Subject: Busy week in Congress, the facts about corporate inversions, Q2 growth fundamentals (AEI Economics Ledger) If you have trouble reading this message, click here to view it as a web page.
Congress stays busy before August recess
Testimony — Does SNAP support work? Yes and no.
“The Supplemental Nutrition Assistance Program (SNAP) alleviates material hardship, reduces poverty, helps the elderly and disabled, and provides needed food to children in low income families. Despite these positive aspects, some efforts to promote the use of SNAP in the post-recession period have reduced the work support aspect of the program.”
Testimony — Increasing economic opportunity for African Americans: Local initiatives that are making a difference.
Aparna Mathur: “ Amongst all races, economic mobility is of particular concern for
African-Americans. African-Americans experience significantly less upward economic mobility compared to whites. Forty-four percent of blacks in the bottom quintile stay there into adulthood compared to just 25 percent of comparable whites. A large majority of blacks born in the bottom half of the income distribution are likely to exceed their parent’s place in the income distribution, but only 35 percent improve their relative position by 20 percentiles or more, less than the nearly 50 percent statistic for whites.”
Testimony — Even if you like your plan, you may well lose your plan. And even if you like your doctor, you may well lose your doctor.
Stan Veuger : “By 2018 between 73 to 96 percent of employer
plans will lose their grandfathered status. Therefore, even more families that were happy with their coverage will not be able to keep it and see their plans change. Enacting H.R. 3522, the ‘Employee Health Care Protection Act of 2013,’ would extend grandfathered status to plans offered in 2013 and allow the president to come closer to keeping his promise.”
Spotlight on corporate inversions
President Obama’s misleading commentary about corporate inversions
. Alan Viard: “Rather than
condemning corporations that change their ‘technical address’ to lower their taxes, we should be asking why we base tax liability on that technicality in the first place. If we tell a corporation that it must pay millions of extra dollars in tax because it has a piece of paper that was issued in the United States rather than abroad, should we really be surprised when it tries to get a new piece of paper issued abroad?”
State of the economy
Second-quarter growth beats expectations.
“‘Surprise!’ say the sell-side, upbeat economy touts. Second-quarter GDP growth came in at a 4% pace, well above the expected 3% pace. But that’s as good as the news gets.”
What’s behind the US energy boom?
Mark Perry: “It would be easy to look at the dramatic 35%
increase in America's oil and natural gas production since President Obama took office and think the administration deserves much of the credit. But the energy boom has happened in spite of him.”
Social Security deficit rises again.
Andrew Biggs: “Like the CBO, the Social Security Trustees see a
worsening picture for Social Security: last year they projected a 75-year deficit of 2.72% of payroll, while