Denny Hastert: Uh, About That $500,000 Statue…

Denny Hastert: Uh, About That $500,000 Statue…

Former U.S. House of Representatives Speaker Dennis Hastert is surrounded by officers as he leaves federal court after pleading not guilty to federal charges of trying to hide large cash transactions and lying to the FBI in Chicago, Illinois, United State
© Jim Young / Reuters
By Brianna Ehley, The Fiscal Times

Illinois state lawmakers are hitting the breaks on a proposal to spend half a million dollars for a statue honoring former U.S. House Speaker Dennis Hastert after the Justice Department indicted the Illinois Republican on multiple charges Thursday.

About a month before the DOJ announced the indictment against Hastert,

Illinois House Speaker Michael Madigan introduced a bill to allocate $500,000 from the Illinois Development Fund for a statue of Hastert, who represented Illinois’ 14th Congressional for 20 years after serving as a state representative. 

Related: Lying, Cheating, Stealing: How Corrupt is America?

However, Madigan’s spokesperson, Steve Brown, said Hastert contacted lawmakers asked that they defer the proposal because of the state’s financial condition. Illinois currently is running a $9 billion deficit. Still, the bill, which passed through a house committee, was placed on the calendar for a third reading on May 18.

In the indictment released Thursday evening, federal investigators allege that Hastert paid $3.5 million in hush money to “cover up misconduct.” The money allegedly went to someone in Yorkville, Ill., where he previously coached high school wrestling. The seven-page indictment also accused him of lying to the FBI.

Following the announcement, Hastert reportedly resigned from his current position at Washington, D.C., law firm Dickstein Shapiro, as well as a board member at CME Group, according to Reuters.

Number of the Day: 5.5 Percent

The debate over national health care aside, more Americans today say they get "excellent health care" than did in the early 2000s, according to <a href="http://www.gallup.com/poll/150806/rate-own-healthcare-quality-coverage-excellent.aspx" target="_blank"
Getty Images
By Yuval Rosenberg

Health care spending in the U.S. will grow at an average annual rate of 5.5 percent from 2017 through 2026, according to new estimates published in Health Affairs by the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS).

The projections mean that health care spending would rise as a share of the economy from 17.9 percent in 2016 to 19.7 percent in 2026.

Part of the Shutdown-Ending Deal: $31 Billion More in Tax Cuts

The U.S. Capitol building is lit at dusk ahead of planned votes on tax reform in Washington, U.S., December 18, 2017.   REUTERS/Joshua Roberts/Files
Joshua Roberts
By The Fiscal Times Staff

Margot Sanger-Katz and Jim Tankersley in The New York Times: “The deal struck by Democrats and Republicans on Monday to end a brief government shutdown contains $31 billion in tax cuts, including a temporary delay in implementing three health care-related taxes.”

“Those delays, which enjoy varying degrees of bipartisan support, are not offset by any spending cuts or tax increases, and thus will add to a federal budget deficit that is already projected to increase rapidly as last year’s mammoth new tax law takes effect.”

IRS Paid $20 Million to Collect $6.7 Million in Tax Debts

The IRS provides second chances to get your tax return right with Form 1040X.
iStockphoto
By The Fiscal Times Staff

Congress passed a law in 2015 requiring the IRS to use private debt collection agencies to pursue “inactive tax receivables,” but the financial results are not encouraging so far, according to a new taxpayer advocate report out Wednesday.

In fiscal year 2017, the IRS received $6.7 million from taxpayers whose debts were assigned to private collection agencies, but the agencies were paid $20 million – “three times the amount collected,” the report helpfully points out.

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Goldman Sachs and JP Morgan See Small GDP Boost from Tax Bill

Belize sure is bumpy.
Wikipedia
By Yuval Rosenberg

Goldman Sachs economists see the tax bill adding 0.3 percentage points to GDP growth in 2018 and 2019 while JP Morgan forecasts a similar gain of 0.3 percentage points next year and 0.2 percentage points the year after.

Goldman’s analysts add that federal spending, which is likely to grow more quickly next year than it has recently, will bring the total fiscal boost to around 0.6 percentage points for 2018 and 0.4 percentage points in 2019.

Both banks see deficits likely rising above $1 trillion, or about 5 percent of GDP, in 2019.