“The Best Social Program Is A Job” — It’s Time To Stop Incentivizing Unemployment

“The Best Social Program Is A Job” — It’s Time To Stop Incentivizing Unemployment

By the Free Enterprise Club |

If given the option between working full time or doing nothing but receiving the same or greater pay, which would you choose? Most people would choose the latter. And can you blame them? Why wake up early and work all day if the government will pay you to stay home and do nothing instead?

This is the current workforce environment in America, and it is having a detrimental impact on our economic recovery. The result? While the Biden administration was hoping to tout a million new jobs for the month of April, they ended with a paltry 266,000.

And we have seen this lag in job recovery all across the country. Restaurants have posted signs apologizing to customers for delays in service, noting that their employees refuse to come back to work. And some businesses have started offering cash simply for coming in for an interview.

Never let a crisis go to waste, right? Under the guise of a global pandemic, politicians shut down the economy, and then created a citizenry dependent on unemployment checks exceeding the wish list $15 minimum wage pushed by the likes of Bernie Sanders. How is a business, coming out of potentially months with no profit, supposed to compete with that?

It is completely unsustainable. States can’t afford it. The feds can’t afford it. And most importantly, small businesses can’t shoulder it any longer.

Fortunately, some states have moved in the right direction. South Carolina announced they will be ending the $300 federal unemployment supplemental payments. This comes after Montana announced the same, along with $1,200 stipends to Montanans who return to work.

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The Dangerous PRO Act Would Destroy the Economy as We Know It

The Dangerous PRO Act Would Destroy the Economy as We Know It

By the Free Enterprise Club |

Unions are in decline in America, and it’s no surprise as to why. Most do not offer any sort of value to the overwhelming majority of workers.

You would think they could take a hint. In 2017, workers at Nissan in Mississippi and Boeing in South Carolina rejected union representation by a wide margin. In 2019, Volkswagen employees in Tennessee voted against unionizing for the second time in recent years. And just last month, employees at an Amazon facility in Alabama largely rejected joining the Retail, Wholesale, and Department Store Union.

So, what solution has labor unions come up with? Will they focus on bringing more value to members or potential members? Will their leadership stop supporting liberal and other far-left causes? Will they stop pushing socialist policies and politicians?

Nope. Their solution is to force American workers to join unions through legislation.

H.R. 842, also known as the Protecting the Right to Organize (PRO) Act, would enact sweeping changes to the National Labor Relations Act. And it’s dangerous in 3 particular ways.

  1. The PRO Act repeals all state right-to-work laws. Currently, 27 states have right-to-work laws, including Arizona. These laws ensure workers can choose whether or not to join a union and pay for representation. The PRO Act would remove these laws, which could cause some workers to lose more of their wages and others to lose their jobs…

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Instead of Following Science, the CDC Listens to…a Teachers’ Union

Instead of Following Science, the CDC Listens to…a Teachers’ Union

By The Arizona Free Enterprise Club |

This was all supposed to be based on “science.” Or so claimed groups like the Centers for Disease Control and Prevention (CDC) for over a year now. It was the rationale for the draconian lockdowns. It was the reasoning behind the overreaching mask mandates. And whenever the topic of schools reopening arose, we were told that students couldn’t return to in-person learning yet because “science.”

Then, on February 12, President Biden issued a statement declaring that opening most K-8 schools by the end of his first 100 days was a national imperative. That sounds good enough, but this announcement came with a catch. President Biden said that this could “only be achieved if Congress provides states and communities with the resources they need to get it done safely through the American Rescue Plan.”

But the president didn’t stop at shamelessly pushing his disastrous $1.9 trillion “COVID relief bill” that’s jam-packed with far-left policies unrelated to the pandemic. He went on to praise the CDC as providing “the best available scientific evidence on how to reopen schools safely.”

Certainly, you would hope that the national public health agency of the United States would follow science when forming such a plan. But instead, the CDC allowed itself to be manipulated by one of the most powerful teachers’ unions in the country: the American Federation of Teachers (AFT).

So much for following the science…

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Is Critical Race Theory Coming To A Public School Near You?

Is Critical Race Theory Coming To A Public School Near You?

By the Free Enterprise Club |

They’re at it again. You would think that public school districts would learn their lesson at some point. After all, many of them turned their backs on students and parents in the wake of COVID-19. And now, those school districts are paying the price.

But apparently, they’re too committed to their agenda.

Some school districts are ignoring the science and keeping their beloved mask mandates. Some would rather keep parents in the dark about classroom curriculum. While others are trying to adopt Marxist Critical Race Theory programs in their schools.

The latest culprit is Litchfield Elementary School District, where the school board recently published an “equity statement” along with a set of “equity goals.” The goals were presented at the school board meeting in March and crafted by, you guessed it, a “district diversity committee.”

If you’re unfamiliar with Critical Race Theory, it’s a movement that combines Marxist theories of class conflict within the lens of race. And it teaches that racism is present in every interaction. Races that have been “minoritized” are considered oppressed while those who are “racially privileged” are called “exploiters.” Proponents of the movement are good at disguising it. As Christopher Rufo from the Manhattan Institute points out, you’ll often find Critical Race Theory is present when you hear terms like “social justice,” “diversity,” “inclusion,” and “equity.”

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Arizona Cities Are Sitting on a Mountain of Cash—So Why Are They Opposing Tax Cuts?

Arizona Cities Are Sitting on a Mountain of Cash—So Why Are They Opposing Tax Cuts?

By the Free Enterprise Club |

The Arizona state coffers are running over with cash. The state is set to receive $12B in federal recovery funds, more than the entire annual state budget. On top of that, forecasting by the Joint Legislative Budget Committee projects by 2024 the state will have a $6.4B cash balance with $1.5B in ongoing revenues. Republicans in the Legislature and Governor Ducey are looking to return the record high, multi-billion-dollar state surplus to taxpayers by passing major tax cuts.

On the front lines to defeat these efforts—the cities—that are claiming major income tax reductions will significantly impact their bottom line. But it isn’t just the state sitting comfortably on a mountain of cash, the cities are too.

tax scorecard

In opposing the proposed tax cuts, cities are arguing that the package will result in a $225 million decrease in their shared revenue from income tax collections. Despite this estimate being seriously flawed, their projections are in reality insignificant.

Based on research from the Arizona Tax Research Association, we’ll look at 4 cities—urban, rural, small, and large—comparing their estimated “cut” from the tax package to their cash balances and scored against additional revenues generated from the 2019 Wayfair legislation, which permanently expanded the cities’ tax base.

Chandler

The city of Chandler has a budget of just under $317 million in general fund expenditures for FY2021, leaving nearly $135 million in the general fund.

So far in FY2021, the city has collected close to $3.6 million in new, local TPT revenue and $1.2 million in state shared TPT collections by remote sellers. Taking the average from the 8 months of collections so far in FY2021, this would result in just over $7 million annually.

The estimate of Chandler’s decrease in shared revenue? Just over $10 million.

With a cash balance of $135 million, $7 million in new revenue from Wayfair, Prop 207 revenue, and nearly $36 million in Covid cash from the latest package, residents of Chandler need not worry about their city providing a high level of service.

Their estimated “cut” represents a 0.67% decrease in Chandler’s general fund when scored against new ongoing tax revenues.

Flagstaff

The city of Flagstaff budgeted $81.7 million in general fund expenditures for FY2021, leaving the city with a cash balance of over $33 million.

From Wayfair, Flagstaff has already collected $1.3 million from remote sellers and their estimated state share is $340,000. Averaged out this is just under $2.5 million in new annual revenue. Flagstaff has also received $15.2 million in new Covid cash.

The estimated “cut” from income tax reductions? $2.9 million. This represents a mere 0.36% decrease in the general fund when scored against new ongoing tax revenues…

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