Monday, December 26, 2011

Weekly Opinon Editorial


THIMBLERIG!
by Steve Fair


Oklahoma Speaker of the House Kris Steele, (R-Shawnee) and Governor Fallin both addressed Oklahoma’s state personal income tax in separate interviews last week. Steele told Capitalbeatok.com that further income tax rate reductions are possible. “We are having some very significant discussions on how we can systematically and methodically begin to reduce our personal income tax in the state of Oklahoma. We think it’s really important. It’s really the next major policy issue that needs to be addressed to really help Oklahoma reach its potential in the area of creating an environment within our state that is conducive to job growth, job creation and job enhancement.” Steele said.
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Fallin told The Oklahoman she would favor gradually reducing the state’s personal income tax. “Our goal of reducing the income tax is to make us more competitive, but not to starve state government from the standpoint of starving essential state services for our citizens.” Fallin identified transportation, public safety, health and human services and education as core services.
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Last year, the Oklahoma state budget was 6.43 billion dollars. Education received 3.4 billion; Health and Human services 1.9 billion, Public Safety 629 million and Transportation received 208 million. That means that Fallin identified about 90% of the current state budget as essential core services. That seems a little high. There is no doubt some of those ‘core’ services should be ‘peeled’ back some.
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Currently personal income tax provides about fourteen (14) percent of the revenue Oklahoma state government receives. It is entirely feasible for Oklahoma state government to do without fourteen percent of what they currently get from taxpayers, but based on the nature of government it’s highly unlikely. Until Oklahoma state government gets serious about operating on substantially less money, then this talk of eliminating the income tax is nothing but thimblerig.
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Thimblerig, three shells and a pea or ‘the old army game’ is often sold as a gambling game, but in reality it is a con trick. A shell man begins the game by placing the pea under one of the shells and then quickly shuffles the shells around. Once the shuffling, is completed, he takes bets under which shell the pea lies. A good ‘operator’ usually has the pea palmed and so the pea is not under any of the shells.
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Politicians are masters of the shell game. They tend to hide the pea (taxes) and it’s the next to impossible task of the taxpayer to find out where it is hidden. Like thimblerig, it’s next to impossible to detect the location of ‘eliminated’ taxes once government starts shuffling the shells, but they always show up.
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The third law of Steve Fair’s laws of taxation states that forces occur in pairs. Every action is accompanied by a reaction of equal magnitude. Government never eliminates a tax- it is shifted. Government never downsizes- it grows. My apologies to Newton.


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When Art Laffer, of the Laffer Curve fame, came to Oklahoma last month and advocated elimination of the income tax, state leadership embraced it. Lafler rightly stated elimination of the state income tax would grow private business and help Oklahoma grow. But until Oklahoma leadership commits to downsizing state government in conjunction with the elimination of the state income tax, then this exercise is nothing more than thimblerig.
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Steele made a revealing statement during his interview. He said state revenues will increase between seven and ten percent in the coming year. But he says that still means the state budget will stay about the same. “We utilized a lot of one-time monies over the past two years to balance our state budget. There were federal stimulus monies and rainy day funds that will not be there in the next go-round. We are probably looking at a stand-still budget,” Steele said.


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Oklahoma government doesn’t need a standstill budget; it needs a significantly smaller state budget. We need leaders who will tell bureaucrats in state agencies ‘no’ to standstill budgets. We need leaders who will force agencies to slash their budgets to the bare minimum. We need leaders who can think outside the shell.

Monday, December 19, 2011

Weekly Opinion Editorial

LOSING IS A BLESSING!
by Steve Fair

On Friday, USA Today reported nine states will share $500 million in federal grant money won in a high profile competition intended to jumpstart improvements in early childhood programs. The money is part of the Obama administration's cornerstone education initiative, ‘Race to the Top’ which had states competing for federal dollars to create programs that make schools more effective. Last year, Race to the Top handed out $4 billion in grants focused on K-12 education. Oklahoma education leaders requested $60 million of federal funds
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The goal of this year’s competition was to get more children from birth to age 5 ready for kindergarten. Because Oklahoma has a solid record in early childhood programs, Governor Mary Fallin and State Superintendent Janet Barresi were confident the Sooner state would win, but Oklahoma was not one of the nine states. The Sooner state finished a dismal #30 out of 37.

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In May when the program was announced in D.C., Tulsan George Kaiser, a major supporter and contributor of President Obama, shared the stage with Education Secretary Arne Duncan and Health and Human Services Secretary Kathleen Sebelius and emphasized Oklahoma had done an excellent job in early childhood development. Kaiser’s involvement is probably why Oklahoma leaders were confident they would win, but instead California, Delaware, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Rhode Island and Washington were the nine states. All just happen to have Democrat governors- just a coincidence I’m sure.

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Gov. Mary Fallin and State Superintendent Janet Barresi expressed disappointment in not being awarded the grant. “Despite today's news, Oklahoma remains a leader in the field of early learning. With over 70 percent of our 4-year-olds participating in some form of early learning program, it will continue to be important to develop and improve our prekindergarten services,’’ Fallin said.
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Barresi said, “I join Gov. Fallin in a shared commitment to continue to find ways to boost learning opportunities for Oklahoma preschoolers, especially for those living in poverty. Our reforms depend a great deal on academic success in the early grades.’’ Barresi said the state must ‘redouble’ its efforts to ensure its children are ready to learn when they enter kindergarten.
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First, is it the responsibility of government to insure that children are ‘prepared’ to enter kindergarten? Obviously Fallin, Barresi and Kaiser believe educating children from the cradle is a function of government. So does former Oklahoma first lady Kim Henry. Henry, executive director of Sarkeys Foundation, says, “There is no disputing that parents are the best educators for their young children. But just as indisputable is the fact that many parents are not equipped for the job. In my 10 years as a teacher, I saw firsthand that the kids who stood to benefit most from early learning were the ones who faced a host of disadvantages.” While Henry, Barrei and others may be sincere and truly want to help out parents who need help, it isn’t the responsibility of government to prepare children for kindergarten? That is exclusively the role of the parent.

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Second, isn’t it fiscally irresponsible to accept federal tax dollars that include a multitude of ‘strings’ and conditions no matter how just the cause? With the overreaching, ever expanding federal government it doesn’t seem very wise for Oklahoma state leaders to embrace any federal program that expands the reach of government. What is particularly disappointing is when Republican elected officials run on a platform of fiscal responsibility and then line up at the federal government trough immediately being elected. It is little wonder Oklahoma citizens are confused and see little difference in the two parties.

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Losing the ‘Race to the Top’ grant is an early Christmas present for Oklahoma. Oklahoma government leaders need to be helping ‘families’ by reducing the size of government, building and maintaining our infrastructure –road and bridges-, creating a better environment for businesses to operate and reducing the individual tax burden. That is the proper role for government, not trying to get kids out of the home as soon as they are born.
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Robert Frost was an American poet. He is highly regarded for his realistic depictions of rural life. Frost said, “You don't have to deserve your mother's love. You have to deserve your father's. He is more particular.... The father is always a Republican towards his son, and his mother's always a Democrat. “
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Merry Christmas!


For other articles on this subject, clink on

USA TODAY


CAPITAL BEAT OKLAHOMA

Monday, December 12, 2011

Weekly Opinion Editorial


HOW TO BE A DELEGATE!
by Steve Fair




Last week five(5) Democrats and seven(7) Republicans filed to be on Oklahoma’s presidential primary ballot March 6, 2012. The seven GOP candidates are the ones you would expect, but only one of the Democrats is a household name- President Obama. You can see the entire list of presidential candidates at http://www.ok.gov/elections/support/ppp_filing.pdf
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The presidential primary is used in Oklahoma to allocate delegates to the two major parties presidential nominating conventions. Fifteen states use a causus system to select their delegates, which is different from a primary. A caucus is a system of local gatherings where voters decide which candidate to support and select delegates for nominating conventions. A primary is a statewide voting process in which voters cast secret ballots for their preferred candidates and the parties use those results to commit delegates. There are advantages to both. Caucus systems tend to attract people who are more engaged and knowledgeable in the political process. Primaries often are won by the candidate with the biggest media spend. There has been an active movement in the Oklahoma GOP to go to a caucus system, which I have opposed. We (the GOP) should be about the business of educating not excluding the general public on issues and candidates. The issue has been soundly defeated at our last two state conventions.


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I am unsure how Oklahoma Democrats select the delegates to their national convention, but the Oklahoma Republican Party uses the following process.
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Oklahoma has 43 delegates to the 2012 National GOP convention in Tampa, more than New Hampshire and Iowa combined- they total 40. The Sooner state delegation is the nineteenth largest at the convention. Three of Oklahoma’s delegates are unpledged- the members of the Republican National Committee. Fifteen(15) of the state’s national delegates are elected at the five congressional district conventions(3 each) held before the state convention. The remaining twenty five(25) delegates are elected at the state GOP convention May 12, 2012 in Norman. Delegates, who are most often elected officials or political activists, pay their own expenses to the national convention. The competition to become a GOP national delegate is often fierce.
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Delegates don’t get to just freelance and vote for whomever they want. Oklahoma Republican Party rules require national delegates to sign a pledge they will vote in accordance with the party rules and state law. A delegate is an elected representative who is to vote based on the results of the presidential primary held on March 6th.
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In years past, Oklahoma was a ‘winner take all’ state which meant that a Republican candidate could win a plurity of the vote in the presidential primary and take all the delegates. Earlier this year, the Oklahoma Republican state committee voted to allocate national delegates in 2012 on a ‘proportionate’ basis, meaning that more than one candidate could have national delegates from Oklahoma. Several other states switched from ‘winner take all’ to proportionate allocation of delegates which changes the dynamatics of the nominating process.
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With all the hype in the national media, you would think the race to the GOP nomination will be over by the time Oklahomans get to vote in March, but that is highly unlikely. In order to win the Republican nomination, a candidate must have 1,145 delegates. The earliest a candidate could hit that number is March 6th when eleven states vote and select 556 national delegates. The first three causas/primaries are Iowa, New Hampshire and South Carolina. Only 65 national delegates will be chosen in those states. The real test will be on January 31st in Florida when 99 delegates are chosen. It is highly likely the GOP nomination process will be drawn out well into April of 2012.


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Want to be a delegate representative to the Republican National Convention? Any registered Republican in the state is eligible. The best place to start is by attending your precinct meeting on Monday February 6th and the County GOP Convention in March. District Conventions, where delegates are actually elected, will be held in April and the State GOP convention is in May. Being a part of the presidential nominating process is educational and fun, but it also carries a burden of responsibility. GOP Delegates in Oklahoma represent 850,000 fellow Republicans across the state.

Friday, December 9, 2011

Gingrich as Manager


What Newt’s tenure as a House Republican leader says about his ability to lead an organization.




Monday, December 5, 2011

RUN TOM RUN- FAVORITE SON!
My friend and fellow blogger Michael Bates of Batesline has an open letter to Senator Coburn urging him to run for President as Oklahoma's 'favorite son.' I second the idea. Coburn is exactly what conservatives are looking for- a principled man unwilling to compromise his convictions. You can read the letter at: http://www.batesline.com/



3 REASONS TO NOT VOTE FOR NEWT!


by Steve Fair


#1: HIS MORALITY! Or lack there of. Newt is on his third wife. He cheated on his first wife and told her he was leaving her while she was in the hospital being treated for cancer. He had proposed to his second wife even before telling his first wife he wanted a divorce. He then cheated on his second wife and proposed to his THIRD wife even before telling his second wife he wanted a divorce. No word on whether he honeymooned at the beach with his two new wives like most Newt aquatic lizards. Newt did all this while writing books and making speeches about ‘family values.’ Newt blames his infidelity to multiple wives on his ‘passion’ for the country.

#2: HIS IDEOLOGY! In December 2008, Newt was paid $300K by Freddy Mac to lobby Congress to not step up regulation or scrutiny. In 1979, when fellow Georgian Jimmy Carter was in the White House, Newt voted to expand the role of the federal government into education with the creation of the Federal Department of Education. In April 2008, Newt made a commercial with then U.S. Speaker of the House Nancy Pelosi on Climate Change. He advocates a ‘pathway to citizenship for illegal aliens.’ During one 2011 debate he said he would issue up to 200 “executive orders’ his first day as President, a clear violation of the US Constitution.

#3: HIS THEOLOGY! Gingrich often begins his remarks by quoting the Declaration of Independence's premise that men "are endowed by their Creator with certain unalienable rights". When you listen to him, you would think he was a very spiritual man and that spiritual things were important to him but that is not the case. It is very apparent Newt doesn’t know the Creator in the free pardon of sin. He fails the ‘fruit of the spirit’ test. Newt was raised a Lutheran, converted to Southern Baptist while at Tulane and then converted to Catholicism, his current wife’s faith, on March 29, 2009. He said he did it because he saw 'happiness' in the Pope's face. Newt has written a book entitled, "Rediscovering God in America." Newt’s message of “Exceptionalism’ is unscriptural and heretical. It fails to recognize the fundamental principle that man is a fallen creature who needs regeneration- even men in the United States.

Newt is a complete pragmatist who was an ineffective leader when he was Speaker of the House. There is no doubt Newt is an intelligent person, but he lacks wisdom. Senator Coburn said in his book, “Breach of Trust,” that Gingrich lacked the courage and character to lead effectively. There is no doubt Newt has good ideas and can analyze the situation as well as anyone, but he is no conservative. We do not need Neutron Newt!


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A newt is a member of the salamander family. Adult newts have lizard-like bodies and may be either fully aquatic, living permanently in the water, or semi-aquatic, living terrestrially but returning to the water each year to breed. A red spotted newt has a bright orange color to warn predators of its highly toxic skin.

Weekly Opinion Editorial

GRADED ON THE CURVE!
by Steve Fair


Will Rogers said about taxation: “If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don’t get wet you can keep” Oklahoma taxpayers need to start leaving their money on the bank according to Art Laffer, a former Reagan economic advisor. Laffer spoke in Oklahoma City last week and encouraged the state legislature to look at eliminating the state’s personal income tax over the next ten (10) years. He said that “no matter how you slice it, states without income taxes perform better than those with an income tax.”

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In conjunction with Laffer’s appearance, the Oklahoma Council of Public Affairs, a conservative think tank, released a report on Oklahoma’s state income tax prepared by econometrics firm Arduin, Laffer & Moore, of which Dr. Laffer is a co-founder. The report estimated the average Oklahoma family of four would see a savings of more than $1,300 a year if the individual income tax were phased out. You can read the entire report at http://ocpathink.org/articles/1598

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According to Taxfoundation.org, Oklahoma's state and local tax burden is currently estimated at 8.7% of income (37th nationally). That is below the national average of 9.8%. Oklahoma taxpayers pay $3,259 per capita in state and local taxes.

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Laffer was quick to point out that Texas doesn’t have a state income tax. “When you're looking at your neighbors down to the south,” Laffer said “how do you compete with them? You're not competing with them.”
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Not everyone agrees with Laffer about supply side economics and the elimination of the state income tax. The Oklahoma Policy Institute published an issue brief entitled, “The Case for the Income Tax,’ which lists eight reasons why the state should not eliminate the state income tax. The first reason is that the tax provides nearly one third of the state’s income. They write, “The state could not provide basic, essential services without income tax revenue unless other taxes were drastically increased.” You can read the entire brief at http://www.okpolicy.org/files/TheCaseForTheIncomeTax.pdf
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Republican State Treasurer Ken Miller, an economics professor and former state House budget chair, appears to agree and says state lawmakers should proceed with caution. “We have to have a conversation based on facts and not ideology,” Miller said. . “I don't think you can take your single largest source of revenue and eliminate it and not replace it,” he said.
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I disagree! The state can afford to eliminate the income tax and here is why:
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First, Oklahoma state government already gets too much of our hard earned money. The state budget has grown 16% in the past ten (10) years to over 6.5 billion annually. The tax money state government collects is often spent inefficiently and irresponsibly. Not sending the government money appears to be the only solution to stopping overspending. Eliminating a substantial amount of their revenue stream- like state income tax- would force them to evaluate the operation. Oklahoma government could certainly stand to tighten the belt a lot.

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Second, Laffer’s theory of supply side economics has been proven to work. That means the amount of tax revenue wouldn’t decrease by the full amount and in fact could increase. When Reagan advocated reducing taxes during a major recession in the 1980s, many laughed at the Gipper, but it worked. Supply-side economics, also known as trickle-down economics, provided the private sector stimuli that resulted in increased consumer spending. Over time, the boost to the nation’s economic growth generated a larger tax base, which made up for the revenue lost from the tax cut. Even if the elimination of the income tax cost state government revenue, would that be a terrible thing? Oklahoma lawmakers and leaders should be trying to streamline government by consolidating and evaluating.
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Third, what about an individual taxpayer’s ‘essential services?’ Many Oklahoma taxpayers are doing without so they can pay their taxes. It’s their money! They should be enjoying the fruits of their labor, not funding a giant government money pit. State government does have some ‘essential services,’ but what some lawmakers consider ‘essential,’ taxpayers may consider ‘excessive.’ Robert Half said, "People try to live within their income so they can afford to pay taxes to a government that can’t live within its income."
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Laffer is known for his 'bell curve'(pictured above) which he uses to illustrate the concept that taxable income will change in response to changes in the rate of taxation. When graded on the curve, Oklahoma state government fails. We should eliminate the state income tax.