Pension crisis primer

It is not a secret that Kentucky’s pension system is in serious crisis.  Read more about this here. We will no doubt be hearing more about this in years to come in Kentucky. In fact, don’t be surprised if this issue is dominant in upcoming legislative sessions and election debates. With that in mind, here…

Tax breaks for theme parks

Tax “incentives” are special favors. Tax policy should not be rooted in giving special favors to some and not others. Rates should be low, yes, but they should apply equally to everyone who is engaged in an activity. When you lard up the state tax system with special favors for particular groups, you make it…

‘Improve Medicaid, Empower States’

Yesterday, three US Senators introduced the Medicaid Improvement and State Empowerment Act designed to provide states with more flexibility to manage and run their Medicaid programs. Senators Tom Coburn (OK), Richard Burr (NC), and Saxby Chambliss (GA) sponsored the bill. In a statement, Sen. Burr addressed the problematic nature of the current federal-state balance: “States…

One peril of pension reform

The United States government is now at its borrowing limit. In order to continue to make interest payments on debt, the federal government is considering some short-run borrowing from federal government workers’ pensions. Many federal workers, after hearing about this plan, may decide to rush into retirement earlier than anticipated: About 550,000 full-time career federal…