Raising Your Taxes While "Soaking The Rich"

You will soon be hearing about federal tax bills to put a damper on private equity investors as if it is no big deal, just getting after the evil rich people.

Well, think again.

From Americans for Tax Reform:

• There are three main arguments against these related measures:

1. Assault on Pensions and Charities. This is a direct assault on every firefighter’s, cop’s, nurse’s, and teacher’s pension in America. It’s an assault on the nest egg of every local college. It’s an attack on the resources charities have to do work in their communities.

2. Assault on Savings and Growth. Since the 2003 tax cut that lowered the capital gains and dividends rate to 15%, the S&P 500 Index has increased by over 13% a year. Household net worth has grown by over $12 trillion, or 27%. The Democrat plan to raise the tax rate on savings from 15% to 40% will wreck the economy. This is just the first assault on the lower rates that have given us such undeniable prosperity.

3. “Liberal Tax Hike of the Week.”. This is just the latest money-grab from Congressional Democrats this year. They want to raise taxes on energy, raise taxes on businesses that sell U.S. goods overseas, raise taxes on Americans abroad, raise taxes on smokers, and now they want to raise taxes on every pension, college and charity in America.

Here is the whole article.

While the MSM makes such a big deal about President Bush's low approval numbers, they don't mention so much that Congress is even less respected. This is one reason why.

Always remember that income taxes have a nasty way of rolling downhill.

Why Have Good State Tax Policy When Targeted Tax Incentives Are So Much Fun For Politicians?

There is little doubt that most of the legislative opponents to energy company tax incentives in July will have a miraculous change of heart in January.

In fact, the letter Jody Richards' handlers intended for him to wave around dramatically during his floor speech Thursday promises Peabody's Rick Bowen they will:

As you know from the ongoing representations, both individually and collectively, of the undersigned there is a demonstrated record in the Kentucky House of Representatives of our desire to foster a favorable atmosphere for projects that will reduce our nation's dependence on foreign oil while taking advantage of Kentucky's unique abundance of the requisite natural resources. In the spirit of that desire and given the uncertainty of the specifics or feasibility of your project as referenced in your July 3, '07 letter, each of us wish to assure you of our willingness to enact appropriate financial incentives during the January 08' regular session of the Kentucky General Assembly that will facilitate your project; make KY a leader in this promising new industry; and be in the best interest of the people of the Commonwealth.

The letter was signed by the Democratic Party leaders in the House of Representatives. I typed it exactly as the letter was written.

What is lost in all this mess is that if we just set corporate tax policy that would work for everyone, we wouldn't have to engage in these counterproductive incentive programs.

The Tax Foundation sums it up pretty well in one sentence:

Tax preferences designed to boost corporate investment may provide short-term advantages to some companies—and allow lawmakers to take credit for new jobs in campaign speeches—but in the long run they add enormous complexity to the code, and ultimately transform the tax system into an economic minefield of narrow bases and punitively high rates.

It is clear that what House Dems are waiting for is a new governor, but we should embrace the opportunity to reform our tax code for everyone and not just for individual out-of-state companies on a case-by-case basis.

Coalflation The Hidden Tax In SB 1

We've already seen corn prices skyrocket because the government wants to promote ethanol as an alternative fuel.

So how will we feel about our home electric bills after we subsidize rapid growth in coal usage only to have a negligible effect on oil importation and gas prices?

Special Session Chess Match Might Get Interesting

Who is winning? Who is losing?

Got an opinion of what will/should happen next?

Let's hear it...

It's All Over But The Chest Thumping

Today was ugly and tomorrow will be uglier still.

Speaker Jody Richards couldn't have looked much more amateurish directing the House today. What a mess. The constitutional issues might keep the Adjournment 2008 fight going for a while, but the big losers in this are easy to see; it's the taxpayers.

Might be fun to see the House Dems get arrested for skipping out on their duty, but it would really be great to see some real issues get more prominent play.

The domestic partner mess needs to be addressed, but I think we need to put the coal to liquid deal to bed first. Otherwise, some real healthcare reform would be inspiring.

Financial Literacy By Liberals

A bleeding heart group in Berea is going to combat payday loan operators by competing with them.

Their ironic plan is to help poor people get out of debt by getting their employers to give them low-interest loans.

They are a little light on details so far, but a video of the financial counseling would surely be a sight to behold.

I'm thinking it will go something like this:

Dude, we're gonna get your boss to give you the extra bread you need for the stuff you deserve and then sue the fascist when he tries to get it back from you because you deserve it, man. Serves him right for not paying you a fair wage to begin with, man.

...Jobs Americans Just Won't Do

A medical blog called "InsureBlog" points out the most recent terrorists in England were people who took advantage of England's need to import immigrant doctors into their national health service, even from hostile nations.

This provides us with yet another reason to ask ourselves if we really want all our health care professionals working for the government at civil servant wages.

And there can be no doubt this is a Kentucky issue when one major candidate for governor makes no bones about moving us in that direction.

Will House Fold On First Day Of Session?

WHAS reporter Mark Hebert says this morning Speaker Jody Richards will immediately adjourn tomorrow, ending Governor Fletcher's special session.

If they do this, I think it will be a serious political loss for the Governor. He won't want to hammer the Democrats for saving us from a large give-away on an iffy project and $60,000 a day to spend millions more on projects that can wait until January. The silver lining in that cloud may be that he could then focus his campaign on more meaningful issues like school choice, health care (for people who aren't on Medicaid), and repeal of the Alternative Minimum Calculation.

More News Cover-Up On Socialized Medicine

Whether you are concerned or not about Governor Beshear and LG Mongiardo hitting us with their utopian fix for healthcare, you might want to look at what you aren't being told about the government-run program in England they want us to have.

Public Pension Mess: Forgotten But Not Gone

If we are really going to have a special session starting at the end of this week, the least we can do is repeal the bad law from 2005 that allows lawmakers a huge pension bonus for going to work elsewhere in state government.

It's The Health Care Costs, Stupid

Neither gubernatorial candidate is addressing a real pocketbook issue that could be fixed with a few simple changes in the law.

Health care.

Of course, Beshear thinks casinos will fix the problem, so Fletcher has a slight edge. But neither sees what repealing Certificate of Need would do. We need more competition among providers and insurers, yet our laws serve mainly to inhibit market forces from working.

It is a shame we have accomplished nothing on this front after four years with a Republican governor. The Democratic answers, meanwhile, will only make matters worse.

Free market supporters would do well to embrace this issue before it is too late.

Fear Not, Liberal Kentucky Blog Readers

Bluegrass Report is on the trash heap Monday morning, but we still have BluegrassRoots.org for the crazy left-wing stuff.

Making The Right Call

There has still been no call of the special session that is supposed to start on Thursday.

Governor Fletcher should forget about the coal processing subsidy business and call a special session to address healthcare costs.

While everyone else is increasing government control in hopes that the next brilliant idea will finally work, Kentucky should eliminate all mandates on health insurance companies and focus regulatory efforts on enforcing contracts only.

Courier-Journal Insults Normal People Again

The CJ weighs in on illegal immigration again by suggesting anyone who is opposed is racist and uninformed.

Typical.

And then they got in the talking point du jour, bringing back the Fairness Doctrine:

But if right-wing radio could produce such venomous (and effective) resistance to a reform supported by George W. Bush, imagine how it would react to a similar measure offered by Hillary Clinton or Barack Obama.

If the liberal papers are so desperate in their rapid decline that they are really going to hang their hopes on shutting down talk radio legislatively, they sure don't need subscriptions or advertising dollars from people who disagree with them.

The free market is doing its thing again.

Milkflation

Cows make milk. Corn feeds cows. Federal government screws up corn market with ethanol nonsense, raising the price for the milk corn-fed cows make.

Got water, anyone?

Cracking Down On Illegals In Kentucky

Rep. Rick Nelson (D-Middlesboro) told me yesterday he is going to file a bill to penalize employers who hire illegal immigrants.

Pre-filed Bill Would Cut Pay For Special Sessions

Rep. John Will Stacy (D-West Liberty) pre-filed a bill yesterday afternoon that would cut off legislator pay for either legislative body that adjourns during a regular or special session without the consent of other chamber.

Democrats Play Catch-Up On Energy Pork Bill

Speaker Jody Richards just started off today's House A&R meeting by stating his position that we don't need a special session.

I agree with him.

Update: Dr. Jim Bartis of the Rand Institute said if we do this we should also build a carbon sequestration facility because that will be necessary to attract potential federal subsidies in the future.

This is a reason not to do it.

Bill Caylor of the Kentucky Coal Association said he was in favor of anything that involved mining more coal but that the energy pork would have no impact on gasoline prices.

People Power Kills Amnesty Bill

George Bush needs to get religion fast.

U.S. Supreme Court Grants School Choice Victory To Louisvile Families

Another 5-4 vote ends a racial quota system in Louisville schools today.

Good.