Category: tax policy

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Common Sense general freedom ideological culture moral hazard national politics & policies tax policy too much government

Weekend with Bernie: Hard Looker?

Weekend with Bernie Sanders, http://cognitivebiasparade.prosite.com/, Paul Jacob, James Gill

What is a “democratic socialist”?

According to leading presidential candidate and Senator Bernie Sanders, such a socialist “takes a hard look at countries around the world who [sic] have successful records fighting and implementing programs for the middle class and working families.”

I don’t believe him. He shows his cavalier attitude in his next few words: “When you do that you automatically go to countries like Denmark, Finland, Norway, Sweden . . .”

Competent comparative economics doesn’t simply focus on a few policies one happens to admire and then trumpet them for America. Other countries following Bernie-branded socialist policies are in or headed into the proverbial toilet, i.e. PIGS (Portugal, Italy, Greece and Spain).

The common-on-the-left meme runs like this: “No Other Advanced Country,” which Kevin D. Williamson handily demolishes in a recent article:

If we are to go around the world cherry-picking policies from happy countries, we might pass over French paid-leave laws in favor of the Swiss capital-gains tax (generally 0.00 percent) or the Swiss national minimum wage (there isn’t one), or Finland’s very liberal (in the good sense of that word) education system, or Sweden’s free-trade regime and its financial-regulatory system. We’d have to make radical improvements on our federal balance sheet to get our public debt down to Norwegian levels.

American success has never really been about copycatting Europe. We need to look hard at those who pretend otherwise — like nova Bernie, the rising star of the left, who’s now besting Hillary in polls in New Hampshire and Iowa.

And about “democratic socialism” — extreme redistributionism in a putative republic — Bernie needs to look hard at the worldwide experience . . . not hardly look.

This is Common Sense. I’m Paul Jacob.

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Weekend with Bernie Sanders

 

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Accountability Common Sense initiative, referendum, and recall tax policy

Evergreen Eyman

Stubborn Beast

“Initiative 1366 is blackmail,” one plaintiff charged.

No; it’s just political hardball.

Washington State voters have cast their ballots five times (by initiative measure) to require a two-thirds vote of both houses of the state legislature, or a vote of the people, to increase taxes.

Though the rule is neither hard to understand nor difficult to implement, legislators have repeatedly overruled the people they supposedly serve, overturning the measure and then, finally, suing to overturn the repeatedly re-enacted two-thirds requirement.

The Washington Supreme Court ruled that only through a constitutional amendment could citizens place upon their representatives the two-thirds mandate. And — you guessed it — the state’s initiative process doesn’t permit constitutional amendments, only statutes.

As I reported back in June, Tim Eyman and Voters Want More Choices haven’t skipped a beat. Their grassroots army collected over 335,000 voter signatures to place a new initiative on the ballot. This measure would cut a penny from the state sales tax unless legislators propose an amendment to the state constitution establishing the rule that taxes can only be raised via a two-thirds legislative vote or a popular vote.

The day after the signatures were verified and the measure placed on the ballot, a group of legislators and various special interests sued to block the measure from going to a vote. Last Friday, the court declared that Initiative 1366 would remain on the ballot for voters to decide.

So, whether “blackmail” or ingenious hardball, it looks like voters will have a chance to send a very direct message to their representatives: Do what the people want or else.

This is Common Sense. I’m Paul Jacob.

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Stubborn Beast

 

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Common Sense education and schooling folly general freedom tax policy

Money (for Us) Good, Profit (for Them) Bad

Teacher's Union

“One thing that we’ve done,” Dennis McBride of Support our Schools-Wauwatosa told a crowd at a free event hosted by the non-profit Wisconsin Public Education Network, “is we’ve made sure every time one of our legislators pops up his or her head above the foxhole, we’re there to shoot at them.”

The crowd laughed, reports the watchdog John K. MacIver Institute, which ran the story under the headline, “Panelist Jokes About Shooting Legislators at Public Education Summit.”

No worries, though: it was just a metaphor.

The genuinely kooky thoughts were less figurative.

One speaker encouraged the audience never to say the two words, “Scott Walker,” for fear of giving “the Wisconsin governor” higher name-recognition.

“Some of the first voucher supporters,” asserted Jonas Persson of the Center for Media and Democracy, “outside of this kind of new right core group of ideologues and wealthy entrepreneurs, were white supremacists. . . .”

Incredibly, he insisted that this movement “drew most of its support from, quote, ‘white flight areas*.’”

Somehow, no one mentioned voucher program successes, or the grassroots support for vouchers in African-American communities.

“The ultimate goal is about breaking down public schools and to be honest with you,” said Jennifer Epps-Addison of Wisconsin Jobs Now/Schools and Communities United, “it’s about profiting off of the education of our kids.”

Heavens! Making a profit by serving parents and children “consuming” education? Unthinkable.

Meanwhile, Epps-Addison pushed the “Wisconsin Freedom Compact,” which calls for doubling the tax dollars going to public education.

Will she guarantee that no one will profit from that?

This is Common Sense. I’m Paul Jacob.

 

*Editor’s Note: A previous version of this article contained the term “white flight Aryans” in Jonas Persson’s quote. After review of notes and audio recordings, the phrase has been corrected to read “white flight areas.” The context and overall significance of Persson’s statements are not changed, but the quote is updated for accuracy.

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Teacher's Union

 

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

Conflicts Perplexing Prominent Politicians

In Disguise

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

Gluttony

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

Politicians in a jar

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 (R) 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

 

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Accountability general freedom tax policy

The People Supreme

Tax Vote

“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

 

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crime and punishment folly general freedom tax policy

Thieves Caught, Return Loot

Thieve's 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

 

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general freedom government transparency tax policy

Latest Learned About Lois Lerner

Lois Lerner, IRS, collage, photomontage, puzzle, investigation, illustration, editorial, abuse, law, foundations, harassment,

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

 

Categories
Common Sense national politics & policies tax policy too much government

Poor, Poor IRS

Squeezing the Taxpayer

As Tax Day approaches, you can bet the Internal Revenue Service has readied itself to help taxpayers file their returns.

No?

“It’s abysmal,” admits IRS Commissioner John Koskinen, discussing his agency’s help for Americans trying to decipher a byzantine, ever-changing tax code.

It seems only four of ten citizens ever succeed in getting through to the IRS on the phone, even after waiting multiple hours. Over days. There have been over 5 million “courtesy disconnects” — that’s IRS lingo for its phone system hanging up on you.

To boot, once you get to a real person, that employee can’t tell you much.

The problem? According to the Washington Post, the poor agency lacks the necessary funds because “Republicans on Capitol Hill have slashed the IRS budget.”

Actually, the IRS budget has gone up every year . . . in nominal dollars. When adjusted for inflation? Well, there has been some decline.

Bemoaning this supposed “era of shrinking government,” the Post assails conservatives in Congress, citing the “cuts” as “punishment for a string of missteps: an extravagant conference for employees in Anaheim, Calif., the targeting of conservative groups seeking tax exemptions, $1 million in bonuses given to agency employees who didn’t pay their federal taxes.”

Punishment seems in order.

But another story puts in perspective this crocodile cry for more money. The Daily Caller recently reported: “The Obama administration has quietly killed an IRS tax preparation program designed to help low-income and disadvantaged citizens, choosing instead to give millions of dollars to liberal groups for the same purpose.”

Look on the bright side, a review of these help-groups found their advice to have a mere 49 percent error rate.

This is Common sense. I’m Paul Jacob.

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Squeezing the Taxpayer