Why is the Senate in the Tourism Business?

The Senate yesterday voted to charge international travelers a $10 fee to help pay for a new nonprofit corporation that would promote tourism in the United States. See here.

A reasonable person could be forgiven for wondering why the Senate is even bothering with such minutiae, as well as questioning the economic wisdom of such legislation, fraught as it is with unintended consequences to other sectors of the economy, possible retaliatory fees for U.S. travelers, etc. But, once again, scratch the surface and there’s a perfectly rational (political) explanation:

In backing the legislation, Democrats were also looking to give Senate Majority Leader Harry Reid a boost as he seeks a fifth term representing the state of Nevada.

Mary L. G. Theroux is Senior Vice President of the Independent Institute. Having received her A.B. in economics from Stanford University, she is Managing Director of Lightning Ventures, L.P., a San Francisco Bay Area investment firm, former Chairman of the Board of Advisors for the Salvation Army of both San Francisco and Alameda County, and Vice President of the C.S. Lewis Society of California.
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