7 Things to Know for Monday
1. The Congressional docket is packed full
Unresolved legislative issues ranging from student loans (which doubled last week) the farm bill (which recently failed) and immigration reform (which is still in the early stages of being put on paper in the House) are all on the table.
2. Elliot Spitzer is running for office again
Seriously. Client Number 9, New York’s former Governor will be seeking the position of NYC comptroller. It’s so real he Tweeted it. As if that wasn’t enough Kristin Davis, the woman who provided him with call girls, is running for the spot as well. This probably doesn't help Anthony Weiner's bid for mayor. Something's clearly in the drinking water.
3. North Carolina legislature extends session to deal with tax reform
After the state house passed the largest tax cut in state history, several sticking points must be addressed before a compromise with the senate can be finalized. The fiscal year began on July 1 and the legislature needs to reach a deal by the end of this month. North Carolina taxpayers will emerge as winners once that’s done.
4. Republican Bob McDonnell Remains Virginia’s Governor
A blog post on Virginia’s most popular political blog sent social media afire when a contributor at Bearing Drift claimed that Governor McDonnell was “in the middle of finalizing a plea agreement which includes his resignation as governor.” Spokesmen for the Governor immediately denied the claim as did UVA’s Larry Sabato. All that is clear at this point is that McDonnell’s tax hikes took effect on July 1st.
5. “No one is talking about Biden”
...said one source involved in Democratic fundraising. Regarding 2016, if Joe Biden’s going to make moves, Politico notes he’s got to start raising money now. Funny enough, they point out that he’s never been too good at it.
6. Unemployment Stuck at 7.6%
In case you were enjoying the July 4th weekend, you might have missed Friday’s jobs report. 195,000 new jobs and no net change in unemployment. If labor force participation were back to pre-recession levels, unemployment would be at 11.1%. On the plus side, 5,000 government employees lost their jobs.
7. Liz Cheney Eyeing 2014 US Senate Run Against Incumbent Republican
Former Vice President and Wyoming native Dick Cheney’s daughter, Liz, reportedly called Senator Enzi (R-WY) to tell him “she’s looking at” running against him next year. That would open up a contentious primary battle between the 46 year old and Enzi. Liz has recently stepped up her political and public appearances around the state, signaling she may actually be considering it.
Top 10 Reasons Obama's Approval Ratings Are at Record Low
According to a new poll, President Obama’s approval ratings hit an all-time low at the end of June. The Presidential Leadership Index fell to 43.2 from 48.9 just one month ago, the lowest since Obama took office. It’s no surprise giving all of the scandals in Washington.
Here are the top ten reasons Obama’s approval is plummeting:
- Obamacare Tax Hikes: The 20 new or higher taxes on American families and small businesses result in one of the largest tax increases in American history. Six of those taxes took effect this year including the Medicare payroll tax hike, medical device tax, and flexible spending account (FSA) cap. Three more kick in next year including the highly unpopular individual mandate and employer mandate.
- Obamacare Resulting in Higher Premiums: There’s are plenty of reasons why 52% disapprove of Obamacare today – 8 points higher than when Republicans blew Democrats out of the water, and House.
Candidate Obama: “If you already have health insurance, the only thing that will change for you under this plan is the amount of money you will spend on premiums. That will be less.”
Example of Reality: “Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent.” –Forbes
- IRS Scandals: Every day more details emerge about absurdities associated with the embattled IRS. First, news that they targeted (see: harassed) conservative non-profits. Next, we learned that they’ve cried wolf quite a bit about lacking funds necessary to operate (see: raid your wallets). Click here for our Top 10 Reasons Your IRS Agent Deserves a Bonus, relating to their plan to pay union employees $70 million in bonuses. Click here to check out a review of the IRS employee credit card program that paid for things like nerf footballs, Thomas the Tank Engine rubber wristbands, and kazoos. Seriously.
- Public Knowledge of NSA Overreach: People might not be so comfortable with the fact that, “They quite literally can watch your ideas as you type”
- Unemployment in May Rose to 7.6%: Only in fantasy land does running up a $16 trillion debt, demanding trillions in higher taxes spending, and threatening vetoes on every Republican jobs bill put us on a course to recovery.
- No Discernible Plan for Recovery: Still Waiting
Feel free to comment on this post with a link to a plan if you’ve run into one! We’re extremely interested.
- Leading From Behind on Energy: Obama’s energy plan speech last Tuesday was underwhelming, expected, and unfortunate. His plan directs the EPA to step up their War on Coal. Despite the fact that coal supplies roughly 40% of American electricity, reality doesn’t seem to hinder the Left. As opposed to increasing energy exploration and production domestically, the President prefers we rely on imported energy to appease domestic environmentalists who have no regard for job loss or the effect on energy rates. It has taken many needless months just to get the President to consider permitting the construction of Keystone Pipeline, which will create 20,000 immediate jobs and 118,000 indirect ones, and billions of dollars in economic activity.
Dana Summers – tribune Media Services
- Student Loan Rates Just Doubled: Today, interest rates on federally subsidized student loans doubled, thanks to Democrat obstructionism. With youth unemployment at 16.2%, and unpaid student loans topping $1 trillion, it’s unfortunate Democrats preferred to play politics than provide a solution to this pressing problem. House Republican passed the “Smarter Solutions for Student Act” which would set the rate at a market-based price and even includes a rate cap.
- Gave Small Business Employees the 27 Hour Workweek: Obamcare requires that employers offer health insurance to part-time employees who work at least 30 hours per week. More than two million workers across the US now face cuts in their hours, as companies look for ways to stay in business. Long Beach, California, for example, is cutting hours of up to 1,600 part-time workers to less than 27 hours per week to prevent $2 million in Obamacare compliance costs. These employees have the President to thank for less hours and a smaller paycheck.
- Obama Broke His Firm Tax Pledge: Though he made a “firm” pledge that no one under making $250,000 would see any form of tax hike, he abandoned that promise very quickly.
Obama: “I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” [Video]
During a White House press briefing on April 15, 2009, spokesman Robert Gibbs was even asked if Obama’s tax pledge applied “to the health care bill.” Gibbs replied:
Gibbs: “The statement didn’t come with caveats.”
Ranging from a 156% increase in the federal excise tax on tobacco (16 days into his Administration) to Obamacare itself, denying that the President has raised taxes on people making less than $250,000 per year is a farce.
Top 10 Reasons Your IRS Agent Deserves a Bonus (with GIFs)
First established to levy funds from farmers in 1862, today’s IRS employs nearly 100,000 people, many of whom are represented by the National Treasury Employees Union. Thanks to a collective-bargaining agreement, the nice folks at the NTEU claim good work should be rewarded.
We agree! Here are the top ten reasons your IRS agent deserves a bonus:
10. They Pray A Lot. Why else would they ask an Iowa pro-life group about the content of their prayers?
"Please explain how all of your activities, including the prayer meetings held outside of Planned Parenthood, are considered educational as defined under 501(c)(3)," reads the letter.
9. They Are Well-Read. They must be, given their inquiries to Tea Party groups about the names and summaries of books read at local book clubs. A kind conservative was generous enough to mail the agency a copy of the Constitution.
8. They’re Very Interested in Where Money Not Sent to Them Winds Up. Despite legal precedent protecting the identity of donors who contribute to non-profits, IRS agents requesting that information were probably just curious.
7. They’re Generous. At a $4.1 million 2010 Anaheim, CA conference, 38 local employees joined the fun by racking up a $30,000 hotel tab instead of attending the conference from home. The Deputy Commissioner even got to stay in a two-bedroom Presidential Suite at the Hilton, which goes for $3,500 per night. The maid service was totally worth it.
6. They’re Artsy. According to the official Inspector General report, at that same conference, the IRS spent $27,500 for an artist to paint portraits. Agency bonuses will help establish the “Collection of Funny Looking Auditors” at your local library.
5. They’re Intrigued by Etymology. "Please explain in detail the derivation of your organization's name” read a letter to the Ohio-based 1851 Center for Constitutional Law.
4. They Do Background Checks. Another read, “Submit the following information relating to your past and present directors, officers, and key employees: a) Provide a resume for each.”
3. They’re Dedicated to Serving You Even When They’re Stuck On an Island. Awaiting the “SS Continuing the Voyage for Quality in Field Assistance” the “Skipper” opines, “Remember what’s important. Enhancing the taxpayer experience, improving quality, and educating the taxpaying public.”
Adding insult to injury but without commentary, the Skipper goes on: “Remember in 2008 when we had the Economic Stimulus Program?” Yes, we remember.
2. They Can Dance.
One exhausted Cupid Shuffler proclaims, “They don’t pay me enough to do this.” Good thing those bonuses are on the way!
1. They’re Trekkies. In a Star Trek-like training video set one hundred years in the future on the planet “Notax”, the stated quest is a “never-ending mission … to seek out new tax forms, to explore strange new regulations, to boldly go where no government employee has gone before.” The citizens on the foreign planet are “Notax-ians”!
One crewman says, “Back in Russia I dreamed one day I’d be rich and famous.” His fellow mate responds, “Me too, that’s why I became a public servant.”
Obviously these guys need bonuses.
ATR Supports Pennsylvania Liquor Industry Privatization
It may be hard to believe but in 2013, the Commonwealth of Pennsylvania still maintains centralized control of retail and wholesale wine and liquor sales. The state House passed an industry privatization bill earlier this year and as the Senate crafts their own version of the bill, it is important that Pennsylvania no longer have a hand in picking winners and losers by restricting consumer choice and convenience throughout the entire liquor industry anymore.
The letter from Americans for Tax Reform can be read below:
Dear Members of the Pennsylvania Senate,
On behalf of Americans for Tax Reform and our members across Pennsylvania, I write in strong support of House-passed legislation that would get government out of the business of selling liquor. As you debate this issue in the senate, ATR encourages lawmakers to pass a bill that ends government intrusion into liquor industry distribution and sales, both at the retail and wholesale level.
Currently, Pennsylvania’s government holds a monopoly on the wholesale distribution of liquor and has six hundred state-run liquor stores across Pennsylvania. Requiring grocery stores, bars, and restaurants to purchase liquor from the government is nonsensical in the 21st century. State control of wholesale liquor operations does not benefit businesses or consumers, limiting competition, consumer choice and convenience.
By stoking industry competition, privatization of liquor distribution and sales would mean reduced costs for consumers.
An added convenience of wholesale privatization is the capacity for wholesale distributors to deliver liquor to licensees. By restricting this convenience, the government places an undue burden on small businesses. Additionally, if the government were to provide this service, it would cost taxpayers hundreds of millions of dollars. Private sector wholesalers, on the other hand, provide delivery service nationwide more efficiently and at lower cost to consumers.
Simply put, selling liquor is not a core function of government and it’s hard to imagine how any reasonable person could argue otherwise.
Passage of privatization legislation would be a boon to consumers, resulting in a much wider selection of brands available, with private distributors offering the most competitive prices. No longer would taxpayer dollars be used to prop up state-run liquor stores. This past fiscal year, the Pennsylvania Liquor Control Board’s liabilities exceeded its assets by nearly ten million dollars. Privatization would end this uncertainty and nonsensical drain on state resources.
One argument made against wholesale privatization is that it would mean trading one monopoly for another. This ignores the reality of wholesale competition. Multiple large wholesalers compete with each other by fighting for business amongst licensees and retailers. This drives down costs for consumers by encouraging competition between brands.
I encourage you to stand on the side of liberty and consumer choice by passing a liquor wholesale and retail industry privatization bill, similar to legislation passed by the House earlier this year. ATR will continue to monitor this issue closely and educate Pennsylvania taxpayers as to how their representatives in Harrisburg vote on this important matter.
Virginia Delegate and McDonnell Tax Hike Architect Joe May Loses to Pledge Signer
Twenty year incumbent Delegate Joe May was defeated by Taxpayer Protection Pledge Signer and small businessman Dave LaRock. Delegate May, chairman of the House of Delegates Transportation Committee and one of the key House architects of Bob McDonnell’s $5.9 billion tax hike sank in the polls because of his staunch support for the tax hike and the Dulles Toll Road.
Delegate May was defeated 57-percent to 43-percent by challenger Dave LaRock. Americans for Tax Reform was proud to stand by Dave LaRock and remind voters in the 33rd House of Delegates District that Delegate May was a consistent vote for tax increases and saw no problem voting to send their tax dollars to fund light rail in Hampton Roads.
Grover Norquist, president of Americans for Tax Reform stated, “I congratulate Dave LaRock on his victory over 20-year incumbent Joe May. Dave will bring commonsense policies and pro-taxpayer reform to Richmond as the Delegate from the 33rd District of the Commonwealth of Virginia.”
He continued, “Make no mistake; House Transportation Committe Chair Joe May's defeat can be directly attributed to his vote for Speaker Bill Howell's misguided $6 billion tax hike. With his defeat, it should be clear that it is time for new leadership in the Virginia House of Delegates. A Republican majority, under new leadership, should work to enact pro-taxpayer reforms and repeal the 2013 transportation tax hike championed by Delegate Joe May, Speaker Bill Howell, and Governor Bob McDonnell."
Portland Maine Nanny-Staters Work to Ban Styrofoam
By a vote of 9-6, a Portland City Council task force recently voted to ban the commercial use of polystyrene packaging (as it is commercially known, Styrofoam). It should come as no surprise that this is yet another Mayor Michael Bloomberg idea, who seems to have quite the following amongst nanny-staters well beyond the reach of the Big Apple.
The task force – the “Green Packaging Working Group” – recently discussed the use of polystyrene, relying on unfounded scientific claims and a complete misunderstanding of the polymer.
Environmentalists sometimes have good intentions. Clearing the streets of trash, rivers of litter, and human bodies of toxins are noble causes. The science behind claims that polystyrene is toxic to humans, cannot be recycled and does not biodegrade, however, simply does not exist. Evidence to the contrary seems to escape the chemo-phobes seeking to purge from coffee shops and Chinese restaurants containers that make life much easier.
Polystyrene is non-toxic. The collective evidence shows that consumers are not at danger. The fact that phrases like “limited evidence” and “reasonably anticipated” are contained numerous times in reports like those conducted by the Department of Health and Human Services’ National Toxicology Program (NTP) seems irrelevant to people who cherry-pick health studies for political reasons.
According to biochemistry Professor Bruce Ames of UC-Berkley, “over half of all chemicals tested, whether natural or synthetic, are carcinogenic in rodent tests” – generally because the rodents are pumped full of chemicals at rates hundreds or thousands of times higher than any human would ever experience.
This might be why not a single regulatory body in the world has classified styrene as a human carcinogen.
The precautionary principle is at work here. Notably a European notion, a common tactic for environmentalists is to ban or restrict substances if they are perceived as harmful, even if there is a complete absence of hard data to prove such. Scare tactics can be a strong motivator for regulations and restrictions, despite the negligence of economic or health harms associated with them. This is not an American standard for policy, as we utilize something known as the “risk standard,” which requires proof before we ban things.
Banning polystyrene could have a detrimental financial impact. One local business owner estimated that using the more expensive paper cups in Dunkin’ Donut franchises would increase annual costs by $10,000 per year. The Portland School Department’s director said that “costs quadrupled when the district decided to use paper lunch trays instead of polystyrene trays, going from 3 cents a tray to 12 cents.” Imagine that impact city-wide, all because of junk science.
Polystyrene can be recycled. In fact, its recyclability can be significant in many “green causes” like “green buildings” and alternative energy production. When it is cleaned, ground down, and heated, it is an extremely inexpensive insulation material. Most windmill blades use polystyrene as a base component and it plays a role in the production of many solar panels. The material is strong, inexpensive, durable, and lightweight.
Recycling certainly requires the consumer to go that extra yard and choose to not throw their coffee cup into the street, so policies should incentivize collection as opposed to banning use. Because of its uses, it is extremely valuable once compacted. Manufacturers nationwide can and do use the product in more than green causes.
Additionally, the plastic coating on paper cups, the ones made to hold liquids for more than 4 seconds, makes them nearly impossible to recycle.
Companies can be incentivized to collect and reuse polystyrene. Walmart, for example, has a recycling program and uses what is collected for picture frames. The city can also encourage the creation of a collection site, similar to ones in Kennebunk or Camden. In 2010, 71 million pounds of expanded polystyrene were recycled including 37.1 million pounds of post-consumer packaging and 34.2 million pounds of post-industrial packaging.
At the end of the day, the Portland City Council should attempt to examine the hard data and facts when it comes to polystyrene and the environment. Nanny-state European-style bans on things is not the best course of action given the possible financial impact and lack of scientific evidence used by environmentalists with a political agenda.
Virginia Governor Bob McDonnell Signs Largest Tax Hike in Virginia History into Law
Governor Bob McDonnell, in one of his final acts as governor of the Commonwealth of Virginia, signed into law a $5.9 billion tax increase on Virginia families to fund light rail and transportation projects throughout the Commonwealth. The tax increase is the largest in the history of Virginia, edging out Democrat Governor Mark Warner’s 2004 tax increase.
Virginians will see increases in their diesel fuel taxes and the gas tax will rise with higher gas prices and inflation. Residents of Northern Virginia and Hampton Roads will see increases in the local sales tax from 5 to 6 percent, increases in taxes on home sales, and increased hotel taxes. The rest of the state will experience a sales tax hike from 5 to 5.3 percent.
In addition, the legislation puts into place a regime set to collect internet sales taxes if Congress passes the Marketplace Fairness Act – currently in the House of Representatives (where, as written, it is not expected to garner enough votes to pass). If Congress is unable to pass an internet sales tax bill, Virginia residents will see fuel taxes raised even higher to make up for the promised tax collections.
Despite claims from Governor McDonnell, the massive tax increase is not a job creator and does not make the Commonwealth more attractive to small business and families looking to relocate.
“As Bob McDonnell signs his name to House Bill 2313, he signs into law higher taxes and signs away his chances at higher office. It’s a crushing blow to the Average Virginian who won’t actually be able to get to work any quicker,” stated Americans for Tax Reform’s president, Grover Norquist.
He continued, “Don’t be fooled. VDOT has no incentive to efficiently spend this new revenue and it is only a matter of time before Democrats cry for more tax dollars to pay for even more special interest projects that don’t benefit the average family or small business owner.
The Internet Sales Tax Vote Breakdown: A Republican Generation Gap
This week the US Senate passed the improperly named Marketplace “Fairness” Act (MFA), a national sales tax scheme that lets tax-me-more states like California and Illinois reach into the pockets of consumers nationwide. By a vote of 69-27, MFA passed and now heads to the House, where it faces a more difficult climb to passage.
Set aside the tremendous burden on small online retailers and numerous other reasons to oppose this onerous legislation, we took a look at the generation gap of those who opposed the bill versus those who voted in favor of it.
Every Republican (seven in total) aged 50 and under voted against the Marketplace Fairness Act.
Twelve of thirteen Republicans who are 55 and under voted against the Marketplace Fairness Act.
Nearly every sub-55 Senator (Thune excluded) voted against the bill. Here are a few of them with some made-up quotes associated with their pictures.
Jeff Flake: Age 50
“Unpopular? Let’s do a meet and greet, ladies.”
Mike Lee: Age 41
“Let me tell you a bit about defeating incumbent Republicans…”
Tim Scott: Age 47
“Taxes are popular? I got 99.27% of the vote in my first legislative race.”
Ted Cruz: Age 42
“Obama’s in Texas? Maybe he’ll learn something about job creation.”
Marco Rubio: Age 41
“Join the Gang?”
Kelly Ayotte: Age 44
“I beat a guy by the name of Lamontagne.”
Rand Paul: Age 50
“I’d filibuster that…”
And now, some of the Republicans who voted in favor of permitting states to reach across their borders and tax your online purchases…
Lindsey Graham: Age 57
“Federalism? No thanks.”
Jeff Sessions: Age 66
“MFA lets state governments tax across their borders despite legal precedent arguing they cannot? YOLO.”
Mike Enzi: Age 69
“Everyone will now be subject to 9,600 highly variable state and local tax codes. Sounds great!”
Thad Cochran: Age 75
“The thousands of new businesses and tax authorities handling your personal information will definitely not lose it ever. Trust me.”
John McCain: Age 76
“Lemme see that online purchase order. Arggg!”
No, none of the above quotes are genuine and I made them all up. Relax. But the fact remains – the young freedom fighters nearly all opposed the Marketplace Fairness Act. There certainly were older Republicans who opposed the bill as well and fortunately more Republicans voted against MFA than voted for it.
Regardless, if you’re ready to ramp up the fight in the House, sign our petition to your Congressman by visiting www.taxeswithoutborders.com now!
Special Election for Virginia's House of Delegates 19th District: Find out where to vote!
Tomorrow, May 7th, Virginia’s 19th House District will host a Firehouse Primary to replace retiring incumbent Delegate Lacey Putney. Putney, who served for more than five decades in the House of Delegates, chaired the powerful Appropriations Committee in the legislature.
Of the four candidates running to secure the Republican nomination, only one has signed the Taxpayer Protection Pledge, making a written commitment to Virginia taxpayers to oppose any and all tax hikes. Zach Martin put his no-new-taxes rhetoric in writing so that voters know that he stands firm on the promise.
There will be three polling locations open throughout the district. Registered voters may vote in the location specific to their locality. Voting will be done on electronic voting machines and the polling locations will be open from 6pm to 9pm. Voters may arrive and vote at any time during that three hour window.
Botetourt County Voting Location
Lord Botetourt High School
1435 Roanoke Road, Daleville, VA 24083
Bedford City/County Voting Location
Thaxton Community Center, across the street from Thaxton Elementry School
3821 Monorail Circle Thaxton VA, 24174
Alleghany County Voting Location
The Old Alleghany County Board of Supervisors Board Meeting Room
110 Roesdale Ave, Covington, VA 24426
To find out if you’re a registered voter in the 19th House District, click here.
Taxpayer Group to Maine Legislature: Reject The Gang of Eleven's Massive Tax Hike
This week, a so-called “Gang of Eleven” unveiled legislation in Maine that amounts to a $700 million tax hike. Americans for Tax Reform President Grover Norquist today sent a letter to the state legislature and Governor LePage urging them to reject the bill if it is not amended to be revenue neutral. LD 1496, the “Act to Modernize and Simplify the Tax Code” increases the tax burden on Mainers, which outweighs the benefits of cutting the income and corporate tax rates.
The letter, which can be read below, outlines the negative consequences of the bill and explains that voting for the bill would be a clear violation of the Pledge to oppose any and all tax hikes that many legislators made to Maine taxpayers, including Governor LePage.
I write today in strong opposition to LD 1496, the “Gang of Eleven” tax code rewrite. Put simply, the “Act to Modernize and Simplify the Tax Code” is a massive tax increase. Contrary to claims of those advocating for the bill, raising the overall tax burden on Mainers outweighs the benefits associated with income and corporate tax cuts.
This bill expands the sales tax base to dozens of new goods and services, increases the sales tax rate by a full point, eliminates income tax deductions, and raises the cigarette tax to a rate more than double that of neighboring New Hampshire. Many of the products and services that will face higher taxes are provided by small businesses, which are disproportionately harmed by this tax hike. Tax reform must be revenue neutral. A vote in favor of this legislation, as written, is a violation of the Taxpayer Protection Pledge.
If the goal of the legislature is to reform the tax code and make the state more attractive to job creators, that goal should be accomplished without increasing the state’s overall tax burden.
Simplifying the tax code is an admirable goal, and one that state legislatures nationwide are working to accomplish. I applaud the 50 percent reduction in income taxes, elimination of the death tax, and a reduction of the corporate income tax. These efforts, considered separately, are legitimate tax reforms that would encourage economic growth, investment, and job creation, by reducing the burden of government on the backs of taxpayers.
These tax reductions, however, are outweighed by hundreds of millions of dollars of tax hikes. This bill is a $700 million tax increase. Tax increases are not tax reform.
I urge you to oppose this tax increase, and tackle true tax reform that reduces marginal rates without increasing the size of state government.
If you have any questions about ATR’s position on this issue, please contact state affairs manager Josh Culling at 202-785-0266.
Grover G. Norquist
President, Americans for Tax Reform