How a Florida Doctor with Social Ties to Trump Delayed a $16B Billion VA Project

How a Florida Doctor with Social Ties to Trump Delayed a $16B Billion VA Project

McDonald delivers an apology, for recent misstatements about his military record, to reporters outside VA headquarters in Washington
REUTERS/Jonathan Ernst
By The Fiscal Times Staff

A West Palm Beach doctor who is friends with Ike Perlmutter, the chairman of Marvel Entertainment and an informal adviser to President Trump on veterans’ issues, has held up “the biggest health information technology project in history — the transformation of the VA’s digital records system,” Politico’s Arthur Allen reports. Dr. Bruce Moskowitz “objected to the $16 billion Department of Veterans Affairs project because he doesn’t like the Cerner Corp. software he uses at two Florida hospitals, according to four former and current senior VA officials. Cerner technology is a cornerstone of the VA project. … Moskowitz’s concerns effectively delayed the agreement for months, the sources said.” Read the full story.

Quote of the Day: Time to Raise Taxes?

iStockphoto/The Fiscal Times
By The Fiscal Times Staff

“Tax revenue as a percentage of gross domestic product is expected to be 16.5 percent next year. The long-term average in a full-employment economy is 18.5 percent of GDP; if revenue were at that level for the coming decade, debt would be $3.2 trillion lower and the 10-year fiscal gap would be halved. Returning to past revenue levels, however, will be inadequate over time, because an aging population will increase Medicare and Social Security costs. This need not pose a problem: Revenue was roughly 19 percent of GDP in the late 1990s, and economic conditions were excellent.”

– Former U.S. Treasury Secretary Richard E. Rubin, writing in The Washington Post

Quote of the Day: When Tax Cuts Pay for Themselves

iStockphoto
By The Fiscal Times Staff

“You … often hear the claim that a lot of tax cuts will ‘pay for themselves,’ that they’ll cause so much additional economic activity that the revenue feedback from that activity will fully offset the direct revenue loss caused by the tax cut so that you end up making money for the federal government, or at least not losing any money. Now, of course that is theoretically possible and it would happen at extreme rates. I mean if a country had a 99 percent flat rate income tax and lowered it to 98 percent, I believe that they almost certainly would collect more revenue at the 98 percent rate than they did at the 99 percent rate. But the idea that this type of effect would occur at today’s tax levels just requires responses that are much bigger than statistical evidence would support and I think much bigger than common sense would indicate if you just ask people how they themselves would react to the tax cut.”

-- Alan Viard, tax policy expert at the American Enterprise Institute

Map of the Day: Gas Taxes

Saving $1.11 a gallon might not sound like much. But if you're filling up a 20 gallon tank, you could save $22. Do that once a week and you'd save $1,150 a year.
iStockphoto
By The Fiscal Times Staff

It’s summertime and the driving is anything but easy if you want to get to your favorite beach or mountain cabin for a well-deserved break. As lawmakers consider a plan to raise federal fuel taxes by 15 cents a gallon, here’s a look at the current state-level taxes on gasoline, courtesy of the Tax Foundation

Stat of the Day: 0.2%

U.S. President Donald Trump at the White House in Washington, U.S. January 23, 2018.  REUTERS/Jonathan Ernst
Jonathan Ernst
By The Fiscal Times Staff

The New York Times’ Jim Tankersley tweets: “In order to raise enough revenue to start paying down the debt, Trump would need tariffs to be ~4% of GDP. They're currently 0.2%.”

Read Tankersley’s full breakdown of why tariffs won’t come close to eliminating the deficit or paying down the national debt here.