The Trump administration has correctly identified fraud in government programs as a critical issue.
asserted
administration → identify → issue
Given the federal deficit, it is incumbent on the government to take a hard line on rampant COVID-era spending fraud and well-documented rip-offs of the Medicaid system.
asserted
it → give → system
At the same time, Washington shouldn’t ignore “legalized” fraud ripping off taxpayers.
asserted
Washington → ignore → taxpayers
A perfect example of this is an 1885 New York law known as the “scaffold law.”
asserted
example → know → law
Despite its nickname, the law has nothing to do with scaffolding and is instead a legal standard conferring absolute liability on contractors and property owners for construction-site accidents.
asserted
law → have → accidents
Such laws were common in many states prior to the adoption of federal and state safety codes to protect workers.
asserted
laws → protect → workers
Today, every other state has abandoned that standard in favor of comparative negligence to assign fault in construction accident litigation proportionately.
asserted
state → abandon → litigation
Illinois was the only other state with a similar law, and it was repealed in 1995.
asserted
it → repeal → 1995
New York’s absolute liability law means property owners and contractors are on the hook for damages even if the injured worker was 99% responsible for the accident.
asserted
worker → mean → accident
This causes New York insurance costs to be significantly higher than in the rest of the nation.
asserted
costs → cause → nation
A study commissioned by the Building Trades Employers Association, a group of unionized contractors in New York City, found that insurance consumes 2% to 4% of construction costs across the country.
asserted
insurance → commission → country
However, in New York, insurance typically represents 8% to 10% of construction spending.
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insurance → represent → spending
This disparity means everything built in New York, including federally funded projects for transportation and housing, is inflated by approximately 6% to 8%.
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everything → mean → %
The BTEA study found that preempting the law on federally funded projects would save taxpayers significantly.
asserted
preempting → find → taxpayers
The Penn Station redevelopment, estimated at approximately $6 billion, would see costs reduced between $280-560 million.
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costs → estimate → million
The law has also encouraged staged construction accident fraud.
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law → encourage → fraud
A report from ABC News identified numerous instances of workers staging accidents.
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workers → identify → accidents
It also cited a law firm with 30 plaintiffs living in a single Bronx apartment building and multiple plaintiffs residing in another location in Queens.
asserted
It → cite → Queens
That firm later dropped approximately 300 suspicious cases after the ABC News report.
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firm → drop → report
On Long Island, Newsday has extensively reported medical fraud where doctors have performed unnecessary surgeries on people to boost recoveries in court.
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doctors → report → court
A recent expose in the New York Times about the litigation finance industry highlighted a worker whose staged accident was seen on a surveillance camera.
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accident → highlight → camera
Some construction trade unions defend the law, calling it the “scaffold safety law,” despite federal data that show that workers in New York are no safer than workers in other states.
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workers → defend → states
Like many other situations, one needs to follow the money.
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one → need → money
Plaintiff lawyers routinely sponsor union conferences, golf outings, and are among the largest campaign contributors to legislative campaigns in Albany.
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lawyers → sponsor → Albany
Over the past 40 years, the trial lawyer lobby has blocked every repeal effort.
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lobby → block → effort
This means that a 19th-century law causes federal taxpayers to pay unnecessarily for every federally funded project in New York.
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taxpayers → mean → York
Our coalition estimates that the Highway Trust Fund could save up to $2.3 billion over the next five years if Congress preempts the law on federally funded projects.
uncertain
Congress → estimate → projects
Over the next 10 years, federal taxpayers could save between $8 to $10 billion on all federally funded construction in the Empire State.
uncertain
taxpayers → save → State
Similarly, they should also demand repeal of laws that amount to little more than an invitation to the legalized theft of taxpayer dollars.
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that → demand → dollars
Congress has an opportunity to do so in the pending reauthorization of the Surface Transportation bill.
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Congress → have → bill
John J. Faso, a former member of Congress, represents the Build More New York Coalition.
asserted
Faso → represent → Coalition
The Aporia
