Episode Details

Government audit reveals up to $304B in annual tax fraud, diesel export ban debate, school cell phone bans under scrutiny, and Pennsylvania's legislature returns for its final 11 days on this episode of The States.

Tax fraud audit: A GAO report estimates the federal government loses $116-$304 billion annually to tax fraud — 17-43% of the total tax gap — with no agency-wide IRS strategy to address it. GAO recommends the IRS designate an anti-fraud oversight entity; the agency hasn't said whether it will. One cited case: a man used duplicate Social Security numbers to fraudulently claim a $3.3M refund, later spending it on a Lamborghini, a yacht down payment, and plastic surgery before receiving nearly 15 years in prison.
Diesel export ban debate: With diesel prices near record highs ($6.45/gallon nationally), Louisiana Gov. Jeff Landry has called for a 90-day export ban to lower domestic prices. Heritage Foundation's Sarah Wagoner argues a ban would offer only slight, short-term relief before prices rebound — since the U.S. imports crude to refine and re-export a third of it, and cutting off exports would push other nations toward Russia or China instead. She recommends permitting reform, repealing the Jones Act, and expanding domestic production instead of a ban.
School cell phone bans: Nearly 40 states have proposed restrictions in 2026, with ~20 states plus D.C. implementing bell-to-bell bans, as declining test scores and attention concerns drive policy. Some schools (like Fresno's Hoover High) report academic gains after restrictions, but experts including Pacific Research Institute's Lance Izumi caution bans aren't a "silver bullet" for deeper, longer-term academic decline.
Pennsylvania legislature returns: Lawmakers face 11 days to act before a lame-duck period, with major items including: skill games regulation (70,000+ machines statewide facing uncertainty), data center policy (Gov. Shapiro reversing his earlier pro-development stance toward stricter guidelines), and a House vote on open primaries that would let 1M+ unaffiliated voters participate. Separately, a state Department of Health rule expanding vaccination-tracking and infectious disease authority was quietly withdrawn after 10,000+ public comments, most critical. A House hearing also examined Flock Safety's license plate reading technology, with the company's rep confirming no facial recognition is used.
Everyday Economics (Chris Krug & Orphe Divounguy): Divounguy breaks down the Fed's unanimous 25-basis-point rate hike and dot-plot signaling another hike with no 2027 cuts — a move he questions given weak consumer pricing power. He argues current inflation is primarily an energy-driven story, not a wage-price spiral risk, as consumers increasingly trade down to cheaper retailers and smaller homes.
America's Talking:

• CA: https://www.thecentersquare.com/california/article_c968344a-dd15-4554-bee7-0161275781ae.html
• NJ: https://www.thecentersquare.com/new_jersey/article_51e334ce-017d-4307-a7ea-dca5f490b5c9.html
• Alaska: https://www.thecentersquare.com/alaska/article_986a2a0a-1d13-4ed3-b780-a64557c76124.html
• Illinois: https://www.thecentersquare.com/illinois/article_345ab58b-8494-43c2-a912-5939b3ce71c2.html

Get these and more stories at TheCenterSquare.com.

#TheStates #CenterSquare #TaxFraud #DieselPrices #Pennsy