Friday, January 29, 2010

Interesting development in the property-tax drama

Republican gubernatorial candidate Mike Montandon has called for an overhaul of Nevada's property-tax system.

Read all about it in the latest installment of John Dougherty's series on the Silver State's problematic approach to property taxation.


Thursday, January 28, 2010

Reminder: NSEA cares about teachers and money more than student achievement

In light of Nevada's budget situation — the inevitable result of consistently increasing inflation-adjusted, per-capita spending — the Nevada State Education Association posted this on its homepage:

Education Funding is UNDER ATTACK!
Contact your legislators today

Education is UNDER ATTACK! Programs are at stake! Jobs are at stake!

Elected officials and candidates are playing political football with our profession and livelihood! The proposals that are floating out there are irresponsible, unfounded, and could be catastrophic if adopted by state legislators.

Lawmakers need to hear from you directly on how these cuts would impact your work and your students if you're an educator and your children if you're a parent. Your REAL story is what will make the difference! Please contact your legislators today. Call 1-800-992-0973 or click here to send them your message today…because we can’t take a gamble on our future! (Emphasis mine)

Notice the focus of the NSEA's desperate cry — programs and jobs, not student achievement. This isn't surprising, because the NSEA is a group of paid lobbyists on behalf of teachers, and there's no correlation between spending and student achievement. (Each dot on this chart represents a state and its level of spending and student achievement.)



And the NSEA has been wildly successful at increasing spending (but not achievement levels). Nevada's inflation-adjusted, per-pupil spending has nearly tripled over the past 50 years.



It's time to stop listening to the hysterics of the paid lobbyists of the NSEA. They represent adults, not children.

For those who care about educating children more than paying adults more, there are a whole host of reforms that achieve the win-win of improving student achievement and saving taxpayer dollars.

In case it changes, here's a screenshot of the NSEA's homepage.

Four problems with the Nevada Vision Stakeholder Group

The Nevada Vision Stakeholder Group is holding its second meeting tomorrow at 9 a.m. And unlike last time, the meeting is going to be viewable online (scroll down a little bit to the NVSG item). And here's my live blog of the first meeting, in case you want to get up to speed. I’ll also list all the scheduled, upcoming meetings at the bottom of this post.

For the uninitiated, the NVSG was created by the Nevada Legislature "to develop a long-term strategic plan for the next five, 10 and 20 years, identifying the quality-of-life goals that 'we, as Nevadans, would like to see [accomplished] in our state,' says Senate Majority Leader Steven Horsford."

In turn, those goals will be used to justify the higher taxes (most likely including a broad-based business tax) that the Interim Finance Committee's tax study is all but certain to call for.

With that background in mind, here are four significant problems with the Nevada Vision Stakeholder Group.

1. The Nevada Vision Stakeholder Group shouldn't exist: The NVSG's goal is to identify quality-of-life goals for Nevadans. Problem is, it isn't the government's job to identify, define or pursue quality-of-life goals for anyone.

Government should provide essential services, like education, roads and fire and police protection. Government should fund those services with a uniform and low tax and regulatory burden. Government should be concerned with preserving and increasing freedom, not picking the winners and losers in an economy or a society or under the guise of "quality of life."

2. People should define their own quality-of-life goals: Every individual is unique, so “quality of life” means something entirely different to each individual person.

The beauty of freedom is that it enables us each to pursue our own interests and define what “quality of life” means to us as an individual (and the beauty of capitalism is that individuals pursuing their own interests creates enormous wealth and opportunities for everyone). And “quality of life” might mean the opposite thing to two different people. As long as they don't infringe on another's rights, they are free to pursue their own quality life.

This isn't possible if the government is defining and imposing its own views of “quality of life” on a community or society.

Imagine the reaction if a religious institution tried to impose its quality-of-life beliefs on a society. There would be understandable outrage. Why aren't we as outraged when government does the same thing?

Now, there is nothing wrong with religious beliefs or, likely, even some of the quality-of-life goals the NVSG is going to produce. The problem occurs when a government or any institution uses coercion to force those beliefs on other people.

3. The Nevada Vision Stakeholder Group doesn't represent Nevada: The NVSG has 19 voting members. Of those 19 members, nine (or 47 percent of the committee) are current government employees. The Las Vegas Chamber of Commerce recently did a study that concluded that there are fewer than 44 state and local employees for every 1,000 Nevada residents, which is less than 5 percent of the population.

The other 10 members of the committee include a retired government employee (Paul Dugan) and a representative of the Nevada State Education Association (Brian Rippet). Most of the representatives of the business community represent gaming and mining or businesses that rely heavily on government contracts.

The Nevada Vision Stakeholder Group doesn't represent Nevada. It represents a combination of rent-seeking business interests and the 5 percent of Nevadans who are employed by the government.

To top it off, the NVSG's non-voting chair is Dr. Robert Lang of Brookings Mountain West, who moved to Nevada in January of 2010. Lest you think that's a typo, I called the Brookings Mountain West’s office at UNLV, and got this information confirmed. Also, Dr. Lang's bio on the Brookings Mountain West at UNLV website still says: "Currently, Dr. Lang is a professor of urban planning and director of the Urban Affairs and Planning Program at Virginia Tech’s National Capital Region in Alexandria, VA."

Here's a screenshot:


Dr. Robert Lang bio reveals he's not from Nevada. Why is he leading the Nevada Vision Stakeholder Group?

As I said before, the Nevada Vision Stakeholder Group doesn't represent Nevada. It should be renamed the Nevada Tax Consumers' Vision Stakeholder Group.

4. The outcome is predetermined. The Nevada Vision Stakeholder Group is going to select quality-of-life "goals" that require more tax money: This the natural result of a gathering of tax consumers and special interests. What makes tax consumers' lives better? More taxes from the 95 percent of Nevadans who don't have a seat at the table. The outcome was never in doubt, and was predicted by NPRI's Geoffrey Lawrence in early October.
Instead, the NVSG is likely to be a coalition of public employee unions and other rent-seeking special interests eager to craft a deal that makes all of them happy — at the taxpayers' expense, of course. Those who would be required to finance the grandiose schemes that result from these "stakeholder processes" are rarely considered relevant "stakeholders" themselves.
For the reasons above, the Nevada Tax Consumer's Vision Stakeholder Group is a sham. Liberal legislators will use its skewed and illegitimate findings to justify calls for tax increases in 2011. Nevada's citizens should know the truth about the N(TC)VSG and reject legislators' soon-to-be announced call for increased taxes.

For more, read Geoffrey Lawrence's fine work exposing the N(TC)VSG's and IFC's underhanded attempts to raise taxes.

Puppetmasters on the throne
Nevada’s future is at stake
A ‘vision’ of extortion and control
IFC to hide behind unelected stakeholders
Nevadans deserve honesty from IFC

Here are the scheduled meetings of the Nevada Vision Stakeholder Group. All meetings begin at 9 a.m. at the Grant Sawyer Building and are videoconferenced to the Legislative Building in Carson City.

Meeting No. 2: January 29, 2010
Meeting No. 3: February 11, 2010
Meeting No. 4: February 25, 2010
Meeting No. 5: March 12, 2010
Meeting No. 6: March 22, 2010
Meeting No. 7: April 6. 2010
Meeting No. 8: April 21, 2010
Meeting No. 9: May 2010 (to be determined)

To compete, or to protect a monopoly?

That is the question state governments must ask themselves when it comes to regulated electricity markets. Statists claim that, while markets are the most efficient means of allocating resources for all other sectors, they do not work when it comes to electricity production. Rent-seekers such as General Electric also love the complicated tangle of electricity regulation when it mandates utility companies to purchase products such as industrial wind turbines for which they control the market. (Ever notice who makes those television commercials praising wind power – a 12th Century technology – as the pinnacle of human achievement?)

However, states that have taken the initiative to unleash the power of competition in the electric utility industry have demonstrated that, even in this industry, competitive markets operate much more efficiently than government-protected monopolies. The Texas Public Policy Foundation has just released a new report showing that restructuring electricity markets so that providers are able to compete for retail customers, something Texas began in 2001, has led to a significant lowering of costs to the consumer. Texans can now buy electricity at prices as much as 30.51 percent lower than what they were required to pay the state-protected monopolies as recently as 2001. Nationally, electricity prices have risen 35.3 percent in the same time period, according to data from the U.S. Department of Energy.

Since Texas has ended state protection of electric utility monopolies, consumers are finally able to hold providers directly accountable for any poor investments or production decisions that are necessarily reflected in prices. Now, consumers have the option of going to a more competent provider who is able to control costs.

This lesson should be particularly relevant to Nevadans who were just forced into an electric rate hike and who have no choice in providers. Nevada now has the highest retail electricity prices of all Western states with the exception of California, according to the U.S. Department of Energy. The high cost of electricity in the Silver State raises the cost of doing business and discourages firms from moving into the state.

Perhaps it’s time policymakers consider what has proven so successful in Texas and open Nevada’s electric utility market for wholesale and retail competition.

Tuesday, January 26, 2010

Assemblyman Arberry: Runs the Ways and Means Committee, owes $500,000 in back taxes and unpaid debt

Say, isn't Speaker Buckley making a big deal about ensuring "that we (Nevada) collect all unreported and unpaid taxes"? Maybe she should start with her own caucus.
With 10 short months left to cement his legacy as a lawmaker, Assemblyman Morse Arberry has found himself isolated and alone on one issue from his peers: he does not pay his taxes and fails to pay his debts, now totaling nearly $500,000…

Arberry joined the legislature in 1985 and has served on the Ways and Means Committee nearly his entire time in office. That powerful group controls spending and a large part of the tax revenue for Nevada.

Standing beside his Mercedes-Benz sedan outside the non-profit Urban League, where Arberry works, the Democrat said his real estate company, Canyon Lake Mortgage, had many problems over the last few years.

He repeated the same explanation used weeks ago that he needed to speak to fellow investors to understand the true picture of what was happening with the homes. All six are listed in Arberry's name, however.

"It's a public record. I'm not trying to hide it," he said.

Arberry owes more than $2,200 dollars at his Walker Street address near Martin Luther King and Washington. The bill has not been paid since May of 2008, on the same day the I-Team's initial story on tax problems first aired…

The back taxes are not Arberry's only financial problem. Arberry owes more than $496,000 in homeowner association dues, foreclosing homes, and sewer and trash liens…

"What I saying is that you won't be calling me," he said. "I've been in the legislature for 25 years and I think I did a damn good job balancing the budget based on moneys we had to work with," Arberry said.

When reminded he appears to have problems balancing his own budget based on the toll in debts, he walked away. "I'm not going to discuss my personal issues with you. You have a nice day," he said.
I guess it's easy to balance the state budget when you can take money from taxpayers, like the legislature did when it passed a record-setting, job-killing, billion-dollar, secret tax increase in the last legislative session.

When it comes to his personal life, though, Assemblyman Arberry can't just take money from his fellow citizens. Instead, he'll just drive away from tough questions in his $91,000 (if purchased new) Mercedes-Benz.

Assemblyman Arberry drives away from tough questions about his back taxes in his $91,000 Mercedes Benz

Do as they say, not as they do.

Random note: Assemblyman Arberry isn't the only Ways and Means Chairman who's failed to pay his taxes.

(Great job by the I-Team from Channel 8 and h/t Dullard Mush)

Keynes vs. Hayek: The rap battle

Keynes vs. Hayek: The rap battle

Amazing.



Aside from being wildly entertaining, this video provides a lot of good information on the beliefs of Keynes and Hayek.

Go here to learn more about John Maynard Keynes and F.A. Hayek, two of the most important economists in the 20th century.

Monday, January 25, 2010

Will a new stimulus bill work?



The last stimulus bill was a total flop, as unemployment soared two percentage points higher than Obama predicted. Now America's leadership wants to pass another stimulus. Dan Mitchell of the Cato Institute explains the problem.

Why government rail doesn't work


Randy O'Toole of the Cato Institute talks with John Stossel about the expensive failure of government-subsidized rail (high-speed rail and "light" rail).

Check out the Nevada News Bureau's new blog

The Nevada News Bureau just launched a new Nevada political blog.

It's managed by Elizabeth Crum, better known in the blogging world as E!!, so you know it's going to be good.

I'm adding it to our blog roll and you should check it out.

Friday, January 22, 2010

Nevada taxpayers could be on the hook in monorail bankruptcy

monorail fail
An absolutely must-read article in the Sun today on the Las Vegas monorail's bankruptcy and how taxpayers could be stuck with $1 billion in debt.
After all the promises, will taxpayers be stuck with the monorail's bills?

Since the inception of the Las Vegas Monorail, Nevadans have been repeatedly reassured that they will not wind up on the hook for its bills.

Nevermind the high salaries monorail executives and board members are getting, that won’t ever wind up coming out of the public’s pockets.

The Nevada Business and Industry Department’s issuance of $650 million in tax-exempt bonds to construct the transit system? Not to worry, no liability there.

Granting state sales tax and county property tax exemptions to the monorail? Yes, it helped the monorail system avoid putting millions of dollars in the public coffers, but it was the right thing to do.

Clark County’s approval of the monorail’s exclusive franchise agreement? Just a formality.

Having a five-member board appointed by the governor to oversee the operation? That’s just to protect taxpayers’ interests.

Now that the monorail’s long predicted bankruptcy is in front of a federal judge, however, the cozy relationship between the system and state and local governments has become a crucial issue and is again raising the question of whether taxpayers will wind up on the hook for any or all of the monorail’s $500 million to $1 billion in debt.
There are so many salient points here it's hard to know where to begin.

First, remember this when politicians or businesses looking for government handouts start talking up the Desert Express or a maglev train between Las Vegas and California. Government should not be financially involved in any business — especially one that's a consistent money loser. If individuals or a business think a train would be valuable or profitable, they need to build it with their private money and financing and pay their taxes just like everyone else.

Second, we shouldn't believe the promises politicians or rent-seeking businesses make when they are trying to get taxpayer dollars or financing. Remember the headline from this story: "After all the promises, will taxpayers be stuck with the monorail's bills?"

Third, if government simply fulfilled the core functions that only it can (of which the private monorail is not an example), taxpayers wouldn't be on the hook here. It's not the government's job to create jobs or use tax-increment financing to try to redevelop certain areas.

Fourth, aside from being an improper role of government to try to create jobs or diversify the economy, government isn't good at picking the winners and losers in an economy. Even if you don't agree with limited government philosophically, you should still agree with it from a pragmatic point of view.

The take away is this: Let businesses succeed or fail on their merits, not their political acumen. Applying this principle will benefit both taxpayers and the economy.

Thursday, January 21, 2010

PLAN wants to raise mining taxes … Winston Churchill responds

The Progressive Leadership Alliance of Nevada recently announced that it is seeking a constitutional amendment to raise taxes on the mining industry, because mining is doing well right now.

Bob Fulkerson, executive director of PLAN, said the group decided to go after mining because “that’s where the money is.”

Now this isn't really surprising since PLAN wants to raise taxes on everyone, but it is a good opportunity to share my favorite Winston Churchill anecdote.
The conservative Winston Churchill was often at odds with Clement Attlee, leader of the Labor Party, which advocated a greater role for government in economic policy. Churchill once entered a men's room to find Attlee standing at the urinal. Churchill took a position at the other end of the trough.

"Feeling standoffish today, are we, Winston?" Attlee asked.

"That's right," Churchill responded. "Every time you see something big, you want to nationalize it."
PLAN and other liberals won't be satisfied with just increasing the taxes on mining. (See Nevada Vision Stakeholder Group) Every time liberals (or conservatives) in government start picking winners and losers, the government becomes more convinced that it needs more money to run things, and that leads to more tax increases and less economic growth in the long run.

And after working for years to saddle other businesses with tax increases, the mining industry is now learning this lesson first hand.

Freedom of Speech now free


*You can also watch the video above here.

U.S. Supreme Court strikes a major blow against opponents of free speech in a decision handed down today. Ilya Shapiro of the Cato Institute writes, "government cannot try to “level the political playing field” by banning corporations from making independent campaign expenditures on films, books, or even campaign signs."

The U.S. Constitution is very clear on the matter. It says "Congress shall make NO LAW... abridging the freedom of speech." What was so difficult about "NO LAW"?



In further news on free speech, the Goldwater Institute struck a major blow against "Clean Elections" (aka, taxpayer subsidies for politicians). The victory specifically struck down the law that required taxpayer-subsidized campaigns to receive additional money if another candidate raised more money through private donations.

Wednesday, January 20, 2010

America: Land of the (mostly) free

That's what the Heritage Foundation concludes in its 2010 Index of Economic Freedom. For the first time, the United States has dropped from the "free" to "mostly free" category.
The Index analyzes just how economically “free” a country is, and this year America saw a steep and significant decline, enough to make it drop altogether from the “free” category, the first time this has happened in the 16 years we’ve been publishing these indexes. The United States dropped to “mostly free.”

The drop in rankings is notable as it comes in the same week that marks the one-year anniversary of President Barack Obama’s inauguration. By any standard, over the last year Americans’ overall wealth and prosperity has continued to decline. Americans, in fact, are more likely than ever to believe that their children and grandchildren will be worse off than the current generation. They believe future generations will live in a less prosperous and less economically mobile America. The traditional American faith in upward economic mobility – widely understood to be the American Dream – seems more elusive now than ever.
The most embarrassing part about this is that Canada is more economically free than the United States. And economic freedom is very important in many areas of life.
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself…

Studies in this and previous editions of the Index of Economic Freedom demonstrate important relationships between economic freedom and positive social and economic values such as per capita income, economic growth rates, human development, democracy, the elimination of poverty, and environmental protection. For further information, see especially the Executive Highlights and Chapter 2: Fifteen Years of Advancing Freedom

See the world map of economic freedom here.

The meaning of Massachusetts

As early as last August, I was saying that the Right had already won the policy argument over health-care reform.

Last night’s special Senate election in Massachusetts may well mark the moment when the Right decisively turned the tide in the political fight, too.

Monday, January 18, 2010

Nevada vs. Europe


If Nevada were a European country, it would be the continent's second wealthiest nation. As it stands, Nevada is the ninth wealthiest state in America. Pretty good, all things considered. Notice how Washington, D.C. is the wealthiest place on the planet? This is probably because of the immense concentration of power and government bueracrats in one place - basically, D.C. is wealthy because D.C. takes the wealth from everyone else.

Here are some other fun facts from economist Mark Perry,

1. Portugal would rank #51 as a U.S. state, below Mississippi in per capita GDP.

2. Italy and Greece as U.S. states would rank between the two poorest U.S. states - West Virginia and Mississippi.

3. If France became a U.S. state it would rank #48 out of 51 by per capita GDP, just barely ahead of America's two poorest states - West Virginia and Mississippi.

4. Belgium, Finland, the U.K., Germany and Spain would rank in the bottom 20% of U.S. states by per capita GDP, just barely ahead of Arkansas but below Kentucky.

5. Although the Netherlands, Sweden and Denmark are among Europe's wealthiest countries, as U.S. states they would be between 14.5% and 18% below the U.S. average.

So who wants to raise taxes and increase government regulations again?

*Figures in U.S. dollars, converted to purchasing power parity (ppp), which adjusts for cost-of-living differences.

Friday, January 15, 2010

Gibbons explores dropping Medicaid

Yesterday, Governor Gibbons instructed his staff to examine the possibility of withdrawing Nevada from Medicaid. Despite the expected liberal hysteria, withdrawing Nevada from Medicaid could actually lead to better medical care for the poor in Nevada.
Geoffrey Lawrence, a fiscal policy analyst for the Nevada Policy Research Institute, the conservative think tank, said opting out of Medicaid would not result in thousands of Nevadans going without health care or leaving unpaid bills at emergency rooms.

Under provisions of the Senate-approved bill, residents without health care could receive federal subsidies to allow them to buy private health care policies, he said.

For the most poor, a 100 percent subsidy would be given. Others would pay up to 9.8 percent of their income.

"They probably would receive better health care than under Medicaid," Lawrence said.

He said some doctors refuse to treat Medicaid patients because payments for treatment are too low.
The other benefit of withdrawing Nevada from Medicaid is that it would make the federal government pay for its own program, instead of forcing the states to pick up some of the tab.

And as Geoff wrote on National Review Online today, Governor Gibbons could be starting a nationwide trend.
Gibbons’ actions may soon resonate in other state capitals as policymakers nationwide bridle at Congress’s dictating how limited state resources should be allocated. Harry Reid’s increasingly makeshift proposals are giving states every incentive to throw in the towel on Medicaid.

Thursday, January 14, 2010

Hey, ho, collective bargaining has got to go!


Governor Gibbons has proposed eliminating collective bargaining for teachers. This idea, if not vouchers (also hated by unions), may be his most controversial proposal. Predictably the Las Vegas Sun, among others, opposes this idea on the grounds that it would hurt the state’s ability to attract new teachers, asserting:
Part of the problem in education is that the schools have not been able to attract and retain top candidates because teaching jobs, which require extensive education credentials, don’t pay well. Teachers should be held accountable — and bad teachers have no place in a classroom — but we also believe they should be paid like the professionals they are with the heavy responsibility they carry.

On the contrary, it is collective bargaining that seriously hurts the state's ability to attract high-quality teachers. More importantly, collective bargaining has hurt students.

First, unions have negotiated costly certification procedures which keep out qualified adults. Unions (and union-sponsored legislators) have worked very hard to keep programs out of Nevada that would assist professional individuals become teachers. These stringent certification laws reduce the state’s pool of teaching applicants. Additionally, Nevada’s certification laws most likely also reduce the number of qualified minority applicants.

Second, unions have negotiated pay schedules that keep out highly qualified young persons and highly qualified transitioning professions by requiring such candidates to start at or near the bottom and then spend many years working their way up the pay scale.

Third, unions protect mediocrity through the tenure rules they’ve negotiated. Nevada's teachers can earn tenure in one to two years and after that it becomes very difficult to fire poor performers. When parents complain about really bad teachers, the teachers aren’t let go, they are moved to schools where parents are less likely to complain — often schools in low-income, high-minority areas. Thus seniority and tenure create a situation where the kids who need the most help are most likely to be taught by the worst teachers.

Collective bargaining should be eliminated to open the door for alternative teacher certification, merit pay and the ability to fire terrible teachers. At the very least, public employee unions should be restricted to negating salaries only.

Nevada’s teachers are adult professionals (ranking 19th best paid in the nation by the National Education Association), not migrant laborers or factory workers exposed to harsh working conditions. Union representation is costly and unnecessary in a 21st century white-collar working environment.

No head start from Head Start

*The U.S. government has spent about $100 billion on Head Start since 1965. The results could have been duplicated by simply burning $100 billion in cash.

Health and Human Services finally released the report on Head Start, the pre-school program for low-income students. The report shows, as many predicted, that Head Start has no lasting benefits on students' learning abilities.

Dr. Jay P. Greene states,

The study used a gold-standard, random assignment design and had a very large nationally representative sample. This was a well done study (even if it mysteriously took more than 3 years after data collection was complete to release the results).

For students who were randomly assigned to Head Start or not at the age of 4, the researchers collected 19 measures of cognitive impacts at the end of kindergarten and 22 measures when those students finished 1st grade. Of those 41 measures only 1 was significant and positive. The remaining 40 showed no statistically significant difference. The one significant effect was for receptive vocabulary, which showed no significant advantage for Head Start students after kindergarten but somehow re-emerged at the end of 1st grade.

Dr. Greene concludes that "The long and short of it is that the government has a giant and enormously expensive pre-school program that has made basically no difference for the students who participate in it."

The politics of Obamacare

Today's Morning Bell from the Heritage Foundation does a great job of detailing the backroom dealings happening with Obamacare.
And just what deals were Big Labor, the leftist majorities in Congress and the Obama administration making behind closed doors? How to pay for President Obama’s likely $1 trillion health care plan without raising taxes on one of the President’s most loyal constituencies: labor unions. Specifically, Big Labor reportedly has struck a deal with health care negotiators to exempt union members from the 40% excise tax on high-priced health insurance premiums. By some estimates, the tax would hit one in four union members. Now Big Labor will get all of the big government health care spending they always wanted, but they will not have to pay for it.

And Obamacare’s Big Labor handouts don’t end there. The legislation also sets aside $5 billion to subsidize the costs of employer health benefits for early retirees. As Heritage fellow James Sherk notes, few nonunion employers, of course, pay pension and health benefits for workers to retire at 55. And then there’s the small business exemption from the employer mandate for businesses with less than 50 employees. At first this applied to all small businesses, but after aggressive lobbying by Big Labor, non-unionized construction businesses were unexempted. Big Labor lobbyists explicitly admitted they wanted to use Obamacare’s job-killing employer mandates as a competitive advantage to drive non-unionized firms out of business.

So where does the White House and Congress propose to regain the revenue lost from exempting unions from the health care excise tax? The people who fund job creation: investors. The Obama administration wants to apply the Medicare payroll tax not just to wages but to capital gains, and for the first time ever, to dividends and other forms of investment income. This tax will hit seniors the hardest since many of them live off their dividend and interest income, in addition to their pension and Social Security checks. But it also hurts us all since high taxes on capital gains, dividends, interest and business income increase the cost of capital, thus depressing investment at the very time the economy needs new investment to grow and create jobs.
This isn't just another example of why the government shouldn't be picking the winners and losers. It's also a preview of how health care will be rationed once (and if) the government takes it over.

As we've seen again and again in places with socialized medicine, health care decisions get made by government bureaucrats once government begins paying for treatment.
Think I'm being dramatic? Check out Oregon and that state’s Oregon Health Plan, a government-run health-insurance option.

Wednesday, January 13, 2010

California's budget plan: Tax Nevadans?!

The headline from this LA Times column says it all:

Eureka! Why don't we take over Nevada?


The article is at least half-way joking (I think), but it does highlight some good budget lessons that Silver State policymakers could learn from. No, let me correct myself. It is the lack of fiscal knowledge demonstrated by this article that is so instructive. The author takes California's deficit as a given and at no point questions why the state spends so much money and whether all that spending is merited.

Instead, he's just looking for new people to loot. Think I'm exaggerating? These are his words: "Schwarzenegger could immediately seize the brothels and casinos, sending their profits to Sacramento."

It's funny how even high-tax predators recognize that sane people wouldn't stick around to bear the governmental burden, though. The author also notes, "Once those former Nevadans get a whiff of California's higher taxes, they'll flee the land -- leaving more room for the rest of us."

Great, so California is going to run Nevadans out of their homes so Sacramento can collect tax revenue from Nevada's mining and brothel industries? Here's an idea: Eureka! Spending reform!

If you don't know what that means for California, you can always get an idea from our friends at the Reason Foundation.

Obama's broken transparency promises

Eric Davis has great post up today over at TransparentNevada. Some good government groups have released a report card of President Obama's transparency efforts. And while these groups gave the White House a positive review, Eric disagrees and lists his reasons why.
That revolving door for lobbyists and former officials? Still open.

Health care negotiations televised on C-SPAN? Campaign gimmick.

Waiting five days before signing legislation? Not even close to happening.

If you want to talk about ethical behavior to Washington, I suggest you start with Timothy Geithner, Tom Daschle, Nancy Killefer or Vivek Kundra.

Oh and there's more. Be sure to read the whole thing.

Moral Hazards



Watch this video, "Economics 101: Moral Hazards" from the Center for Freedom and Prosperity at the Cato Institute. This short video is a must see for any elected official.

Tuesday, January 12, 2010

Out of pocket costs down, taxes up, premiums up



"Much of the rationale behind the current reform of the healthcare system is about controlling inflation in healthcare costs. However, based on the trend presented above, a better alternative to the semi-nationalization that the president has in mind would be to increase individual responsibility for medical decisions and costs. When people aren’t exposed to the true cost of their care—even if they pay for it in foregone wages and higher taxes—they consume more" says Veronique de Rugy is a senior research fellow at The Mercatus Center at George Mason University.

Read the full article, "The High Cost of No Price" here.

PC never died



In 1957 the U.S. Supreme Court said of the nation’s colleges, “Teachers and students must always remain free to inquire, to study and to evaluate, to gain new maturity and understanding; otherwise our civilization will stagnate and die.”

However, since the 1980s American colleges have suffered under the bizarre and Orwellian thought police known as “Political Correctness.” Today universities censor students and professors on both the right and the left. If someone is offended, you lose the right to speak your mind – in some cases you lose the right to simply hold a perception (or a thought).

The censorship is almost always patently absurd. In 2007, a student was found guilty of “openly reading [a] book related to a historically and racially abhorrent subject.” The student was reading a history book, Notre Dame vs. the Klan, focused on a street fight that took place between students and the Ku Klux Klan in 1924.

Remember UNLV’s dropped PC code that would have allowed people to call the campus police because of "bias"? The proposed code banned,

“verbal, written, or physical acts of intimidation, coercion, interference, frivolous claims, discrimination, and sexual or other harassment motivated, in whole or in part, by bias based on actual or perceived race, ethnicity, color, religion, creed, sex (including gender identity or expression, or a pregnancy related condition), sexual orientation, national origin, military status or military obligations, disability (including veterans with service-connected disabilities), age, marital status, physical appearance, political affiliation, or on the basis of exercise of rights secured by the First Amendment of the United States Constitution.”
(emphasis mine).

Vague speech codes and tiny out-of-the-way “free speech zones” are a direct violation of free speech in America. These policies allow universities to easily destroy whatever the administration does not like. In simple English, that is called “bullying.”

Want to form a club for students wishing to overturn the ban on concealed handguns on campus at Community College of Allegheny County, in Pittsburgh? Sorry, you’re banned from handing out your pamphlets.

Want to protest the construction of a school parking garage at Valdosta State University because of its harmful effects on the environment? Sorry, you’ve been expelled from school.

Want to protest budget cuts with your students at Southwestern College in California? Those professors were outside the free speech zone and were thus banned from the campus.

The authoritarian lessons learned by students from political correctness are simple – if you don’t like what your rivals say, you have the right to censor their ability to oppose your own position.

Read “PC Never Died” by George Lukianoff, the president of the Foundation for Individual Rights in Education.

Monday, January 11, 2010

Is the government manipulating education research?


Is the government manipulating education research again? President Obama wants to spend another $10 billion on early childhood programs like Head Start - a preschool program for low-income students. However, the U.S. government has yet to release a report highlighting the results of this program. The results are worth knowing; after all, $10 billion is a lot of money.

Since the data collection on Head Start was completed about four years ago, Dr. Jay P. Greene of the University of Arkansas believes that burying or manipulating education data might be one reason why we haven't seen the study.

According to Dan Lips of the Heritage Foundation, since the program's inception in 1965, the U.S. has spent over $100 billion providing pre-school for low-income students. But according to briefs and political insiders related to the buried and unreleased federal report, the program has no lasting gains for students. The data collection for the federally mandated report was completed in 2006 and the report itself was supposed to be released in March of 2009.

This seems very similar to last year’s education fiasco as the Obama administration attempted to secretly leak the promising results of the D.C. voucher program on a Friday afternoon – months AFTER Democrats had voted to all but kill the program.

Friday, January 8, 2010

Live blogging the Nevada Vision Stakeholder Group (bumped)

As promised, I'm here at the first meeting of the Nevada Vision Stakeholder Group (NVSG). Scroll for updates...

9:16 They just finished the introductions of the 26 members and alternates. I thought I had grabbed a list of members for easy reference, but I don't have one, so I apologize if my names are sketchy.

9:16 Point of the NVSG, and this is a direct quote from one of the handouts. NVSG "will build consensus, develop strategies to move Nevada forward, create a vision to inform the revenue discussion, and help create a plan to keep track of progress."

We aren't just blowing smoke when we write that the Stakeholder group is meant to give cover for raising taxes.

9:23 Chair Robert Lang: This is a strategic planning group. Big impact on how revenue is distributed.

9 meetings scheduled. 2 a month through April and then a wrap up meeting in May.

9:30 Moody's analyst, Michael Helmar, is trying to define quality of life. Quotes the United Nations, BusinessDictionary.com and BNET Business Dictionary. "There is no real set quality of life indicator."

All these definitions (and their differences) show the foolish of government trying to define quality of life. All that's going to happen is that these Stakeholders are going to pick the winners and losers in Nevada's future economy.

Better idea: Let individuals define their own quality of life. Government should stick to providing its core functions - roads, police, fire, education - and let its citizens enjoy the freedom the government is suppose to be protecting.

9:37 Helmar: Stakeholders get to define quality of life. Quality of life must be measurable. Quality of life factors must be actionable.

This is the problem with any group trying to define quality of life. Every individual is unique and everyone has their own ideas about what makes their life better. Forcing someone to confirm to your idea of quality of life is the opposite of liberty.

9:40 And it begins. Different special interest groups staking their claims to what makes "quality of life."

9:42 Soon-to-be-forgotten goal from Helmar: Create a situation where no one is worse off.

Sounds good, let's hold them to this standard when the tax increase proposals start coming.

10:00 Moody's is reviewing how Nevada fairs in the quality of life indicators its identified. Some of the factors include: Demographics, labor, economic structure, income, education, housing, health care and household credit.

Basically it's going to be a lot of background for the next little bit.

10:19 Interesting notes on industrial diversity. Reno has increased its economic diversify by 150 in the last 20 years. LV has increased its economic diversity by 75 percentish. And most small states aren't economically diverse.

10:25 Percentage of NVSG members showing bored body language. Over 75 percent. Don't worry they're only determining your future. Not that I blame them for being bored.

10:27Moody's talks about the benefits of targeted tax breaks. Also a bad idea -- government shouldn't be picking the winners and losers even if it's done with tax cuts.

10:35 Don Snyder: State hasn't done a good job saving in the good times to prepare for the inevitable down times.

Amen.

10:39 Moody's: Tax differences between CA and NV have allowed trucking and shipping industry to grow in Reno.

10:44Good news. Aside from Pahrump, most areas of the state have a much lower poverty rate than the national average. And as the next slide shows this is despite (or because) Nevada residents are less reliant on government handouts that the national average. But as with all these rankings and comparisons, I'm really not a fan.

10:50 10 minute break. Will return shortly.

11:05 Meeting resumes and education's up next.

11:12 Slide headline: "NV's education gap smaller than it appears" (when adjusted for US rate of occupations, age, race & ethnicity).

Do some of the stakeholders look upset at that?

Moody's point though: Our education level is suited to our economy. If we want to change (Chair Lang: We want to change) then we need to increase education acheivement.

11:24 Uh-huh. Great point by Janelle Kraft Pierce. Many slides are out of date (from 2006, 2008, etc...)

That's one of the reasons why government shouldn't be trying to set goals like this, they don't (and can't have) the necessary information. Moody's defends info because it doesn't change that quickly.

11:30 Nevada education spending is below the national average. Too bad they failed to mention that Nevada has increased inflation-adjusted, per-pupil spending by 169% over the last 50 years.

11:33 For education reforms that have actually worked, check out Florida. Note: Florida is similar to Nevada demographically.

11:34 Alan Feldman: Isn't Nevada's problem that we don't spend enough?

Really?



Moody's hedges. I won't -- check out this chart. More money doesn't equal better educational results.



11:37 Doug Busselman challenges the idea that more spending equals better results.

11:38 Someone whose name I can't see, asks if our kids our prepared to learn - aka don't we need full day kindergarten.

11:41 Boyd Martin challenges the idea that more money equals better results, because of Utah. Canto Jr. says not a fair comparison, because Nevada's more diverse.

But Mr. Canto Florida is similar demographically and check out Florida's improvement (especially among minorities) in the last 10 years after instituting a series of education reforms.



11:47 Most enjoyable part of this exchange - watching Helmar from Moody's trying to agree with the Stakeholders on both sides of that discussion

11:51 Moving onto home ownership. General agreement that home ownership is good.

Just a reminder that creating a housing bubble contributed to this recession in the first place.

12:01 People are still looking bored. Chairman Lang is leaning back so far in his chair that I'm half worried he's going to fall over (or asleep).

Again I really can't blame them for zoning out and I wouldn't care except that these 19 people are going to tell us that they are uniquely qualified to spend our tax dollars.

12:08 Moody's Helmar: What will you (NVSG) do about health care?

My suggestion: stay alert or stop pretending you know how to run individuals' lives better than they do. I'd prefer the latter...

12:11 Moody's Helmar: Nevada needs to give more health care to poor kids.

Poor, by the way, equals household income under 200% of federal poverty line. Uninsured rate for those kids is just under 30 percent in Nevada.

12:18 Moody's presentation ends. Opening the floor up to other quality of life factors.

12:21 Janelle Kraft Pierce: Don't forget public safety! Thomas Perrigo: Don't forget energy or transportation either!

Perrigo: Quality of life factors should include - greenhouse gas emissions, lower energy usage among Nevadans, vehicle miles traveled.

Wow. Some on the NVSG want to do more than just take your money, they'd like to control your life. How many stakeholders believe in freedom?

12:29 Chairman Lang sounds exactly like a college professor I once had. Great deep voice. Too bad a generally disagree with what he's advocating.

Lang wants a peer group defined, must include Orlando -- similar because of Disney.

12:33 Perrigo's back and now he wants more transit in the city. Here comes the liberals' wish list of projects.

12:35 Denise Tanata Ashby wants early childhood education, juvenile justice indicators, child welfare, mental health and physical fitness included as quality of life factors.

12:37 Pierce wants to emphasize public safety. Alan Feldman wants factors viewed in light of Nevada's racial make-up.

This meeting is going exactly as NPRI (Geoff Lawrence specificly predicted).
Yet the IFC's tax study is about much more than merely a new corporate income or gross-receipts tax. It's also intended to give cover for unprecedented expansion in the size and power of government. The IFC instructed Moody's not simply to consider how to reduce revenue volatility so that state government can continue its current operations. Moody's must consider how to fund a bevy of new spending programs to be proposed by a "stakeholder" group convened by the IFC.

The Nevada Vision Stakeholders Group, as it is called, is nothing more than a collection of special-interest groups — primarily, public employees and union representatives. The NVSG's ostensible purpose is to develop "quality of life" targets for residents of Nevada over the next five, 10 and 20 years, plus ways to achieve those targets.


12:41 Katy Simon: Let's include civic engagement - rates of voter turnout and philanthropy.

12:43 What about freedom? Shouldn't that be an indicator?

12:45 Meeting is wrapping up with public comments.

12:59 Jan Gilbertson of PLAN makes a comment I agree with -- stream these meetings online!

1:01 Keith Smith makes the case that casinos already do more than anyone else for Nevada. And with that the meeeting ends.

The next meeting is January 29. I won't be able to be here, but I'm 90 percent sure Geoff will be at the meeting, probably testify and maybe do a live blog.

Regardless keep reading WriteonNevada and NPRI.org

As this is a live blog, please forgive any spelling errors. If I have time I will be back and proof my work, so if things change, that's why.

Education reform 2010


Governor Gibbons’ plan to improve education is on the right track. Many education experts now recognize that school districts’ priorities are out of whack — too focused on complying with often contradictory laws, rules and regulations coming from the feds and the state, on launching more programs and on creating jobs for adults. (Check out the more than 30 reports on this subject from the non-partisan Center for Reinventing Public Education at the University of Washington.)

To help eliminate state-level mandates and decentralize control of schools, the governor proposes two big changes. One eliminates mandates that districts must use certain money only for class-size reduction and full-time kindergarten. Basically, the plan is to give at least some of the money back to the school districts to use as they please with no legislative requirements on how to spend the money.

Watch out for political spin as opponents (and misguided journalists) report this as an attempt to eliminate the programs altogether. Actually, if we did eliminate the programs, the state would save about $350 million a biennium with no ill effects on the children.

Here is why:
  • Class-size reduction merely reduces the ratio of students to teachers, not necessarily the size of classes.


  • Class-size reduction can have modest benefits — but only when good teachers are in the classroom. Think about it. If your child has a great teacher, getting more personal attention for your student is good. But if the teacher is mediocre, or even bad, the personal attention won’t matter.


  • The effectiveness of teachers is the overriding issue. Research has established that highly effective teachers are 10 to 20 times more effective than small class sizes. Thus, if Nevada had a way of identifying and rewarding great teachers, we could have larger class sizes and higher student achievement at the same time.


  • Nevada, however, lacks any systematic way of identifying good teachers — such as the meaningful teacher evaluations that use student-testing data. And because districts lie down before teacher-union bosses and refuse to give superior teachers superior pay, class-size reduction only increases the likelihood that your children are exposed to teachers who are mediocre (or worse).


  • Nevada’s teacher certification laws also make it difficult to hire great teachers. Not only does the state lack an alternative certification program that would allow professionals to switch to teaching without returning to college, but state law even prohibits school districts from hiring college professors unless they’ve been certified to teach K-12. No certification is required to teach college students. See a problem?


Thursday, January 7, 2010

First meeting of the Nevada Vision Stakeholder Group tomorrow

And yes I'll be live blogging it starting at 9 am. If you have extra time tomorrow, you should swing by the Grant Sawyer building in Las Vegas or the Legislative Building, Rm 2134, in Carson City and watch unelected "stakeholders" decide where they want the state to be in 20 years. Which really means, how they are going to try and justify a tax increase in 2011.

And that's not just my analysis. Assemblyman Anderson admitted that at one of the early tax study committee meetings.
10:18 A passing comment from Assemblymen Anderson reveals the true purpose of this study. "We don't have money. That's the reason we're doing the study."
The agenda is here. They are not going to be streaming it over the internet — hmmm I wonder what they don't want you to see — but I will do my best to give you a sense about what's happening.

Until tomorrow, check out this commentary from Nevada Business on why the stakeholders group is a farce.

Sen. Reid health care meeting tonight! Registration required

Sen. Harry Reid is holding a health care meeting tonight at 4:30 (but arrive early to get a seat) at UNLV. He tried only telling his supporters, but with Michelle Malkin, The Corner and Instapundit picking it up — the word got out to everyone.

Here are the details. Please remember to RSVP to get a seat and express your disagreement (or support) respectfully. I hope to see you tonight.

Sen. Harry Reid will speak at a health insurance reform event in Las Vegas this week. Join him to learn more about what this important legislation will do for Nevadans.

Health Insurance Reform Event with Sen. Harry Reid
When: Thursday, January 7, 2010. Please arrive at 4:30 p.m. Program begins at 5 p.m.
Where: Judy Bayley Theatre on the campus of the University of Nevada, Las Vegas.
RSVP: rsvp@nvdems.com or 702-737-8683

PLEASE NOTE: Parking for this event will be in the large parking garage off of Cottage Grove Avenue and Maryland Parkway. From Flamingo, head south on Maryland Parkway; Cottage Grove Avenue is the first right. The parking garage will be on the left-hand side. Please park ONLY on floors 2-6.

A parking map can be viewed here: http://maps.unlv.edu/PDF/main-parking-color-abbrev.pdf. The parking garage is marked as "A" on the map. Class is currently not in session, so parking should be better than usual.

To attend this event, you must RSVP with your name and telephone number to rsvp@nvdems.com or 702-737-8683.

For security reasons, do not bring bags. Please limit personal items.

Wednesday, January 6, 2010

The governor's new, ambitious education agenda...

The Sun's got news coverage, and here's an excerpt from NPRI's official release:

"Today is a day of hope for Nevada's children thanks to the governor's proposed education reforms," said NPRI analyst Patrick R. Gibbons. "For 50 years, Nevada education policy has misallocated spending to create union jobs, rather than educate our children. The results speak for themselves. While Nevada's inflation-adjusted, per-pupil spending has nearly tripled over the past 50 years, student performance has been stagnant.

"If enacted, Gov. Gibbons' proposals would amount to a win-win both for Nevada's families, particularly those with low incomes, and for the state," he added. "Under school-choice programs, parents have the freedom to remove their children from failing schools and select one that better fits each child's unique needs and abilities. Additionally, all Nevadans would benefit by dropping budget-busting programs that fail to improve student achievement, such as collective bargaining, full-day kindergarten and class-size reduction."

Tuesday, January 5, 2010

Secret health care deliberations

Rumors among DC insiders on both the right and the left are saying that congressional leaders Nancy Pelosi and Harry Reid are planning to bypass the standard procedure for reconciling differences in the two health care "reform" bills passed by the House and Senate.

Normally, the next stage in the legislative process would be to form a Conference Committee made up of representatives from both houses who would work together to resolve the differences in the two bills and send them back to each house for a final vote. The composition of a Conference Committee is generally reflective of the composition of each house, meaning that it would include Republicans and moderate Democrats. Reid and Pelosi see this as a risk that's not worth taking.

Instead, Reid and Pelosi are holding closed-door negotiations starting this week with only high-ranking leftist Democrats (even though Congress does not go back into session until January 12). Reportedly, they plan to craft a series of amendments to the recently-passed Senate bill that can be taken up by the House and yet still garner the 60-vote approval needed to get it back through the Senate. Commentators are comparing this strategy to a game of ping-pong where the legislation keeps bouncing back and forth between each house.

The congressional leaders' strategy will lock out Republican opposition for the most part, but they will still have to ensure they can buy off enough votes in the Senate to keep their own caucus together. The far-left wing of the Democratic Party will be looking to "strengthen" the Senate bill by re-inserting some form of a government-run "public option." Currently, the Senate bill does not include one. It is primarily a massive expansion of Medicaid combined with federal subsidies for individuals living up to 400 percent of the federal poverty line to purchase insurance on the newly-created "exchanges." (There is also a mandate for every American to purchase health insurance or face fines or jail time.)

Yet, Reid has already had difficulty securing all of his fellow Senate Democrats' votes on the legislation and significant changes could endanger that support. (As has been widely criticized, Senator Reid had to insert a provision stating the federal government would cover the State of Nebraska's higher Medicaid costs indefinitely in order to purchase Senator Ben Nelson's vote. Nebraska is the only state to get such preferential treatment - meaning there would be a wealth transfer from all other states to Nebraska as a result of the bill.)

It will certainly be interesting to see what the outcome of all this becomes.

Update:
C-SPAN's CEO has written a letter to congressional leadership urging them to allow coverage of the debate. However, something tells me that when Reid, Pelosi and the Obama Administration say something, they mean it. Well, if it's that they won't raise taxes on the middle class, they might not mean it...but I'm sure they'll put their foot down when they say "closed-door negotiations."

Monday, January 4, 2010

New from NPR: 'Learn to speak tea bag'

That's new from NPR, as in the publicly funded National Public Radio, not NPRI, your liberty-loving friends at the Nevada Policy Research Institute.

Something this vile — that's funded by your tax dollars — really must be seen to be believed. And why not see it? It involves what could be the biggest political story of 2009, and you're paying for it.

There'd be nothing wrong with this type of speech — aside from being immature, unsophisticated and wrong-headed — if it were funded privately. But as another example of government picking the winners and losers, this publicly funded political speech is yet another reason why NPR should receive no taxpayer dollars.

And yes, I'd feel the same way if NPR had a conservative/libertarian bias. The principle that government shouldn't pick the winners and losers applies even when it looks like government intervention is benefitting you in the short run.

(h/t Hotair)

What will be the future of the Tea Party movement?

Mike Munger, chair of the political science department at Duke University and an old friend of mine from my days in North Carolina, has penned a great analysis on the potential impacts that the Tea Party movement could have for the future. It's worth a read, but here's the highlight:

Here’s my prediction: Years from now, it will turn out that the biggest story of 2009 was the Tea Parties and the meteoric rise of their standard bearer, Sarah Palin, after her strange July resignation from Alaska’s governorship.

The Taxpayer-Subsidized Bowl

Neal McCluskey at Cato had an interesting article the other day on the subsidized nature of college football. While it won't have a big impact on Nevada taxpayers this year, the lesson is clear: Make sure you watch all the bowl games because chances are, you're paying for them.

Friday, January 1, 2010

Happy New Year


*By Chip Bok