Professional Documents
Culture Documents
Chart
1
Tennessee's
Projected
Private
Sector
Shrinks
under
Obamacare's
Medicaid
Expansion
Calendar
Years
1929
to
2013
89%
84%
79%
74%
69%
64%
1929
1938
1947
1956
1965
1974
Calendar Years
1983
1992
2001
2010
No. 4
Chart
2
Interest
Payments
Exceed
Budget
Deficit
in
2024
2013
to
2024
900
800
$
700
B
i 600
l
l
500
i
o
n 400
s
300
200
2013
2014
2015
2016
2017
2018
2019
Calendar Year
2020
2021
2022
2023
2024
The
appropriate
size
and
role
of
government
depend
More
public
sector
spending,
as
prescribed
by
on
the
deadweight
burden
caused
by
incremental
Medicaid
expansion,
will
ultimately
make
Tennessee
transfers
of
funds
from
the
private
sector.
The
less
competitive.
This
new
spending
is
not
really
magnitude
of
that
burden
depends
on
the
increases
new
at
all.
Expansion
funding
in
tax
rates
required
to
raise
would
come
via
transfers
(Social
incremental
revenue
and
on
the
Security,
Medicare,
and
deadweight
loss
that
results
Since
only
the
private
sector
Medicaid)
and
government
from
higher
tax
rates
recent
can
create
new
income
and
compensation
and
result
in
econometric
work
implies
that
crowding
out
the
private
sector
the
deadweight
burden
caused
wealth
in
an
economy,
(see
Appendix
for
details).
by
incremental
taxation
(the
Obamacares
expansion
of
marginal
excess
burden)
may
Contrary
to
so-called
Keynesian
exceed
one
dollar
per
one
Medicaid
will
come
at
the
multiplier
analysis,
only
the
dollar
of
revenue
raised,
making
expense
of
long-run
economic
private
sector
can
generate
new
the
cost
of
incremental
income
and
wealth
in
an
government
spending
more
growth.
economy.
Government
than
two
dollars
for
each
dollar
spending,
on
the
other,
is
the
of
government
spending.
redistribution
income
first
[emphasis
added]1
extracted
by
taxes.
Yet,
the
very
process
of
redistribution
comes
at
a
very
high
economic
cost.
1
Prominent
Harvard
economist
Martin
Feldstein
Feldstein,
Martin,
How
Big
Should
Government
Be?
National
states:
Tax
Journal,
Vol.
50,
No.
2
(June
1997),
pp.
197-213.
http://www.ntanet.org/tax-resources/ntj-full-text-articles.html
Page 2
No. 4
Chart
3
Medicaid
Spending
Soars
Under
Obamacare's
Medicaid
Expansion
2013
to
2022
950
900
$
850
800
B
i
l
l
i
o
n
s
750
700
650
600
550
500
450
2013
2014
2015
2016
2017
Calendar Year
2019
2020
2021
2022
No
Expansion
Full
Expansion
2018
Page 3
No. 4
Table
1
Tennessees
Private
Sector
Ranking
Falls
2
Spots
Due
to
Obamacares
Medicaid
Expansion
Private
Sector
Share
of
Personal
Income
by
State
and
Rank
2013
2013
Rank
2013
Rank
State
State
70.7%
--
Virginia
69.9%
26
United
States
1
Georgia
69.6%
27
New
Hampshire
76.9%
76.9%
2
Rhode
Island
68.9%
28
Connecticut
75.3%
3
Missouri
68.9%
29
Massachusetts
75.2%
4
Ohio
68.9%
30
North
Dakota
75.1%
5
Oklahoma
68.7%
31
New
Jersey
75.0%
6
Louisiana
68.6%
32
Colorado
74.7%
7
Tennessee
(Current)
68.6%
33
Texas
74.4%
8
68.2%
34
Minnesota
Oregon
74.3%
9
Tennessee
(with
Expansion)
68.2%
35
South
Dakota
74.2%
10
Montana
67.9%
35
Nebraska
73.9%
11
Michigan
67.9%
36
Illinois
72.8%
12
Arizona
67.9%
37
Iowa
72.7%
13
Delaware
67.7%
38
Utah
72.3%
14
Vermont
66.9%
39
Nevada
72.3%
15
North
Carolina
66.0%
40
California
72.3%
16
Arkansas
65.9%
41
Wyoming
Kansas
72.1%
17
Maine
65.3%
42
71.7%
18
South
Carolina
63.6%
43
Wisconsin
71.1%
19
Alabama
63.5%
44
Pennsylvania
71.0%
20
62.4%
45
Indiana
Kentucky
70.7%
21
Hawaii
62.3%
46
Washington
70.5%
22
Mississippi
60.8%
47
Maryland
70.2%
23
Alaska
60.6%
48
Florida
70.0%
24
New
Mexico
60.1%
49
New
York
69.9%
25
West
Virginia
59.8%
50
Idaho
Source:
U.S.
Department
of
Commerce:
Bureau
of
Economic
Analysis
and
Federalism
in
Action
Page 4
No. 4
Page 5
No. 4
$150,000
Chart
4
Larger
Private
Sector
Leads
to
Higher
Income
$140,000
$130,000
$120,000
$110,000
$100,000
Tennessee
$90,000
y
=
320767x
- 111646
R
=
0.5556
$80,000
$70,000
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
Appendix
Page 6
No. 4
95%
Maine
Income
Tax
Enacted,
1969
85%
80%
75%
70%
65%
Calendar
Years
1929
to
2013
$100,000
$80,000
$60,000
$40,000
Source: U.S. Department of Commerce: Bureau of Economic Analysis and Federalism in Action
2013
2010
2007
2004
2001
1998
1995
1992
1989
1986
1983
1980
1977
1974
1971
1968
1965
1962
1959
1956
1953
1950
1947
1944
1941
1938
1935
1932
60%
$120,000
90%
Chart
5
New
Hampshire's
Larger
Private
Sector
Leads
to
Higher
Income
vs.
Maine
Maine
Sales
Tax
Enacted,
1951
$20,000
Calendar Years
ME (Personal Income)
NH (Personal Income)
Page 7
No. 4
New
Hampshires
long-run
economic
growth
will
suffer
a
drop
in
personal
income
of
$593
million
under
Medicaid
expansion.8
The
economic
cost
ranges
from:
Maines
long-run
economic
growth
would
suffer
a
drop
in
personal
income
of
$1.5
billion.9
The
economic
costs
range
from:
Indianas
long-run
economic
growth
will
suffer
a
drop
in
personal
income
of
$9.5
billion.7
The
economic
costs
range
from:
Page 8
No. 4
J.
Scott
Moody
is
the
Chief
Executive
Officer
and
Chief
Economist
at
State
Budget
Solutions.
He
may
be
reached
at
jsmoody@statebudgetsolutions.org
Scott
has
over
17
years
as
a
public
policy
economist.
He
is
the
author,
co-author
and
editor
of
over
170
studies
and
books.
He
has
testified
twice
before
the
House
Ways
and
Means
Committee
of
the
U.S.
Congress
as
well
as
various
state
legislatures.
His
work
has
appeared
in
Bloomberg,
Forbes,
CNN
Money,
State
Tax
Notes,
The
New
York
Post,
Portland
Press
Herald,
Bangor
Daily
News
and
others.
His
professional
experience
includes
positions
as
CEO
of
The
Maine
Heritage
Policy
Center,
Senior
Economist
at
The
Tax
Foundation
and
Senior
Economist
at
The
Heritage
Foundation.
Scott
received
his
Bachelor
of
Arts
in
Economics
from
Wingate
University
(Wingate,
N.C.).
He
received
his
Master
of
A rts
in
Economics
from
George
Mason
University
(Fairfax,
VA).
State
Budget
Solutions
(SBS)
is
a
non-partisan,
non-profit,
national
public
policy
organization
with
the
mission
to
change
the
way
state
and
local
governments
do
business.
SBS
produces
studies,
articles,
reports
and
compelling
narratives
about
the
critical
issues
that
affect
state
and
local
budgets,
including
pension
reform,
health
care
and
education.
SBS
engages
state
leaders,
journalists
and
others
on
positive
reforms
aimed
at
improving
the
functionality
of
government.
SBS
works
to
make
its
vision
of
empowered
citizens
a
reality
by
promoting
policies
that
provide
practical
solutions
for
local
people
to
make
local
decisions
through
the
Federalism
In
Action
project.
Contributions
to
State
Budget
Solutions
are
tax
deductible
to
the
extent
allowed
by
law.
2014
State
Budget
Solutions.
Material
from
this
document
m ay
be
copied
and
distributed
with
proper
citation.
Page 9