Study Question Set #3 for David Cay Johnston's Free Lunch (pg. 158-207)

1. According to Johnston, what percentage of middle class households receive a homeowner subsidy in the form of a tax break on mortgage interest?



2. How does the sale of public assets impact the modern taxpayer?



3. What are "stranded costs" and how did individual consumers get stuck with paying them?



4. What information did Jay Inslee possess which provided a Eureka moment?



5. Why was Jay Inslee incensed about termination fees??



6. How did Dick Cheney prevent further investigation into claims that Enron had gamed (manipulated) the market?



7. What did Sarosh Talukdar find so unusual about the auction markets for electricity and what did it suggest to him?



8. How did government rules ensure that consumers would pay the highest rate per megawatt/hour of electricity?



9. How did consumers "pay twice" for the cost of power plants as a result of how utilities pay their taxes?



10. How did the secrecy of Texas Pacific's deal to buy Portland GE benefit Texas Pacific?