The Schweikert Segment: 60,000 Pages of the JFK Files Have Been Unredacted

District Update March 24, 2025

Dear ,

Happy Monday! Below, please find a few reminders and updates on my work for the residents of Arizona’s First Congressional District.

60,000 Pages of the JFK Files Have Been Unredacted

Last Tuesday was a win for American transparency.

Last week, the Trump Administration released over 1,100 individual PDF files of the JFK assassination documents, calling for all assassination records be unclassified and unredacted.

As you might recall, my first act of business for the 119th Congress was the re-introduction of my Justice for Kennedy (JFK) Act, legislation calling for opening up the remaining files related to the assassination of President John F. Kennedy. It's been 61 years since the tragic murder of President Kennedy. A truly functioning republic ensures Americans have access to information, and this moment symbolizes the long-awaited restoration of the people's trust in the federal government.

LAST Chance to Sign Up for Medicare Part B

If you’re 65 or older and haven't yet signed up for Medicare Part B during the initial or special enrollment periods, this is the last call to do so!

You can sign up for Part B (medical insurance) during the annual Medicare General Enrollment Period (GEP), which is January 1 through March 31.

Your Medicare Part A (hospital insurance) is likely free for you because you (or your spouse) paid Medicare taxes while working. Part B is voluntary, and most people pay a monthly premium as well as other costs.

Effects of Alternative Budget Scenarios of Extending 2017 Tax Reform Including Increased Average Interest Rates

Last week, the Congressional Budget Office (CBO) responded to my request for a more comprehensive analysis of how extending specific tax provisions scheduled to expire under the Tax Cuts and Jobs Act (TCJA) would affect federal debt projections under current law and policy baseline projections. CBO found that by 2054, extending TCJA without offsets would boost debt by almost 50 percent of GDP, shrink GDP by 1.8 percent, and trigger a debt spiral where interest would outpace growth after 2036.

Budget baselines serve as a reference point for lawmakers when evaluating changes in fiscal policy, budgetary trends, and the nation’s fiscal health. The current law baseline, which assumes expiring provisions lapse as scheduled, contrasts with the current policy baseline, which assumes those provisions continue in perpetuity. In 2017, Congress relied on a current law baseline to demonstrate compliance with the rules of reconciliation of not increase deficits outside the budget window.

Some policymakers propose adopting a current policy viewpoint that frames TCJA extensions as revenue neutral. This shift in emphasis make it appear that the eventual cost of extending TCJA is less significant than it is. Although one baseline might show a $4 trillion cost while another shows zero, extending TCJA without offsets would add $4 trillion to the debt. Neither baseline changes that fact.

At this time, with federal debt held by the public at $29 trillion, interest expenses exceeding defense spending, and runaway yearly deficit spending approaching $2 trillion, policymakers and taxpayers must have an intellectual honest picture of the fiscal consequences the nation faces. The greatest threat to American prosperity—the national debt—is no longer a matter of ideology, but rather inevitability.

Congress no longer has the luxury of ignoring the math and sidestepping tough decisions through budgetary gimmicks. The abdication of responsibility is no longer at the expense of future generations; it is a crisis of the present. You can read the full letter here.

Recognizing Some Amazing Citizens of AZ-01

I wanted to extend my congratulations to Redefine Wellness and Treatment center for their recent ribbon cutting ceremony in Scottsdale! A premier mental health and wellness center in Scottsdale, Redefine Wellness and Treatment offers a holistic and innovative approach to healing. The team integrates evidence-based therapy with cutting-edge wellness techniques, providing PHP, IOP, private retreats, and individual wellness services like Red Light Therapy, Neurofeedback, Reiki, and Breathwork.

Whether you're seeking stress relief, personal growth, or structured recovery, the Redefine Wellness and Treatment team is here to guide you toward lasting transformation. I'm looking forward to seeing how Redefine helps our AZ-01 community.

May 7 Marks the Deadline for Real ID Compliance

Effective May 7, 2025, only the Arizona Travel ID (driver license or ID card), a U.S. passport and other federally approved identification will be accepted at TSA airport security checkpoints for domestic travel. The cost is $25.00.

Current Arizona residents:
Visit AZ MVD Now to gather your documents and make an appointment for your Travel ID.

No Arizona Driver License or ID:
Visit an MVD office or Authorized Third Party driver license location with the required documents.

The Arizona Travel ID is the credential that complies with the federal REAL ID Act of 2005. It is available as both a driver license and identification card. There is a gold star embedded in the card to show that the cardholder has provided added proof of identification to ensure the license or ID meets strict federal requirements. For more information on the REAL ID Act, please visit the Department of Homeland Security website.

Note: Rules for international travel are unchanged, and a valid passport or equivalent will be required to travel outside the United States.

Enjoying America's Favorite Pastime in the Grand Canyon State

With Spring Training season coming to a close in Arizona, I wanted to share some photos my staff got when watching the Chicago White Sox play against our very own Arizona Diamondbacks.

According to a 2023 study by the Arizona Cactus League Association, Spring Training generates around $400 million in total economic impact for Arizona each year. Attendance at the Cactus League games typically ranges from 1.5 to 1.7 million fans per year during a full, uninterrupted season. Arizona Spring Training—sunshine, swings, and unforgettable moments from the diamond.

How Expiring Tax Provisions of the 2017 Tax Reform Will Affect AZ-01's Economy

Tax reform in 2017 led to unprecedented levels of manufacturing job creation, wage growth and capital investment. However, pro-manufacturing tax policies have expired or will expire at the end of 2025, and every manufacturer in America is facing significant tax hikes as a result.

National Economic Damage:

5.9 million jobs lost across all sectors
$540 billion in lost wages
$1.1 trillion in lost GDP
1.1 million manufacturing jobs lost
$126 billion in lost manufacturing wages
$284 billion in lost manufacturing GDP

Arizona Data:

119,000 jobs lost
$10.8 billion in lost wages
$21.8 billion in lost GDP

AZ-01 Data:

22,000 jobs lost
$2.1 billion in lost wages
$4.5 billion in lost GDP

What I'm Reading & Why It Matters

In January 2025, Johnson & Johnson (J&J) announced its agreement to acquire Intra-Cellular Therapies Inc., a biopharmaceutical company specializing in central nervous system disorder treatments, for approximately $14.6 billion. J&J will pay $132 per share in cash, representing a 39 percent premium over Intra-Cellular’s closing price of $94.87 on the preceding Friday. Intra-Cellular’s leading product, Caplyta, is approved for treating schizophrenia and bipolar depression. In the third quarter of the previous year, Caplyta generated $175 million in revenue, with total prescriptions increasing by 38 percent. Bloomberg analysts anticipate Caplyta’s annual sales to surpass $1 billion in 2026 and reach $2.5 billion by 2028. This acquisition aligns with J&J’s strategy to enhance its portfolio in neuroscience and address unmet needs in high-growth, high-innovation markets.

The McKinsey Global Institute calls the new reality of dependency the "consequences of a new demographic." The UN projects that countries with major economies will have population declines of 20 percent to 50 percent by 2100. The number of older people is growing and the amount of younger people is shrinking, meaning there are less people in work force. By 2050, seniors will account for one-fourth of global consumption and developing countries with higher fertility rates will be significant to the global economy because of their labor supply. With less productivity due to lower work force populations, the GDP per capita growth is forecasted to decrease from 0.4 percent to 0.8 percent annually.

In a new segment, I wanted to set the record straight on common misconceptions I've heard both in Washington, Arizona, and beyond. My goal is to ensure that AZ-01 can differentiate the facts from pure falsehoods. Let's see what misconception we have this week:

Fiction: "Taxes in Europe tend to be higher than in the US." "Europe has a more progressive income tax system than the US!" "If we just adopted a more progressive tax system like Europe, the U.S. wouldn't be in so much debt!"

Fact: Actually, when taking into account the federal progressive income taxes of the U.S., it can be argued that America is more progressive regarding taxation.

To start with some basics, The United States and Europe have different tax bases–the total amount of economic activity (i.e., income, property, sales, etc) subject to taxation. America mainly receives revenue through taxing wages through an income tax, whereas Europe taxes what is bought through consumption taxes– such as a value-added tax, or VAT– which is levied on the value added in each production state of a good or service. European countries lack a steep bracket and rely heavily on the VAT. The VAT rate ranges throughout European countries from 15 percent to 27 percent and is a huge contributor to revenue, representing 7 percent of the EU’s GDP and over 15 percent of overall government tax revenue. A couple more elements to note:

America doesn't have a VAT (value-added tax)

Instead of applying a VAT, the United States utilizes income, excise, retail, and sales taxes on the federal, state, and local levels. A VAT is a consumption tax on the value added to nearly all goods and services bought and sold in and into the EU. Under a VAT, similar to a sales tax, final consumption is taxed with the consumer bears the brunt without receiving credit for previously paid VAT. U.S. sales tax is dictated by state and local governments and are only collected by the retailer at the point of final consumption.

VAT targets middle to low-income earners more heavily than America

The myth of Europe having a more progressive tax system lies in the misconceptions of what a VAT provides. As a consumption tax, everyone pays it, but those spending more are paying more. However, this same statement could be made about the wealthier populations in America and the things they are buying. Although sales tax is different, wealthier populations tend to live where sales tax is higher. When closely studied, the VAT appears to be regressive, creating a larger burden on lower-income taxpayers due to the implementation of tax at every step of production.

Like I mentioned last week, I'm going to be keeping a running tally on my website of each misconception with the appropriate fact-check for easy reference. If you think you have a valid misconception that you'd be interested in adding to the laundry list of current folklore, respond to this newsletter.

Do you have any general questions that I can help answer? Do not hesitate to reach out to my offices at (202) 225-2190 or (480) 946-2411.

Thank you for taking the time to read this update on my latest work in Washington, D.C. and Arizona’s First Congressional District! If you have any comments or concerns, I encourage you to reach out to my office.

Sincerely,

David Schweikert

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