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The Federal Budget

 February 25, 2025 The Federal Budget by Lynne Weikart Both Houses of Congress wrestle with passing a Budget Resolution - the financial goals for their budget, and their goals are deep cuts in Medicaid, which is health care for the poor. Congress refuses to discuss revenue; its focus is spending cuts.  There are two sides to a budget - the revenue side and the spending side. Before cutting spending, why not examine what can be done on the revenue side? Congress avoids discussing revenue because it wishes to extend the Trump tax cuts that expire at the end of 2025.  In FY2024, we collected $4.92 trillion in revenues. Republicans will not look at the revenues.  Let’s look at the revenues.   The expenditures were $6.752 trillion for a deficit of $1.83 trillion in FY2024. According to the Congressional Budget Office (CBO), permanently extending the expiring Trump tax cuts would cost $4 trillion over the next 10 years or $400 billion per year. That $400 trillion is m...
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Cutting Government Positions

  What most people don't know. Our federal government employees' salaries take up only a tiny proportion of the federal budget. Our spending on employees is relatively small. In FY2022, the federal government only spent $271 billion to pay 2.3 million civilian workers. In FY2024, our federal government spent $6.9 trillion. Do you really think cutting this tiny portion of federal salaries will make a dent in our federal budget? Our national budget is really just an insurance company with an accompanying military expenditure. The majority of spending is mandatory in Social Security, Medicare, and Medicaid, not employees' salaries but payments to citizens. It's like insurance. This attention to our minuscule federal workforce is misplaced and disastrous for our citizenry because it takes away from the real problem, which is the extraordinary shift in wealth in this country from the working and middle class to the rich. The country's focus should be on the revenue s...

The Town of Riverhead Stops ICE Agents

 In an article in Patch , Riverhead  Town Supervisor Tim Hubbard released a statement Friday stating that despite recent federal executive actions, police will not detain anyone for suspected violations of immigration laws. Other East End towns, Shelter Island and Southold, have also made similar pronouncements. Some have yet to act to protect their neighbors and their service workers from Immigration and Customs Enforcement Agents (ICE). There is no legal requirement for state, municipality, town, or other non-federal entities to assist or cooperate with such federal round-ups.  We need not and should not participate.   New York State has enacted a law, the Protect Our Courts Act, that keeps ICE officers from making civil arrests in and around NYS Courts, including City and other Municipal Courts. That is the extent of the restrictions on ICE. Consequently, ICE officers can go to our schools, homes, and places of business and arrest anyone they choose. But...

Breaking the Law

 January 25, 2025 Trump has fired seventeen independent Inspectors General, flouting a law passed in 2022 that requires 30-days notice and explanation of the firing to be given to Congress,  according to Reuters. The dismissals appeared to violate federal law, which requires the president to give both houses of Congress reasons for the dismissals 30 days in advance. The White House did not immediately respond to a request for comment. An inspector general is an independent position that conducts audits and investigations into allegations of waste, fraud and abuse of power. Agencies are pressing ahead with orders from Trump, who returned to the presidency on Monday, to   reshape the federal bureaucracy   by scrapping diversity programs, rescinding job offers and sidelining more than 150 national security and foreign policy officials. According to Meidas Touch,  the firing happened after the Pete Hegseth confirmation to Secretary of State because Senator Chuck Gra...

Trump Is Killing People

 January 25, 2025 " Atul Gawande, a former professor at the Harvard School of Public Health and former United States Agency for International Development official, took to social media over the weekend to sound the alarm.  "I ran USAID health programs for the last 3 years. Trump’s 90 day Stop Work Order on foreign assistance does serious damage to the world and the US," Gawande said. "Citing some purported "examples," Gawande said the stop work order "stops work battling a deadly Marburg outbreak in Tanzania and a wide outbreak of a mpox variant killing children in west Africa before it spreads further," "stops monitoring of bird flu in 49 countries, a disease which already killed an American on home soil," "stops critical work to eradicate polio," and even "stops >$1B in corporate drug donations and coordination eradicating tropical diseases like river blindness, elephantiasis, and others on the verge of elimination ...

Low-Income Housing Tax Credit

The Low-Income Housing Tax Credit (LIHTC) is a terrible program. What is it? It is the principal path the federal government adopted to provide low-income housing except it doesn't. LIHTC birthed in Reagan's infamous tax bill of 1986, gave  private investors  "a federal income tax credit as an incentive to make equity investments in affordable rental housing." If a developer agrees to 20 percent of the units being so called low-income, then the developer is eligible for the tax credit for those units. However, there are two major flaws: the units are not really low-income and the entire program disappears after 30 years when the developer can charge market rates.  LIHTC became the brainchild of the real estate industry that was desperate to stop the construction of public housing in which the real estate sages could not profit. And stop it they did. Now, almost 40 years later, even liberal think tanks, like the Urban Institute, will laud the successes of LIHTC. After...

Critical Moments during Fiscal Crises

 I am writing a second edition to my first book, Follow the Money, and have found interesting events that I had never heard or read about before. My book is an examination of how New York City mayors responded to the demands of federal and state officials as well as financial elites to the city's 1975 fiscal crisis in which city officials were forced to reduce the city's expenditures in order to balance the budget and avoid bankruptcy. Before I write about an interesting event, let me discuss the two political theories are often used to explain decision making around city resources. The first competing theory is pluralism.  The best example of a community power study examining liberal pluralism is Robert Dahl’s famous study of New Haven, Connecticut, Who Governs ?  Dahl concluded that there were multiple centers of power in which groups would come together in different configurations for a particular urban issue. In effect, there are a collection of interest groups all s...