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Unleash Prosperity Hotline
Issue #1211
02/27/2025
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1) Hey, Hey, Ho, Ho. CBO Has Got to Go!

The next step on the Trump tax cut extension march to victory is to scrap the CBO baseline score, and instead adopt the Senate policy of current policy baseline. The chart below shows that the CBO preposterously scores this as a 10-year $4 trillion revenue loss. The current policy baseline scores this as a zero dollar loss.

What is the case for scrapping CBO? They have a horrendous scoring record. The chart below shows over the first seven years of the Trump tax cut CBO's revenue loss estimate was $1.5 trillion too high and $1.8 trillion too high taking out the Covid year 2020.

Why go with a score we KNOW is wrong?
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2) Medicaid Is a Runaway Train

Those who watched the House floor debate on the budget resolution Tuesday night saw that nearly every Democrat marched to the microphone and accused Republicans of “cutting Medicaid to pay for tax cuts for billionaires.” In reality, the bill only reverses some of the rapid expansion during the Biden years. The spending rose by nearly 50% during the Biden term.

The spending is expected to soar over the next decade.
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Here’s why the spending is growing so rapidly: The root of the problem is the infamous "Cornhusker Kickback" bribe that bought then-Senator Ben Nelson of Nebraska's vote to get Obamacare over the line. Obama gave Nebraska 90% federal funding for Medicaid expansion.

When the corrupt deal saw the light of day, they saved themselves from the whiff of corruption by extending this treatment to all 50 states.

States are incentivized to sign up as many able-bodied, working-age adults as possible – at a 90% federal funding rate – and minimize the number of needy children, disabled people, and elderly in their Medicaid programs, which the federal government funds at an average of 57%.

As expected, federal Medicaid spending has soared:
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Lowering the 90% federal funding share to 50% and adding work requirements (which are popular) would dramatically lower costs and disincentivize fraud.
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3) The Big Green Retreat

We saw this a mile away. But now a new study from a climate change institute at Stanford confirms what we believed to be true. Expensive and job-destroying climate change policies are falling out of favor around the world:
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Gee, we wonder why that would be the case? Maybe because the war on fossil fuels has deindustrialized Germany and many other European nations. Maybe it's because green energy is so much more expensive to produce. Maybe because the biggest polluters like China have done nothing.

Our friend Marc Morano of Climate Change Depot is keeping track of the big green retreat in major nations.

Here's his list:
* Germany
* New Zealand
* Canada
* Australia
* Belgium
* Ireland
* United States

A 2024 article in the left-leaning Foreign Affairs magazine, gave a pretty honest assessment of what happened: it was "the rise of a new 'silent majority' in the West, one bent on repudiating an out-of-touch elite that was either oblivious to the suffering their policies had caused or entirely indifferent to it."
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Bingo.

And good riddance.
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4) Jeff Bezos Drops Truth Bomb on His Editorial Board

This tweet from Jeff Bezos, owner of the Washington Post, brought a smile to our faces:
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Gee a pro-free market editorial page inside the halls of Congress.

Who do they think they are? The Wall Street Journal?

The announcement meant the immediate resignation of the Post's Opinion Editor David Shipley, an old-line liberal who wanted the paper to endorse Kamala Harris last year until Bezos blocked him.

"The old Washington Post is dead," concluded David Maranniss, a former associate editor.

We hope he’s right.
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5) Rhode Island Goes Full Socialism

Rhode Island has one of the most “progressive” catalogs of smothering state laws and taxes in the nation.

It ranks 41st in the nation in economic performance in the "Rich States, Poor States" ratings of the American Legislative Exchange Council.

Now the politicians have the brilliant idea of starting a venture capital fund for financing new private sector projects.

Rather than cut the sky-high taxes in Rhode Island, Democratic Governor Dan McKee claims the money will fund "smart, targeted investments that grow our economy."

What could go wrong?
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6) He’d Better Use a Lifeline!

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