“When New Mexico lawmakers make its owners choose between selling gas or selling liquor.
Some gas stations in a rural New Mexico county are being forced by an inane new law to choose between selling gas or selling liquor and wine. Some have chosen to close their pumps in protest and sell alcohol instead of gas.
The new ban is part of a larger package of changes to the state’s liquor laws—one its chief sponsor, Sen. Daniel Ivey-Soto (D–Albuquerque), calls “the biggest reform of liquor laws in 60 years in our state.” The new law contains several key elements in addition to the gas station liquor ban. Many of those changes are steps in the right direction. In fact, the “original intention” of the alcohol bill was deregulatory in nature. Among other things, it lifts a ban on home delivery of alcohol, introduces a new, less expensive liquor license for restaurants, and allows alcohol to be sold longer hours on Sundays (on par with allowable sales hours on other days).
The bad parts of the law are, well, bad. Ask the owners of Kokoman Fine Wines in Pojoaque, which was forced to try to offload $65,000 worth of nip bottles—those little liquor bottles commonly found lurking in a hotel mini-fridge—after the new law banned their sale across the state.
And then there’s the ban on gas station sales in McKinley County, where three out of four county residents are Native American. Sen. George Muñoz (D–Gallup), who introduced the gas-station amendment to the new law, says he did so because “people die in McKinley County because of alcoholism.”
While I have no doubt that some people in McKinley County who abuse alcohol die from that abuse, compelling gas stations that sell alcohol to become alcohol stores that don’t sell gas probably won’t save many (or even any) lives, and may do just the opposite. The ban is also likely unconstitutional. That’s why one chain of gas stations has sued the state to overturn it.”
“A 2020 meta-analysis of 26 randomized controlled trials concluded “there is moderate-certainty evidence that [e-cigarettes] with nicotine increase quit rates compared to [e-cigarettes] without nicotine and compared to nicotine replacement therapy.” The results of population studies, Balfour et al. say, “are consistent with a near doubling of quit attempt success, found in the randomized controlled trials, and the fact that e-cigarettes are smokers’ most used aid in quit attempts.” They also note that declines in U.S. cigarette sales accelerated sharply as sales of vaping products took off, which reinforces the impression that more vaping means less smoking.”
“The federal government hasn’t fully paid for its normal, run-of-the-mill spending in a single year since 2001. If you believe the projections of the Congressional Budget Office (CBO), there is not a single year in the next 30 (the longest length of time for which the office projects spending and revenue) in which the budget will balance. Despite that, lawmakers from both parties continue to peddle this line whenever they want to make big policy changes. Democrats promised that Obamacare would be revenue-neutral. It hasn’t been. Republicans promised the Trump tax cuts would pay for themselves. They didn’t.
Now it’s the Democrats’ turn to play this game, and President Joe Biden has dutifully stepped up to the plate. Speaking Friday about the combination infrastructure package and budget reconciliation bills that the House may vote on sometime this week, the president declared that anyone worried about the latter legislation’s $3.5 trillion price tag should calm down.
“We talk about price tags. It is zero price tag on the debt,” Biden said. “We are going to pay for everything we spend.””
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“Democrats are proposing to pay for their $3.5 trillion reconciliation package with about $2.3 trillion of tax increases and $700 billion in savings from changing how Medicare and Medicaid purchase pharmaceutical drugs. The rest is written off as being paid for with future economic growth—the idea being that increases in government spending will cause more hiring and greater economic activity, which will cause future tax collections to be higher than projected.
It’s a little bit like saying that your drinking habit can pay for itself, as Reason’s Peter Suderman has explained.
The math doesn’t add up. In order to achieve the amount of “dynamic scoring” necessary to offset that last $600 billion or so of new spending, the reconciliation bill would have to boost America’s economic output by about 3.5 percent by 2031. That’s far in excess of what every independent assessment of the package says it will do. In fact, at least one assessment of the package says the bill’s tax increases and borrowing will more than cancel out the benefits of heightened spending, dragging growth lower.
The debate over those projections is pretty esoteric. But regardless of which forecast you believe, there’s no getting around the fact that some of the lawmakers now championing the magic of “dynamic scoring” used to be quite skeptical of it. Democrats on the House Ways and Means Committee—the very committee that put together the details of the reconciliation bill over the past few weeks—blasted Republicans for relying on “dynamic scoring” to make it look like the Trump tax cuts would balance over the long-term. In the Senate, meanwhile, Budget Committee Chairman Bernie Sanders (I–Vt.) used to call dynamic scoring a “gimmick” meant to “conceal” the real cost of legislation. Now, he’s fine with using it because Republicans did it first.
If hypocrisy could be taxed, maybe we’d be able to balance the budget.”
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“That isn’t the only dubious assumption behind Biden’s promise that everything will be fully paid for. It doesn’t fully account for the long-term budget impact of the newly expanded child tax credit, which allows Congress to claim $700 billion in “savings” that are unlikely to materialize. The reconciliation bill also calls for boosting IRS enforcement in the hopes of generating $239 billion in revenue from taxes that are currently going uncollected. That is likely an overestimation, as the CBO says the provisions would generate no more than $120 billion from increased tax compliance.”
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“If the bill is truly paid for, Democrats in Congress should prove as much by asking the CBO and the Joint Committee on Taxation to provide a detailed analysis of the “dynamic scoring” promises contained in the reconciliation bill. Without that, argues Chris Edwards, director of tax policy studies at the libertarian Cato Institute, Democrats’ claims that higher spending will generate sufficient economic growth have no hard backup.
“There is no magic money tree in Washington,” Edwards says. “Rather, taxpayers will ultimately pay for the spending through current tax increases, debt and future tax increases, and inflation.””
“The major backlog at one of America’s busiest ports has been worsened by strict zoning laws that limit where empty shipping containers can be stacked after being unloaded.
Until officials in Long Beach, California, issued an emergency order this weekend to temporarily relax those rules, it was illegal for trucking companies to store more than two shipping containers on top of one another in their yards. That’s contributed to a massive bottleneck at the terminal yards of trucking companies serving both the Port of Los Angeles and the Port of Long Beach—a bottleneck that’s being felt in supply chain shortages across the whole country.”
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“There doesn’t seem to be any safety-based reason for such a policy, as shipping containers are routinely stacked higher at other ports and while being carried across the open sea. Long Beach’s prohibition on stacking more than two-high is “an aesthetic measure intended to preserve visual sightlines in the neighborhood,” according to The Maritime Executive, a trade publication.
Those rules won’t be enforced for the next three months under an emergency order issued this weekend. Now, trucking companies and warehouses will be allowed to stack up to four containers vertically—effectively doubling their capacity. “The city will work during the next 90-day period to assess the situation and effectiveness of this solution and any impacts on the surrounding areas,” Long Beach officials said in a statement.”
“Tenants in newly seized units obviously benefit from the lower rents that would come from government ownership. Everyone else would be worse off, as they’d be forced to compete for a smaller share of private units.
This is in effect what happened with Berlin’s brief experiment with a law that froze rents at apartments built before 2014. Rents did indeed stop rising in regulated units, benefiting the tenants who lived in them. But prices shot up dramatically for unregulated units. (In April 2021 Germany’s constitutional court struck down Berlin’s rent control.)
The number of regulated units on the rental market also collapsed, while new listings for unregulated units weren’t enough to pick up the slack.
The rent control represented “a windfall to one group of tenants: those, whether rich or poor, who are already ensconced in regulated apartments,” wrote Bloomberg columnist Andreas Kluth in March. “Simultaneously, they hurt all other groups—especially young people and those coming from other cities—by all but shutting them out of the market.”
There is robust evidence that new housing, even expensive new housing, makes cities more affordable for everyone. Berlin’s leaders should consider ways to boost housing production so the city can continue to grow and thrive, instead of just redistributing existing units to benefit a minority of incumbent renters.”
“Texas Gov. Greg Abbott, who..signed a bill that aims to restrict social media platforms’ editorial discretion, says the new law “protects Texans from wrongful censorship” and thereby upholds their “first amendment rights.” The law, H.B. 20, is scheduled to take effect on December 2, but that probably will not happen, because it is blatantly unconstitutional and inconsistent with federal law.
Abbott, a former Texas Supreme Court justice who served as his state’s attorney general from 2002 to 2015, presumably knows that. But whether he is sincerely mistaken or cynically catering to his party’s base, H.B. 20 reflects widespread confusion among conservatives about what the First Amendment requires and allows.”
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“the First Amendment applies to the government and imposes no constraints on private parties.
To the contrary, the First Amendment guarantees a private publisher’s right to exercise editorial discretion. The Supreme Court emphasized that point in a 1974 case involving a political candidate’s demand that The Miami Herald publish his responses to editorials that criticized him.
The constitutional protection against compelled publication does not disappear when we move from print to the internet, or from a news outlet to a website that invites users to post their own opinions. As Justice Brett Kavanaugh noted when he was a judge on the U.S. Court of Appeals for the D.C. Circuit, “the Government may not…tell Twitter or YouTube what videos to post” or “tell Facebook or Google what content to favor.”
Yet that is what H.B. 20 purports to do. The law says “social media platforms” with more than 50 million active monthly users in the U.S. may not “censor” content based on the “viewpoint” it expresses. That edict covers any effort to “block, ban, remove, deplatform, demonetize, de-boost, restrict, deny equal access or visibility to, or otherwise discriminate against expression.”
H.B. 20 makes a few exceptions, including “expression that directly incites criminal activity” and “specific threats of violence” that target people based on their membership in certain protected categories. But otherwise the rule’s reach is vast: As two trade organizations note in a federal lawsuit they filed last week, H.B. 20 “would unconstitutionally require platforms like YouTube and Facebook to disseminate, for example, pro-Nazi speech, terrorist propaganda, foreign government disinformation, and medical misinformation.””
“The simplest way to understand economics is that it is a reckoning with unavoidable tradeoffs. If you spend money on something, you may obtain something in return—but you lose the ability to use those resources on something else. In the world of politics, economics helps us weigh the merits of those tradeoffs. It answers the question: Do the benefits of a policy outweigh the costs? Sometimes the benefits are larger. Sometimes they are meager or even nonexistent. But there are always costs. To acknowledge this is merely to acknowledge reality.”
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“White House press secretary Jen Psaki responded to a question about the tax impact of the $3.5 trillion spending plan now working its way through Congress by declaring that “there are some…who argue that in the past companies have passed on these costs to consumers…we feel that that’s unfair and absurd and the American people would not stand for that.”
When taxes are raised on corporations—the “companies” in Psaki’s response—corporations often respond by passing that tax on to others. In some cases, they pass costs to consumers. In others, as the Cato Institute’s Scott Lincicome wryly notes on Twitter, they reduce the amount they would have otherwise spent on wages. They have to pay more to do business, and so they make adjustments accordingly. Costs create consequences and tradeoffs.
Empirical research has consistently shown that a large portion of corporate tax increases is actually paid by labor down the line. There are some reasonable academic debates about the precise percentage of the tax paid by labor, and how that might change under certain circumstances. But there is little real debate about whether or not some of the costs are passed on. The point is that it happens. Workers, not owners, pay at least some share of higher corporate taxes.”
“In response to Australian court decisions holding media companies legally liable for the comments by users, CNN has blocked access to some of its Facebook pages from users in that country.
This is an inevitable outcome of a bad decision and a reminder of why it’s important not to try to force government-mandated moderation policies onto massive social media platforms that will inevitably lead to either censorship or lack of access to information.”
“The Seattle City Council might have found a clever way around Washington state’s ban on local rent control policies. On Monday, it passed two bills that respectively require landlords to give generous notice to their tenants of any rent increases and to provide relocation expenses to low-income renters who do move in response to large rent hikes.
Current city and state law require landlords to give their tenants 60 days’ notice of any rent increase. One bill passed by the council would increase that notification period to 180 days, likely the longest notification period in the country.
And if a low-income tenant decides to move in response to a rent increase of 10 percent or more, landlords will be obligated to provide them with “economic dislocation relocation assistance” equal to three months’ rent, thanks to another bill passed by the council on Monday.
Both are the handiwork of Councilmember Kshama Sawant, a member of the Socialist Alternative party, who argues the twin bills are needed to protect tenants from a post-pandemic upswing in rents—and from capitalism more generally.
“Today’s victories will benefit tens of thousands of renters in Seattle, who are facing skyrocketing rent increases from profit-hungry corporate landlords and the venture capitalists and big banks who are [fueling] a speculative bubble,” said Sawant after the bills passed.
Landlords were less pleased with the bills’ passage, arguing during public comment that they’d raise their costs of doing business and are, per the Seattle Times, tantamount to rent control.
That latter charge could open up the new bills to legal challenges.
Washington state law preempts municipal governments from enacting laws “which regulate the amount of rent to be charged” and instead reserves that power under the state government.”