As the U.S. Supreme Court prepares to announce its decision in a lawsuit that threatens federal health insurance subsidies for more than 6 million Americans, health care economist Timothy D. McBride, PhD, professor in the Brown School at Washington University in St. Louis, is confident the high court will side with the Obama administration. If the court decides otherwise, low-income residents in many states will have little access to affordable healthcare, he warns.
Renewable energy subsidies have been a politically popular program during the past decade. These subsidies have led to explosive growth in wind power installations across the United States, especially in the Midwest and Texas. But do these subsidies work? Not as well as one might think, finds a new study from Washington University in St. Louis’ Olin Business School.
The European Union (EU) will impose trade sanctions on billions of dollars of U.S. goods starting March 1 if Congress fails to repeal an export subsidy ruled illegal by the World Trade Organization (WTO). The export subsidy provision — known as the “extraterritorial income” deduction — gives U.S. companies a big leg up on competitors, but is paid for by the U.S. taxpayer, said William J. Streeter, a professor of international business at the Olin School of Business at Washington University in St. Louis. Streeter says legislation to repeal the export subsidy that has yet to be passed by Congress is projected to save U.S. taxpayers $80 billion over the next decade, but will be offset by lower corporate taxes on the earnings of U.S. firms abroad.