Tag: Virginia

Washington Post: Adding Insult to Obamacare’s Injury

On Sunday, The Washington Post published my letter to the editor:

The excellent July 24 front-page article “Health law’s unintended impact on part-timers” showed how President Obama’s health-care law is cutting part-time workers’ pay by forcing employers to limit these employees’ hours in order to avoid penalties. Yet the reality is even worse.

Obamacare does not authorize those penalties in states that leave the task of establishing a health insurance exchange to the federal government. That means most of the employers the article cited — the commonwealth of Virginia, various Texas employers, the Ohio-based White Castle burger chain, the city of Dearborn, Mich., and Utah’s Granite School District — don’t need to cut part-timers’ hours, because the federal government has no authority to penalize them.

Yet the Obama administration has decreed it will do so anyway, contrary to the clear language of federal law, proving that taxation without representation is not confined to the District.

Two lawsuits have been filed to stop this illegal action — one by the state of Oklahoma, another by employers and individual taxpayers in Kansas, Missouri, Tennessee, Texas, Virginia and West Virginia.

Even so, thousands of part-time workers are already losing wages because of a tax Congress did not authorize. As underemployed music professor Kevin Pace told The Post, “This isn’t right on any level.”

Michael F. Cannon, Washington

The writer is director of health policy studies at the Cato Institute.

On Wednesday, July 31, a House oversight subcommittee will be holding a hearing on the IRS’s illegal taxes, borrowing, and spending.

Republicans Slowly Catch Up to the 21st Century

Public opinion on gay marriage has changed a lot in recent years, perhaps more rapidly than on any other major issue. Yet as Jonathan Rauch noted last year, one demographic group has resisted that change: Republicans. As he wrote:

In moving as decisively as they have on gay rights, the Democrats are following the country….

But the dissenters have not vanished. Rather, they have holed up inside the Republican Party. According to polling by the Pew Research Center, two-thirds of Democrats and almost 60 percent of independents call same-sex relations morally acceptable; only a bit over a third of Republicans agree. White evangelicals, in particular, are unique among major demographic and religious categories (including Catholics) in their fierce disapproval of homosexuality, and these days the vast majority of them (70 percent, according to Pew) are Republican or lean Republican.

To put the matter bluntly, the Republican Party is becoming an isolated bastion of anti-gay sentiment. That is not because Republicans and conservatives are immune to the general trend toward acceptance of homosexuality. It is because the trend is slower among Republicans.

But in today’s Washington Post there’s some interesting evidence of movement among Republicans. A strong majority of voters in Virginia, a state that passed a gay marriage ban in 2006, and 40 percent of Republicans now say “it should be legal for gay couples to get married.” Note the changes from 2006 in this Post graphic:

Washington Post graphic

Note especially that column in the lower right. How has public opinion in Virginia changed since the 2006 amendment vote? Support for gay marriage (or opposition to a ban) has risen by 13 points. Independents are up only 3 points. Democrats are up by 7 points, perhaps because of the endorsement of President Obama. And Republican support is up 25 points.

Last year, I called the sudden silence of Republican leaders on gay marriage “the sound of social change.” It looks like they knew which way the wind was blowing in their own base.

An Unconstitutional Tax Bill in Virginia?

My long-ago colleague Norman Leahy, once a young research assistant at the Cato Institute, has an op-ed in the Washington Post today. I wonder where he got the idea that an act of the legislature is invalid just because it violates the state constitution.

Those praising the Virginia General Assembly’s transportation compromise may not realize that the bill runs afoul of the plain language in the state’s constitution.

Virginia’s constitution is clear that the General Assembly can impose only uniform taxes across the state for similar activities. But the bill that emerged from the House-Senate conference committee last weekend upsets the historic balance between localities and state government; it contains new provisions about taxation, some of which would effectively set up a two-tier system for residents in certain parts of the state. It’s difficult to see how some of these provisions could survive legal challenge….

As a constitutional matter, these local tax provisions could probably be struck down without affecting the rest of the legislation.

But few should know better than Gov. Bob McDonnell (R) that state legislators don’t have the power to impose a discriminatory local tax. He was the state’s attorney general when his office defended before the state Supreme Court the General Assembly’s previous attempt at a transportation tax package. The court rejected the argument.

 

GOP Groups’ Ads on Sequestration, Defense Jobs Are Misleading

It is no surprise that the defense contractors want to protect their profits by getting taxpayers to pony up more money. Now they have secured the support of Crossroads GPS in a commercial against Senate candidate and former Virginia governor Tim Kaine. The Crossroads ad follows similar ones from Kaine’s challenger, George Allen, and the National Republican Senatorial Committee. All three ads claim that spending cuts under sequestration will result in devastating job losses to the defense industry and Virginia; the Crossroads ad claims 520,000 jobs will be lost. But these estimates are wildly inflated and represent the short-term interests of the defense industry, not the American taxpayer.

In actuality, the cuts, if they occur, will be evenly divided between the Pentagon and the rest of the discretionary budget. They are a very modest share of total federal spending over the next decade, and the assertion that the cuts will lead to massive job losses have been thoroughly refuted here, here, and here. Indeed, there is good reason to believe that such cuts will have beneficial effects over the medium- to long-term, if the savings are returned to taxpayers, and not merely plowed into other federal spending.

All of these pro-GOP ads get the lost jobs number from a study commissioned by the Aerospace Industries Association and authored by George Mason economist Stephen Fuller. Last Friday, the Cato Institute hosted a forum—which included Fuller—that considered the effects of military spending cuts on employment and the economy. We discussed the positive impact that cuts in Pentagon spending can have in the wider economy, and even in a state like Virginia that is more dependent than other states on federal spending. The Wall Street Journal’s Steve Moore argued we should just let sequestration happen (I agree). As the Washington Post reported, Economist Benjamin Zycher summed up the hypocrisy of conservatives claiming the defense budget produces jobs:

“Conservatives . . . are highly dubious about the purported [gross domestic product] and employment benefits of federal domestic spending, as illustrated by the meager effects of the Obama stimulus fiasco,” he said. “There’s no particular reason to believe that defense spending is different.”

I wish that organizations like Crossroads GPS were as committed to saving the taxpayers money as they are to electing Republicans. I’d also like it if they relied on objective facts, not statistics designed to protect the narrow interests of an industry that relies overwhelmingly on taxpayer dollars. We wouldn’t expect Republicans to accept the teachers unions’ claims about job losses from cuts in the Department of Education. Why, then, do they promote these phony numbers by the defense contractors?

On Thursday, Dan Mitchell and I will be discussing this issue—the effects of sequestration—on Capitol Hill. It is not too late to register, but space is limited, so act now.

A Soft Surrender to Low Expectations

There is a problem in the school choice community … let’s call it a soft surrender to low expectations.

We are witnessing a race to the bottom on education policy, and the latest case comes from my own state of Virginia. The legislature passed an education tax credit program this week, soon to be signed by the Governor, which means I should be celebrating. Unfortunately, the Virginia tax credit program is a mockery of education reform.

I will lay out my basic list of criticisms, which include some of the program’s  inadequacies along with its grave debilitations. Read more here.

  1. It is a 65% credit, which is terrible policy and will cripple the program (see more on this issue).
  2. It places the program administration and control, including approval of SOs and schools under the state DOE rather than the proper authority for administering a tax credit program, the Dpt. of Revenue.
  3. It exempts the DOE from the Administrative Process Act, which provides for appeal and review of decisions, and explicitly states that all decisions by the DOE and Superintendent are “final and not subject to review or appeal.” In other words, they have been given a blank check of regulatory authority over the program and schools.
  4. The bill will force schools to collect and report detailed student information to the DOE.
  5. The cap is only $25 million, and has no growth provision.
  6. No personal-use credits so that families can use their own money for their own children … they must beg for charity if they are eligible.
  7. No homeschooling or non-traditional education.
  8. And the kicker … the whole thing sunsets in 2018, five years from now (see section 58.1-439.26 A, “beginning on or after January 1, 2013, but before January 1, 2018 …”).

I would celebrate the last provision, a sunset clause, as a chance for Virginia to get it right the second time, if not for the much greater probability that the looming demise of the program will enable choice opponents to make the program even worse in trade for a stay of execution.

If we will accept this, we will accept anything. It will not do what we expect or need in terms of expanding choice and freedom, and the hope that it will be appreciably improved in the next five years is slim at best.

Often, when I insist on higher standards in school choice policy, I am told that we must voice support because it will help some children now. Few seem to consider the hundreds of thousands of children who will not be helped in decades to come, indeed may well be harmed, because of this inadequate policy. Opportunity costs must be considered. All the children yet to be born must play into our utilitarian calculus if that is the measure we use to judge public policy.

And we should not pretend that obviously inadequate programs are bold reforms; it  only serves to encourage yet more inadequate policy. We should push the conversation and educate leaders and citizens about real reform. Instead, the issue of school choice will be set aside for at least four years, as politicians point to their “accomplishment” that will help so few and provide no foundation for future reform. A roadblock to real education reform has just been passed in Virginia, and it is labeled SB 131.

Truth in Budget Reporting

Newspaper articles on government budgets virtually never tell the reader the two most important facts: What was the budget last year, and what is it this year? Instead, the typical budget article trumpets “cuts” and “austerity,” and never actually mentions that the budget is going up by four percent, or six percent, or nine percent in the coming year. So two cheers to the Washington Post for its article on Virginia governor Robert McDonnell’s proposed budget, which does—eventually—give you most of that information. Still, the second paragraph (and second sentence) of the article says that McDonnell “proposed saving nearly $1 billion in a variety of ways.”

You have to wait for the seventh paragraph, on the jump page, before you find out that the proposed budget amounts to $85 billion over two years.  And only in the 20th of 25 paragraphs do you find out that

The two-year budget, which begins July 2012, will be the largest spending plan in Virginia history, growing by about $7 billion.

So two cheers for giving the facts, even if the lead of the story might have led some readers to think that McDonnell was cutting $1 billion from the state’s budget. And three cheers for Steve Contorno of the Washington Examiner, who put the basic facts clearly in the third paragraph (and third sentence) of his article:

In an hour-long address to the General Assembly’s budget committees, McDonnell laid out an $85 billion spending plan through June 30, 2014, up from $79 billion in 2010-2012.

Please, reporters: when you write about a city, state, or federal budget, please tell us readers and taxpayers how much the budget actually is, and how much it will be next year. With that information, we can figure out for ourselves whether it involves cuts or not.

Virginians Want to Bring the Boys Home

A strong majority of voters in Virginia, a state that is home to the Pentagon, Naval Station Norfolk (the world’s largest naval base), U.S. Joint Forces Command, and the fourth highest percentage of veterans of any state, want American troops out of Afghanistan and Libya.

According to a Quinnipiac University poll, 55 percent of Virginians polled think the United States “should not be involved in Afghanistan now,” and 60 percent oppose involvement in Libya.

According to the poll, fewer Virginians support those wars than any of the other people or topics the poll asked about. Only 38 percent now support the Afghan war, and 31 percent support the Libyan military involvement, compared to 42 percent who don’t want to repeal the 2010 health care law, 43 percent who would vote to re-elect President Obama, 48 percent who approve of Obama’s job performance, 42 percent who would vote for George Allen for senator, and 43 percent who would vote for Tim Kaine.

All those candidates should probably take note of the poll’s results on both health care and foreign wars.

Quinnipiac surveyed 1,434 registered voters and claims a margin of error of 2.6 percentage points. The poll apparently did not ask about the war in Iraq.

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