Category: too much government

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ballot access free trade & free markets insider corruption too much government

King Kevin and Company

Oh, how the other half lives!

And lies.

By “other half,” I don’t mean “the wealthy.” They’re as honest as any other group. No, I’m talking about those with their hands on the levers of government power . . . along with their subsidy-seeking cronies.

Mayor Kevin Johnson, an all-star in the National Basketball Association before becoming a politician, is splurging nearly $300 million tax dollars — roughly the city’s entire yearly budget — to build the owners of the NBA’s Sacramento Kings a brand new arena.

People objected, with 23,000 citizens signing petitions to put this lavish subsidy to a vote. Yesterday, a judge ruled that the measure would be kept off the ballot: errors in the wording of the petition “disqualified” it.

In a prepared sore-winner statement, Mayor Johnson called the petitioners “outsiders” who “have tried to undermine the right of Sacramento to control the destiny of our Kings, our downtown and our future.”

Johnson doesn’t mean the right “of the people” to control. He means his right to dictate for Sacramento even against the will of the majority.

The leader of one group working against a public vote on the arena giveaway attacked local businessman Chris Rufer, charging that “Rufer’s funding . . . is supporting STOP’s effort to steal 4,000 jobs, steal a once-in-a-generation opportunity to transform downtown and makes him an accomplice in Seattle’s attempt to steal the Kings.”

Who’s stealing? Those spending their own money so people can vote? Or those blocking a vote so they can spend other people’s money?

“I’m against subsidy, period. It’s simply a moral argument,” Rufer explains. “If it was a subsidy for a fish pond, I’d be against it.”

This is Common Sense. I’m Paul Jacob.

Categories
tax policy too much government

Tax the Poor!

There is an argument for taxing the poor. Net beneficiaries of taxation can think about government in a different way than net payers. They might begin to think like children, not like adult supporters of a shared enterprise in defense of the basic institutional framework that in turn supports civilization.

If Americans still took seriously the old republican idea of “no taxation without representation,” some might scandalously invert the mantra as “no franchise without net tax payment,” thus excluding all net tax consumers (politicians, subsidized poor and subsidized business folk) from voting. But that does seem outrageous.

It’s also unworkable. At some point of complexity, calculating net winners and net losers becomes impossible.

Democrats have happily added to that complexity. One odd wrinkle? They’ve so indiscriminately increased the number of taxes in Obamacare (twenty-one!) that they have seemingly taken up the cause of taxing the poor. “Even the lowest income families (earning less than about $19,000 in 2012) will be on the hook,” writes Chris Connover in Forbes, “for nearly $7,000 in Obamacare taxes over the decade that started last year.”

Of course, the poor aren’t the only to pay more under Obamacare. Connover estimates that those in the “top 2 percent” will “end up paying $177,000 over the same decade.”

None of this suggests to me that the net effect of Obamacare will be positive. It’s basically just another hyper-intrusive, reality-distorting government program that will make services more expensive in toto, providing a huge drag on medicinal progress as well.

Impoverishing most of us, along with “the poor.”

This is Common Sense. I’m Paul Jacob.

Categories
tax policy too much government

NY Democrats Surrender, Sorta

New York State is deeply blue. That’s the color mapmakers use to show Democratic control. That’s also the state the state’s economy is in, depressed by those same Democrats’ policies.

So, to lighten the mood, Governor Andrew Cuomo is splurging $140 million tax dollars for TV ads.

One spot features actor Robert DeNiro acknowledging that “some say we lost our edge,” but then claiming, “Well, today there’s a new New York State, one that’s working to attract businesses and create jobs . . . nurture start-ups and small businesses . . . reduce tax burdens . . .”

“The new New York works for business,” the ad concludes.

The New York Times reports “the governor and lawmakers are” funding the campaign by “draining money from ostensibly independent public authorities for purposes running counter to their missions” — something “common” in state government.

Cuomo told the Times, “By telling the stories of businesses that are already succeeding in our state, we can attract even more economic opportunity and jobs.” So what are these “successes”?

  • Taxpayers handing Fage Yogurt $1.5 million in state incentives to build a factory in Johnstown.
  • Taxpayers providing $3.4 million to help Smith Electric Vehicles build a factory.
  • Taxpayers forking over $40 million to assist BAE Systems, which was hurt by flooding back in 2011.

As much as New York politicians recognize they’ve created an environment that businesses want to move away from — the state’s taxes are the least business friendly in the union — their focus isn’t on reversing the rotten business climate. Instead, they cut insider deals.

Yes, more crony capitalism.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Obamacare Results Already In

A reader named Gert, commenting at National Review Online, repeats a notion heard often enough to become cliché.

Gert suggests that to debate Obamacare is “terribly premature. We just don’t have the data to know how it’s working yet.” Give it a chance to play out a bit more. Meantime, forget mere “anecdotes,” like those told by the millions who have lost their insurance despite the president’s repeated assurance that if they liked their coverage, they could keep it, “Period.”

Such advisors speak as if Obamacaresque interference in medicine were a species of interventionism utterly unlike anything before.Will and Ariel Durant's History of Western Civilization

But Obamacare is a type of thing; if we know that this type of thing is destructive by its nature, we can expect Obamacare to also be so. We know enough already — from history, economics, philosophy, psychology — to know that persons free to make their own judgments and act on them peacefully are better off than persons whose every move is mandated or banned.

What enables human beings to produce wealth, solutions, and alternatives in any realm is freedom. With responsibility. Freedom to act and to profit from our actions by choosing, as producers, what goods to provide others; by choosing, as consumers, the products that best suit our needs and circumstances. And to reap the rewards of success, and learn from our failures.

To continue to destroy this freedom in the name of collecting more data is wrong-headed. If the history of mankind so far doesn’t provide enough info to convince someone of the value of liberty, what will?

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Startling Subsidy Success

“Moving on from unfulfilling jobs, thanks to health-care law,” was the gleeful headline* on the story spoon-fed to The Washington Post by Families USA, a pro-Obamacare group that maintains a “database of people who have benefitted” from the law (a pretty easy gig, no doubt).

Polly Lower quit her job and says, “It was wonderful.” She didn’t want the job anymore, because she went from “doing payroll, which she liked, to working on her boss’s schedule, which she loathed.”

Take this job and . . .

Eddie Gonzales-Novoa left a job making $88,000 annually, because he wanted to help a cancer-surviving relative start a website for others battling the disease. Now he makes very little, but has more rewarding employment.

Well, if they can afford not to work or to make less in order to do what they want, good for them!

But, if you pay taxes (anyone?), it might not be so good for you. Under the Affordable Care Act, both Eddie and Polly are getting their health insurance subsidized by the taxpayers.

Gonzalez-Novoa’s job change is easy to sympathize with, but why should “the taxpayers” pay for the bill? Might not they have similar dreams of their own to finance?

Lower not only didn’t like her job, she was better off without one — so she receives even more in Obamacare subsidies. She told the Washington Post that she has “adjusted well” to not working.

Sadly, the Post offered no report on how well the taxpayers are adjusting to continuing to work to pay these new subsidies to others.

This is Common Sense. I’m Paul Jacob.

* Print headline was different than online headline.

Categories
education and schooling too much government

Just What We Need

Why is schooling so expensive? Government makes it so.

Take the recent example, in California, of “coder boot camps.” These are “schools” where computer coders receive training. We now learn that the Golden State’s education bureaucrats are cracking down on this unlicensed and unregulated form of learning.

Unless they comply, these organizations face imminent closure and a hefty $50,000 fine. These organizations have two weeks to start coming into compliance.

In mid-January, the Bureau for Private Postsecondary Education (BPPE) sent cease and desist letters to Hackbright Academy, Hack Reactor, App Academy, Zipfian Academy, and others.

The regulators insist that these private enterprises fall under their regulatory domain, and they are going to do their job, dangit, even if it helps . . . no one.

Reaction from the coder academy heads has been boilerplate. They’ve attested to their will to co-operate with regulators, but worry that current regulations do not really have much to do with what they are up to.

Hey, regulators, rather than shut these academies down, or cook up new regs, why not just let the operations go on as before?

Worried about quality control in a consumer-protection sense? Then make one requirement: The schools should notify paying students that the academy’s services and education contracts are unregulated by the state. Make do, students, with caveat emptor, as before. That is, by the principles of market supply and demand, and undergirding laws against fraud.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall judiciary local leaders too much government

Moving Boulders

“Supreme Court says Boulder City cannot sue citizens over ballot initiatives,” read the Las Vegas Sun headline.

An important legal victory . . . a long time coming.

Three years ago, I caught an online story about a citizens group that had petitioned three measures onto their local ballot: (1) require voter approval before the city council could incur $1 million or more in debt, (2) term limits for members on city commissions and committees, and (3) restrict the city to just one publicly-owned golf course.

Their public spirit was promptly rewarded by being sued, personally, and dragged into court by the city attorney of Boulder City.

I called the citizens’ attorney quoted in the news story, Linda Strickland, and we talked for over an hour. This case, as the Nevada Supreme Court has now agreed, is a classic violation of the state’s Anti-SLAPP statute (Strategic Lawsuits Against Public Participation).

Citizens in Charge Foundation gave Linda and Terry, her husband and law partner, the John Lilburne Award, affording this small town legal scuffle some national recognition and sparking news coverage across Nevada.

On a later trip, I sat in Linda’s living room with a dozen local citizens who recounted the good feeling of participating in the petition campaign and then their unease of being sued by their own city government. I couldn’t be more pleased to now relate that Linda’s efforts have paid off in a state Supreme Court win, protecting the rights of all Nevadans to petition their government.

Freedom is regularly attacked and must be defended. Thanks to Linda and others, it shall be.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

The State of the Union of the States

Politicians know all about lying with statistics. But it’s more effective to lie with anecdotes — using stories to ignore the biggest Statistic in the Room.

President Barack Obama delivered his constitutionally obligatory State of the Union address to Congress last night. He told a lot of stories, and most of them may have been mostly true, for all I know. But what we do know for sure is that these stories distracted us from the one statistic that matters.

You know, to the actual state of the union.

Which is not sound.

The rising level of debt is putting the finances of the union in grave jeopardy. Politicians have promised too much — delivered too much — courtesy of borrowing from future tax revenues. The current debt is larger than the nation’s annual GDP. (That’s the stat that matters.) The federal government owes more than all of us, together, earn in a year.

This, of course, is unsustainable.

And yet the president is doing precious little to curb this unhappy meeting with destiny. Deficits are down a tad. He took credit for that. He didn’t credit the Republicans, his recalcitrant enemies.

But, in a State of the Union address filled with programs to expand and goals to “guarantee,” he didn’t offer to cut anything, did he? (Other than promise, yet again, to close Guantanamo.)

Indeed, in Obama’s most recent bickering “negotiation” with the House had his bid for extending unemployment benefits met with an ask price of an offsetting cut elsewhere in the budget. The prez balked.

Our “state”? In a deep debt hole, oblivious, and still digging.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Grasping for a Legacy

Rush Limbaugh recently characterized United States President Barack Obama as a narcissist — and not for the first time.

On the surface, Limbaugh’s complaint about presidential narcissism seems ludicrous: people are thinking about the president “all the time” — the man is in the position to be contemplated by millions every hour, every minute. He’s thought about in Arkansas and Zimbabwe, Alaska and Kenya, Washington, D.C., and every potential drone target in the mid-East.

So, whatever existential crisis runs through the president’s brain should worry us, too. This isn’t narcissism. Or messianism. It’s simply the position of power he’s in, and the position of null-power we’re in.

Nick Gillespie, at Reason, thinks that the prez is going through a major crisis of self-confidence. As nearly everything around Obama has turned to lead, his personal charm has shown to be something less than alchemical. He may be golden tongued, but nothing he touches upgrades to noble. The prez understandably would want a legacy, and Obamacare ain’t going to be it.

Gillespie suggests that Obama begin to end the war on marijuana. That would be a legacy!

And it would. Alas, Obama may have had some inclination to do this earlier, but likely feared that, just as it was Nixon who had to go to China, it would be best if someone other than an admitted former toker begin the legalization of drugs.

Too bad. Now’s the time.

Though neither Rush nor Nick nor I know the president’s heart, this seems certain: Obama rests most of his hopes for change on massive government programs, not on the repeal of programs. Wrong direction for a progressive!

But the right — responsible — direction for America.

Let’s hope “narcissism” trumps ideology.

This is Common Sense. I’m Paul Jacob.

Categories
too much government

Oops! Goes Washington

One hundred billion dollars isn’t chump change.

That’s the official amount of overpayments not recovered made by the federal government. According to the Financial Times, as reported on MoneyNews.com, “The OMB figures showed that in 2012 alone, 13 programs of the federal government made a combined $101.3 billion in improper payments – nearly $16 billion more than the highly charged budget sequester ended up cutting from government spending last year.”

Medicare overpayments make up the biggest slice of this mis-proportioned pie — a whopping $55.9 billion — but “the Internal Revenue Service had the highest error rate, a figure of 22.7 percent for the Earned Income Tax Credit program, amounting to $12.6 billion in improper payments in 2012.” Other agencies nudged up the numbers into the big time category: $6.2 billion for inappropriate unemployment insurance payments last year, $2.5 billion in mistaken “food stamp” outlays.

And just when you think the government has to be good at something. Like “writing checks” to some people at the expense of others.

Well, I guess the government is still “writing checks” and “making deposits.”

Just not doing it well.

The reason? Well, who would lose his or her job because his or her department disbursed funds to the wrong recipients? No one.

The federal workers administering these programs aren’t stupid. Aren’t dolts, or fools — that is, “chumps.” They’re simply behaving according to incentives.

Still, the more-than-chump-change errors make the city itself rather doltish. Call it Dolt City, shorten it to D.C.

This is Common Sense. I’m Paul Jacob.