Topic: Trade and Immigration

Enjoy the Bowls—You’re Paying for Them

In the Wall Street Journal, Mark Yost explores the taxpayer subsidies to major college football bowl games:

while everyone’s fretting over the bailout package for the auto industry, most taxpayers would be shocked to learn that they’re also footing the bill for some of these highly profitable bowl games. From 2001 to 2005, seven tax-exempt bowls received $21.6 million in government aid.

During that time, 38 percent of the Brut Sun Bowl’s revenue came from a Texas rental-car tax. Now that’s Brutish.

And what do the bowls do with those taxpayer dollars? Well, they put on a football extravaganza, of course. But also:

To ensure the bowl games maintain their tax-exempt status, the committees hire state and federal lobbyists. Watts Partners, the Washington, D.C., lobbying firm run by former University of Oklahoma quarterback and Rep. J.C. Watts, has been paid more than $500,000 in consulting fees by the BCS.

So, as happens with many other government-funded enterprises, taxpayers’ money is spent on lobbyists to keep the taxpayers’ money flowing. Some of the money also goes to pay bowl executives upwards of $400,000. Leaving aside the issue of why tax-funded entities should pay their executives more than the president of the United States, I’m not surprised that bowl committees pay a CEO a handsome salary to make everything work perfectly. But I wonder: We hear a lot of complaints about the high pay of corporate CEOs. If the executive director of a $30 million bowl game is paid $400,000, how much should the CEO of a $30 billion company get?

More on taxpayer subsidies for sports business here and here. A lengthy bibliography here (pdf).

New Congress, New National ID Proposals

The new Congress came roaring out of the gate yesterday, with more than 350 new bills introduced. That should be enough for an entire two years, but they’re not likely to stop there.

Among many other subjects, Congress will consider creating “a secure Social Security card.” The idea is to protect seniors from identity theft, and the author of this legislation no doubt intends not to create a national ID. But the reality is that this would be a nationally uniform card made secure with a nationally standardized biometric, and it’s very likely that it would be administered with a national biometric database. That’s a national ID system, and it is a profound threat to American liberty.

You can learn a bit about identification and identification policy in my book, Identity Crisis.

Congress has also already seen a bill to mandate electronic employment eligibility verification. That can only be done through a national identity system, as I articulated in my paper: “Franz Kafka’s Solution to Illegal Immigration.”

And here’s a bill that would do both.

Welcome new Congress! Now go home.

Downsizing the Federal Government

President-elect Obama has pledged to go through the federal budget “line by line” to root out waste. In this new video, Cato analysts Chris Edwards, Sallie James and Daniel Ikenson explain why the Department of Agriculture is a great place to start.

For more great videos from the Cato Institute, subscribe to our YouTube Channel.

Little Hope for Reformers in Obama’s Ag Sec Pick

President-elect Obama is expected to announce his candidate for Secretary of Agriculture today, former Iowa governor and Democratic presidential candidate, Tom Vilsack. Although a champion of shifting some money from traditional agricultural programs such as commodity subsidies into environmental management payments, and not the worst possible pick for Agriculture Secretary, Mr. Vilsack is still essentially a friend of the farmer. He believes that the federal government should play a role in agriculture. And he is a strong supporter of “food and energy independence,” a wrong-headed policy that is a farmer-welfare program in disguise.

Mr. Vilsack will be expected to support Mr. Obama’s “green energy” stimulus plans for creating “green jobs.” To his credit, he has advocated phasing out subsidies to corn-based ethanol (a brave stance for an Iowa man) and last year endorsed removing the tariff on Brazilian sugar-based ethanol. Having said that, he has been described as “sympathetic to big agribusiness” and “ ‘a very articulate spokesperson’ for agricultural interests”.

If one were hoping for a radical change in direction in U.S. agriculture policy, the Obama administration is unlikely to provide it.

Scrap E-Verify

The 111th Congress and the new Obama administration should scrap “E-Verify.” The federal government’s inchoate immigration background check system is the culmination of 20 years’ failure to create a tolerable “internal enforcement” program for U.S. immigration law. Rather than building on past failure, the new Congress and president should pull the plug on E-Verify and reform immigration law so that it aligns with the nation’s economic need for labor.

More here.