Get it right or get it done?

As the Georgia state legislature winds down this year one of the biggest issues yet to be resolved is the proposed revision of our state’s tax code. There are only a few days left for legislators to get the law known as HB 387 passed so some fast and furious horse trading is going on under the gold dome and the final result could affect every tax payer in Georgia.

This article in the AJC provides a good summary of what is happening. Here are a few of the highlights:

A bill that would cut the state income tax rate and shift taxes to some services is headed for a vote in the Georgia House.

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The proposed changes in HB 387 would lower the state income tax rate from 6 percent to 4.5 percent, but limit how much income can be deducted. The bill gives tax breaks to manufacturers and agriculture, creates a 7 percent tax communications services, charges sales tax on private sales of cars, and taxes auto repair and maintenance services.

House Ways and Means Chairman Mickey Channell, R-Greensboro, said most people will not see much change in their overall tax bill as a result of the changes. But he said the lower income tax rate will help attract new businesses by making Georgia competitive with Florida and Tennessee, which do not have an income tax.

House Minority Leader Stacey Abrams, D-Atlanta, said a Georgia State University analysis of the changes show the changes benefit the rich, keep taxes the same on the poor and raise them on the working and middle classes. The increase comes on taxpayers who itemize their taxes, she said.

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GOP politicians are trying to shoehorn the changes  into the final days of a hectic legislative session. The House likely  will take up the legislation Wednesday, setting up a possible Senate  vote as early as Friday — the 38th day of a 40-day session.

Any delays would bump a Senate vote to the last two legislative workdays: April 12 or April 14.

One other key point of the legislation that wasn’t emphasized in the article is that charitable donations to churches would no longer be tax deductible. That means families would no longer be able to deduct the amount they tithe to their church on their income taxes. As a result the new tax law is drawing the ire of the state’s religious organizations. You can read about that angle more here at peachpundit.com.

The AJC columnist Kyle Wingfield also discusses the bill and his perspective is that an imperfect bill is better than no bill at all. Kyle puts it this way:

Raising taxes in a slow-to-recover economy is a bad idea, but cutting taxes meaningfully in a slow-to-recover economy has proved to be more than our legislators can bear. If you want to know what they really mean when they talk about smaller government, take a look around — because it has become quite apparent that this is as far as they intend to go in cutting.

They’re not going to cut any farther than revenues require, and the state Constitution mandates that they balance the budget each year, so reducing revenues even further seems to be out of the question.

So assuming all of the above reports are true this is the way I see it:

1.) Georgia state legislators wants to lower our state income tax rate because it hurts the state when competing for employers against other states that have no income tax.

2.)  The legislature could reduce taxes and reduce spending but they refuse to do that.

3.) Instead of reducing spending the Republican proposal raises taxes that primarily impact middle class taxpayers and churches while lowering taxes on people in lower and higher income tax brackets.

4.) There isn’t much time to get all of this done so the bill is being rushed through the legislative process without much time for the public to inspect the details and determine how it will affect their families.

Based on those points I find it hard to believe HB 387 is better than the status quo. I am glad that the legislature realizes Georgia’s state income tax is a problem and I support their effort to correct the situation. I just don’t see how the reallocation of that burden to middle class tax payers already employed in Georgia is a better situation. I also believe that politically the Republican party of Georgia would be making a huge mistake by playing into the stereotype of “the party of tax cuts for the rich”. Especially when the issue penalizes religious institutions.

When it comes to the tax code it is more important to get it right than get it done. That being the case I hope HB 387 doesn’t get done this year.

Without representation

The current composition of Alpharetta City Council does not reflect the values of the people that actually live here.

A few weeks ago the current Mayor of Alpharetta, Arthur Letchas, and all six City Council members unanimously approved another high density mixed use project while entire shopping centers sit vacant and a decade’s worth of condomiums sit idle. While there are people in Alpharetta that support this urbanization only a charlatan would believe all 50,000+ residents are unanimous in that support so it is indisputable that the Alpharetta City Council does not reflect the values of the people that live here.

The feedback I receive from this blog and my other community involvement runs about 4-1 against the city’s densification and urbanization plans. That number is probably high but even if the actual number were half of that it would mean Alpharetta’s voters overwhelmingly oppose what their elected officials are doing. That kind of disconnect cannot continue forever.

City Council members cannot run on a platform of “no more development until empty spaces are filled” and then vote for high density mixed use projects forever. City Council members cannot serve as the developer’s engineer for the largest failed project in the city’s history and still get elected by voters who were kept in the dark forever. City Council members cannot approve densely packed housing projects in an effort to attract MARTA without bothering to tell constituents forever.

Eventually the voters will notice. And every day more voters in Alpharetta are starting to notice. Below is a screenshot of a video created by an Alpharetta resident to raise awareness of the City’s disconnect from voters. I wish I had posted it before Tuesday’s land use plan meeting but it is still powerful and you can watch the whole thing at this link.

Voters that are adequately represented by their elected officials don’t feel compelled to create videos like that to make sure their neighbors know what is going on. Voters that are adequately represented don’t spend dozens of hours each week writing blogs, emails and newsletters to make sure their neighbors see what is happening around them while they’re busy working to support families or volunteering in schools. Even more importantly, voters that are adequately represented don’t take time out of their busy day to write notes of appreciation to the neighbors that do keep them informed.

Predicting the future is a fool’s game but there are two things I know for certain about Alpharetta politics:

1) The current composition of Alpharetta City Council does not reflect the values of the people that actually live here.

2) That kind of disconnect cannot continue forever.

Alpharetta City Council’s Wish List for a Tax Increase

Tonight the Alpharetta City Council is slated to vote on the list of projects to include on the transportation tax referendum next year. Proponents hope that a list of possible projects will entice voters into voting for higher taxes on themselves. You can see the list of projects on the city website here.

I also suggest you read this article about the transportation tax issue in today’s Atlanta Journal Constitution. The AJC article doesn’t do a very good job of summarizing the list being presented to Alpharetta City Council tonight but it does give a valuable overview of the process. Below are a few random thoughts on the transportation tax proposal:

1. I don’t trust the state of Georgia to live up to their end of the bargain. After the DOT and State Roadway and Toll Authority arbitrarily extended the GA 400 tolls I came up with a phrase to express my thoughts on the matter: “Once you vote to give the government your money they will do with it what they damn well please.”

2. Supporters of the tax increase include most of Georgia’s business and political establishment who try to portray the issue as just another penny for a great cause. It is important that taxpayers realize all those pennies add up to 8 Billion Dollars. That works out to about $3,300 the average family of four in Georgia will no longer have to buy gas, food or anything else they need.

3. Supporters of the plan point out that the tax is only authorized for ten years. Let’s be realistic, there isn’t a chance in hell that the tax will ever go away. If you doubt me look at what Cobb County did to push through the SPLOST tax extension.

4. The business and political establishment in metro Atlanta are determined to expand inefficient and expensive train service. One way they hope to achieve this goal is by rebranding MARTA as a shiny new regional transportation authority run by GRTA. Somehow they think that will make it more palatable to suburban taxpayers. This recent front page article in the Alpharetta Revue illustrates what I mean. While the article uses the transit authority in Chicago as an example it failed to also mention that census numbers show people are fleeing the city of Chicago, the state of Illinois is on the verge of bankruptcy and the Chicago Regional Transit Authority will cost taxpayers about 1.4 Billion Dollars this year.

5. Land development companies and speculators will reap billions of dollars in profits while shouldering none of the burden for the transportation improvements which increase their property values. That is why local Chambers of Commerce and Community Improvement Districts will invest millions of dollars to promote the new tax on consumers.

6. There is still no relief in the proposal for taxpayers in Fulton and Dekalb Counties who already pay a one cent transportation tax for MARTA that costs us about $350,000,000 a year. Last year North Fulton mayors threatened to withhold support for the proposed tax increase if it continued to unfairly punish their constituents but the resulting political backlash left them noticeably silent since then.

There is no doubt that the state of Georgia has neglected our road infrastructure as tax revenues boomed over the past few decades. I just think it is a horrible idea to make up for that mistake by raising taxes now that people are struggling with high unemployment, rampant inflation and declining property values. The state’s political and business community disagree.

It will be interesting to see what the people of Georgia decide when the issue reaches the ballot box.

Forget plastics… buy Bag Balm!

Bag balm is the medicated salve that dairy farmers apply to soothe the overworked teats of dairy cows. But Bag Balm isn’t just for cows any more and after yesterday’s Special Purpose Local Option Sales Tax vote in Cobb County the stuff will soon be flying off the shelves as taxpayers seek to soothe the pain of being milked for another 500 million dollars.

The special election decided whether Cobb voters would approve an extension of the local 1% sales tax. The referendum could have been held in November thus saving taxpayers $340,000 in special election expenses but tax advocates knew that higher voter participation would hurt their chances of passage so the special election was held yesterday. In addition to that example of political gamesmanship the Cobb County business community funneled $150,000 to tax advocates through the local Community Improvement Districts.

Yet despite all the machinations of Cobb County’s business and political community the issue was a dead heat right down to the wire. The tax extension won by  a whopping 79 votes out of the roughly 43,000 votes cast.

That works out to 50.09% in favor and 49.91% against so proportionally about 241 Million Dollars will be taken from taxpayers to pay for projects that they either didn’t want or didn’t want to pay for. That’s gonna hurt.

But every challenge presents an opportunity and the sore teats of Cobb County’s cash cow taxpayers present a huge opportunity for the local distributors of Bag Balm. And since political observers viewed the Cobb SPLOST referendum as an indicator of how Georgia’s proposed transportation tax increase will fare next year we can all get in on the action.

Forget plastics… buy Bag Balm!

Where High-Income and Low-Income Workers Live in Atlanta

In 2009 the Atlanta Regional Commission published an interesting report called Where High Income and Low-Income Workers Live in Atlanta. The study’s basic conclusion was that,” Low-income workers, for example, tend to live south of I-20, while high-income workers live north of I-20 along the GA 400 corridor”. Of course anyone casually familiar with Atlanta could have told you that but the maps used to illustrate the conclusion are worth seeing. (You can click on the images to enlarge)

The difference is stark. And if you notice how many of the high wage earners live in the proposed Milton County you can see why the rest of Fulton County and the City of Atlanta are desperate to make sure it never happens.

‘Why Don’t We Just Spend Three Times as Much?’

Nationalreview.com has a great article about the futility of increasing government spending to solve America’s societal problems. In this case the example is an exchange between President Obama’s Secretary of Education Arne Duncan and Republican Senator Jeff Sessions of Alabama.

Education Secretary Arne Duncan testified before the Senate Budget Committee today, in large part to defend the massive increases in education spending that have occurred under President Obama (68 percent, including the stimulus). In his 2012 budget, Obama calls for an 11 percent increase in spending on education.

Sen. Jeff Session (R., Ala.), ranking Republican, pointed out that when it comes to education, more spending doesn’t necessarily produce better results. Case in point:

Spending per student — South Korea: $8,000; United States: $12,000.

International ranking (reading, math) — South Korea: 1st, 1st; United States: 14th, 25th.

After Senator Sessions pointed out that just spending more money didn’t lead to better results the Secretary of Education persisted in trying to justify more money. Senator Sessions finally responded,”Why don’t we just spend three times as much? Won’t that just help us fix it all?”

Senator Sessions is right. Both of my children attend public schools and a 68% increase in education spending hasn’t improved their education one bit. Neither would another 167 billion dollars. The problems with our educational system are structural and societal and no amount of spending will change that.

You can read the whole thing here.

AJC explores the urbanization of Alpharetta

The Atlanta Journal Constitution has an article which explores the ongoing push by City Council to urbanize Alpharetta. You can read the whole thing here.

The piece includes comments from yours truly and another like minded resident. MetLife refused to comment. I guess they feel no need to defend the loss of 1800 jobs in exchange for 500 condos since it was the city’s idea in the first place.

A few snippets:

“The City of Alpharetta continues to add density, add condominiums and it’s going to have a negative impact on the future,” said resident Jimmy Gilvin, who plans to attend Monday night’s meeting. “We have a great quality of life, we have great public schools and for some reason that seems to be under attack right now.”

“Alpharetta is probably the only city in the country where a developer walks into the Community Development Department requesting a simple stream variance, and he leaves with the promise to push through zoning for a high density, mixed-use project,” resident Mark McKean said.

In response to the comments by Alpharetta residents the director of Alpharetta’s Community Development Department, Diana Wheeler, had this to say:

Wheeler denies the charge, and said there has been no attempt to alter the zoning code to fit MetLife’s plan. “If the plan met the code, it wouldn’t require a public hearing,” she said.

Well the city is holding a public hearing. So is Ms. Wheeler saying that the MetLife development doesn’t meet the code? Ms. Wheeler’s comments make no sense to me but then again neither does the Unified Development Code she devised in an attempt to permit developments that most city residents abhor.

There is still time to call the city and notify them of your position before the vote tonight. The phone number is 678-297-6000.

Why would Alpharetta trade 1800 jobs for 500 condos? MARTA

Below is a letter submitted by MetLife to justify the Peridot project proposed for Alpharetta. The new project would remove more than 1800 potential jobs from the site in return for building 500 condominiums. Why would the Alpharetta City Council do that? I will let Mr. Ikwut-Ukwa of MARTA’s planning office explain:

“MARTA is also working with the City of Alpharetta to initiate an LCI for the North Point Mall area as part of a proposed north line rail extension. In the past the City of Alpharetta had also inquired from MARTA on the feasibility of having the proposed rail station at a location across SR 400 from the Mall in the vicinity of the development site. MARTA has not yet made a firm decision on the station location but believes this development will add to the density in the area, making for a better transit supportive environment.

For at least five years the City of Alpharetta has been working with MARTA to increase the density of our city so they can justify bringing trains here. Funny, I don’t remember Alpharetta voters being asked about that. It must have happened at a charade charrette.

IF an Alpharetta mayoral or city council candidate comes knocking on your door this summer to ask for your vote don’t forget to tell them how you feel about the urbanization of Alpharetta to lure MARTA. Obviously they think it is a good idea. They just don’t want you to know.

MARTA, is it smarta for Alpharetta?

That’s what organizers do

Right now there is a major confrontation taking place in Wisconsin that will have an impact on the future of our nation. The public employee unions in the state of Wisconsin are disrupting the state legislature and the Democratic state senators have fled the state to prevent the governor of Wisconsin from enacting legislation which would attempt to correct the state’s budget deficit.

Wisconsin teachers have closed down the state’s schools to protest and state legislators are afraid to go home for fear of retaliation from union thugs. It is scary to see that happening in the United States of America but the scariest part of all to me is that the president of the United States of America is siding with the protesters against the duly elected representatives of the people of Wisconsin. 

According to the WashingtonPost:

President Obama thrust himself and his political operation this week into Wisconsin’s broiling budget battle, mobilizing opposition Thursday to a Republican bill that would curb public-worker benefits and planning similar protests in other state capitals.

Obama accused Scott Walker, the state’s new Republican governor, of unleashing an “assault” on unions in pushing emergency legislation that would change future collective-bargaining agreements that affect most public employees, including teachers.

The president’s political machine worked in close coordination Thursday with state and national union officials to get thousands of protesters to gather in Madison and to plan similar demonstrations in other state capitals.

I was not a fan of President Obama in the last election and I did not vote for him. I did not believe that electing a community organizer to be the most powerful man in the world was in the best interest of my family or our nation however I have tried to be respectful of Obama as my president. And while I couldn’t care less about Barack Obama’s race I do realize that the election of a black man as the president of the United States serves as an inspiration to millions of people. But President Obama’s support of  public union employees over the duly elected representatives of the taxpayers of Wisconsin is absolutely unconscionable and dangerous for our nation.

Before Barack Obama was elected I remember reading an article in National Review by Byron York. It is titled “What Did Obama Do As A Community Organizer? And is it really a qualification to be president?” and you can read the whole thing here. Mr. York’s piece was a thorough exploration of President Obama’s past as an organizer and as we watch the political upheaval taking place in Wisconsin it is well worth going back to see how prescient it was: 

Perhaps the simplest way to describe community organizing is to say it is the practice of identifying a specific aggrieved population, say unemployed steelworkers, or itinerant fruit-pickers, or residents of a particularly bad neighborhood, and agitating them until they become so upset about their condition that they take collective action to put pressure on local, state, or federal officials to fix the problem, often by giving the affected group money Organizers like to call that “direct action.”

Mr. York then does an excellent job of outlining Mr. Obama’s work in Chicago and showing that he did actually help some people in impoverished areas. Mr. York also points out that after accomplishing a few minor achievements over three years Mr. Obama was determined to organize from a position of more strength.

The solution, Obama felt, was to find a way to political power of his own.

“He was constantly thinking about his path to significance and power,” Mike Kruglik told me. “He said, ‘I need to go there [Harvard Law School] to find out more about power. How do powerful people think? What kind of networks do they have? How do they connect to each other?”

And two months before Barack Obama was elected as preseident Byron York concluded with these lines:

When he left for law school, Obama wondered what he had accomplished as an organizer. He certainly had some achievements, but he did not — perhaps could not — concede that there might be something wrong with his approach to Chicago’s problems. Instead of questioning his own premises, he concluded that he simply needed more power to get the job done. So he made plans to run for political office. And in each successive office, he has concluded that he did not have enough power to get the job done, so now he is running for the most powerful office in the land.

And what if he gets it? He’ll be the biggest, strongest organizer in the world. He’ll dazzle the country with his message of hope and possibility. But we shouldn’t expect much to actually get done.

I am disappointed that the President of the United States has chosen to support threatening protests against a sitting governor and legislature in the state of Wisconsin. I am disappointed but I’m not surprised. That’s what organizers do.

The Scariest Thing You Will Read Today

“Look, the CBO — their own economic model breaks down in 2037. Because the computer at the Congressional Budget Office basically says [it] can’t conceive of the economy continuing past 2037 because of the strangulation of debt. Because of the debt burden.” – House Budget Committee Chairman Paul Ryan (R-WI)

The quote above is from the transcript of a radio interview with Representative Ryan and relates the response of the official budget office of the United States of America when he asked how high taxes would be on his 6, 7 and 9 year old children once they reach their forties.

You can read more of the interview here.

There are tremendous challenges facing our nation right now so I don’t say it lightly when I tell you that the wreckless spending of politicians is the biggest threat to the future of our nation and our children. We need to start paying attention.