Recently I published my column entitled "Jody Richards and the amazing Frozen Clock." Jody Richards wasn't happy and responded with a letter to the editor in the Danville Advocate Messenger, which you can read at HYPERLINK "http://www.amnews.com/public_html/?module=displaystory&story_id=40650&format=html" http://www.amnews.com/public_html/?module=displaystory&story_id=40650&format=html

I normally don’t respond to such letters, but I think this dialogue is far too important for our state right now. Please enjoy my response below:

It was with delight that I read Speaker of the House Jody Richard’s response to my earlier column, "Jody Richards and the Amazing Frozen Clock." It is high time that this dialogue begins in our state and the fact that our legislators have turned on their radars to such criticism is a good sign.

However, I am severely disappointed in the lack of substance to his response. Understanding that it was probably written by an unnamed staffer, I must still take issue with several points in the Speaker’s argument.

First, he says that Kentuckians are "starting to feel the pain" of harsh government cuts which he claims are the impact of the Republican controlled Senate version of the budget – which the House agreed to and the Governor signed. But maybe the pain we Kentuckians are beginning to feel is more akin to the sharp jab of a continued failed tax policy that hurts small businesses and heads off big business before it gets here. This policy would have been made even worse if Speaker Richards and his leadership team had their way.

Speaker Richards contends that his leadership team put together a budget that fully funded state government programs including help for the poor. However, they turned their nose up at Representative Melvin Henley’s bill (HB190) that would have reformed our welfare system and saved taxpayers millions of dollars while making sure help gets into the hands of those who truly need it. I applaud efforts to help the needy, but legislators should not forget their fiscal responsibility to the hard working taxpayers who ultimately bear the burden of the poor in our society.

Even though they turned their back on a pension reform deal the House Leadership team had initialed just hours before, the Speaker still asserts that the House of Representatives came up with "meaningful pension reform." Is this the same reform that would have allowed the continued double dipping of state officials in the pension system at taxpayer’s expense? Many state officials are allowed to retire at close to full pay, only to take a second full time state job and retire from that one again 20 years later with two pensions. This expense alone to those of us whose taxes fund the program is staggering.

The Speaker mentions "other quality legislation" that passed the House and then failed in the Senate. His definition of quality legislation and mine are probably quite different, but allowing for this, I stand by my original position. The State House wasted the majority of its time squabbling over how much to raise the cigarette tax and how many casinos they could build in Kentucky. It was not until the 11^{th hour that they realized what they had done and had to freeze the clock to finish up.}

Perhaps the most entertaining part of Speaker Richards dissent was his indication of a "partisan Republican poll" which showed that Kentuckians gave "higher marks" to the House than to the Senate or to the Governor. Is he kidding? That same poll, which was released by KYpolitics.org, also showed that by an 8-1 margin Kentuckians thought the entire session was unsuccessful. 57% percent blamed the Governor and the Democrats in the House. What’s more, it showed that 75% of Kentuckians rejected the idea of higher taxes. Interestingly, the House wasn’t debating whether or not to raise taxes, but instead by how much. Does the Speaker really sleep easier at night knowing that while he is not liked, at least he is not liked less than others in government?

While Speaker Richards’ arguments are not without passion, he fails to address many specific points of my earlier column. Last week, House Majority Whip Rob Wilky announced that he is not going to return to the legislature next year, asserting in an email that "we served no one well." Upon leaving, it appears he felt he could speak his mind.

State Representative Susan Westrom also joined the fray. Arguing passionately in an email to House Leadership that they had intentionally left other House members in the dark and had set their own agenda without regard to what members of their own caucus said their constituents needed. Westrom ended her email with this ominous assertion:

Westrom is making an apparent response to Rep. Dottie Sims who was summarily removed from her post on the important House Elections Committee after switching her vote and going against the Speaker’s wishes.

Speaker Richards timely response to my earlier column would have been a lot more effective if he hadn’t failed to address so many of these key points of importance. But I suppose that is just what we should expect from a career politician. He must assume that we don’t remember the facts or at least won’t check them. I for one am glad that many Kentuckians, and now apparently some Legislators, are smarter than that. Speaker Richards should be careful what he wishes for. It appears his own political clock could soon stop for good.

The next time I am running late for work, I think I’ll try calling into the office and asking them to freeze the clock.   Maybe I can do it tomorrow and just sleep in.   A couple of extra hours of snooze time might be nice once in a while.   Why couldn’t I do that?   After all, that’s what our legislature did.   Kentucky House Speaker Jody Richards and his feckless troops were able to miraculously, even if unconstitutionally stop the clock in the waning hours of the last night of the legislative session.  

According to the Kentucky Constitution, the legislative clock must time stamp all bills voted on as being approved before midnight on the last night of the session.   As time wound down last week, the House of Representatives was in disarray.   So they just froze the clock and kept on working.  

Many have applauded the creativity of such shenanigans so that the ubiquitous chamber could “continue the work of the people” by lamplight into the wee hours of the morning.   But what they did was not only unconstitutional; it was the result of 59 days of missing the mark on the most important issues facing Kentuckians.   The truth is what the sluggish chamber was actually up to was more akin to cramming for a test the night before a big exam because they had failed to study when they were supposed to.    The problem is – they still answered the wrong questions.

If it weren’t for common sense in the State Senate we may all be reaching for our wallets right now.   The House of Representatives wasted so much time during the course of the session arguing over how much they were going to raise our taxes and how many casinos we could bring to Kentucky that they almost failed to pass a state budget.   Interestingly, none of their tax hikes or expanded gambling ideas made it to the Governor’s desk.  

The fact is they simply failed to address many important issues for the Commonwealth including one that portends a looming economic crisis.   Not a made up crisis like Steve Beshear and his funny money buddies have been throwing around, but an honest to goodness economy killing crisis.  

Despite reaching a deal on Pension Reform with the Senate in plenty of time to take a vote, somehow between reaching the agreement and getting back to his chamber, Speaker Jody Richards “lost control” of the House of Representatives and they failed to pass the bill – even though they gave their word to Senate leadership and had a frozen clock.

Pension reform is one of those difficult to tackle problems which will soon affect a large number of Kentuckians.   It’s a long and convoluted story, but in simplistic terms the system is currently under funded for keeping its promises.   Ultimately if reform is not addressed, the liability to the state could be devastating.  

Watching this year’s legislative session on the House side was like watching a sandbox full of four year olds.   Acts of maturity were few and far between and important issues were left to the end of the docket or not covered at all.   The House was too busy trying to sneak new taxes into innocuous bills or squabbling amongst each other for territory, power and idiotic legislation.   In the end the failure was dynamic and broad in scope.  

It was the Senate that stepped in and fixed the budget.   It was the Senate that pushed meaningful legislation and defended Kentucky taxpayers.   And it was the Senate that ultimately offered sound pension reform.    The House meanwhile turned its nose up at a solid illegal immigration bill, cost saving welfare proposals, and powerful sanctity of life legislation.  

Now the governor is talking about calling a special session to address pension reform.   Let me get this straight.   They couldn’t get it done in 60 days, so we’re going to pay them more money to come back later and give us more of the same?   No doubt this too will degenerate into a raucous frat house discussion about just how much coin they can lift from the pockets of unsuspecting Kentuckians or how many gambling boats we can get on the Ohio River.   Can we really afford to let our representatives play these kinds of games with the public treasury?   Maybe before they head back to Frankfort to raise our taxes or expand legalized gambling in the name of much needed pension reform we can stop the clock on them. 

Join the Fayette County GOP for their Reagan Day Dinner this Saturday April 26th at the Griffon Gate Marriott Paddock Tent. 

Featured Speaker:  Mike Duncan, Chairman of the Republican National Committee. 

Tickets are $100 for adults, $50 for students.  Join the GOP as they celebrate one of the greatest American

Posted By:Leland Conway @ 4/21/2008 10:16:00 PM
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I had a terrible dream last night.  It was the beginning of Barak Obama’s second term in office.  My wife and I had just finished seven grueling years of making triple payments on our mortgage in order to pay off our home loan 23 years early.  We had just become completely debt free and planned to build our retirement after a celebration vacation.  For years now we had chosen to deny ourselves many of the luxuries that our neighbors, friends and family had purchased on credit in order to achieve this goal. 

I received a letter from the newly formed United States Department of Reapportionment, a sub department of the North American Union Economic Justice Council.  The first paragraph rambled on in congratulatory fashion about how we should be proud of having paid off our debts to society in such a timely manner. I remember thinking it was strange that they had paid such close attention, but the second paragraph suddenly sent chills up and down my spine.  I stood frozen in disbelief.  We had been chosen, according to the letter, because of our income level for “debt reapportionment.”  A new government program designed to mandate “equality and fiscal stability” for a nation and individuals heavily in debt.  We were about to have our wages garnished by a percentage nearly equal to the debt payments we had been making for the last 7 years for the sake of re-establishing equal opportunity for all.

We, like many others in our income bracket, would be shouldering the largest portion of the national debt, as well as a significant share of bad personal debt that had been accumulated by many citizens prior to the great credit crash of ’08, many of whom were now receiving subsidies to help them recover. After all, this was only fair.  That’s when I woke up in a cold sweat.

Many of you may think this sounds far fetched but consider this.  The national budget for 2010 is slated to be around 3.7 trillion dollars.  That’s bad enough, but if Barak Obama or Hillary Clinton becomes President, their spending initiatives would nearly double that amount without paying down the national debt. 

Both Clinton and Obama have been campaigning on the promise of lavish spending and government fixes to prop up the ailing economy.  They want subsidies for mortgage foreclosures, subsidies for low income earners, subsidies for this group and that group, but no talk of personal responsibility or tax relief.   And who will pay for it all?

They blame conservatives for our economic problems, yet it has been since the Democrats won a majority in the House and Senate that unemployment has risen by over half a percentage point, gas prices are higher by $1.00 per gallon, home foreclosures are up and general economic conditions have worsened. 

Meanwhile, the liberals in Washington are proposing the largest tax hike in U.S. history, $700 billion, all under the guise of stabilizing and improving the economy.  For those of you who think this tax increase would be just for the rich, think again.  If your household income is between $40,000 and $60,000 dollars per year, plan on forking over an additional $2400 in taxes. 

Democrats like Barak Obama are truly out of touch with hardworking Americans in heartland states like Kentucky.  Consider his recent comments to an audience in San Francisco.  “…it's not surprising then that they get bitter, they cling to guns or religion or antipathy to people who aren't like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations."  Personally I take this as an insult to Mid-America. 

Even prominent Kentucky Democrats are balking at the audacity of this statement.  Former State Democratic Party Chair Jerry Lundergan said, “When he campaigns here, Sen. Obama will learn that we have a strong commitment to faith, to family and to the freedoms of the Constitution. The families of Kentucky are proud, not bitter.”  Former Attorney General, Representative Greg Stumbo said, “After representing eastern Kentucky for 25 years, I can tell you what we don't need are stereotypes that discount our faith and our values. We need a President with a real plan that produces real results.”

The Obama’s and politicians like them seem to think we can tax our way to the American Dream, but what they will really achieve is a higher rate of dependency on government.  Last week Michelle Obama said that “…some people will have to give up a piece of their pie so that others can have more.”  I find that ironic since the Obama’s only gave 1% of their personal pie to charity last year according to their tax returns.  The Clintons, the Bush’s and the Cheney’s all gave amounts roughly equal to 10%.  

This type of liberal elitism and poor economic policy is no way to create hopes and dreams.  For Kentuckians and many Americans it will amount to a fiscal nightmare.  Obama can’t fix our economy by attacking our heritage, our faith or our right to defend our lives and property.  He should be proposing ways to put money back in the hands of hard working Kentuckians and Americans while freeing us from the unruly burden of big government.

Why can’t Governor Steve Beshear and the Democrats in Frankfort be honest with us about their plans to raise taxes?  I am growing weary of hearing the phrase “raising revenue” every time they open their mouths.  For some reason, they believe that most Kentuckians don’t understand what they mean by this statement.  They may have made a serious miscalculation.  I think most of us know exactly what they intend to do.

The phrase “Raising additional revenue” ranks right up there with other hijacked phrases in the progressive era of the modern English language like “economic justice,” and “economic sustainability.”  It sounds good on the surface until you realize where the money comes from.  These phrases are less about the programs being proposed and more about gaining power through the systematic redistribution of wealth.

In the private sector, when we think of raising revenue, we think of selling widgets to make a profit.  But for government it means asking you to give up more of your profits for the common good.  The problem is more taxation will hurt the common good.  Government already has enough but they do not manage it well.  They don’t need to raise revenue, they need to cut spending.

Just in case you’ve bought in to the Governor’s hype, consider first the $275,000 Kentucky taxpayer dollars going to an ATV training facility in Eastern Kentucky, or $249,000 dollars for a little league batting cage in Harlan County, and many other less than necessary projects totaling millions of dollars – now tell me there’s no more room to cut.  In and of themselves, these budget projects are noble, but at a time when the Governor claims we’re in a “sky is falling” financial crisis, they seem a bit ridiculous.

While taxpayers are under assault all across America, at least in some states they are more upfront about it than others. In Illinois a state Representative has proposed what is being called the “Robin Hood Referendum.”  This ridiculous idea suggests doubling the existing income tax rate on everyone making more than $250,000 a year while giving everyone below that income level a $300 tax credit.  The result is a net surplus for the state, the majority of which will supposedly go to pay for healthcare, education, and welfare.  This instance is particularly egregious because it is done by public referendum, which means it amounts to a bribe being offered to the masses in order to gain public approval for governmental theft from a minority group (i.e., the upper middle class.) 

The Illinois idea is very similar in philosophy to the failed Kentucky House Bill 262, which proposed a 2% tax hike on everyone making over $75,000 per year, expanding the estate tax and adding .70 cents to the cigarette tax.  The difference between the two is not the level of immorality engaged in by government, but rather the level of openness.  One Illinois legislator openly and brazenly said on the House floor, “Let’s take from the rich to give to the poor.”  At least in Illinois they gave upper middle income earners due warning so that they will have time to pack up their things and move to some other more tax friendly state and continue to create economic prosperity all around them. 

Here in Kentucky the democrats in Frankfort felt the need to hide their tax hikes and other revenue raising proposals inside a bill that purported to give a tax exemption on the sale of Lemurs.  We were dubious, and it didn’t work, so they’re going to try another route.

Shortly after the state budget passed with no new taxes last week, Governor Steve Beshear gathered his friends in the media for an impromptu press conference outside his office.  He said he was not satisfied with the budget, added that there was a 5.7% percent decrease in state revenues in the month of March and that this constituted a financial crisis of epic proportions.  That’s when he floated the idea of calling the legislators back into special session to “raise revenue.” That’s Democrat speak for raising taxes. 

The media happily trumpeted this deep drop in revenue to help the Governor justify his plan.  But the truth they didn’t tell you is that January receipts were up 6.7% and February was up 2.2%.  That’s a net gain in the state’s coffers!

If the Governor and his buddies in Frankfort were seriously interested in changing the future of Kentucky’s economic status they would consider cutting taxes.  Cut taxes on business, cut taxes on the rich, cut taxes on the middle class, cut taxes on the poor.  Then start cutting spending.  Cut spending on social welfare programs, cut spending on administration, cut spending on everything.  If it moves, cut spending on it!

While Ohio, West Virginia and Tennessee are all doing tangible things to attract high paying jobs, Kentucky continues its regressive tax policies under a new governor who wears old clothes.  The trouble for him is we are all starting to recognize that his outfit doesn’t match.

As the world’s richest nation, I believe that we have a moral obligation to help those who cannot help themselves.  But that is where the taxpayer’s buck should stop.  Are they seriously telling us that 10% of the American population and 14% of Kentuckians can do no better for themselves?  Some blame the faltering economy, others blame the current President.  I blame the majority of it on bad personal financial decisions and the dangerous emergence of a dependant society. 

CBS television did a national story on this subject in which they featured a single mother who had four children and two grandchildren.  She said she had two jobs and received food stamps but still had to stretch a bag of beans to feed her kids.  Yet on the video of the story a glimmering object caught my eye.  As the woman turned her head toward the camera you could clearly see a blue-tooth cell phone device in her ear.  This brought to mind a few questions.  Why is she able to afford an expensive cell phone accessory but not food for her children?  What other priorities does she have out of place?  And most importantly, why does our society increasingly expect taxpayers to cover the poor financial decisions of able bodied Americans?

By now, many readers probably think I am just being mean.  But I am in no way saying that we should not care for those with real needs.  I also firmly reassert my opinion that we have a moral obligation to help those who cannot help themselves.  But again I have to ask – is this the best we can do for ourselves? 

The rise of big government and the loss of self reliance in this nation fail to honor the experiment laid forth by our founding fathers.  Benjamin Franklin once said, “All the Constitution guarantees us is the pursuit of happiness; you have to catch up with it yourself.” 

The annual cost of the American food stamp program is staggering.  An estimated $36 billion dollars will be spent to provide the benefits this year alone. Doing simple math, if you assume that there are 300 million Americans and half of them do not pay taxes because of their age or income level that leaves a tax liability in the range of $250 per year for each paying American just to cover one welfare program. 

Many politicians are more than happy to propel this concept of bigger government and lavish welfare spending into reality as they pander for votes.  As they raise taxes, they use terms like “wealth redistribution” and “economic justice” to describe these dangerous policies.  What they are really doing is placing a tax on excellence.  The more you earn, the more you are punished.  “Economic Justice,” it turns out, is the politically correct phrase used for taking from those who earn and giving it to those who don’t.

In reality, these programs have done nothing to eradicate poverty.  What they do is foster a dangerous dependence on the state that is justified by a collectivism practiced in the name of social welfare and the common good.  While some people truly can’t help themselves and should be cared for by a moral society, many can certainly do more for themselves and should be expected to.  When programs like food stamps are not allocated for the specific benefit of the helpless, they amount to nothing more than forced charity, which, whether by the government or through other means is not charity at all, but is in fact theft and socialism. 

Meanwhile, USA Today reported that police departments all across America don’t have enough funding for full staffing.  They are turning to civilians to answer minor 9-1-1 emergencies.  Why do we think it is ok to make cuts to funding for our safety while no one calls for more accountability in our welfare system?  Kentucky State Representative Lonnie Napier’s House Bill 221, which would have required drug tests for all of those receiving welfare benefits couldn’t even get a fair hearing in the legislature. 

Our founding fathers declared that Government’s chief responsibility was providing the security and infrastructure to guarantee equal opportunity, not equal circumstances.  They did not intend for government revenue to be used as an insurance policy against tough financial times or a failure to prioritize our checkbooks.

CBS and the other major media outlets said the problem was because of a downturn in the economy.  I say it is because of a dangerous trend toward avoiding the consequences of poor decision making by turning to a bigger government.  Alexander Fraser Tyler wrote in The Decline and Fall of the Athenian Republic, “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the Public Treasury.”  Have we reached this tipping point in our society? 

The New York Times headline read, “As Jobs Vanish, Food Stamp Use at Record Pace.”  I would have written it differently: “As American Sense of Pride and Self Reliance Vanishes, Americans Turn to Big Government for Bailout.” 

Governo Steve Beshear campaigned on ethics reform in government.  Kentuckians have become accustom to such promises from Frankfort not having any teeth at all.  Beshear has introduced some intriguing ethics reform ideas.  But if he really wants to put his money where his mouth is, he should support the following bills being offered by Rep. Jim Decesare: 

Introduced 2008 House Bill 413 (Allow public inspection time for all appropriations and revenue measures) to prohibit the House or Senate from taking a floor vote on a bill, amendment, or free conference report which authorizes spending money or increasing or decreasing revenue receipts without a 24 hour waiting period after the bill becomes available to the public on the legislature's website or in the Legislative Record.

Introduced 2008 House Bill 105 (Taxpayer Transparency Act of 2008) to require the Finance and Administration Cabinet to set up and maintain a single, searchable website containing identifying information about state Treasury expenditures and transfers in excess of $5000. The bill exempts from disclosure transfers between two state agencies or payments of government assistance to an individual. The bill allows the Finance and Administration Cabinet discretion to request additional information and requires all state agencies to comply with those requests. The bill requires the website to be available for public viewing by January 1, 2009 and requires all information for a fiscal year to be available on the website within thirty days of the end of each fiscal year. The bill makes no time requirement for posting of individual expenditures or transfers .

I was particularly amused by the Herald Leader's little editorial extolling the virtues of open government.  They were so proud of themselves for posting a link to the open records office.  Woop-de-doo.  If they really wanted to inform the people of Kentucky how they can achieve a more open government they would loudly and proudly support these bills.  But wait...Jim Decesare is a Republican.  What was I thinking?  

An Economic Injustice

By Leland Conway

Modern day Progressives make a living off of changing the meaning of words and phrases that have a positive ring to them.  They have been successful in weakening many American values by using this effective tactic to distract us from their broader goals. 

Let’s take the phrase “economic justice” for example.  On the surface, such a phrase would seem to indicate fairness, equality of opportunity, or other such rock solid American standards.  But that phrase has been hijacked by the liberal left and now means nothing more than bloated government programs, strangling regulation and in some cases outright monetary theft.

Some progressive groups in Kentucky throw this and other seemingly innocuous phrases around all the time.  One such group is known as KEJA, which stands for the Kentucky Economic Justice Alliance.  Though well meaning, this group, and others like it have done as much to set Kentucky economic policy back as many of our boneheaded legislators throughout the years.  They have successfully pushed ideas like raising the state’s minimum wage to $7.15 an hour.  Despite studies that have shown when the minimum wage goes up small employers cut jobs and big employers raise prices.  Thus hurting the group it is intended to help.

These groups are always behind the redistribution of wealth for so called good causes. Now they are behind the movement to raise the cigarette tax in Kentucky by .70 cents per pack.  They say it will help stop kids from smoking.  And after all, if a tax hike is “for the kids” shouldn’t we all support it? 

Don’t let this ruse fool you.  Raising the state’s cigarette tax has little to do with stopping kids from smoking.  If they really wanted to use a tax to keep kids from smoking then they should suggest $10 a pack.  That should do it.  But then all people would stop smoking, and where would they get money to expand government? 

While progressives say they support “economic justice,” I am not sure they understand the meaning of that phrase.  They are actually promoting another in a long series of economic injustices to certain groups of people who engage in behavior which the progressives do not approve of. 

This and many other initiatives that are pushed under the guise of “economic justice” always turn out to be just the opposite.  Indeed it amounts to outright theft.  If you need more explanation, read Robin Hood and his Merry Band of Thieves.

Robin Hood justified criminal activity by claiming that his victims had themselves committed the crime of stealing from the poor. Modern day progressives have changed the meaning of this age old story. The criminals are no longer sheriffs who tax the peasants too much, but now have become regular people who engage in unapproved behavior.  In this belief, men of weak principle can find honor in the dishonorable.  Thus begins the trail of logic for the modern liberal.  Who will be the judge and the jury to decide that certain lawful behaviors are unacceptable? 

By suggesting that the additional revenue gained from this heavy taxation program will be used to expand programs like healthcare and education the progressives have now made the idea of taxing a set of behaviors seem not only appropriate, but a moral obligation.  Meanwhile smokers have a choice to make.  Quit smoking or pay up.  Call it theft, call it blackmail, just don’t call it good economic policy.

If Kentucky wants to improve its economy we need to look beyond overused and burdensome tax policies.  It is time to look at new and innovative ways to improve our economic vitality, like corporate tax cuts and incentives to encourage entrepreneurship. 

For those of you thinking, “I don’t smoke, this doesn’t affect me,” let me warn you now.  When this merry band of thieves operating under the protective armor of political correctness are finished taxing Kentucky smokers into oblivion, who will they come for next? 

In the not too distant future, it is easy to imagine a “fat tax.”  Taxes on foods that make us gain wait or are deemed “unhealthy.”  What is the difference?  Obese people are eating their way to severe medical problems.  According to progressives, much of that burden will fall on government.  Using the same logic they used for stealing hard earned money from smokers, they will come to the conclusion that we must tax those who eat unhealthy foods as well, so we can use the revenue to continue expanding healthcare initiatives.  It will be our moral obligation.

Will we all happily go along with this because it is for the “common good?”  Or will Kentuckians take a stand now and stop this devastating policy before it gains too much traction?  We need to force our government to cut spending, not grow it.  By giving it the authority to tax our behavior, we are encouraging “economic injustice.”

A lemur is a raccoon-like primate, distantly related to monkeys.  It is a native of the island nation of Madagascar.  This cute, wide-eyed, endangered animal is at the center of a political storm that involves some of the most sweeping tax raising efforts Kentucky has seen in decades. 

What on earth does a lemur have to do with a tax hike?  Wait till you hear.  It all started harmlessly enough.  Representative Jim Wayne (D), Louisville, introduced House bill 262.  It was a fairly straightforward, if not nasty, tax bill.  If your household makes over $75,000 dollars a year in Kentucky, grab your wallet. 

But somewhere along the way, the bill got a bit more ambiguous and if you can imagine this, more sinister.  Enter the lemur. 

House Democrats were considering a myriad of dangerous tax policy legislation but they needed a place to park it all and speed up the debate.  So they changed HB 262 into a bill that would grant a tax exemption on the purchase and sale of lemurs in Kentucky.  Sounds harmless enough, but something smells kind of fishy. 

Maybe it’s the fact that in section 150.183 of the Kentucky constitution it states that it is actually illegal to buy and sell endangered species in the state.  A quick check of the endangered species list reveals that indeed, lemurs are an endangered species.  So why place a tax exemption on a transaction that is illegal to begin with?

The truth is, the bill is simply an empty shell, and when House Democrats are finished with HB 262 you won’t recognize it.  That’s because it is designed to raise taxes on cigarettes somewhere between .25 cents and $1 per pack.  It may also include the original tax hike on all Kentucky households making over $75,000 dollars a year.  And it will probably embrace a $45 million dollar expansion of the estate tax.  Wow. 

And what of the lemur tax exemption?  It will most likely be gone altogether, but does it really matter?  If you think I am joking, think again.  This is dead serious and the Representatives that we elected to embody our interests in Frankfort are pulling this trick as a way to snake and jockey their way through new tax increasing legislation. 

One can only infer two possible conclusions from this exemplary show of leadership.  Either those elected officials in Frankfort who are proposing this are trying to deceive us, or they are simply overtly slapping the good people of the Commonwealth squarely across the face.

I really can’t decide which of the two conclusions would be worse.  Would I rather my elected Representatives try and deceive me as a means to achieve their well-intentioned ends?  Or would I prefer that they simply call me stupid to my face?  The correct answer to either question is of no consequence because both will lead us to the same inescapable conclusion.  Our Representatives are doing a poor job, a very poor job indeed. 

Whether you agree or disagree with a tax hike, you have to admit that this approach to government is worse than dubious.  Perhaps the most insidious part of this proposal is the fact that they use a “tax exemption” as a place holder for a “tax hike”.  This irony will not escape educated Kentuckians.  Why can we not have an open debate on our tax policy?  What are our Representatives afraid of?  I wish I could say that these types of shenanigans were illegal.  Unfortunately for us, not a single rule appears to have been broken. 

The situation in Frankfort has never been one lacking for drama.  The Kentucky legislature has seen more than its fair share of soap opera style story lines and Shakespearian climaxes.  But I honestly believe that this approach to governing is one of the most irresponsible and irreverent that I have ever observed.  At the very least it is a safe bet to assume that our best interests simply lie far from the front of our Representatives’ politically active minds. 

When will the people of the Commonwealth finally decide that they have had enough?  Perhaps the answer to this question is more important than any other question I have asked in this column. 

Leland Conway is Executive Editor of www.conservativeedge.com and host of “The Pulse of Lexington” on 630WLAP.  You can reach him for comment at Leland@wlap.com.

Sources: 

Kentucky Constitution:  http://www.lrc.ky.gov/krs/150-00/183.pdf

Kentucky Votes Website: http://www.kentuckyvotes.org/Legislation.aspx?ID=55981

State Representative Jim Wayne (D) of Louisville wants to give hard working, low income Kentucky families a tax cut.  He’s proposed a bill that would create a tax credit equal to 7.5 % of the average federal earned income tax credit that over 350,000 Kentucky families qualify for.  The tax cut would amount to a total of $45 million dollars.  Sounds great doesn’t it?  Not so fast.  He’s utilizing a longstanding liberal ploy called a “revenue neutral” solution to achieve these ends, and we should not fall for it.

Even the term “revenue neutral” sounds innocuous until you dig into its meaning.
When the state tells you that a tax is “revenue neutral”, what it really means is that they have found someone else that they can tax more.  It means that some small group of hidden citizens will be bearing the burden to make a “feel good” tax cut plausible for the common good. 

A recent newspaper article in Lexington was quick to point out the feel good math.  The tax credit that Rep. Wayne proposes would help 350,000 low income families.  But it will be paid for by an expansion of the estate tax by taxing estates worth over $3.5 million dollars with family farms exempted.  The article points out that this expansion will only affect about 350 Kentucky families per year.  Erie how they were able to figure out that this plan could be paid for by imposing a tax increase on exactly 1/1000^th of the number of people that the proposed tax cut would ultimately benefit.  The government can simply take $45 million dollars away from only 350, very wealthy people when they die and use it to give a tax break to 350,000 very poor people.  Who wouldn’t be for that?

I wouldn’t.  There is of course the obvious question of what’s the difference between a “family farm” worth $3.5 million dollars and any other estate worth $3.5 million dollars?  But that is just a simple sidetrack so as not to offend our farmers.  No matter how well intentioned the government’s motives are here, taking what doesn’t belong to you is still wrong, whether it is from a successful farmer or from a successful real estate tycoon. And in this case that is exactly what the government is planning to do.  After all, when is the last time only 350 people actually swung an election?  This should be a safe political game to play, but it’s still wrong to the very core of American values. 

I’ve always had a fundamental problem with estate taxes.  The Government has always had a fundamental lust for them.  Its money that’s already been taxed and it is about to change hands.  That is the logic that Uncle Sam uses to claim an obscenely large portion for his own bad spending habits. 

Perhaps the saddest part of this is that it is continuing evidence of what I see as an outright refusal by our elected officials to do the job we hired them to do.  To say that they can’t seriously take a hard look at government waste and spending and find a measly $45 million dollars in a $9 billion dollar budget to give low and middle income Kentuckians a tax break is truly a sad state of affairs. 

While this feel good story is one of the few Jim Wayne initiatives that I’ve seen make its way into the main stream press, let’s examine some of the other neat ideas he’s come up with in the last few years.

Also this year he has proposed House Bill 262 which would increase the income tax rate on all families making over $75,000 per year.  He proposed the exact same bill last year as HB 411 and the year before that as HB 506 but it didn’t pass.  So at least we know he is persistent.  And in 2006 he also proposed adding an additional tax on mortgages as well as raising the inspection fee on cars brought in from out of state.  Let’s face it; his record is not exactly taxpayer friendly. 

Sounds like Robin Hood and his merry band of thieves are at it again.  We should always be wary when our legislators start talking about “revenue neutral”.  Ernie Fletcher did it in his administration and it led to the now infamous “AMT” which has shut down and run off many small businesses in Kentucky and continues to make it tough on others.  Tax modernization was just another way of creating more tax confusion. 

We need real economic overhaul in Kentucky.  And we need to wean ourselves from constantly growing government spending.  I support the idea of a tax credit for all Kentuckians.  But we need to tell our legislators to go back to the drawing board and come back with something that makes sense.  Like more efficient government.

http://www.wkyt.com/home/headlines/14815396.html

The above story from late January is another example of a waste of taxpayer dollars.  Lexington decided that the solution to people running read lights was to instal two bulbs instead of one.  Turns out a study showed the people were running red lights at some of Lexington's biggest and most well known intersections.  

Rather than enforce the law, the city of Lexington decided to invest $11000 and add extra lightbulbs.  (At $150 each)  Then they've contracted with the University of Kentucky to "study" if it works.  

Way to go leadership. 



Posted By:Leland Conway @ 3/3/2008 9:17:00 PM
 | 3 Comments | Add a Comment

State Representative Jim Wayne (D) of Louisville wants to give hard working, low income Kentucky families a tax cut.  He’s proposed a bill that would create a tax credit equal to 7.5 % of the average federal earned income tax credit that over 350,000 Kentucky families qualify for.  The tax cut would amount to a total of $45 million dollars.  Sounds great doesn’t it?  Not so fast.  He’s utilizing a longstanding liberal ploy called a “revenue neutral” solution to achieve these ends, and we should not fall for it.

Even the term “revenue neutral” sounds innocuous until you dig into its meaning.
When the state tells you that a tax is “revenue neutral”, what it really means is that they have found someone else that they can tax more.  It means that some small group of hidden citizens will be bearing the burden to make a “feel good” tax cut plausible for the common good. 

A recent newspaper article in Lexington was quick to point out the feel good math.  The tax credit that Rep. Wayne proposes would help 350,000 low income families.  But it will be paid for by an expansion of the estate tax by taxing estates worth over $3.5 million dollars with family farms exempted.  The article points out that this expansion will only affect about 350 Kentucky families per year.  Erie how they were able to figure out that this plan could be paid for by imposing a tax increase on exactly 1/1000^th of the number of people that the proposed tax cut would ultimately benefit.  The government can simply take $45 million dollars away from only 350, very wealthy people when they die and use it to give a tax break to 350,000 very poor people.  Who wouldn’t be for that?

I wouldn’t.  There is of course the obvious question of what’s the difference between a “family farm” worth $3.5 million dollars and any other estate worth $3.5 million dollars?  But that is just a simple sidetrack so as not to offend our farmers.  No matter how well intentioned the government’s motives are here, taking what doesn’t belong to you is still wrong, whether it is from a successful farmer or from a successful real estate tycoon. And in this case that is exactly what the government is planning to do.  After all, when is the last time only 350 people actually swung an election?  This should be a safe political game to play, but it’s still wrong to the very core of American values. 

I’ve always had a fundamental problem with estate taxes.  The Government has always had a fundamental lust for them.  Its money that’s already been taxed and it is about to change hands.  That is the logic that Uncle Sam uses to claim an obscenely large portion for his own bad spending habits. 

Perhaps the saddest part of this is that it is continuing evidence of what I see as an outright refusal by our elected officials to do the job we hired them to do.  To say that they can’t seriously take a hard look at government waste and spending and find a measly $45 million dollars in a $9 billion dollar budget to give low and middle income Kentuckians a tax break is truly a sad state of affairs. 

While this feel good story is one of the few Jim Wayne initiatives that I’ve seen make its way into the main stream press, let’s examine some of the other neat ideas he’s come up with in the last few years.

Also this year he has proposed House Bill 262 which would increase the income tax rate on all families making over $75,000 per year.  He proposed the exact same bill last year as HB 411 and the year before that as HB 506 but it didn’t pass.  So at least we know he is persistent.  And in 2006 he also proposed adding an additional tax on mortgages as well as raising the inspection fee on cars brought in from out of state.  Let’s face it; his record is not exactly taxpayer friendly. 

Sounds like Robin Hood and his merry band of thieves are at it again.  We should always be wary when our legislators start talking about “revenue neutral”.  Ernie Fletcher did it in his administration and it led to the now infamous “AMT” which has shut down and run off many small businesses in Kentucky and continues to make it tough on others.  Tax modernization was just another way of creating more tax confusion. 

We need real economic overhaul in Kentucky.  And we need to wean ourselves from constantly growing government spending.  I support the idea of a tax credit for all Kentuckians.  But we need to tell our legislators to go back to the drawing board and come back with something that makes sense.  Like more efficient government.

My head was still spinning from Governor Steve Beshear’s budget crisis.  When Ernie Fletcher left office, we had approximately $250 million dollars in the state’s rainy day fund.  Steve Beshear has been in the Governor’s Mansion for a little over 2 ½ months and it seems that the money we banked during the last administration went from a strong positive balance to a squishy, floating negative of up to a billion dollars.  (Beshear’s crisis is on a sliding scale, he’s claimed a shortfall of anywhere from $250 million dollars to a billion dollars in different statements.)

But just as my spinning head came to a stop, I saw the wording of the proposed constitutional amendment to expand gambling in Kentucky:

"Are you in favor of increasing state financial support for elementary and secondary education, expanding health care for senior citizens, children and others, support for local governments, and combating drug and alcohol abuse and other important programs by permitting the General Assembly to authorize up to five casinos subject to approval of the voters in the city or county where the casino is located; and up to seven casinos licenses for existing horse racing associations, all of which will be subject to the approval of a state agency created to oversee casino gaming."

Now I’m really dizzy.  This is all they could come up with?  Do they really think that Kentuckians are that gullible?

The proposed amendment doesn’t even mention casinos until the 43^rd word.  In fact, it asks the voter no less than four questions before posing the only one that matters. 

Left alone, nine of ten Kentuckians would answer yes to all four of those questions.  Who would not be for increasing funding for education, taking care of the disabled elderly, increased support for local governments or combating drug and alcohol abuse?   

On the surface all are great ideas but placed in context, would all of those who answered yes to the first four questions answer the same to the fifth one?  Do you want to expand gambling to accomplish all of these things?

I am against the idea of expanded gambling.  But if Kentuckians want to vote on the issue then let’s have an open and honest debate.  Unfortunately, the wording of this amendment in its current form leads me to only two possible conclusions.  One, they think we’re all head nodding idiots who can’t see through all the smoke in Frankfort.  Or, two and even worse, they’re trying to hide something. 

When one looks closer at the proposal, you will find that the $500 million in additional state revenue that the Governor claims expanded gambling will generate will come from a 51% tax rate on the casinos’ proceeds (with an ample 17% discount for horse tracks) and $50 to $100 million dollars in licensing fees.  Only the gaming industry would be comfortable with this type of taxing and fees. 

Imagine if the Governor picked up the phone and called the Ford motor company in Louisville to tell them they’d need to start paying a $50 million dollar “license to build automobiles” fee in order to stay in Kentucky.  He’d be laughed off the phone and Ford would start surveying land in Evansville, Indiana where they’d be more than happy to have the extra jobs. 

Only one industry will willingly operate a business in the face of such governmental extortion - the Casino industry - because they know they’ll make a huge profit on the back end.  The problem is that the lion’s share of that money will come from hard working, low income Kentuckians looking for a big ticket out of bad circumstances. 

The government knows this.  Governor Beshear told me in a recent conversation that they are allocating $2 million dollars of this revenue per year to combat gambling abuse. 

In my opinion there are far better ways to achieve economic growth in Kentucky.  We could fix our outdated and unfair tax system by eliminating the state income tax.  Tennessee has experienced nearly a quarter of a century of consistent job and individual income growth because of smarter, fairer tax policies.  For the last ten years, they’ve been named as one of the top ten friendliest states for businesses. 

Our government sees a band-aid quick fix with gambling.  But they do not have the long term vision to see negative effects of this flawed approach.   It is unfortunate for us that such poor decision making is shaping the future of our Commonwealth. 

We must demand clarity and accountability on this issue.  Steve Beshear has said, “I think its time to let the people vote on this and either vote it up or down so that we can move on.”  If that is his proposal, then let’s do it.  But let’s do it honestly.  Leave the cause and effect arguments for the media campaigns and editorials of the many advocacy and groups and pundits on both sides.  Make the amendment clear and succinct.  It should read, “Are you in favor of expanding gambling on a limited basis in Kentucky?”  Trust Kentuckians to make the right decision.

This scathing review of the New York Times hit piece on Republican Presidential Candidate John McCain calls into question whether or not the paper has lost its sanity.  We've known them to be liberal leaning for a long time - but have they crossed the line into tabloid?