There is a lot going on in the world: LA riots, Middle East powder keg, the Russian/Ukrainian war, etc. But through all this, the American political class continues to constantly deliver its own special brand of insanity, stupidity, wasteful taxpayer spending, and ineffective government programs:
1)We have often discussed the reality that the three major Federal government programs concerned with retirement and health, Social Security, Medicare, and Medicaid, are rife with corruption, inefficiencies, and criminal fraud. That train of wasteful spending continues to rob taxpayers:
According to Dr. Mehmet Oz of the Trump administration, Medicaid continues to be falling far short of being efficient and cost effective.
Specifically: "There's about $14 billion we've identified with DOGE, of folks who are duly enrolled wrongly in multiple states for Medicaid. You live in New Jersey, but you move to Pennsylvania, and which state gets your Medicaid? Turns out both states collect money from the federal government."
He wants the process cleaned up and made more efficient so that those that were originally intended to benefit from the program, those with disabilities, those in the twilight of their lives, those with low incomes, etc. get the best care possible, under the original writing and intention of the Medicaid law.
This means that able bodied people who decide to freeload off the system and not seek a job, volunteer in their community, or are going to school should be removed from the Medicaid roles and their benefits go to those that actually need the help.
Keep in mind that the $14 billion discussed here does NOT include the tens of billions of dollars every year that are lost to outright criminal fraud. That is what many in Washington are trying trying to clean up despite the actions of many (i.e. Democrats) that do not want the system cleaned up to better serve both taxpayers and the truly needy,
2)We very often discuss the reality that a state or large city government will soon go bankrupt. These states and cities are run by inept politicians that do not understand the following basic economic principle, the financial death spiral:
State and city politicians continue to raise taxes rather than make their government more efficient or smaller.
This continual rising of taxes causes residents and businesses to migrate out of the city or state to places where the tax burden is far less onerous.
This out migration means that fewer residents and businesses will be around to pay taxes and the tax base, and the city or state tax revenue stream, decreases.
Given the shortfall of tax revenue because of the out immigration, rather than fix the government, the politicians raise taxes again to make up for the tax revenue shortfall.
This causes more residents and businesses to flee which reduces the tax base even further which reduces the revenue stream which causes more tax increases and the financial death spiral is in play.
A real life instance of this simple economic principle played out in Maryland a few years ago. State politicians raised the tax rate for state residents earning over a million dollars a year.
Within a few years, the state government was collecting less tax revenue from residents earning over a million dollars a year even though the tax rate was higher. What happened: very simple, wealthier residents moved out of state to avoid the higher tax rate, reducing the tax revenue stream from the wealthier state residents
And now, state politicians in Rhode Island never learned anything from an economics textbook or the state of Maryland:
The state government recently enacted a so-called “Taylor Swift” tax since she is a rich entertainer who owns property in the state.
This tax places a new, incremental tax on anyone who owns a house in the state assessed at over $1 million in value.
The tax is $2.50 for every $500 in assessed value over a million dollars.
Thus, a home owner with a house assessed at $2 million would pay an additional $2,000 in taxes every year.
Thus, anyone with a home assessed at $11 million would pay an additional $20,000 a year.
Taylor Swift is looking at an additional $136,000 a year in taxation.
The politicians also increased the real estate conveyance tax, a tax placed on the sale value of a home when it changes owners, about a 60% increase.
How many Rhode Island millionaires will sell their homes in the state and move to less taxation states? Politicians never learn. People want to be free and that includes keeping as much of their hard earned dollars as possible.
3)It is not only hardened criminals and criminal enterprises that defraud the Federal government and taxpayers:
Malaina Chapman once worked for the Federal government’s Small Business Administration.
She was recently sentenced to Federal prison for committing fraud by submitting fake tax documents and ripping off government COVID programs.
She applied for a government loan for her fake company called “Upscale Credit Lounge, LLC.”
Her loan application included fake revenue and profit statements for her non-existent business.
She got a a loan worth $17,052.50
Not satisfied with that criminal act, she then submitted another fake loan application for another fake company she invented.
That got her a government check for $14,191.
She eventually and illegally received $230,246 worth of taxpayer wealth.
She eventually recruited others and helped them submit false loan applications for them to illegally get government money.
In all, she helped herself and others receive over $800,000 of taxpayer dollars under false pretenses.
She spent this taxpayer money on high end personal items (e.g. Louis Vitton, Chanel and other brands) and $7,500 for a luxury vacation in Key Largo.
Despicable government employee behavior. Americans and American businesses were struggling to survive the pandemic and scum like her were ripping off the program that was trying to help out struggling American people and businesses.
The good news is that this government employed criminal got caught and is going to prison. The sadder question is how many other government employees also ripped off the taxpayer who have not gotten caught?
Enough insanity for today: government inefficiencies in the Medicaid program, stupid economic decisions in Rhode Island, and criminal fraud from yet another government employee.
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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:
https://www.change.org/p/deseat-congress-reset-freedom
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