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Common Sense general freedom government transparency initiative, referendum, and recall tax policy term limits

Conflicts Perplexing Prominent Politicians

When does the same old song-​and-​dance, performed by yet another self-​selected committee of the political elite, become “a unique process” that “Nobody’s ever done …”?

When the much-​liberal Denver Post reports the “much-​respected” Daniel Ritchie saying so.

Every election cycle for a decade, it seems, a cabal of big-​spending politicians and big-​receiving special interests form a “prominent” and “bipartisan” group to propose making citizen initiatives more difficult, weakening term limits, and circumventing the state’s Taxpayer Bill of Rights (or TABOR, which limits spending and requires voter approval for tax increases).

This cycle’s iteration is “Building a Better Colorado,” now being formed for a September launch by Ritchie, the former Denver University chancellor.

Sunday’s Post provided the group of “prominent civic and business leaders [not to mention politicians]” ample coverage: “The project — developed behind the scenes for months and detailed in exclusive interviews and documents obtained by The Denver Post — is perhaps the most concerted effort in recent memory to address what organizers see as inherent conflicts in how the state is governed.”

Conflicts?

“Those conflicts, they say, are impeding Colorado’s ability to build new roads, put more money in classrooms, engage an increasingly disenchanted electorate and prepare for the future.”

“I’ve seen this game played too often in Colorado,” remarked the Independence Institute’s Jon Caldara. “It’s like a Kumbaya committee. We are going to get all these people who are marginally diverse and at the end of this long process … the conclusion is to raise taxes.”

While the “new” group isn’t “advocating any specific policy outcome” and plans to engage the public at town hall meetings, the meetings’ agenda has been pre-​set … by “experts.”

This is Common Sense. I’m Paul Jacob.


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In Disguise

 

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Accountability Common Sense government transparency national politics & policies porkbarrel politics tax policy too much government

The Spenders’ Eternal Excuse

Most modern welfare states have a huge problem: their politicians promise more than government revenue covers. So they borrow and borrow until they can borrow no more.

And then they go down. Like Greece has gone down. Banks are closed there, and the people suffer.

The problem is over-​spending and over-​promising (the latter being merely committing to future over-​spending, so let’s just call it all over-​spending). But when you confront a partisan of such extravagance — whether that person be a politician or a constituency beneficiary or an ideological socialist or social democrat — the most common defense is: THEY WOULDN’T LET US TAX ENOUGH.

The “they” in such defenses could be an opposition party, or a constituency, or … “the evil rich.”

But anyone with something other than a lump of coal for a brain knows the real truth: responsible people don’t make such defenses. If a political difficulty gets in the way of the extra revenue needed for something promised, it’s practically the same as an economic difficulty, so the excuse falls apart.

Say again?

If you cannot get enough revenue for your favorite program, it doesn’t matter whether the people who are the source of your “needed” revenue are broke — have nothing to give — or they simply balk at giving. The point is, you don’t have the revenue. The responsible reaction would be: cut back on spending.

Responsible people budget; irresponsible people blame others for not having the wherewithal to spend and spend and spend.

This is Common Sense. I’m Paul Jacob.


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Gluttony

 

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Accountability Common Sense folly general freedom government transparency initiative, referendum, and recall tax policy

Republican-​Required Referendum

Last November, Nevada Republicans scored a “stunning” political sweep. The party’s incumbent governor rolled up a 40-​point win, while the GOP gained majorities in both the Assembly and Senate — the first time Republicans have controlled all three since before the Great Depression.

At the same time, voters crushed a ballot measure to create a 2‑percent gross receipts tax on businesses taking in over $1 million, by a whopping 78 – 22 percent. Gov. Brian Sandoval ® and GOP legislators opposed the tax.

My tax-​fighting friend Chuck Muth, president of Citizen Outreach, must be happy as a clam, living the easy life.

No?

Mere months after that vote, the solidly Republican state legislature passed — you guessed it — a gross receipts tax. And with it, for good measure, all stuffed into Senate Bill 483, the Republican majority also made permanent a whole slew of taxes passed as temporary measures back in 2009.

The total tax increase — ahem, to celebrate the Republican trouncing of Democrats — turned out to be the largest in Nevada history: $1.1 billion.

I wish this story of betrayal were shocking, not par for the course. But as we all know, the lack of surprise signals the depth of the problem.

Thankfully, Silver State citizens have what Ralph Nader calls the “ace in the hole”: statewide initiative and referendum.

Two referendum measures have been filed. One would repeal the gross receipts tax. The other, filed by Muth’s “We Decide Coalition,” places the entire billion-​dollar-​plus tax hike onto the ballot.

“It’s time for these elected elites to stop using Nevadans as ATM machines,” Muth recently wrote.

Yes, time for Nevadans to crank up the machinery of democracy … starting with 55,000 signatures on petitions for each measure.

This is Common Sense. I’m Paul Jacob.


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Politicians in a jar

 

Categories
Accountability general freedom tax policy

The People Supreme

“We’re the only state in the nation,” wails Wade Buchanan of the liberal Bell Policy Center, “where you can only raise revenues, taxes, by a vote of the people.”

Buchanan is talking about his state of Colorado and defending his side in the Kerr v. Hickenlooper case, which features 34 card-​carrying members of Colorado’s political elite — sitting legislators, former legislators, former U.S. congressmen, local politicians and other assorted bigwigs — suing the voters of Colorado for having the gall to pass the state’s Taxpayer Bill of Rights (TABOR) initiative back in 1992.

Lovers of big government call TABOR a disaster; most Colorado voters like TABOR and will vote to keep it.

The crux of the case? The ridiculous notion that legislators have some cockamamie constitutional right to levy taxes and spend money without the people empowered with any veto. “When the power to tax is denied,” the suit alleges, “the legislature cannot function effectively to fulfill its obligations in a representative democracy and a Republican Form of Government.”

Immediately, however, the legal issue is whether the politically powerful Kerr plaintiffs even have standing to bring the lawsuit.

Last week, the U.S. Supreme Court vacated a 10th Circuit Court of Appeals decision that had granted standing, returning the case to the appeals court “for further consideration in light of Arizona State Legislature v. Arizona Independent Redistricting Commission.”

That’s good news.

“Most tellingly,” constitutional scholar Rob Natelson points out in a Denver Post column, in that Arizona case “the court praised direct democracy and held that it was ‘in full harmony with the Constitution’s conception of the people as the font of governmental power.’”

Font? We’re the boss.

This is Common Sense. I’m Paul Jacob.


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Tax Vote

 

Categories
crime and punishment folly general freedom tax policy

Thieves Caught, Return Loot

Lyndon McLellan, a convenience store owner, was robbed. The marauders took $107,000 of his honestly earned money.

We don’t need the police to find out who did it (and no, the police themselves are not the culprit, not this time). The IRS took the money, suspecting that he “structured” his bank deposits to avoid reporting requirements. McLellan’s niece, responsible for making deposits, had followed a teller’s (bad) advice to deposit the money in such a way as to avoid paperwork. The IRS noticed the “too small” deposits and looted the account despite having no indication that the funds were ill-gotten.

“It took me 13 years to save that much money,” McLellan says, “and it took fewer than 13 seconds for the government to take it away.”

This, even though the IRS had recently promised not to summarily nab account contents solely for alleged “structuring.”

At first, the government offered to settle with McLellan by returning one half the money, their standard (and outrageous) offer in such cases. But neither McLellan nor the Institute for Justice — the champions of property rights helping him with the case — accepted the government’s “deal.”

Last week, the IRS dropped the case and agreed to return their booty. But only the principal. No interest, no attorney fees (for McLellan’s first lawyer), none of the $19,000 McLellan paid an accountant to prove his innocence.

IJ will continue to litigate. We can hope that the IRS will continue to lose.

This is Common Sense. I’m Paul Jacob.


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Thieve's Loot

 

Categories
general freedom government transparency tax policy

Latest Learned About Lois Lerner

Is it time to spell out the IRS as the Internal Revenue Scandal?

The IRS has so many scandals under its belt.

But the biggest, from a broad, threat-​to-​the-​republic point of view, surely remains the agency’s targeting of Tea Party and conservative organizations seeking 501c(3) and 501c(4) nonprofit status. Agents ideologically tagged their applications for special obstruction in the run-​up to the 2012 presidential campaign. And after.

I don’t bother Googling to get my IRS-​scandal updates, I just visit the indefatigable Paul Caron’s TaxProf Blog. Day in, day out, for the past 700+ days and counting, TaxProf has aggregated all the latest reportage and analysis about this abuse of power.

Lois Lerner — former head of the IRS’s stomp-​conservative-​nonprofit-​applicants division — has both declared herself innocent of any wrongdoing and asserted her Fifth Amendment right not to incriminate herself.

But evidence is piling up of her actual attitudes and what-she-knew-when.

TaxProf points to an email by Lerner from way back in February of 2012 in which she advocates training for IRS staffers in the fine art of “understand[ing] the potential pitfalls” of providing too much information to Congress. A 2013 email by Lerner states that she can understand “why the IRS criteria” leading to the targeting of Tea Party and other groups “might raise some questions.”

The documents are out in the wild now, thanks to Judicial Watch’s Freedom of Information Act requests. JW has been relentless in trying to hold the IRS accountable.

Which has to be one of the very toughest jobs on earth.

This is Common Sense. I’m Paul Jacob.


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Lois Lerner