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Archive for April, 2014
April 7th, 2014 at 7:12 pm
Tech Industry May Cut a Deal on Immigration, Killing Gang of Eight Bill

With the Senate’s Gang of Eight bill dead-on-arrival in the House of Representatives, the tech industry may be ready to break ranks and cut a deal.

So far, Silicon Valley – one of the wealthiest segments backing comprehensive immigration reform – has held out hope that their goal of expanding H-1B visas for foreign-born workers will come to fruition when House Republicans finally get around to passing the Senate’s bill.

But with the Gang’s bill looking less and less likely to get even a vote in the House, immigration’s tech supporters are exploring other options. The announcement came in the form of an op-ed published by the leader of Compete America, the industry’s immigration-focused political action committee. In it he called on both houses of Congress to pass the SKILLS Act, which would give Compete everything it wants, but would also leave its members with no real reason to stay in Washington pushing for the rest of the Senate’s bill.

That possibility drew a swift rebuke from Senate Majority Whip Dick Durbin (D-IL), who wrote in a letter to Compete America, “I am troubled by recent statements suggesting that some in the technology industry may shift their focus to passage of stand-alone legislation that would only resolve the industry’s concerns.”

The daylight emerging between the tech industry and its comprehensive immigration reform allies presents an opportunity to House Republicans, says Byron York. “If the House were to pass H-1B expansion, the GOP would win support from at least some in the tech world. And Democrats would be standing in the way of admitting more high-skilled workers into this country.”

Liberals like Durbin know that the only way to legalize a controversial pathway to citizenship is to hold hostage popular reforms like expanding the H-1B visa pool. This turn of events may be just what House Republicans need to make that ploy crystal clear.

April 7th, 2014 at 2:47 pm
This Week’s “Your Turn” Radio Lineup
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Join CFIF Corporate Counsel and Senior Vice President Renee Giachino today from 4:00 p.m. CDT to 6:00 p.m. CDT (that’s 5:00 p.m. to 7:00 p.m. EDT) on Northwest Florida’s 1330 AM WEBY, as she hosts her radio show, “Your Turn:  Meeting Nonsense with Commonsense.”  Today’s guest lineup includes:

4:00 CDT/5:00 pm EDT:  Myron Ebell, Director, Center for Energy and Environment at the Competitive Enterprise Institute – United Nation’s Flawed Report on Climate Change;

4:30 CDT/5:30 EDT:  Robert Zarate, Policy Director of the Foreign Policy Initiative – Responding to Russia’s Aggression against the Ukraine and What’s Next?;

5:00 CST/6:00 pm EDT:  Timothy Lee, CFIF’s Senior Vice President of Legal and Public Affairs – Why the NCAA Should Defend Against Athlete Unionization;  and

5:30 CDT/6:30 pm EDT:  Sally Pipes, President, CEO and Taube Fellow in Health Care Studies at the Pacific Research Institute – Assessing ObamaCare Four Years After Its Passage.

Listen live on the Internet here.   Call in to share your comments or ask questions of today’s guests at (850) 623-1330.

April 5th, 2014 at 9:15 pm
Bipartisan Support for Repealing the Employer Mandate?

It sounds like there may be a growing bipartisan consensus to repeal ObamaCare’s onerous employer mandate.

“Republicans don’t like the mandate because they oppose the idea of government telling private sector entities what to do, but they also don’t support the lack of tax incentives for individuals who don’t pay for health care through an employer,” says The Street. For their part, “[s]ome Democrats don’t mind dumping the employer mandate because they would prefer to move away from businesses making health insurance decisions for individuals.”

The employer mandate is poised to hit small and growing businesses especially hard, since employing 50 full-time workers – defined as working 30 hours or more a week – triggers requirements to offer costly ObamaCare-compliant insurance plans.

This creates an obvious incentive to cut hours for people already at the margins, in effect robbing them of extra work and extra pay. Because of this liberal pundits like Ezra Klein have called for the full repeal of the employer mandate (and deplored the politically-motivated delays that have made ObamaCare’s implementation so arbitrary).

Of course, repealing the employer mandate isn’t a painless option. While it would no doubt free countless human resources directors from nimbly trying to anticipate the next extra-legal maneuverings of the Obama administration, it would also be a huge hit on ObamaCare’s financial scorecard.

“If you take [the employer mandate] out the congressional budget score looks a lot worse,” one academic supporter of ObamaCare tells The Street. That’s because the buck for subsidizing health insurance would move from private employers to the public treasury via a massive migration to ObamaCare exchanges. The individual mandate, remember, would be still be in effect. If that happens, expect ObamaCare’s price tag to soar.

So while it may be tempting for Republicans to ally with Democrats and vote to repeal the employer mandate, doing so could be used to charge the GOP with willfully spiking federal spending. Better, it seems, to just get rid of the whole law and start afresh.

April 4th, 2014 at 1:15 pm
Report: ObamaCare to Increase Large Employer Costs Up to $186 Billion

A new study by the American Health Policy Institute demonstrates that when it comes to ObamaCare’s disruption of the health insurance industry, the worst is yet to come.

The study looks at 100 large employers – defined as employing 10,000 workers or more – to estimate the direct and indirect costs of complying with ObamaCare’s costly mandates. (Due to extra-legal delays by the Obama administration, the employer mandate will go into effect starting in January 2015.)

When factoring in all of the direct mandates and fees – for example, covering children up to age 26 and accepting all enrollees regardless of preexisting conditions – as well as indirect costs – such as medical device companies and insurers passing on compliance costs to businesses in the form of higher prices – the total cost of complying with ObamaCare will be between $4,800 – $5,900 per employee. The net cost of ObamaCare for all large employers is projected to range from $151 billion to $186 billion.

Large employers employ about 52 million American workers, or about one-third of the nation’s workforce. You don’t have to be a Harvard-trained CFO to realize that companies “have a significant incentive to make fundamental changes to their health offerings” because of ObamaCare. The most obvious choice is to pay the $2,000 per employee penalty for not offering health insurance, and let employees try their luck on an ObamaCare exchange.

ObamaCare advocates insist that the law isn’t designed to separate workers from their health insurance, but the incentive structures buried within it tell a different story. Skeptics can be forgiven if the implementation phase looks like a coordinated effort first to get people into government-run exchanges, and eventually, under government-run health care.

H/T: Daily Caller

April 4th, 2014 at 12:01 pm
Latest Jobs Report Confirms Desperate Need for U.S. Corporate Tax Reform
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April 1 marked an important milestone in America.  Not because it was April Fools’ Day, but because it marked the second anniversary of the United States claiming the inglorious title of the developed world’s highest corporate tax rate.

The U.S. hasn’t achieved comprehensive tax reform since 1986.  Ronald Reagan was early in his second term as President, Michael Jordan was still five years away from his first NBA title and Pixar animation studios first opened.  Over the ensuing three decades, however, our international trading partners and competitors have accomplished reform, particularly in their corporate tax codes.  As a result, America’s 39% rate unfortunately stands as the world’s highest.

Americans can rightfully claim, “We’re number one” in many areas, but it’s simply unacceptable that the highest corporate tax rate remains one of them.  It constitutes a continuing drag on business growth, job creation and wage increases.  And as yet another disappointing jobs report today confirms, we cannot afford to maintain the status quo.  Numerous studies show that a lower corporate tax rate creates jobs and economic growth, so we must shift our current strategy away from government bailouts, welfare and unemployment checks, and more toward restructuring the tax code and empowering the private sector to hire.  Our world becomes increasingly interconnected each day, and we simply cannot cede competitiveness to other nations whose tax codes are far more appealing to new businesses.  The U.S. spent the 20th century building an economy that was the strongest and most powerful in the world, but lack of action on tax reform jeopardizes that global standing.

Moreover, this isn’t a partisan issue.  Republicans and Democrats, including Barack Obama himself, agree that it has been too long since we have undertaken comprehensive tax reform.  Accordingly, there’s no excuse for further delay.

Let’s not let another three decades pass us by without corporate tax reform.  Let’s instead achieve a code that actually encourages businesses to grow and hire workers.

April 4th, 2014 at 10:28 am
Liberty Update
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Center For Individual Freedom - Liberty Update

This week’s edition of the Liberty Update, CFIF’s weekly e-newsletter, is out. Below is a summary of its contents:

Ellis:  Paul Ryan Is Ready for a Promotion
Lee:  Activist Demands Imprisonment for “Climate-Change Liars”
Senik:  Democrats, The Party of Superstition

Podcast:  Economics Through Lens of Film and Popular Culture
Jester’s Courtroom:  Lawsuit Calls Bluff and Rakes Plaintiff Through Coals

Editorial Cartoons:  Latest Cartoons of Michael Ramirez
Quiz:  Question of the Week
Notable Quotes:  Quotes of the Week

If you are not already signed up to receive CFIF’s Liberty Update by e-mail, sign up here.

April 4th, 2014 at 9:27 am
Podcast: The Rise of Green Politics
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In an interview with CFIF, Rupert Darwall, finance and public policy expert, discusses the politics of climate change, how green politics made Europe vulnerable to Putin, and his book, Global Warming: A Short History.

Listen to the interview here.

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April 3rd, 2014 at 3:58 pm
Ramirez Cartoon: April Fools
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Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

April 1st, 2014 at 6:48 pm
ObamaCare Promotion Driving Up Medicaid Applications

“According to a recent study by Avalere, the average application rate [for Medicaid] has increased 27 percent among non-expansion states and 41 percent for those expanding,” writes Angela Boothe of the American Action Forum.

For example, Tennessee – a state that chose not to expand its Medicaid program under ObamaCare – is still experiencing severe pressure on its budget due to high numbers of people trying to enroll. Though only the beginning of April, the Volunteer State has already enrolled the maximum number of people it projected to cover for the year. Adding to the pressure on state budget writers is the reality that by refusing to expand Medicaid under ObamaCare – which covers 100 percent of the increased costs until 2017 – part of the expense for covering the new enrollees falls on the state. If you work in a non-Medicaid state agency in Tennessee, beware bean counters wielding knives.

The Avalere report highlights the fact that ObamaCare creates a unique burden for non-expansion states like Tennessee. Because of the controversial health law’s media saturation, millions of people are aware that they are probably eligible for some sort of government assistance to purchase health coverage. Of these, many are discovering that they already qualify for Medicaid, even before ObamaCare was enacted. The awkward situation for states like Tennessee is that ObamaCare is still expanding Medicaid, just without any extra financial help.

If non-expansion states like Tennessee continue to see record Medicaid enrollment increases this year, don’t be surprised if anti-ObamaCare governors and legislatures start to rethink their opposition to expansion. Of course, as I’ve explained elsewhere, it would be a serious mistake to swap a three-year federal bailout for decades of increased costs by expanding Medicaid on ObamaCare’s terms. But for desperate lawmakers looking for a quick fix, ObamaCare’s “free money” may be too tempting to pass up.