Category: tax policy

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ballot access initiative, referendum, and recall insider corruption tax policy

Ballot Box News

With all that’s going on in Washington, don’t forget: There’s a lot happening on state and local ballots. Consider these recent newsline items from Ballot Box News:

Miami-Dade County Mayor Carlos Alvarez is under fire for giving big-ticket raises to favored insiders while calling for steep budget cuts. A day after a poll found that 58 percent of registered voters favor the recall of Alvarez, another local mayor filed a lawsuit to undo controversial requirements that make it much more difficult to recall sitting politicians.

There’s a link to the rest of the story at the Miami Herald

.Republican lawmakers are lining up against a citizen initiative effort to impose stringent ethics guidelines on the Utah Legislature. Complained the state senate’s majority leader, “If there are people out there who have political intentions they will use this as a club time and time again.”

Uh, sir, that would be the idea. Without people clubbing politicians on ethics, how can we root out corruption in politics? Can we trust you to do it, based on your good word as an incumbent?

Full story in The Salt Lake Tribune.

We’re told California’s cash-strapped state government would be virtually wallowing in piles of cash if a proposed wealth tax makes it to the ballot. And is approved by voters. And survives legal challenge. I don’t support it. Tax-the-rich schemes are unjust, and don’t work.

But I do support BallotBoxNews.com, where you can find out more about this proposed tax, and many other hot-button issues.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

Re-Kill the Death Tax

Next year, the federal death tax — otherwise known as the estate tax — will be phased out entirely. It will be gone. But it won’t stay gone.

This phase-out was part of tax cuts Congress passed in 2001. The death of death taxes should have been permanent. After all, meeting the Grim Reaper is tough enough as it is. As you’re about to expire, do you really want to ponder how 55 percent of what should go to your heirs will be confiscated as soon as your coffin goes into the ground? It’s enough to make you want to skip dying altogether.

Unless Congress acts, come 2012 the death tax will pop back into life, as ravenous as it ever was at a full 55 percent. What will happen as the previous year draws to a close? In a Newsweek column archly entitled “Death, Republican Style,” Jacob Weisberg notes that rich elderly people will have an incentive to die by December 31, 2011. Their kids will have an incentive to “turn off respirators in time for the deadline.” Though morbid and sorta sordid, he has a point.

So what’s the solution? I mean, aside from vilifying the GOP for the political compromise leading to this end game? Weisberg is mute. But if his concern for the elderly is genuine, he could start by urging Congress’s Democratic majority to kill the death tax for good. Then we’d all want to live!

This is Common Sense. I’m Paul Jacob.

Categories
general freedom tax policy

Making the IRS Integral to “Health”

If a doctor who is supposed to help you get better keeps stabbing you with a knife instead, it may seem beside the point to focus on any particular wound. The whole stabbing process is wrong.

Democrats in Congress have found a way to duplicate this effect. Their evolving medical reform package is prolific in ways to attack our freedom.

But remember: Some stab wounds may slice closer to the heart than others.

If the current majority government has its way, in the new healthcare regime we won’t simply be invited to cooperate. There are huge hunks of coercive power built into their system. Force. Not friendly reminders and advertising enticements.

Take a simple provision of their plan: Individuals who decline to sign up for approved medical insurance will be financially penalized. You might be ordered to forfeit 2.5 percent of your income above a certain level. What happens if you refuse to pay this fine? The IRS could swoop in and seize your assets. Eventually, you could end up in jail.

Today, we don’t have much privacy right when it comes to dealings with the IRS. But at least agents refrain from prying into details of our medical coverage. Under the new regime, though, the tax agency would directly monitor your insurance compliance, and give your tax info to health commissars.

Kind of makes you feel sick, doesn’t it?

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

Connecticutting The Dots

Connecticut used to be one of the go-to places for escaping state income taxes.

But in 1991, Governor Lowell Weicker hatched the novel idea of burdening Connecticut residents with the same direct tax on income with which Americans have been saddled in so many other states. Despite the deep unpopularity of his proposal, Weicker rammed it through. That meant sacrificing any chance at re-election. But he was hailed as a hero by all fans everywhere of government bloat and flattened economies.

The Constitution State has indeed suffered a flatter economy in the years since. The Yankee Institute points out that since 1992, Connecticut businesses have hired no new workers on net. Even as the country added more than 20 million jobs. Over the last decade, Connecticut suffered a net loss of some 113,000 residents. If your tax policies tell productive people to get lost . . . they do.

Connecting the dots between higher taxes and stalled growth may be easy for most graduates of Economics 101. Even most politicians probably grasp the connection. But many just don’t care.

In 1991, residents were told that the income tax burden would never exceed 4.5 percent. But in 2001, it jumped to 5 percent. Now the current governor, Jodi Rell, wants to hike the top rate to 6.5 percent.

What the . . . Rell? Folks aren’t leaving the state fast enough for you?

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy

Pity the Politicians?

In tough times, who get hit hardest? According to the Center on Budget and Policy Priorities, “[a]t least 39 states have imposed cuts that hurt vulnerable residents.”

Why? Well, states have been spending at increasing rates for years now. And then came the slump, with less income — and fewer sales — to tax. So of course state revenues plummet.

And politicians must force themselves to do the thing they hate most: Cut.

But, as Steve Chapman argues in his column, “A Hole They Dug for Themselves,” simply by increasing spending no more than the rate of inflation, they would have avoided this. Chapman insists, “governors and legislators might have prepared for drought.”

One thing Chapman doesn’t say is that this spending limit idea has been on many states’ tables for some time. It’s often called TABOR, or the Taxpayer Bill of Rights. Such measures constitutionally limit spending to the rate of inflation plus the rate of population increase. Only voters can break this spending cap.

But politicians hate such measures, oppose them for all they are worth.

So, we may pity the poor, but let’s not shed one drop of sorrow for the politicians.

And, if you live in Maine or Washington state, vote for the TABOR-like initiatives that will be on the ballot this November. Help yourself, help the poor — by forcing politicians to spend as if things could change and tomorrow matters.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy too much government

Nowhere to Run

Back in May, before partisan warfare in the New York state legislature temporarily stemmed the spate of bad legislation, the Democrats in that distinguished legislative body did the sort of thing Democrats do. Voted in a new tax.

Of course, Republicans often do the sort of thing Democrats do, too. When I say Democrats did it this time, I mean 32 Democrats voted in favor and zero Republicans.

The lawmakers passed a so-called “Mobility Tax” on the residents of twelve counties to subsidize the Mass Transit Authority, which operates subways and buses in New York City. These include non-borough counties like Orange County. On a map of New York counties, you’ll see Orange lies near the Big Apple. But few residents there make much use of MTA transportation services.

As one of many Orange County residents put it, “Thruway drivers pay to operate the Thruway. We don’t get to tax the people of Manhattan to keep tolls down. Yet we are being asked to subsidize the MTA even more whether we use it or not.”

Public transportation should be privatized. In any case, though, passengers should pay their own fares. Hike the charge for a subway ride to four dollars, if necessary, and let riders demand better management. But don’t go after the wallets of people in the towns next door.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy too much government

Prop 13 Declared Innocent

You hear it all the time: California’s in such a mess “because of Proposition 13.”

You probably wonder how that initiative, passed way back in the ‘70s, could be so key.

Well, it was the first of a long line of voter-instigated tax limitation measures, and it made politicians ache with frustration. Politicians LIKE spending money; Proposition 13 limited, somewhat, their greedy quest for ever more money to spend.

But did it really unbalance California fiscal policy?

Chris Reed, writing in the San Diego Union-Tribune, explains how nutty this charge really is:

[S]ince shortly after Prop. 13’s adoption, property tax revenue increased by 579 percent. That is not a typo. It went up 579 percent.

During the same span, population went from 24 million to 38 million — an increase of 58 percent.

Reed checked his numbers against the inflation rate, and found that “property tax revenue has increased by more than triple the combined rate of inflation and population growth.”

He did a little more checking and learned that property tax revenues went up faster than any other major revenue source!

So Prop 13 simply cannot be the reason for California’s impending bankruptcy. Though the measure limited tax rate growth, and helped homeowners, it did not unbalance the budgets.

Humungous increases in spending did. Politicians need look no further than their own projects.

This is Common Sense. I’m Paul Jacob.

Categories
local leaders tax policy

Hope for the Hopeless

Illinois is hopeless. When John Tillman hears people say that about government in the Land of Lincoln, he gets pretty peeved.

Tillman, head of the Illinois Policy Institute — a think tank offering what it calls “liberty-based public policy initiatives” — doesn’t think battling big government is hopeless at all. For instance, the Institute helped generate support for transparency legislation that passed.

And last week, as the state’s legislative session closed, Governor Pat Quinn’s proposed 50 percent income tax hike was soundly defeated . . . by the state’s very blue legislature.

How did that happen?

Well, the first step is always to believe enough in your fellow citizens to wage a fight for their “hearts and minds.” Hope helps.

Next step? Getting the facts out.

The argument for huge tax increases is always that government can’t survive without the additional money. In a series of media appearances and grassroots events, Tillman and the Institute kept talking about sensible ways to cut spending.

Governor Quinn talked about the painful consequences if government didn’t have more money. Tillman spoke about the painful consequences if working families, already paying high taxes, had to fork over still more dough.

Kristina Rasmussen, the Institute’s Executive Vice President, published a report entitled, “Would My Family Pay Higher Taxes Under Governor Quinn’s Plan?” The answer for the average Illinois family was: Yes — 17 percent more.

Hope wins again. Helped by hard work.

This is Common Sense. I’m Paul Jacob.

Categories
responsibility tax policy too much government

March to Bankruptcy

I have warned, before, about the upcoming double-barrel crisis aimed at the U.S. financial system: The insolvency of the U.S. government itself, as entitlement debt can no longer be kept afloat by FICA withholding, and as Treasury debt can no longer be maintained on a monthly basis simply because it has grown too big.

Last week our entitlement system’s trustees said that the current recession is so undermining Medicare Part A that payments for elderly care will fail in eight years, with Social Security itself imploding in less than 28.

That is, if the economy doesn’t get worse.

Medicare Part B, covering doctors’ visits and outpatient care, and Part D, covering prescriptions, are right now insolvent, sucking money from general revenues.

This crisis rushes closer, even as our president insists on reforming health care in ways that will almost certainly add new entitlements — which will also have to be paid for.

President Obama says that more government will do the opposite of what it’s done in the past. Until now, government involvement in medicine has increased costs and prices. Now he says what he’ll do will make for more “efficiency.”

Why do politicians believe in the magic of their new programs rather than the history of their old ones?

Why is it that, in politics, irresponsibility rises to the top?

However you answer that, the march to bankruptcy is picking up pace.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy

Golden State Voters

California voters are said to be in big trouble. You see, they didn’t vote the way their newspapers and politicians told them to vote on the six ballot measures on the May 19th ballot.

The first five measures — a combination of tax-raising and spending shifts to cover a $21 billion budget hole — were defeated by voters by a whopping two-to-one margin.

Only the sixth proposition passed — and it cuts the salaries of legislators and state officials.

The lessons are obvious, but not likely to be learned by the political elite, who now argue that the ballot initiative process should be restricted if not abolished altogether because the people didn’t vote according to their wishes.

Lesson One: Raising taxes isn’t terribly popular even in a blue state. Voters seem to think legislators should find ways to cut back spending without gutting essential services. In every county, and even in very liberal Los Angeles and San Francisco, these ballot measures went down hard.

Lesson Two: It’s good when politicians have to ask us before raising taxes. While some bemoan that voters aren’t minding their governors, I’m of the school that believes that those who govern are supposed to mind the voters.

Golden state voters are fortunate that politicians had to seek their approval to raise taxes — and smart not to have given it.

This is Common Sense. I’m Paul Jacob.