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AEI's weekly digest of top commentary and scholarship on the issues that matter most

Averting Fiscal Disaster

Why We Must Fix Our Broken Budget Process

March 30, 2024

In recent years, congressional confrontations over the debt ceiling and annual spending have failed to produce legislation that comes anywhere close to confronting the seriousness of the United States’ growing public debt burden. Philip Wallach argues that Congress will be unable to produce a solution until it seriously reforms its budget processes.

 

 

In the 1960s and ’70s, major universities across the country established public policy schools to train students for high-level government jobs, but today the federal government is struggling to attract talent as fewer and fewer public policy graduates go into the public sector. In a new essay for National Affairs, Howard Husock explores the causes and consequences of this educational failure.

 

Rural America features some of the lowest levels of opportunity and highest barriers to economic development in the country, but current federal grants and programs do not effectively address these problems. In a new AEI report from the Workforce Futures Initiative, Anthony F. Pipa, A. J. Rodriguez, and Stan Veuger assess how new place-based funding programs could better boost local economies.

 

On March 22, an Islamic State terror attack in Moscow killed 143 people. In an interview for AEIdeas, Leon Aron and Frederick W. Kagan answer key questions about why Russia was targeted and how this will affect the war in Ukraine.

 

In January, AEI launched a new Center for Technology, Science, and Energy to strengthen our scholarship on science and energy policy. Robert Doar interviews the new director of the center, M. Anthony Mills, about how the relationship among science, the media, and politics needs to change after COVID-19.

Making the Tax Cuts and Jobs Act Permanent: Two Revenue-Neutral, Pro-Growth Options for Tax Reform

In 2025, many of the provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire, including the individual income tax reforms and important business tax revisions. Over the next year and a half, members of Congress will have to determine whether and how to renew the TCJA. In a new AEI report, Kyle Pomerleau and Donald Schneider propose two options for lawmakers that build on the TCJA’s achievements while increasing its fiscal sustainability. Either Congress can make incremental adjustments that reduce the cost of capital and further simplify the tax code, or it can enact more ambitious reforms that further lower individual tax rates and replace business taxation with a tax on cash flow. The report estimates how both options would affect federal revenues, the distribution of the tax burden, and long-run economic output.

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QUOTE OF THE WEEK

Letting the administration seize control over AI and subject it to the demands of its privileged political constituencies wouldn’t eliminate bias, stereotyping or the spreading of falsehoods and racism, all of which predate AI and sadly will likely be with us until Jesus comes back. Mr. Biden’s policies will, however, impede AI development, drive up the costs of the benefits it brings, and diminish America’s global AI pre-eminence.

Phil Gramm and Sen. Ted Cruz (R-TX)