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Home : For The People : A Constitutional Republic :

Government Waste

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Going into space and doing sciency things costs a lot of money. Sometimes these investments are worth their weight in taxpayers' money. Other times? Not so much. Tinfoil pants, industrial-size containers of Tang, and grabby robotic arms don't come cheap. NASA sure spends lot of money, but don't fret — all those billions pay off threefold with startling science-advancing results. Except when they don't.

The Space Shuttle Program is intended to make space flight as cheap and routine as running to the deli to buy a soda and a bag of weed, the program hasn't done either. It has averaged just five flights a year (instead of the projected 64), has tragically exploded twice, and to date has cost $174 billion. It's mainly used to fix satellites so your Saved by the Bell marathons come in clear, and to ferry astro-folk to the space station. Which bring us to... The International Space Station. $53 billion has been pumped into this orbiting, constantly falling-apart condo. Reagan signed off on an $8 billion price tag in 1984, with the plan to have it completed by 1992. At the current pace, it will be finished in 2010, with an estimated price tag of $100 billion. With no actual long-term use, once it is finished, the space station will be decommissioned and crashed into the bottom of the ocean. Man, if that litter-hating Indian guy cried when he saw trash on the side of the road, he's absolutely gonna shit himself when that rusty space heap goes kerplunk.

In 1996, NASA and Lockheed Martin Aeronautics Company joined nerdy forces to design a less-deadly means of flying crews to the space station, the X-33 and X-34 space plane projects. Five years and $1 billion later, the project was scrapped due to its insistence on not working.

By 2020, NASA plans on zipping astronauts to the lunar surface—something we already did almost 40 years ago — at a cost of $104 billion. So why go back? Among the six reasons given by NASA at a press conference, one is to "use a vibrant exploration programto engage the public..." In otherwords, do something splashy enough to keep the government cheese rolling in.

Passing the buck is a well-used Washington tactic. The only thing that brings Republicans and Democrats together is an appetite for your hard-earned tax dollars. Your tax dollar evaporates, one misspent penny at a time. Are your tax dollars being wasted?

Get A Slice Of Pork
It's not just politicians who get to rip off Joe Taxpayer—you can, too!
  • Be A Genius
    The government shells out big bucks for out-of-the-box ideas. The Small Business Innovation Research program will pay up to $100,000 for unique scientific inventions. Even the Pentagon has turned to the private sector, offering cash prizes for ideas on how to flatten terrorists. The catch? You actually have to be somewhat brilliant scientifically, so chances are you'll get a "no" on that Jell-O shot catapult.
  • Start A Business
    You want free money from the government? You still have to fake working for it. The U.S. Small Business Administration has doled out $10 billion in loan guarantees to would-be entrepreneurs. You'll have to come up with a business plan and apply first, then actually use the money to grow a business…like that nude hot dog stand you've dreamed about!
  • Harvest Crops
    Our government loves to screw the rest of the world's farmers by subsidizing American farms. Although the majority of the $17 billion spent on farmers goes to corporate farms that don't need it, a portion does go to small farmers. All you have to do is study modern agriculture, start a farm with some trendy crop—like jicama, bok choy, or weed—then just bend over and let Uncle Sam ram you full of tax dollars. Of course, the best bet is to sell out to a corporate farm that's already fat from its own subsidies.
Suit Loops
Big government taxes the little guy, but big business usually gets a free pass.
  • Treasure Islands
    When you're a huge corporation, you can afford the biggest tax umbrellas—plenty of companies avoid U.S. taxes by moving operations to offshore sites that have little or no corporate taxes, like Bermuda or the Cayman Islands. Tyco International, Halliburton, and Accenture all scored big by ditching their suits for shorts. (In 2001 alone, Tyco saved $400 million in taxes by hitting the beach.)
  • Welfare, Inc.
    Even worse, while many large corporations shirk taxes, they happily receive millions of dollars in rebates from the U.S. government. Enron, for example, didn't pay income tax at all during four of the last five years of its existence. And on top of that, they received an obscene $381 million in rebates from the government, essentially turning a profit on unpaid taxes.
  • The Slick And The Dead
    Retail king Wal-Mart started getting tax breaks in 1993 by taking out life-insurance policies on its rank-and-file employees. In 2002, relatives of several deceased Wal-Mart employees in Texas sued the chain for collecting life insurance payments on the dead workers—benefits the families themselves never knew about.
  • Blue Rips
    Like many formerly high-flying tech companies, industry giants Cisco Systems and Microsoft take a tax deduction for money their employees earn when they decide to exercise stock options. Giving this benefit to employees may seem generous, but in Cisco's case, it wiped out $1.8 billion in federal taxes in 2000. In 2003, Microsoft managed to pocket a cool $1.4 billion.

Your tax bill has included…
On Capitol Hill, "pork" is more than just the other white meat—it's your cash, rolled up and smoked.

$15 billion…
for Boston's "Big Dig," the most expensive public works project in American history and a construction boondoggle of great importance—if you happen to live in eastern Massachusetts.

$6.9 billion…
to design the Army's Comanche helicopter. The project was canceled in 2004 without building a single usable chopper—generating an additional $2 billion in termination fees.

$400 million…
each year to subsidize public broadcasting, like PBS. Sesame Street alone would be a commercial gold mine…if taxpayers didn't underwrite it already.

$3.5 million…
to refurbish Alabama's Vulcan monument. This 100-year-old Birmingham statue is a depiction of the Roman god of fire and metalworking, not Spock.

$1.5 billion…
to projects at the 2002 Winter Olympics, including the Olympic tree program ($500,000), adopting an Olympic horse ($70,000), and "resolving racial tensions" in honky-happy Utah ($55,000).

$835 million…
to build a single amphibious assault ship the Pentagon never asked for. The project was "requested" by Mississippi senator Trent Lott…who happens to live within view of the shipyard hired to build it.

$9 billion…
for the Yucca Mountain nuclear repository in Nevada, a dumping site for radioactive waste. Unfortunately, the toxic waste dump offers protection for only 10,000 years, when uranium has a half-life of billions.

$50 million…
to The Environmental Project in Iowa, which features a 4.5-acre indoor jungle, an IMAX-style movie theater, and outdoor exhibits of indigenous ecosystems (a.k.a. cornfields).

$950,000…
to erect a bronze memorial to Dr. Seuss in his hometown of Springfield, Massachusetts.

$300,000…
to keep America rocking. This includes $200,000 for the Rock and Roll Hall of Fame and Museum in Cleveland and an extra $100,000 for the Kids Rock Free Educational Program. Sadly, there are no classes on setting guitars on fire, trashing motel rooms, or cornholing groupies.

More outlays to ponder
Is there any defense for the following expenditures?
  1. $250,000 to connect two ski resorts in New York—North Creek Ski Bowl and Gore Mountain Resort—so they can compete better with resorts in Vermont and New Hampshire. If you lived in Vermont or New Hampshire, how would you feel knowing your taxes were helping another state hurt your state’s economy?
  2. $250,000 to Washington State University and Michigan State University for research to cut asparagus-industry labor costs by using mechanical harvesting to replace human harvesters. Why are taxpayers helping to eliminate jobs in the U.S.?
  3. $200,000 to Ocean Spray, a cranberry- and grapefruit-growers’ cooperative, to market white cranberry juice in Great Britain. Ocean Spray cranberry juice is quite tasty, but why do we have to help the business sell its products overseas?
  4. $2 million to construct a parking facility at the University of the Incarnate Word, a Catholic institution in San Antonio, Tex. 58% of students said that off-campus parking was “quick and easy.” Overall, parking at UIW was given a grade of “B”—without the lot.
  5. $70,000 to the Paper Industry International Hall of Fame in Appleton, Wis. for construction and renovation. Is it just a coincidence that of the 70 inductees in the Hall of Fame, 22 (30%) were born in Wisconsin?
  6. $26 million to operate the Selective Service (draft boards) even though there is no draft now—and hasn’t been any since 1973.
  7. $519 million in farm subsidies (1995-2003) to Riceland Foods of Stuttgart, Ark., a co-op with 9,000 members, the world’s largest miller and marketer of rice. According to the Heritage Foundation, Riceland Foods receives more federal money in a typical year than all the farmers in 12 other states combined.
  8. $300,000 for a feasibility study for the world’s first fully enclosed motor speedway, to be built in Ohio’s Mahoning Valley.
  9. $150,000 to The Grammy Foundation to support Grammy Camp, where 60 high school students go to learn about the music business, including singing, songwriting and engineering. (Tuition, room and board is listed as $1,800.) Why are taxpayers helping the industry develop potential stars and other careers in the music business?
  10. $775,000 to the Biltmore Hotel in Coral Gables, Fla.—part of a project to provide economic opportunity in areas of low or moderate income. (Coral Gables’ per capita income is 19.6% above the U.S. average.) For the luxury hotel’s minimum rate, about $200 a night, 130 hurricane survivors could stay there for a month each.

Maxim

Maxim

In the wake of the recent hurricane calamities, many Americans are wondering how our government can spend $2.5 trillion a year ($6.8 billion a day) and still not have enough for disaster preparedness, such as reinforcing New Orleans’ levees and efficiently evacuating Houston and other cities.

One problem is “pork-barrel spending.” Every year, members of Congress try to gain funding for as many projects as possible in his or her district. Some of these “pork” projects actually help people who need it, but many others would seem unnecessary if they were in someone else’s district.

Ketchikan, Alaska (pop. 8,200) is a popular stop for cruise ships plying the Alaska Inland Passage. It lies in a borough of 13,500, which includes nearby Gravina Island (pop. 50), site of the Ketchikan airport. To get from the island to the town, passengers take a five-minute ferry ride. At least, they do now. On July 29, Congress approved $223 million to construct a bridge to Gravina that eventually will cost at least $315 million. That’s more than $23,000 for each citizen of Ketchikan. In July, I asked borough assemblyman Dave Kiffer how many people in Ketchikan supported the project. About half, he estimated. “The general feeling here,” he said, “is that if someone else is paying for it, sure, why not?” However, on the streets of Ketchikan, few locals who were passionately in favor of The Bridge. Supporters said that its construction would create jobs. Even if jobs went to outsiders, the workers would be spending their salaries in Ketchikan.

Many opponents of The Bridge were more embarrassed than angry. One young man—who requested anonymity, fearing retribution from his pro-bridge boss—told me of his recent visit to the lower 48 states: Every time he drove over a pothole or got stuck in traffic, he said, he thought about The Bridge and figured the money could be better used elsewhere. High school student Claire Ragozzino had just seen a TV news report about people starving in the African nation of Niger. “I wondered,” she said, “how many lives could be saved with the money allocated for The Bridge.”

Horse Springs Ranch is a cattle ranch in western New Mexico. Its owner will receive more than $2.5 million not to develop a parcel of his land—part of the government’s Forest Legacy Program, designed to preserve natural areas. This particular project would allow wildlife—such as elk, deer and antelopes—to pass freely on continuous undeveloped land from the Apache National Forest to land owned by the U.S. Bureau of Land Management.

I visited the ranch, about a three-hour drive from Albuquerque, with Bob Sivinski, the state’s Forest Legacy program manager. The Forest Service, Sivinski explained, hoped to prevent the ranch’s owner from subdividing a parcel of approximately 4,000 acres into 20- or 40-acre chunks, which people could buy and live on.

We were bumping along a trail on the acreage in question when suddenly a magnificent elk darted in front of our jeep and disappeared into the forest. It got me thinking: The ranch owner is being paid millions in taxpayer money to do nothing, yet when I doubt the usefulness of this expenditure, I picture that fantastic elk running in front of me.

Outrageous as some pork projects may be, they account for barely 1% of the federal budget—$27.3 billion in 2005. If all pork programs were miraculously suspended, the total would pay for about 18% of Gulf Coast recovery, now estimated at around $150 billion.

Of course, it’s next to impossible to nullify pork appropriations—though some have tried. After Katrina, a group of citizens in Bozeman, Mont., made national news when they petitioned the town council not to accept $4 million in pork earmarked for a parking garage. They were turned down, but many editorial writers picked up on the idea, and readers wrote letters of approval.

Meanwhile, Representatives and Senators squabbled in Congress over whose pork was expendable. In the end, legislators began to look elsewhere in the budget for the recovery money. In October, House leaders called for cuts in such social programs as Medicaid, food stamps, student loans and other programs for the indigent. Gulf Coast recovery must be paid for—but is it wise to further deprive all of the nation’s 37 million poor to aid the (highly visible) poor in a single region?

Unwise government spending comes in different guises: We give $10.3 billion a year to the Internal Revenue Service to collect taxes but only $493 million to the Government Accountability Office, the agency that oversees whether those tax dollars are spent efficiently. One-third of the annual U.S. budget goes to two areas: the military ($527 billion, as much for defense as all other nations combined) and interest on the national debt ($321 billion). Our national debt is $8 trillion, or $26,900 per person. One positive outcome of the storms of late summer may be wiser spending, as Congress takes another look at how it uses its $2.5 trillion.

David Wallechinsky. Are Your Tax Dollars Being Wasted? PARADE Magazine. Published: November 6, 2005.
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Regulation Inside Government: Waste Watchers, Quality Police, and Sleaze-Busters Regulation Inside Government: Waste Watchers, Quality Police, and Sleaze-Busters

Based on two years of unprecedented access to the inner workings of Whitehall, this book by a leading team of scholars examines the army of inspectors, auditors, grievance-chasers and other bodies devoted to oversight of public organisations while documenting their remarkable growth over thelast two decades.




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