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Unleash Prosperity Hotline (Weekend Edition)
Issue #1285
06/13/2025 - 06/15/2025
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1) Blue States Have Twice the Inflation Rate of Most Red States
We've well established in the HOTLINE over the last several years that high-tax blue states have significantly higher unemployment than low-tax red states.
But now get a load of this chart that we spotted on Zero Hedge ([link removed]) yesterday. Blue-state America is experiencing much higher inflation rates than red states. Notice the leftwing west coast states and the northeast have the worst inflation problem.
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The Mid-Atlantic states along with New England states recorded inflation at 2.8% in May.
Meanwhile, the lowest rate in the country - by a relatively wide margin at 1.4% - was in the West Southwest, including Arkansas, Louisiana, Oklahoma and Texas.
Why are prices rising faster in blue states? We mentioned one example yesterday: because of crazy climate laws, gas is $1.50 a gallon more at the pump in California than the average for the rest of the country.
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2) Speaker Johnson Delivers Again: Rescissions Package Passes the House
House Speaker Mike Johnson is proving to be a maestro in securing just enough Republican votes to pass crucial bills.
He did it again yesterday, when President Trump's first rescissions package passed the House 214 to 212. Four Republicans - Mark Amodei (NV), Brian Fitzpatrick (PA), Nicole Malliotakis (NY), and Michael Turner (OH) - joined all Democrats in voting no.
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It now heads to the Senate, where Appropriations Chair Susan Collins has indicated she will oppose the bill.
The bill is a $9.4B spending reduction package that cancels funding for NPR, PBS, and various foreign aid programs identified as wasteful by the DOGE process. This is small potatoes in the federal budget picture, but it's a critical first step to prove Congress can pass real spending cuts. If it succeeds it could be the first of many such bills.
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3) DOGE Cancels 600,000 Government Credit Cards
We'd like to cancel the government's credit card writ large, but this is a start.
Elon Musk's DOGE team of budget watch dogs is still at work in Washington. Just this week, it announced it has canceled or deactivated more than 610,000 (that's more than the population of a medium-sized city) federal government credit cards. By the way, there are 5 million federal credit cards. No wonder we have a debt problem.
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4) Another Big Victory in Big Beautiful Bill: Health Savings Accounts Expanded
We're never going to get medical inflation under control until we have full price transparency, and a system that incentivizes Americans to be cost-conscious health care consumers.
So it is VERY good news that HSAs are expanded in the House-passed bill. Another 20 million more Americans would have access to these health accounts over traditional health insurance and Obamacare plans that run up costs. This expansion will be on top of the 35 million HSAs already in place.
It allows Medicare recipients to have greater access to HSAs which will allow seniors and the government to save money.
Studies have shown ([link removed]) that Americans with HSAs reduce their medical expenses by between 5 and 10%, while giving patients more health care choices.
CBO scores these HSA expansions as a $45 billion tax cut and makes no effort to estimate the behavioral changes that likely make this a long-term deficit REDUCTION measure.
The Senate MUST include this big HSA expansion to lower entitlement costs and help "make America healthy again."
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5) What "Tax Cuts for the Rich?"
You can smack us on the side of the head if you've heard us say this about a dozen times in the HOTLINE, but the biggest reduction in tax burdens in TCJA went to the lowest income and middle income families. Congrats to House Ways and Means Committee chairman Jason Smith and his staff for putting out this handy lie detector test.
Bottom line: The share of taxes paid by the richest 1% and 10% went UP after the Trump tax cut.
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6) The Bernie Sanders Balanced Budget Plan
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