CEI Daily - New Jersey Gambling, the Tea Party, and Frozen Chicken

New Jersey Gambling

There's a push in New Jersey to legalize online sports betting.

Policy Analyst Michelle Minton points out that this push, like most campaigns for deregulation, stems from the state's need to collect new tax revenue.

"What does it take to get governments to deregulate? You might think the answer is 'a miracle' or maybe 'drugs in the water,' both of which might be right. However, it seems that another way to move free-market legislation forward is economic crisis. Perhaps then it’s unsurprising that New Jersey has been really pushing the economic liberty agenda, considering they were ranked as having one of the worst fiscal situations in the nation."

 

Tea Party The Tea Party's 10-point Contract From America may be one cause of their grassroots success. Warren Brookes Fellow Kathryn Ciano speculates about the future of the Tea Party and the importance of their governance contract. "Many of the items [in the Contract] directly contradict legislature that has passed in President Obama’s first two years in office. Sure, this is a reflexive response to the government having gone very far in one direction. But remember: It was this objective metric that spelled out big midterm victories. Let’s see how objective this criteria stays over the next two years."

Frozen Chicken

Russia is banning frozen chicken imports.

Adjunct Scholar Fran Smith explains what's happening.

"The reason for the proposed ban? The head of the Russian agency in charge of Consumer Rights Protection and Human Welfare was quoted as saying, 'It is an outdated and rough technology, which leads to a loss of many of the useful qualities of meat.' Some domestic poultry producers in Russia are opposed to the ban, which would allow only chilled chicken to be sold in Russia. Of course, there are some, such as poultry producer and high-level Russian politician, Sergei Lisovsky, who supports the ban but wants it to go even further — to ban all imported chicken."



CEI Daily - The Tobacco MSA, Free Trade, and Property Tax Increases

Tobacco Master-Settlement Agreement

In 2005 CEI filed a lawsuit challenging the constitutionality of the 1998 Tobacco Master Settlement Agreement (MSA). Yesterday CEI filed for a Supreme Court review of the case.

CEI General Counsel Sam Kazman argues that the MSA violated the Compact Clause of the Constitution and essentially created a government-tobacco cartel.

“The tobacco settlement was hatched in a smoke-free backroom between tobacco companies and state attorneys general. The state AGs imposed a massive national sales tax on cigarettes, without a single elected legislator at any level of government voting for it. This was a major power grab by state AGs at the expense of citizens.”

 

Free Trade Over the weekend, The Washington Post speculated about how the midterm elections will affect the future of stalled free trade agreements. Adjunct Scholar Fran Smith urges the new Congress to make free trade agreements a priority. "In Seoul, South Korea, today top U.S. and Korean trade negotiators are trying to resolve some differences relating to autos and beef so the negotiations will be complete before President Obama and South Korean President Lee Myung-bak meet Thursday at a summit before the G-20 meeting.  The trade pact would be the largest economic agreement since NAFTA and would substantially reduce both tariff and non-tariff barriers on both sides.  Other countries have moved ahead in signing trade agreements with South Korea, most notably the European Union, and the U.S. would be at a considerable advantage if it backs away from its own Korea agreement."

Property Tax Increases

Northern Virginia homeowners may see massive property tax increases this year.

Senior Counsel Hans Bader explains that the EPA's costly proposed stormwater regulations are a reason for the potential tax increase.

"The Washington Examiner reported on Sunday that these new regulations would cost Fairfax County alone nearly $4 billion, resulting in an annual property tax increase for a typical homeowner by $650. The EPA left open a glimmer of hope for homeowners, conceding that its plan is not 'the most cost-effective way' to clean up the Bay, and claiming that it would be open to 'cheaper alternative plans' submitted by the State of Virginia. Nevertheless, its plan 'could cost Virginia, Maryland and the District billions of dollars each.'"



CEI Daily - Solar Panels, TARP, and Free Trade

Solar Panels

The Department of Energy is installing rooftop solar panels on the White House.

Senior Fellow Marlo Lewis points out that the move is entirely symbolic.

"I've got nothing against solar technology, which has come a long way since the Carter days. Nonetheless, outside of certain niche markets and applications, solar is not competitive with fossil energy or even with other so-called non-hydroelectric renewable energies. [...] Yes, solar power has enjoyed a rapid growth spurt in Germany, but that is due market-rigging subsidies known as feeder tariffs. If an industry cannot sustain itself without special policy privileges, does it really deserve to be called 'sustainable'?"

TARP Timothy Geithner has recently taken care to remind the public that TARP was a GOP invention. Fellow of Regulatory Studies Ryan Young says that Geithner has a point. "[W]hat the country needs are spending cuts. And Republicans have serially proven they can’t be trusted with the public purse. When Republicans last held power they passed the largest new entitlement program since the Great Society, nearly doubled federal spending in eight years, gave billions of dollars in subsidies to businesses and farmers, and generally made a mess of things. The TARP bailouts and the largest spending stimulus in U.S. history were their closing flourishes."

Free Trade

American manufacturers are pushing the U.S. to pass the U.S.-Korea free trade agreement.

Adjunct Scholar Fran Smith argues that since the E.U. has signed an agreement with Korea, the U.S. needs to pass through its own agreement in order to compete with European markets.

"U.S. goods producers note that already the EU is ahead of the U.S. in exports to Korea, and the EU trade agreement will heighten that disparity unless the U.S. ratifies its own trade pact."



Shea-Porter Votes to Remedy Unfair Trade Practices by Foreign Countries

Washington, D.C. – Congresswoman Carol Shea-Porter today voted with the House of Representatives to address unfair trade practices of currency manipulation by foreign countries.  The Currency Reform for Fair Trade Act (H.R. 2378) reverses a practice by the U.S. Commerce Department that prevented the Department from treating foreign government currency practices as an export subsidy.  This bipartisan bill passed the House by a vote of 348 to 79. 

“For years, China has manipulated its own currency, leading to the loss of U.S. manufacturing jobs and our large trade deficit,” said Congresswoman Carol Shea-Porter.  “This bill will help stimulate our manufacturing sector while keeping China and other countries honest in their trade practices.”

On September 25, 2010, Congresswoman Shea-Porter cosigned a letter to House leadership urging that this bill be brought to the floor for a vote.  Congresswoman Shea-Porter is a member of a number of working groups focused on advancing policies aimed at protecting and creating American jobs, supporting fair trade policies that create jobs in the U.S. instead of shipping them overseas, and supporting domestic policies that benefit and empower the middle class. Shea-Porter is a member of the House Trade Working Group and the Competitiveness Task Force, and is a founding member of the Populist Caucus.  

CEI - Alcohol Tax, Trade and Regulations for Small Business

San Francisco's Mayor Opposed to Alcohol Tax

San Francisco Mayor Gavin Newsom recently vowed to veto plans for an increased alcohol tax.

In Open Market, CEI's Director of the Insurance Studies project Michelle Minton praises the decision because the tax would be bad for the city and state's economy.

"California’s wine and alcohol industry is a healthy and vital parts of the state’s economy. This, unfortunately, means it is a prime target for politicians who would rather raise taxes than cut spending.  But, while  the proposed tax may temporarily fill the coffers, it will result in those wholesalers and distributors charging restaurants, vineyards, and breweries and ultimately, consumers more."

 

Tricks Against Trade Public Citizen’s Global Trade Watch is now taking a new stance against free trade agreements (FTAs), though not by their usual rhetoric that they cost jobs and a "race to the bottom."  The group just published a "study" purportedly showing that exports to countries that have free trade agreements with the U.S. showed less export growth than did exports to countries that don’t have FTAs. Fellow at the Competitive Enterprise Institute Fran Smith dissects the "study" and explains why it has several analytical flaws. "Despite what I consider are considerable problems with this report, it’s bound to be used by the anti-trade forces arming themselves for future battles on the pending FTAs with South Korea, Colombia, and Panama.  Betcha too the report will be used in the lead-up to the November elections, as trade-bashing seems to be becoming one of the defining Democratic issues."

Regulations and Small Business

The Senate votes this week on a small business tax-break bill which also contains controversial provisions to boost community-bank loans to small business.

Today on BigGovernment, CEI's vice president for policy and director of technology studies Wayne Crews outlines several regulations that impact a small business as it grows.

"One tries in vain to argue that the answer to recovery is not to artificially stimulate anything, or to overrule prices and rates in the marketplace; those are signals about underlying realities to heed and allow to play out. But beyond that, we must cut regulations that paralyze business and job creation."