Tag: tax policy

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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 initiative, referendum, and recall responsibility

Gold Medal Worthy

Yes On 1

The 2024 Summer Olympics will not be held in Boston.

Beantown abandoned its bid to host the games after Mayor Marty Walsh refused to sign a contract that would have left the city responsible for billions in possible cost overruns.

Did I say possible?

Call it seemingly inevitable.

“I cannot commit to putting the taxpayers at risk,” declared Walsh.

People throughout the Bay State can now rest easy — no tax hike or debt burden to build expensive infrastructure . . . and produce bigger traffic jams. Of course, polls had long shown voters opposed to the idea. But that doesn’t matter to career politicians. Nor to the mayor — until recently.

Mayor Walsh’s deep concern for taxpayers notwithstanding, citizen activism made the difference. A month ago, the Yes on 1 committee joined together with Evan Falchuk, chairman of Citizens for a Say, in supporting a ballot measure to prohibit spending any tax dollars on the Olympics.

Last year, I worked with Yes on 1 — led by Steve Aylward, Rep. Geoff Diehl, Marty Lamb and Rep. Shaunna O’Connell — to pass Question 1, ending automatic gas tax increases in Massachusetts. Olympic officials had been assured a ballot measure was unlikely to get in the way; then came the Yes on 1 folks with the know-how to petition just such a measure onto the ballot.

Walsh claimed this opposition had nothing to do with his decision, calling them “about ten people on Twitter and a couple people out there who are constantly feeding the drumbeat.”

Dancing to a different drummer, Mr. Mayor.

Bostonians can thank the state’s ballot initiative process, which provides a way for the people to be heard. And, of course, citizen leaders who take the initiative.

This is Common Sense. I’m Paul Jacob.

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Yes On 1

 

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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

 

Categories
nannyism responsibility too much government

A Progressive Non-Solution

Baltimore Riots and Taxes

Urban African-American poverty is a problem, as is, increasingly, rural and urban white poverty. What can we do?

Not what folks at The Nation suggest: by increasing progressivity in local taxation, adding progressivity to fines (making the poor pay less and the rich more), and the like. That’s the gist of what Brad Lander and Karl Kumodzi write about in their article “How Cities’ Funding Woes Are Driving Racial and Economic Injustice—And What We Can Do About It.”

Though they call their solution “forward-looking,” it is not that time element that makes their views “progressive.” It’s their obsession with tax rates. What makes a progressive a progressive seems to be little more than a reliance on progressive rate taxation.

Embarrassing.

The three big examples of failed cities the authors give are the urban community of Ferguson, near St. Louis; Detroit, Michigan; and now Baltimore, Maryland, currently undergoing “protests” and conflagration.

Typical for Nation writers, they see the problem as not the poverty, culture, and behavior of black individuals in neighborhoods where few work and 70 percent grow up in fatherless families, but not taxing whites enough.

Meanwhile, Detroit and Baltimore have been run as “liberal” Democratic enclaves for years. Yet “blame the rich” is the approach. The authors want to double down on old, failed policies. More taxes. More government.

Now, government is to blame, of course: “welfare” programs encourage the break-up of the nuclear family; horrible public schools; minimum wage laws that hit low-skilled population hardest; and the Drug War.

The authors are right, though, that the cities’ desperate regressive burdens on the poor are no answer. Less taxes, less regulation, less subsidy, less policing for profit, more freedom — those are the better solutions.

This is Common Sense. I’m Paul Jacob.

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Baltimore Riots and Taxes

 

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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

 

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video

Video: Jon Lovitz Clarifies

A few months ago, Jon Lovitz caught Hollywood’s elites off-guard by turning on President Barack Obama on the tax issue. He ranted against the notion that he and others like him don’t pay their “fair share” of taxes. He used, shall we say, “harsh words.” Now, calmed down a bit, and in a different venue, he clarifies:

A section of his original rant, here (contains profanity).

Categories
free trade & free markets ideological culture tax policy

Unfuzzying Up the Past

We hear a lot of talk about the disappearing middle class. Sometimes this jabber goes so far as to posit that normal folks — say, the “99 percent” — haven’t really experienced any progress since the ’60 or ’70s.

So blame the rich. And their government.

It’s not an implausible case. Wealthy interests do rent politicians at extravagant rates, changing policy in their favor.

But as economist Russ Roberts and Cornell University’s Richard Burkhauser discussed recently, sloppy statistics feed the hand-wringing over middle-class decline. Considering government transfer payments from rich to poor and plotting income by household rather than individually, the basic “stagnation” thesis doesn’t pass the “smell test.”

For the real stink, however, consult the Internet memes, particularly this goofy contention:

In the 1950s and 1960s when the top tax rate was 70-92%, we laid the interstate system, built the Internet, put a man on the moon, defeated Communism, our education system was the envy of the world, our middle class thriving, our economy unparalleled. You want that back? Raise taxes on the rich.

Forget the obvious nonsense (ARPANET was the Internet only in ovo; Communism collapsed in the ’80s), and concentrate on the main points, as Tom Woods has done: tax evasion was rampant back in the alleged “good ol’ days”; public schools have doubled in per capita spending since then, and not improved; and the stagflationary ’70s followed the booming ’60s, almost certainly as a consequence of the policies being touted, here.

Selective memories help in constructing just-so policy “proofs.” The middle class has received some big hits, I grant you. Still, we’ve seen progress, too.

This is Common Sense. I’m Paul Jacob.

 

Categories
tax policy

Philly Bloggers Beware

Do you live in Philadelphia? Do you blog? Have you earned a penny or more from your blog page? Then don’t click away!

Stick around a minute even if you blog in some other town, because today’s installment is about the lengths to which tax mongers might go to mulct or muzzle you.

The Philadelphia government has begun sending letters demanding dough to bloggers who report even trivial revenue from their blogs. The city wants $300 for “business privilege” licenses. Marilyn Bess is one recipient. Her blog MsPhilly Organic earned about $50 over the last few years.

Sean Barry also got the city’s letter. His own blog, Circle of Fits, has been deluged with some $11 in revenue over the last couple of years. He, too, had dutifully reported the blog-generated boodle on his tax returns.

What did these electron-stained opinion-purveyors do to deserve this special attention? Nothing but fail to read every last jot of the city’s tax code — and every last secret inter-department city government memo about when to go after local bloggers — before setting fingers to keys.

Philadelphia’s pursuit of imaginary scofflaws may amount to just an obtuse lunge for hitherto unextracted funds. But the new protocol is also a weapon that could be selectively deployed, now or later, to harass bloggers who publish inconvenient words. Wouldn’t be the first time in our history that the power to tax has been turned to such ends.

This is Common Sense. I’m Paul Jacob.