The $20 million ‘Boondoggle That Won’t Die’ Finally Gets Zapped

The House on Wednesday night voted 252 to 179 to wipe out a $20 million-a-year sop to Pennsylvania’s struggling anthracite coal industry that critics had tagged “the boondoggle that just won’t die.
As The Fiscal Times reported earlier this week, the Defense Department has been required every year to ship 5,000 to 9,000 tons of coal mined from the rugged hills of Tamaqua in northeast Pennsylvania to the small town of Kaiserslauntern in southwestern Germany to be used by a local utility to heat a large U.S. military maintenance and repair installation.
The provision, for decades tucked away in the massive defense appropriations bill, was the remnant of a half-century old taxpayer rip-off that the Defense Department has been trying to get rid of for years.
Related: The $20 Million Political Boondoggle That Just Won’t Die
“For decades, the Department of Defense has urged Congress to remove this earmark and allow the use of cheaper fuel to power its military bases. Today we finally achieve that … saving taxpayers millions of dollars each year,” said Rep. Jared Huffman (D-CA), who co-sponsored an amendment with Rep. Tom McClintock (R-CA) to eliminate the benefit to the Pennsylvania coal industry.
“The passage of this amendment is proof-positive that Republicans and Democrats can work together to cut wasteful spending while protecting the environment,” he added. “It’s about time we stopped burning dirty coal—and taxpayer dollars—to power this military base.”
Why Craft Brewers Are Crying in Their Beer

It may be small beer compared to the problems faced by unemployed federal workers and the growing cost for the overall economy, but the ongoing government shutdown is putting a serious crimp in the craft brewing industry. Small-batch brewers tend to produce new products on a regular basis, The Wall Street Journal’s Ruth Simon says, but each new formulation and product label needs to be approved by the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau, which is currently closed. So it looks like you’ll have to wait a while to try the new version of Hemperor HPA from Colorado’s New Belgium Brewing, a hoppy brew that will include hemp seeds once the shutdown is over.
Number of the Day: $30 Billion

The amount spent on medical marketing reached $30 billion in 2016, up from $18 billion in 1997, according to a new analysis published in the Journal of the American Medical Association and highlighted by the Associated Press. The number of advertisements for prescription drugs appearing on television, newspapers, websites and elsewhere totaled 5 million in one year, accounting for $6 billion in marketing spending. Direct-to-consumer marketing grew the fastest, rising from $2 billion, or 12 percent of total marketing, to nearly $10 billion, or a third of spending. “Marketing drives more treatments, more testing” that patients don’t always need, Dr. Steven Woloshin, a Dartmouth College health policy expert and co-author of the study, told the AP.
70% of Registered Voters Want a Compromise to End the Shutdown
An overwhelming majority of registered voters say they want the president and Congress to “compromise to avoid prolonging the government shutdown” in a new The Hill-HarrisX poll. Seven in ten respondents said they preferred the parties reach some sort of deal to end the standoff, while 30 percent said it was more important to stick to principles, even if it means keeping parts of the government shutdown. Voters who “strongly approve” of Trump (a slim 21 percent of respondents) favored him sticking to his principles over the wall by a narrow 54 percent-46 percent margin. Voters who “somewhat approve” of the president favored a compromise solution by a 70-30 margin. Among Republicans overall, 61 percent said they wanted a compromise.
The survey of 1,000 registered voters was conducted January 5 and 6 and has a margin of error of 3.1 percentage points.
Share Buybacks Soar to Record $1 Trillion

Although there may be plenty of things in the GOP tax bill to complain about, critics can’t say it didn’t work – at least as far as stock buybacks go. TrimTabs Investment Research said Monday that U.S. companies have now announced $1 trillion in share buybacks in 2018, surpassing the record of $781 billion set in 2015. "It's no coincidence," said TrimTabs' David Santschi. "A lot of the buybacks are because of the tax law. Companies have more cash to pump up the stock price."
Chart of the Day: Deficits Rising

Budget deficits normally rise during recessions and fall when the economy is growing, but that’s not the case today. Deficits are rising sharply despite robust economic growth, increasing from $666 billion in 2017 to an estimated $970 billion in 2019, with $1 trillion annual deficits expected for years after that.
As the deficit hawks at the Committee for a Responsible Federal Budget point out in a blog post Thursday, “the deficit has never been this high when the economy was this strong … And never in modern U.S. history have deficits been so high outside of a war or recession (or their aftermath).” The chart above shows just how unusual the current deficit path is when measured as a percentage of GDP.