Payer State Transparency Act of 2025
Summary
The Payer State Transparency Act of 2025 aims to provide a state-by-state assessment of the impact of federal taxation and spending. It mandates the Secretary of Commerce, through the Bureau of Economic Analysis, to calculate the federal tax burden for each state annually. Additionally, it requires the Director of the Office of Management and Budget, in coordination with the Council of Economic Advisers and the Secretary of the Treasury, to calculate the total amount of federal outlays received by each state each fiscal year.
Expected Effects
The Act would lead to increased transparency regarding the flow of federal tax dollars and spending across states. This information would be compiled into a joint report submitted to Congress and published on a publicly accessible website. This could influence future debates on federal budget allocations and tax policies.
Potential Benefits
- Provides data for informed policy decisions at the federal and state levels.
- Increases transparency and accountability in federal spending.
- Allows states to better understand their contributions to and receipts from the federal government.
- May lead to more equitable distribution of federal resources.
- Could highlight inefficiencies in federal spending.
Most Benefited Areas:
Potential Disadvantages
- The calculations may be complex and subject to interpretation, leading to disputes.
- The cost of performing these calculations could be significant.
- The data could be used for political purposes to create divisions between states.
- The report may oversimplify complex economic relationships.
- The act does not address the underlying issues of federal taxation and spending, only provides data.
Constitutional Alignment
The Act appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. The act does not infringe on any specific constitutional rights or limitations. The reporting requirements are within the powers of Congress to oversee the executive branch.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).