Commentary: The ‘Great Opportunity Project’ Spreads Best State Economic Policies Nationwide

Next Monday is Tax Day, the last day for Americans to file their 2021 tax returns. This year’s Tax Day coincides with President Biden’s recent proposal to raise taxes on small businesses, corporations, and individuals by $2.5 trillion. His plan would partly reverse the Tax Cuts and Jobs Act signed at the end of 2017 that led to historic shared economic prosperity in 2018 and 2019.

While Biden is seeking to contract the size of the private economy through tax increases, numerous states are making positive reforms, including cutting taxes, to expand economic opportunity and well-being for their residents. Rather than fixating on Washington, policymakers can harness these best practices in the states and, eventually, adopt them at the federal level when the political climate allows. Call it the Great Opportunity Project.

Read More

Commentary: Taking the Infrastructure Bill Hostage Didn’t Work

Nancy Pelosi, AOC's mother and her all together

Back in August, New York magazine’s Jonathan Chait blessed the strategy of the Congressional Progressive Caucus to withhold their votes for the Senate’s bipartisan physical infrastructure plan until that bill was effectively linked to a bigger, broader, and surely partisan, measure investing in a range of items from climate protection to universal preschool. He argued that “ransoming the infrastructure bill” would turn the tables on the party’s moderates:

Historically, most partisan bills are shaped by the preferences of the members of Congress closest to the middle, and their colleagues on the political extreme simply have to go along with it. … This time, the left has real power. Progressives can credibly threaten to sink a priority that moderates care about more than they do.

Twice in the past two months, most recently last Thursday, the House progressives successfully executed this strategy, blocking attempts by Speaker Nancy Pelosi to pass the bipartisan infrastructure legislation before an agreement is reached on the larger “Build Back Better” bill.

Read More

U.S. Consumer Spending Grew Slowly in September amid High COVID-19 Cases, Supply Chain Problems and Rising Inflation

U.S. consumer spending growth slowed in September, and income dropped due to high COVID-19 cases, supply shortages, rising inflation, and ending unemployment benefits.

Consumer spending increased 0.6% in September, down from a 1% jump in August, the Commerce Department announced Friday. Personal income fell 1% in September, driven by a 72% drop in unemployment insurance benefits that offset a 0.7% spike in wages and benefits, according to The Wall Street Journal.

Economists polled by Reuters projected a 0.5% in consumer spending. Delta variant cases peaked in the middle of September, and the continued supply chain backups have caused shortages and rising prices, making it harder for consumers to purchase their desired goods, the WSJ reported.

Read More