“I would be happy to answer if you would stop talking long enough to let me do that.”
In April, 50,000 ELLE magazine subscribers got a surprise in the mail . The chosen readers received a specially printed issue, featuring Kim Kardashian West on the cover and a message from the reality TV celebrity personalized with the reader’s first name.
The Coalition of Immokalee Workers will rally at Wendy’s annual shareholder meeting in Ohio to demand the company join its fair labor initiative. Protesters hold up their signs at a march in support of the Coalition of Immokalee Workers in Lakeland, Florida, April 18, 2010.
Franklin County birth announcements: April 28-May 4, 2018 Hello, world! These babies were born April 28 to May 4, 2018. Check out this story on publicopiniononline.com: https://ponews.co/2LSWox4 Birth announcements are submitted to Public Opinion by Chambersburg and Waynesboro hospitals.
The New Hampshire Senate Executive Departments and Administration Committee rejected a bill that would have created a state commission for reviewing occupational licensing rules.
The committee voted to reject House Bill 1685 (H.B. 1685) on April 5. The state House of Representatives had approved the bill in March.
H.B. 1685’s sponsor, state Rep. Bill Ohm (R-Nashua) says his bill could have helped people get jobs and lift themselves out of poverty and drug addiction.
“New Hampshire has an interesting dichotomy,” Ohm said. “We have extremely low unemployment but high levels of opioid addiction. We have perhaps 15,000 recovering opioid addicts sidelined from our workforce, and a need for able-bodied working adults. One part of the bill was to make New Hampshire ‘recovery friendly’ by requiring licensing boards to determine, in advance, whether an individual’s criminal record would disqualify that individual from obtaining the appropriate license.”
Ohm says H.B. 1685 would have created opportunities for those seeking to better themselves.
“The intention of the bill was to increase employment opportunities for those who wish to work,” Ohm said. “It does that by starting a process to review all occupational licensing over a five-year period to see if the current laws are appropriate.”
Hoped to Cut Cronyism
Ohm says many occupational licensing rules reflect obvious cronyism.
“Some professions, such as cosmetology, require more than 1,000 hours of training to get an appropriate license,” Ohm said. “The expense of that training serves to discourage job seekers who wish to enter that profession, and seems to primarily benefit those who wish to restrict additional competition. If an EMT can qualify for a license with 40 hours of training, is cosmetology that much more dangerous to public health and safety?”
‘Little Public Purpose’
David Harrington, an economics professor at Kenyon College, says his research has led him to conclude occupational licensing needlessly increases the prices of goods and services.
“Most of my studies of occupational licensing involve the funeral industry,” Harrington said. “I have found evidence that more stringent requirements to become a funeral service worker increase funeral prices paid by consumers and reduce the likelihood that they choose cremation, because funeral directors persuade many of them to purchase a more expensive, traditional earth burial.”
Ohm says many government occupational restrictions have little real benefit for the general public.
“Licensing is certainly appropriate for occupations that put the health and safety of the public at risk, such as medical professionals, but other licensed professions, such as an athletic trainer or an auctioneer, seem to involve little public risk,” Ohm said. “Requiring a state license to enter certain professions seems to create a high barrier to entry with little public purpose.”
The burden of government permission slips is especially heavy for women and ethnic minorities, Harrington says.
“Women are less likely to be funeral directors in states that require all funeral directors to be embalmers,” Harrington said. “I also think that these laws make it difficult for immigrants to enter funeral directing to serve their communities.”
Ohm says the public can ensure the safety and quality of goods and services without government control.
“Professions should be open to jobseekers who meet appropriate standards of training and proficiency,” Ohm said. “Industry or government certifications, proof of insurance and bonding, and even social media reports are less restrictive ways to protect consumers than licensing.”
Editor’s Note: This article was published in cooperation with The Heartland Institute’s Budget & Tax News.
PHOTO: New Hampshire State House in Concord, NH. Photograph taken and uploaded by Jared C. Benedict on 29 December 2004. This file is licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.
The post New Hampshire Senate Rejects Occupational Licensing Bill appeared first on New Revere Daily Press.
The mental health evaluation of Travis Reinking, the suspect in the April 22 shooting that killed four people at an Antioch Waffle House, is ongoing. His case is set to go back to court on July 13. General Sessions Judge Bill Higgins approved the new court …
This Saturday, April 21, 2018, photo provided by the Office of former U.S. President George H.W. Bush shows Bush’s socks during the funeral service for his wife, Barbara Bush, in Houston. Bar… .
Home prices are booming. So far, 2018 has posted the strongest growth since 2005. “About 60% of all U.S. metros saw an acceleration in the rate of price increases through February this year,” according to Housing Wire. Since mid-2012, real home prices have increased 28%, according to data from the American Enterprise Institute. Entry-level home prices are up about double that rate. In contrast, over the same period household income has barely kept pace with inflation. The current pace of home-price inflation is increasing the risk of another housing bubble.
The root of the problem is declining underwriting standards. In April Freddie Mac announced an expansion of its 3% down-payment mortgage, the better to compete with the Federal Housing Administration and Fannie Mae . Such moves propel home prices upward. Because government agencies guarantee about 80% of all home-purchase mortgages, their underwriting standards guide the market.
Making lending even more dangerous, CNBC recently reported that “credit scores may go up” because new regulatory guidance allows delinquent taxes to be excluded when calculating credit scores. These are only some of the measures that “expand the credit box” and qualify ever-shakier borrowers for mortgages.
During the last crisis, easy credit led home prices to rise at an unsustainable pace, leading marginally qualified borrowers to stretch themselves thin. Millions of Americans’ dreams became nightmares when the housing market turned. The lax underwriting terms that helped borrowers qualify for a mortgage haunted many households for the next decade.
In an earlier Evidence Speaks post this year, Susan Dynarski and Judith Scott-Clayton summarized important research showing that federal tax benefits for college tuition have had no measurable impact on increasing college-going behavior. Moreover, they note that the benefits are numerous, overlapping and complicated. Yet for all their flaws, these tax breaks enjoy such strong support from lawmakers that even the oddest one, which quietly expires each year, is always revived in a last-minute bill just in time for the tax filing season. The tuition and fees deduction (“the deduction”) was recently extended for a seventh time in an omnibus budget bill in February. Out of all the tuition tax benefits the government offers, this one should be relatively easy to let go because of whom it unintentionally targets.
Here is how the deduction works. Tax filers can deduct up to $4,000 of tuition and fees paid for higher education in the tax year. It is an “above-the-line” deduction, meaning filers can claim it without having to itemize deductions. As a deduction, filers earn a benefit equal to their marginal tax rate. The maximum benefit any filer could extract from the deduction is $880, the top marginal tax rate of those who are eligible (22 percent) times $4,000. There is no limit to the number of times a filer can claim the deduction, so long as he has incurred tuition expenses, and it does not matter what type of credential he pursues. There is, however, an income limit. Taxpayers with adjusted gross incomes above $80,000 ($160,000 for joint filers) cannot claim it.
There is nothing odd about those terms per se, but they interact with other tax benefits the government offers for tuition such that only upper-income graduate students benefit from the deduction. First, undergraduates, while eligible for the deduction, don’t claim it because a different tax credit only for undergraduates is more beneficial: the American Opportunity Tax Credit, which is worth up to $2,500 in tax relief for filers earning up to $90,000 ($180,000 for joint filers). Tax filers can claim only one tuition tax benefit although they usually qualify for more than one. Second, graduate students with lower and middle incomes are also eligible for the deduction, but they can claim the $2,000 Lifetime Learning Credit, which almost always delivers a bigger tax break than the tuition and fees deduction. But the Lifetime Learning credit has a lower income cut-off than the deduction. Those earning over $66,000 ($132,000 for joint filers) in 2017 cannot claim it.
That’s how the deduction ends up targeting upper-income graduate students. While graduate students would always obtain a larger benefit from the Lifetime Learning Credit, they cannot claim it if they earn more than $66,000 ($132,000 for joint filers). They can, however, claim the deduction until their earnings exceed $80,000 ($160,000 for joint filers). Thus a narrow band of graduate students, those earning between the income limits for the two benefits, are the only students who would claim the deduction. At those levels, their incomes are higher than the incomes of about 80 percent of U.S. households. Of course, tax filers can unintentionally claim a less generous benefit if they are eligible for more than one, such as an undergraduate claiming the deduction when she was eligible for the American Opportunity Tax Credit, which does happen.
What the data say about eligible students
Using a representative sample of graduate students in 2011-12, Kim Dancy of New America and I estimated that just 8 percent of graduate students would benefit from the deduction. Meanwhile, 64 percent of graduate students would benefit most from the Lifetime Learning Credit. The rest of graduate students (28 percent) were ineligible for any tax benefit because they have no taxable income, their tuition was fully covered by grants and scholarships, or their earnings were too high. The analysis assumes that tax filers claim the benefit that provides them with the largest tax reduction if they qualify for more than one. These numbers have likely shifted in recent years, with even fewer students benefiting from the deduction, because Congress has increased the earnings cap for the Lifetime Learning Credit to account for inflation but left the limits for the deduction unchanged.
We also estimated the average benefit graduate students would claim through the deduction for the 2011-12 academic year. At $621, it was smaller than the $859 average benefit that filers eligible for the Lifetime Learning Credit could claim. Due to small sample sizes, however, we were unable to reliably assess important characteristics of filers eligible for the deduction, such as field of study.
The deduction didn’t start out as a graduate school tax break
As is often the case in public policy, lawmakers did not set out explicitly to provide a tax break to upper-income graduate students. In fact, graduate students were never the target group for the tuition tax breaks; undergraduates were always the focus. Although graduate students have been eligible for the tax benefits since their inception, changes to the policies over the years have left the deduction benefiting upper-income graduate students alone.
Prior to mid-1990s, the federal government did not offer widely-available tax breaks for college tuition. The idea first gained prominence when President Clinton proposed a $10,000 deduction for college tuition as part of his “Middle-Class Bill of Rights” reelection platform. After critics noted that a deduction would provide more help to families in higher tax brackets, Clinton added a separate tax credit for the first two years of college to his proposal to provide more even benefits. Congress adopted the president’s idea for the credit in 1997, naming it the Hope Tax Credit, but rejected the additional proposal for a $10,000 deduction. They instead replaced that proposal with a separate credit for “lifelong learning” (i.e., the Lifetime Learning Credit) that families could claim for education after the first two years of college, including graduate school.
Thus, President Clinton’s original idea for a deduction and a credit was replaced with two credits, the Hope Tax Credit and the Lifetime Learning Tax Credit. In keeping with their original purpose to provide middle-class tax relief, Congress capped income eligibility for both benefits at $55,000 ($100,000 for joint filers) in 1997.
With these two tax credits on the books, the idea of a deduction for tuition would be unnecessary and redundant, yet Congress later decided to add one anyway. Seemingly out of nowhere, lawmakers included a $4,000 deduction for tuition and fees in the Economic Growth and Tax Relief Reconciliation Act of 2001, the sweeping bill that included President Bush’s campaign proposal to cut marginal tax rates.
The deduction differed from the two initial tax credits in a key way, which partially explains why lawmakers added it. Families earning up to $80,000 ($160,000 for joint filers) would be eligible as of 2004. That was significantly higher than the income cutoff for the Hope and Lifetime Learning Credits at the time and would therefore offer tax benefits to families with incomes arguably well above middle class. But why not just raise the income limits on the existing credits then? Because creating the new deduction was a way to restrict costs relative to expanding the existing Lifetime Learning Credit in terms of forgone revenue to the government. Recall that the value of the deduction is worth the amount deducted times the marginal tax rate, which at the time it was created would have been $1,120 at the most. That is about half the maximum value of the Lifetime Learning credit.
In other words, the deduction was a way to let upper-income families into the college tax benefit club on the cheap. It also ensured their benefits would be smaller than those of the middle-class families, who were eligible for the credits.
At the time it was created, the deduction was as much an undergraduate benefit as a graduate one. Upper-income families would claim it for tuition paid in pursuit of either degree. According to my analysis referenced earlier, about the same share of graduate students as undergraduates qualified for it prior to 2009. But in 2009, Congress would make it pointless for almost any undergraduate to claim the deduction. That year, lawmakers replaced the Hope Credit with the American Opportunity Tax Credit, which provided larger benefits than the deduction with an income cutoff even higher than the deduction. With upper-income undergraduates now qualifying for American Opportunity Tax Credit, graduate students became the only group left who could benefit from the original tuition and fees deduction.
While Congress never decided to directly create a special tax break for upper-income graduate students alone, opting to extend the deduction year after year is effectively the same thing. The latest one-year extension, which made the deduction available for the 2017 tax year, cost the government over $200 million in forgone revenue.
At a time when an undergraduate education feels financially out of reach for so many families, it’s fair to ask why Congress continues to spend these resources on students who have already earned an undergraduate degree. Moreover, these students earn a median household income of $102,000, according to my analysis. There does not appear to be a good answer to that question other than inertia. Lawmakers have always extended the benefit so they continue to extend it. They may not realize, however, that it no longer benefits undergraduate students.
All of the tax benefits may be a policy failure for not increasing enrollment or being overly complex, but at least those for undergraduates put more money in the pockets of low- and middle-income families working toward their first degree. Today, the deduction does neither. It helps those who already have an undergraduate degree and earn high incomes to boot. While its cost in terms of forgone revenue are relatively modest, those resources would be better spent on aid that encourages students to enroll in and complete an undergraduate degree.
 Sue Dynarski and Judith Scott-Clayton, “The Tax Benefits for Education Don’t Increase Education,” Brookings Institution, April 2018, https://www.brookings.edu/research/the-tax-benefits-for-education-dont-increase-education/.
 Bipartisan Budget Act of 2018, Public Law 115–123, § 40203 (2018).
 Internal Revenue Service, “Instructions for Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) (2017),” https://www.irs.gov/pub/irs-pdf/i8863.pdf.
 There are some circumstances when the deduction might produce a larger benefit than the Lifetime Learning Credit if a filer paid tuition and fees below $4,000 and he is in the highest tax bracket of those eligible for the deduction. For example, a filer in the 22% tax bracket who deducts $3,000 in expenses receives a $660 tax reduction; under the Lifetime Learning credit his benefit would be $600.
 Author’s calculation using the American Community Survey, 2016.
 Government Accountability Office, “Improved Tax Information Could Help Families Pay for College,” May 2012, https://www.gao.gov/assets/600/590970.pdf
 Jason Delisle and Kim Dancy, “Graduate Students and Tuition Tax Benefits,” New America, December 2015, 6–7, https://na-production.s3.amazonaws.com/documents/graduate-students-and-tuition-tax-benefits.pdf.
 Author’s calculation using the National Postsecondary Student Aid Study 2011–12. See also Jason Delisle and Kim Dancy, “Graduate Students and Tuition Tax Benefits,” New America, December 2015.
 William J. Clinton, “Address to the Nation on the Middle Class Bill of Rights,” December 15, 1997, www.presidency.ucsb.edu/ws/?pid=49591.
 Douglas Lederman, “The Politicking and Policy Making Behind a $40-Billion Windfall: How Clinton, Congress, and Colleges Battled to Shape Hope Scholarships,” Chronicle of Higher Education, November 28, 1997.
 Taxpayer Relief Act of 1997, Public Law 105–34 § 201 (1997).
 Taxpayer Relief Act of 1997, Public Law 105–34 § 101 (1997).
 Economic Growth and Tax Relief Reconciliation Act of 2001, Public Law 107–16 § 431 (2001).
 The top marginal tax rate for filers eligible for the deduction was 28 percent in the mid 2000s.
 See endnote 4. for an explanation of how sometimes when tuition and fees are below $4,000, tax filers can qualify for a larger tax reduction through the deduction than if the Lifetime Learning Credit.
 Jason Delisle and Kim Dancy, “A New Look at Tuition Tax Benefits,” New America, November 2015, https://static.newamerica.org/attachments/10416-a-new-look-at-tuition-tax-benefits/TaxCredits11.2.277d3f7daa014d5a8632090f97641cee.pdf; and Jason Delisle and Kim Dancy, “Graduate Students and Tuition Tax Benefits,” New America, December 2015, 6–7, https://na-production.s3.amazonaws.com/documents/graduate-students-and-tuition-tax-benefits.pdf.
 Joint Committee on Taxation, “Federal Tax Provisions Expired in 2017” (JCX-5-18), March 9, 2018.
 Author’s calculation using the National Postsecondary Student Aid Study 2011–12. See also Jason Delisle and Kim Dancy, “Graduate Students and Tuition Tax Benefits,” New America, December 2015.
We have a uniquely American problem in which civilians are getting massacred by police on a near-daily basis, Lee Camp says on the latest ‘Redacted Tonight’ episode about the problem of out-of-control policing in the US. Just several days ago, video emerged showing Milwaukee police Tasering NBA player Sterling Brown for the ‘crime’ of parking in a disabled parking spot. “But he got off easy,” Camp said, given that police in the US have already killed over 400 people since the beginning of 2018. In comparison, Lee explained, in the 12 months to April 2016, British cops discharged their weapons just seven times, with three people killed. “They had only fired their guns seven times in a year! An average American cop discharges their weapons seven times just to open their beer can. When the little metal tab breaks off, you know, you gotta get the gun out. And then they fired three more times to celebrate once they get the beer open,” Camp said.