Like swallows returning to Capistrano…

An article in yesterday’s Atlanta Journal reports:

“North Fulton legislators re-introduced a bill Monday that could lead to the re-creation of  Milton County, hoping this year is the turning point for a proposal that failed in previous sessions.”

I lived in unincorporated Fulton County before it was annexed into Alpharetta and when the topic of Milton County was first raised I was enthusiastic about the possibility. The thought of never having to witness the foolishness that occurs at Fulton County Commission meetings was incentive enough. 

If you haven’t watched one of the county commission meetings you really should. You won’t believe your eyes. 

But over the years my enthusiasm for Milton County has faded. Given my frustration with some of my elected officials here in Alpharetta I’m just not sure we would be any better off.

You can read the rest of the article here.

Georgia Legislators could use a refresher on Barn Doors and Horses

The AJC reports that Georgia legislators are trying to stop the extension of tolls on GA 400 but it looks like a futile effort since the State Road and Tollway Authority has already pocketed the money. The time to stop that travesty was before SRTA voted to keep their bureaucratic jobs funded for the foreseeable future. But unfortunately the North Fulton political delegation didn’t think to close the barn door until SRTA had already taken millions of taxpayer dollars out for a ride. 

I don’t mean to sound ungrateful. I appreciate representative Jones’ attempt to correct this money grab by SRTA. But I would have expected a politician from Georgia’s horse country to know better than leave the barn door open while SRTA director, Gena Evans, was looking for a way to justify her six figure salary.

But if elected officials are serious about this effort then it should make SRTA’s upcoming town hall meetings next month very interesting. SRTA will have a public comment opportunity on Wednesday, January 5th, hosted by the North Fulton Chamber of Commerce at 11605 Haynes Bridge Road, Suite 100, Alpharetta, GA 30009. I encourage everyone to come out and join the fun.

[1/4/11 Ed. note: Yesterday a commenter pointed out that I failed to include the times of the town hall meeting so please note that according to the SRTA website the meeting will be held from 4:00 -7:00 p.m.]

 

All I want for Christmas is for Congress to go home

Worst congress ever: “Republicans for Pork?” includes the most intelligent thing Lindsey Graham ever said.

“Second acts are hard to get in life…particularly in politics,” Graham said. “We got a second lease on life… not because of anything we did, because of [the Democrats’] screw-ups, and if the first thing we do is quietly let this go through, then our second act is over before it begins.”

Crisis caused by income equality or government intervention?

There is a thought provoking interview with Raghuram Rajan in the December issue of Money magazine. Mr. Rajan is one of the few economists that warned our current financial crisis was coming and the article is primarily about Mr. Rajan’s theory that the current crisis is caused by income inequality:

“In the 1980s we saw a widening of income inequality. Typically the political reaction to that is to redistribute wealth. But in the ’80s and ’90s there was a sense that we’d had too much redistribution, too much welfare. So you had to find something else, and housing fit the bill for both political parties.

The Democrats thought it was wonderful to support home ownership for the poor, their natural constituents. The Republicans figured property owners would eventually vote Republican.”

Mr. Rajan then goes on to explain how the political issue of income inequality led the United States federal government to create the current crisis with their attempts to cure income inequality. I see a great deal of truth in what Mr. Rajan says but I would like to point out one crucial difference in how I view the problem.

It wasn’t income inequality that caused the current economic crisis. The direct cause of the crisis was the political response to income inequality. The difference is subtle but completely changes the diagnosis of the problem and if we misdiagnose the problem it is impossible to come up with the correct solution.

If income inequality is to blame for our current economic crisis then the federal government could prevent future crises by eliminating income inequality. In that case the the solution would be for the federal government to continue various forms of political intervention in the hope of solving income inequality. Of course Marxism and Socialism are two examples of such attempts and their results have been devastating.

On the other hand, if the current economic crisis was actually caused by clumsy political responses to income inequality we need to look for a different kind of solution. Maybe we could start by having politicans recite the Law of Unintended consequences: “An intervention in a complex system always creates unanticipated and often undesirable outcomes”. Then we could change the oath of office to “First, do no harm”. 

The interview with Mr. Rajan can be found online at CNNMoney.com

Kudos to the City of Alpharetta for reducing fees as an incentive for new businesses!

I am quick to criticize government when they get it wrong so let me be one of the first to congratulate the City of Alpharetta for getting this one right. I dream of the day when the kudos outweigh the criticisms.

Read the whole thing by Rachel Kellogg in the Alpharetta Neighbor.

Blogging

Sorry for the lack of posts lately.

Technical issues have made it more difficult to post quick updates and the holidays have reduced the amount of time I have available for writing articles. If you follow me on Twitter, @jimgilvin, you can see some of the interesting items I find. The 140 character limit of Twitter relieves me of my inclination to spend a great deal of time expounding on the subjects. 

Here are some items you may want to check out:

Argument for reducing/eliminating Georgia’s income tax

Argument for not reducing/eliminating Georgia’s income tax

Tax comparison of North Fulton County and Forsyth County

I have to go write articles for my neighborhood newsletter now so I hope that will keep you busy for a while.

 If you are not satisfied that you are getting your money’s worth please send your complaints to : someonewhocares@idontgetpaidforthis.com

View from a Political Outsider – Georgia’s Transportation Tax

Jim Galloway’s recent Political Insider column in the Atlanta Journal discusses Georgia’s recently rejected “trauma tax” and how that rejection will impact the state’s proposed sales tax increase in 2012. I respect Mr. Galloway. His Political Insider column provides a great deal of insight into the world of Georgia politics… but being an insider has its price.

In the case of tax increases Mr. Galloway’s insider viewpoint prevent hims from seeing the issue from the perspective of the political outsider (otherwise known as a typical voter). As a political outsider perhaps I can help.

Right now there is a failure to communicate in Georgia. The communication failure stems from the fact that too many elected officials aren’t listening to the voters. Instead of listening to voters politicians spend their time listening to each other along with the bureaucrats and lobbyists that surround them. After talking amongst themselves this political class hammers out a mutually acceptable solution to whatever the perceived problem is and unveils it to the public. Of course the solution always involves confiscating millions of dollars from Georgia’s taxpayers so the taxpayers frequently reject the proposed solution once they find out about it. The whole process is a tremendous waste of time and a big part of the reason government rarely solves anything. If more elected officials juat made a point of talking to people outside of their echo chamber a great deal of time and money could be saved and some progress might actually take place. 

The recent trauma tax debacle is a perfect example of miscommunication between voters and politicians. I have lived in Georgia for 40 years and I have never once had a person tell me they wanted or needed more trauma centers in the state. But despite the fact that average people didn’t think there was a problem, some hospital lobbying group convinced Georgia’s political class that a problem did exist. Once the lobbyists convinced the politicians there was a problem they all got together and hammered out an agreement that was acceptable to them. As usual the solution called for Georgia’s taxpayers to cough up millions of dollars. So once they were satisfied with their solution the political class went to the people of Georgia. The voters weighed the option of paying millions of dollars to solve a problem they had never heard of or faced and said no. The whole process was a complete waste of time and money that could have been spent on one of the real problems facing Georgians.

 A similar process is taking place now in Georgia’s struggle to address transportation infrastructure needs. Both the voters and politicans seem to agree that Georgia needs transportation improvements in this case but the trouble is that the political class and the voters disagree on the solution.

The political class say they could fix the problem if they only had more money. What the political class doesn’t understand is that the voters don’t blame infrastructure needs on a lack of money, the voters place the blame on the political class. Taxes in Georgia are the 16th highest in all of the United States while transportation spending is 49th out 50. See the problem?

But Georgia’s political class won’t accept the fact that they have been the problem. Instead, the politicians and lobbyists  sat down together and once again hammered out an agreement acceptable to the politicans and lobbyists.  And once again their solution is to raise taxes… billions and billions of dollars in taxes. That solution must have sounded awfully good in their echo chamber because a few months ago the political class unveiled this genius idea to great fanfair and they patted themselves on the back so hard that Atlanta’s chiropractors must have made a fortune.

But the people that will pay for this enormous tax increase are not impressed, they are hurting. They face 10% unemployment while the other 90% are still unsure of the future. More than 12,000 Georgia homes were foreclosed in July. IRA accounts and home prices are going down while grocery and gasoline prices are going up. To make matters worse their federal income taxes are going up in a few weeks and they will have even less money to spend. Georgia voters are hurting and they find it offensive that political insiders have decided taxpayers need to pay billions of dollars more to fund transportation improvements. While transportation improvements might bring jobs to Georgia in a decade or so, the state’s taxpayers would have to cough up billions of dollars that could have gone to pay their mortgage or put food on the table in the meantime.

During Georgia’s recent economic boom transportation issues were a top priority for Georgia taxpayers. Voters pleaded for road improvements but the political class ignored their pleas and spent the money elsewhere. Now that the economy has tanked the roads are no longer the highest priority for voters. Money is the top priority now and the politicans find the shoe on the other foot. So as the political insiders plead for money to improve roads in the current environment I fully expect Georgia’s voters will ignore their pleas in return.

 You can read Mr. Galloway’ Political Insider column on ajc.com here: http://bit.ly/gqeLnw

(Added 12/2/10 ) P.S. I forgot to mention that Mr. Galloway conspicuously chose not to allow comments on the column cited above. It is the only recent column which doesn’t permit comments and I don’t ever remember seeing him block comments before. Feel free to draw your own conclusions.

Remember, low taxes + low spending = growth

Georgia is one of eight states projected to gain congressional seats after the 2010 census numbers are tallied. Recently, Barbara Hollingsworth of the Washington Examiner wrote an editorial analyzing the tax policies of those eight states compared to the states which are projected to lose representation and guess what? Barbara discovered that people are fleeing states with high taxes and high spending. Surprise, surprise!

The article points out, “The state and local tax burden is nearly a third lower in states with growing populations… As a result, per capita government spending is also lower: $4,008 for states gaining congressional seats, $5,117 for states losing them.” In addition to tax policies Barbara Hollingsworth also points out that many of the states also have right to work laws that entice businesses to relocate from less friendly states. The article isn’t very long and you can read it here: bit.ly/9C6cRd

So we see that relatively low taxes and government spending have a direct correlation to Georgia’s tremendous growth over the past few decades. The majority of voters in Georgia understand this instinctively but I’m not sure the state’s current power structure quite gets it.