation or face a fast, ugly fiscal crisis when bond buyers stop giving Washington the benefit of the doubt.
COPYRIGHT 2026 CREATORS.COM
The post The Federal Government Collected $5.4 Trillion. It Still Can't Pay Its Bills. appeared first on Reason Magazine.
A California state auditor found waste, mismanagement, and misuse of taxpayer money inside several state agencies, including the office of state Controller Malia Cohen, which is responsible for managing state finances and payroll. The investigation found that for over a year, senior officials in Cohen's office deliberately stalled the recovery of more than $33,000 in salary overpayments to two employees, canceling a required payroll deduction while considering an alternative plan to seek state payments on the employees' behalf. Officials never carried out that plan, and the auditor concluded that the office violated state law by failing to collect one employee's debt. The investigation also found that two managers worked remotely from Idaho, Tennessee, and Alabama despite rules restricting out-of-state telework. Across nine cases involving multiple state agencies, the auditor identified about $885,000 in wasted, misused, uncollected, or improperly spent public funds.
The post Brickbat: Not Counting Every Penny appeared first on Reason Magazine.
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