Common Sense Fix Empowers Citizens: Free States to Innovate and Solve Problems

WASHINGTON--(BUSINESS WIRE)--The Liberty Foundation today released a report outlining the benefits of Competitive Federalism and a proposal to save the American taxpayers more than the amount needed to solve sequestration.

“There is a painless way for the American taxpayer to save money and get better results. It is time to let states keep their money and solve our toughest problems. Competition is what made America great and it can do so again”

The report notes administrative and compliance costs born in Washington, DC are between 15-35 cents on every dollar collected in federal taxes. After collecting $2.3 trillion in taxes in 2010, $564 billion was sent back to states for education, Medicaid and transportation. Savings from returning to states education, Medicaid and transportation responsibilities would cover the $85 billion sequester on low end estimates if the money does not need to pass through Washington and is collected directly by the states for those same functions.

The report contains a Foreword by the Liberty Foundation’s Michael Carnuccio, President, Oklahoma Council of Public Affairs and authored by Matt Mayer, President of Opportunity Ohio.

“There is a painless way for the American taxpayer to save money and get better results. It is time to let states keep their money and solve our toughest problems. Competition is what made America great and it can do so again,” said Carnuccio.

The report is being delivered to all 535 members of Congress, the Administration, all 50 Governors and thought leaders with a pledge to sign:

“I pledge to do all I can as an elected official to enact or to promote legislation that honors our Constitution and returns power and taxing decisions over Medicaid, education, and transportation to the states and to the people.”

In the coming weeks, the Liberty Foundation will meet with opinion leaders and policy makers in Washington, DC and across the country to share research and educate on competitive federalism. Thirty leading public policy organizations from twenty-nine states have endorsed competitive federalism. Seventeen already have asked the Liberty Foundation to push competitive federalism in their states and to their elected officials.

“The national debt is $16 trillion and growing, it is not sustainable,” said Mayer. “The country faces a stark choice: raise taxes or realign government spending. By leveraging competitive federalism, we can meet the needs of Americans more efficiently and maximize our tax dollars by returning to local and state government the authorities our founders intended them to have.”

The foundation launched a website to coincide with the release of the report, www.LibertyFound.org.