Tag: taxes

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crime and punishment election law initiative, referendum, and recall

Methinks the Mayor

petition, private property, taxes, schools

“So, Walmart has no rights?!”

The frustration flowed from Yakima Mayor Janice Deccio to a 911 operator. Her compassionate heart bled profusely for the long-​suffering stockholders and executives of one of the world’s richest companies. 

“Hi, this is Mayor Deccio. I know that this isn’t an emergency call, but I need to talk to somebody,” she told the dispatcher. “There are far rightwing petitioners at Walmart and they are not leaving after Walmart has asked them repeatedly to do so. And the police have not taken them off the premises.”

But, as the voice at 911 explained to the distraught officeholder, Washington State law requires that commercial property must make a public accommodation for First Amendment activity such as petitioning. 

The mayor’s thirst for a police solution to these “far rightwing” petitioners went unquenched.

“Obviously, the extreme left is freaked out by these initiatives,” offers Glen Morgan on his We the Governed podcast.

He’s referring to six conservative-​oriented initiatives being promoted by Let’s Go Washington and petitioned onto Washington State’s 2024 ballot.

“Four of these initiatives reduce taxes,” Morgan points out. “One of them allows the police to actually chase violent criminals once again. And the other one confirms that parents have the right to know what strangers are doing to their kids at school or in unsupervised medical settings.”

Deccio now claims that mystery constituents told her the petitioners were aggressive and threatening … something she didn’t mention that on the call. The fact that her 911 plea has been made public might have something to do with her change of tune.

And don’t even mention ideology! “I don’t care,” she contends, “nor even know what they were petitioning about.”

The mayor added: “No one told the group they couldn’t petition, and it was certainly not my intention to stop them.”

No, of course not — she intended for the police to stop them.

This is Common Sense. I’m Paul Jacob.

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deficits and debt election law tax policy

Slasher Needs Slashing

California Assembly, tax, taxes

A perennial bill in the California Assembly, Constitutional Amendment 1, would make it harder for voters to block local tax increases in accordance with the provisions of Proposition 13, which voters passed in 1978.

ACA 1 would shrink the percentage of voters who must approve certain tax increases from two thirds to 55 percent in cases where the money would purportedly be used for infrastructure or public housing.

Passage would further erode the legacy of Prop 13, which in addition to cutting taxes, limiting tax increases, and requiring a two-​thirds legislative majority to increase state taxes, also imposed a two-​thirds threshold for voter approval for special local taxes.

In 2000, voters accepted a lower threshold for approval of school bonds — 55 percent instead of two thirds — enabling billions more in property taxes.

That’s bad enough, but things could easily get worse.

Jon Coupal of the Howard Jarvis Taxpayers Association observes that if enacted, ACA 1 would be used to raise taxes repeatedly in local elections by dint of dubbing all government spending “infrastructure.” 

The infrastructure exemption is an innovation of the 2023 version of the bill (the tricky tricksters never stop).

Moreover, if passed, the amendment would take effect immediately. “Billions of dollars in tax hikes will start that much faster.”

Coupal stresses that the new exactions would be added to property tax bills “above and beyond Prop 13’s one percent cap” on property taxes.

ACA 1 keeps getting reintroduced and, so far, keeps getting killed off, like the mad killer in a teen slasher movie. Only to be revived for the sequel.

Kill it again.

This is Common Sense. I’m Paul Jacob.

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deficits and debt tax policy

Deadbeat California

Gavin Newsom, California

The injustices pile up so thick and fast that one can’t really keep track. Some state governments are especially prolific in producing them. Governments like the Deadbeat State, formerly known as the Golden State.

Now businesses in California must pay the price for the state government’s profligacy during the pandemic, when it borrowed $20 billion from the federales to help pay unemployment benefits. California is refusing to repay.

In the budget proposal for 2023 – 2024, $750 million had originally been set aside to begin repaying this debt. But Governor Gavin Newsom killed the provision. So, in accordance with federal regulations, businesses must take up the slack. Starting in 2023, the unemployment tax rate that businesses will pay, which had been 0.6 percent, is being increased by 0.3 percent until the loan is repaid.

“California is just not really an employer-​friendly state,” says Marc Joffe of the Cato Institute. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”

A major contributor to the size of this debt is the state’s failure to act to prevent massive fraud in filings for unemployment benefits. LexisNexis estimates that fraudulent payments amount to more than $32 billion.

California taxpayers must pay for this unsalutary neglect one way or another. But what Newsom has done ends up penalizing businesses in particular. 

Yet another reason to avoid doing business in the state.

This is Common Sense. I’m Paul Jacob.

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government transparency insider corruption national politics & policies

The Regime Shows Its Fangs

IRS, corruption, power

“No one thinks it’s a coincidence,” says Rep. Jim Jordan, chairman of the Select Subcommittee on the Weaponization of the Federal Government. “Everyone thinks this was done for intimidation reasons.”

The “this” was a visit by the Internal Revenue Service to the home of journalist Matt Taibbi while he was testifying to Congress about his Twitter revelation research.

Normally, the Regime’s collection wing, the IRS, does not just ‘stop on by’ unannounced.

The timing, Rep. Jordan suggested, is suspicious.

And the condemnations are coming in from more than just the “right.” A journalism professor at DePauw University joined the tide of free speech advocates to note that the “this” indeed “runs contrary to every principle” of the American press freedom as instituted in the First Amendment. 

The IRS has not so far clarified the visit, and Jordan is threatening to subpoena all documents related to the event.

Journalist Sharyl Attkisson — who “has long contended the Justice Department during the Obama administration illegally surveilled her while she was at CBS News,” explains Fox News — not unreasonably contends that the “IRS would have to know how their visit to Taibbi’s house would be construed, which suggests that’s exactly as they wanted it.”

The chilling effect is by design.

But why would The Regime be so blatant?

So clear in intent and corrupt in method?

Does The Regime feel impregnable?

Maybe the old lore of deviltry and contracts with the Principalities and Powers is true: evil feels compelled to signal what it is doing, at least nominally. Leaving it up to good people to see the signs.

Which we now cannot unsee.

This is Common Sense. I’m Paul Jacob.

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media and media people national politics & policies tax policy

Decreases & Increases & Krugman

Paul Krugman, taxes, Social Security

Social Security was never designed for sustainability. The “Ponzi” element was there at the beginning: early recipients received HUGE benefits over their contributions, but as the population matured, that ratio of what working taxpayers put in compared to what they received in benefits decreased. 

Further, because there never was a “lock box” much less any investment of funds — it was always a transfer scheme — as the system matured it hit the point of financial default. Back in the 80s this was fixed by raising the taxes on working people.

And then the kicker: with the rate of reproduction in the U.S. falling like Sisyphus’s rolling stone, the ratio of taxpayers to subsidized retirees went in the wrong direction. The folks assigned to keep track of the system’s finances predict that a major insolvency moment occurs about a decade from now, a few years ahead of earlier predictions.

So what does Nobel-​winning economist Paul Krugman, of The New York Times opinion page, advise?

While we fret about the devastation that benefit cuts and tax hikes would cause, Reason’s Eric Boehm notes that Krugman doesn’t think the cuts are necessary. “First, Krugman says the CBO’s projections about future costs in Social Security and Medicare might be wrong. Second, he speculates that they might be wrong because life expectancy won’t continue to increase. Finally, if those first two things turn out to be at least partially true, then it’s possible that cost growth will be limited to only about 3 percent of gross domestic product (GDP) over the next three decades and we’ll just raise taxes to cover that.”

Hope over reason! And the progressive’s blithe acceptance of always-​increasing tax burdens.

Serious people should confront facts … and avoid Krugman.

This is Common Sense. I’m Paul Jacob.

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crime and punishment general freedom tax policy

Voting for Audits

IRS, tax audit, taxes

Eighty-​seven thousand new IRS agents!

What could possibly go wrong?

In a bill passed and signed last August, “$80 billion worth of new funding over the next decade” was shoveled at the Internal Revenue Service “so it could” — as a recent Reason article summarizes — “hire 87,000 new workers, purportedly to better target millionaire and billionaire scofflaws.”

The assurance that the new investment in personnel would not be directed towards “those making under $400,000 annually” was, as Reason’s Liz Wolfe makes clear, “not provided within the text of the actual bill.”

Ah — political promise over actual law and all bureaucratic experience. The IRS, you see, prefers to focus its audits on the lowest income earners, who were audited more often than millionaires.

Why? Well, the key is one feature of the tax code: the earned income credit. Which, it just so happens, is easy to get wrong. And upon which lower-​income workers have come to rely.

The other reason is even more basic: “given a dearth of experienced auditors not likely to be fixed soon, the agency would rely on the easiest and least time-​consuming types of audits.” Which are conducted through the mail. Easy. Cheap. And annoying.

Even with more IRS auditors with more experience, this path of least resistance — these earned income credit audits — will likely get the most use.

The reasons behind the reasons? Why were Democrats so eager to increase the ranks of tax collectors? Sure, Democrats love taxes. But like most tax hikers, they promote the idea that others will pay all those taxes; they promise to stick it to the rich … while ever-​so consistently missing the mark and whacking the poor and middle classes.

This is Common Sense. I’m Paul Jacob.

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