America’s debt endgame
Plus: A quiet revolution in education policy; the tax reform with an outsize influence on growth; and legal immigration in the workplace
Bitcoin, stablecoins, and America’s debt endgame: FREOPP Co-founder and Chairman Avik Roy joined Bitcoin Magazine for the debut episode of “Bitcoin Politics” to examine how America’s mounting debt and monetary instability create both risks and opportunities for Bitcoin and stablecoins. Avik argues that the U.S. debt crisis is worse than any official government estimates capture and that the problem is only getting worse. The consequences, from ballooning inflation to the adoption of alternative monetary systems, will fall especially hard on lower-income Americans. That’s why it is so important to protect their ability to place their savings in inflation-protected assets like bitcoin and to embrace policies that preserve financial freedom while preparing for a world in which digital assets play a central role.
The quiet revolution in education policy: Congress’s expansion of 529 accounts in the recent “One Big Beautiful Bill Act” (OBBBA) paves the way for student empowerment and parental choice by extending tax-free savings beyond college to K-12 expenses, job training, workforce development, and even disability and retirement needs. In The Wall Street Journal this week, FREOPP Senior Fellow Dan Lips and FREOPP Resident Fellow Michael Toth highlight how this shift, coupled with Education Savings Accounts and a new school choice tax credit, gives families unprecedented flexibility to pursue alternatives to costly degrees with questionable returns and failing standardized systems. Unfortunately, state-level barriers remain: In places like California, Colorado, and Illinois, outdated laws still tax 529 withdrawals for K-12 uses, penalizing parents seeking tutors or vocational training. States should conform to the new federal rules, removing these barriers and enabling their residents to take full advantage of the new benefits.
The most pro-growth component of tax reform: As scholars continue to assess the consequences of the OBBBA, FREOPP Visiting Fellow Jon Hartley adds new research to the mix, showing that permanent full business expensing is one of the most powerful pro-growth tax policies available. His study with Kevin Hassett and Joshua Rauh finds that a 1% reduction in the cost of capital spurs a 3% increase in investment—far greater than previously estimated. These findings underscore why permanence matters for business confidence and long-term productivity. Although critics raise concerns about deficit implications, Jon’s findings suggest that much of the revenue loss will be offset by stronger growth. With that in mind, making full expensing permanent for all types of investment should remain a top priority for future tax reform.
The paradox of legal immigration in the workplace: Despite their outsized contributions—from Nobel Prizes to filling critical workforce gaps—many legal immigrants to the United States face limited mobility, can’t easily change jobs, and are barred from entrepreneurship. FREOPP Visiting Fellow Natalia Dashan argues on OppBlog that America is undercutting its own economic dynamism by shackling high-skilled immigrants with restrictive visa rules, duplicative credentialing barriers, and arbitrary Green Card quotas. Simple reforms, including providing avenues for entrepreneurship, easing job-switching, streamlining medical credentialing, and creating long-term pathways for STEM graduates to stay in the U.S. would have an outsized impact in addressing labor shortages in crucial industries, strengthening America’s competitiveness, and honoring its promise as a land of opportunity.
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