1) The Right Way To Rebate Tariff Revenue Is A Payroll Tax Cut

We met with President Trump last week and he likes this idea Laffer and Moore penned in the WSJ to boost the economy and middle class “affordability:”

Giving back tariff revenue to help families' finances is a good idea. But if the White House doesn't tie that money to work, it will repeat a painful Biden administration mistake.

Stimulating supply--not demand--brings down prices and raises worker pay. The key to affordability is a stable, strong dollar and rewards for increased work and production. The dollar end of that equation is the Federal Reserve's job, but the White House can use tariff revenues to goose the other side.

Cutting the 15.3% federal payroll tax for 12 to 18 months by up to 5 points--evenly divided between employer and employee--would provide every low- and middle-income American worker an immediate pay raise while lowering labor costs and prices. Tariff revenue could cover the cost.

2) Here Comes USA, Inc.

We at UP hate the idea of government taking an ownership stake in struggling private companies.  This smacks of industrial policy, and take a good look at Japan's performance over the last 40 years to see what a rotten economic model that is.

The New York Times has done a pretty good job of estimating the federal government's ownership stake in businesses under Trump.  Here's their list of $10 billion in private assets so far:

Many of these companies are being "invested in" by Uncle Sam under the guise of advancing America's national security. It's a new twist on the military-industrial complex syndrome.

The Times notes that this "unusual new strategy... shows little sign of slowing."  The assets include at least nine companies involved in making steel, minerals, nuclear energy and semiconductors.  

The rationale for this "privatization in reverse" strategy is that if the taxpayer is going to bailout struggling companies, the government should take an equity share in its future profits.

We've got a much better idea: stop bailing out failed companies and throwing good money after bad.  Whenever the government gets in the game of picking winners and losers, it's very good at picking losers.

3) Trump Ends Electric Vehicle Mandates

The Department of Transportation yesterday announced a rule to reset Corporate Average Fuel Economy standards, which the Biden administration had dialed up to absurd 51-miles-per-gallon requirements. That regulation would have forced families to buy EVs, because the new standards would have been impossible for internal combustion vehicles to meet.

Hooray! Now we can go back to allowing Americans to buy whatever car they want.

The New York Times didn't take the news well.  But they inadvertently admitted that many electric vehicles can't succeed in the market unless the competition is banned.

4) GAO Report Shows Massive Obamacare Fraud

Before Congress votes to expand Obamacare subsidies to people making as much as $500,000 a year, they should collectively sit down and read this shocking new GAO report. It finds that one-in-three subsidy recipients in 2023,  totaling $21 billion in costs, used Social Security numbers that could not be reconciled with IRS tax records.  The law requires subsidy recipients to file tax returns.

GAO also conducted experiments, enrolling four fake applicants in 2024 and receiving subsidies for all four of them.  In 2025 they tried 20 fake applicants; 18 were ACCEPTED and received subsidies.  One was abandoned when the broker stopped responding. Only one application was actually rejected. One.

The full report is available here:

We note that liberals in Congress are 100% united behind extending supersized subsidies with no income limits, no anti-fraud measures, and no reforms of any kind.

5) Blue States Won't Help Root Out Fraud in the Food Stamp Program

Well, at least 21 of them won't. Why would they?  The more fraudsters, the more federal money their states get. The Left often says publicly that food stamps are "a stimulus to the local economy."

Earlier this year, the Trump Agriculture Department told the 50 states who administer the $100 billion federal Supplemental Nutrition Assistance Program (SNAP), or food stamps, to supply Social Security numbers, birth dates and addresses for the 42 million Americans who are on the rolls.

Among the 29 states that complied with the data-sharing request, Secretary of Agriculture Brooke Rollins reports they found "186,000 dead people or dead people's social security numbers being used and 500,000 people receiving benefits more than twice. We had a couple of people receiving benefits in six states."

These are embarrassing findings - and these are the cooperative states!  We wonder how much worse it must be in the blue states that figuratively stuck their tongues out and ignored the federal order.

Federal taxpayers foot the bill for 100% of SNAP's benefits, while states capture the political upside of appearing generous without spending any of their own money. You couldn't invent a dumber way to pay for food stamps. Each state should pay at least half the cost to discourage the rampant scamming.  

In the meantime, bravo to Rollins for announcing that the 21 states that have refused to share recipient data will have the dollar-spigot cut off. It's like telling a child you don't get dinner until you wash your hands.

"Trump is weaponizing hunger," was Chuck Schumer's response.

Really, Chucky? What exactly - besides massive fraud - do the 21 states that refuse to share recipient data have to hide?

6) Resist!

Interested in booking us for a media appearance? Send an email with the link below.

Know anyone else who would appreciate the Hotline? Please direct them to subscribe at: https://committeetounleashprosperity.com/hotline/
 

Have an idea for an item that should be in our newsletter? Send us any charts, statistics, heroes/villains, or humor that you’d like to see featured!