A January 2012 report by the Congressional Budget Office (CBO) shows that federal government employees receive substantially higher compensation than similarly skilled workers in the private sector. The report’s methodology and conclusions are broadly similar to previous studies from both The Heritage Foundation and the American Enterprise Institute.

In a just published piece, AEI economist and tax expert Alan Viard warns that the 2011 payroll tax holiday, which shaves 2 % points off workers’ Social Security tax rates, undermines historical practices and distorts federal budget priorities as it diverts $130 billion from the general treasury into the Social Security trust fund.

Larry Lindsey, with his profound knowledge of Washington ways, has absolutely nailed the principal guiding motto of all regulatory bureaucracies: "Cross us and we will make you pay."

The economy assuredly is a critical issue in the upcoming election. But well-informed voters also should be demanding that those wishing to inhabit the Oval Office answer some very tough questions about health entitlements as well.

It is all too clear that the holiday's diversion of general revenue from the Social Security trust fund has undermined historical practices and distorted federal budgetary priorities.

Are teachers paid too much? It's a question that would ignite heated debate at the most mellow of cocktail parties. But it's a question that AEI took head-on this year.

Illinois public employees likely receive a significant pay premium over similar private sector workers.