Tag Archives: Mike Pompeo

WichitaLiberty.TV July 2, 2014

WichitaLiberty.TV: Primary election results, and a look forward

In this episode of WichitaLiberty.TV: We’ll take a look at some of the primary elections results this week. What did voters say, and what should we look for in the November general election and the future past that? View below, or click here to view at YouTube. Episode 54, broadcast August 10, 2014.

United States Capitol, July 2011

Elections in Kansas: Federal offices

Kansas Republican primary voters made two good decisions this week.

Kansas held primary elections this week. The primary election, of course, does not determine who wins the office; it only selects one Democratic and one Republican candidate to move forward to the November general election. But in many cases, the primary is the election, at least the one that really makes a difference. That’s because in Kansas, often there may be no Democratic Party candidate. Or if there is a Democrat, that candidate may have little money available to campaign in a district with a large Republican voter registration advantage.

It’s important to note that some candidates who will appear on the general election ballot in November did not appear on any primary election ballot. That’s because parties other than Democratic and Republican select their candidates in a convention. In particular, there are two prominent candidates in this category. One is Keen Umbehr, the Libertarian Party candidate for governor. The other is independent candidate Greg Orman, who is running for United States senator. Both are serious candidates that deserve consideration from voters.

Let’s take a look at a few results from the primary election.

United States Senate

United States Senate Primary, 2014
In the contest for the Republican Party nomination for United States Senate, Pat Roberts won, receiving 48 percent of the vote. He moves on to face not only the Democratic nominee, but also an independent candidate who is already advertising on television. The problem Roberts faces going forward is the fallout from his scorched-earth campaign. He went negative against Milton Wolf from the start, focusing on issues that are worth considering, but quite trivial considering the big picture.

Pat Roberts millions on negative ads
Roberts ran an advertisement near the end of the campaign that took Wolf’s words grossly out of context, and Roberts should be ashamed for stooping to that level. Another thing Roberts can be ashamed of is his refusal to debate opponents. He said he would debate. He should debate. It’s a civic obligation. He also largely avoided news media.

Pat Roberts StarKistDuring the campaign, I was critical of Roberts. I looked at votes he had taken while in the Senate. I looked at the way he ran his campaign. I was critical. I hope that I kept my criticism based on — and focused on — facts and issues. But another problem Roberts has is the behavior of his supporters, both official and unofficial. They too ran a scorched-earth campaign.

Tweet about Milton Wolf I’d like to show you some of the posts made on Facebook and Twitter about Wolf and his supporters, but this is a family-oriented blog. Roberts will need the support of all Kansas Republicans in the general election. He needs to hope that they don’t peel off to the Democrat or Independent candidates. Roberts needs all Kansas Republicans to vote, and vote for him. But the behavior of his campaign and its supporters has harmed Republican party unity. What’s curious to me is that I don’t think they realize the harm they have caused.

United States House of Representatives, district 4

United States House, District 4For United States House, fourth district, which is Wichita and the surrounding area, incumbent Mike Pompeo won over Todd Tiahrt, 63 percent to 37 percent. This contest was curious for a number of reasons, such as the former holder of the office seeking it again, and running against a man he endorsed twice. It attracted national attention for that reason, but also for something more important: Tiahrt was advocating for a return to the practice of earmarking federal spending. Tiahrt concentrated a few issues in a campaign that was negative from the start.

Tiahrt claimed that Pompeo voted to support Obamacare seven times. But everyone who examined that claim, including several political science professors, said it was unfounded, going as far as saying it broke the truth entirely. The Tiahrt campaign also took a speech Pompeo had made on the floor of the House of Representatives and used just one sentence of it in a deceptive manner. The campaign also took a bill that Pompeo introduced — having to do with GMOs — and twisted its meaning in order to claim that Pompeo doesn’t want you to know the ingredients used in food. Tiahrt criticized Pompeo for missing some votes during the campaign, even though Tiahrt had missed many votes during his own campaign four years ago.

In the face of these negative ads, Pompeo remained largely positive. He released one television ad that rebutted the claims that Tiahrt had made. Is it negative campaigning to rebut the false accusations of your opponent? Pompeo had one ad that mentioned “goofy accusations” made by his opponent, which hardly qualifies as negative. Other than that, the Pompeo campaign remained largely positive. That is quite an accomplishment in today’s political environment.

This campaign was also marred by vitriol among supporters. In my opinion, based on my observations, the Tiahrt supporters that engaged in this behavior have some apologies to make. Pompeo goes on to face a relatively unknown Democrat in the heavily Republican fourth district.

United States House of Representatives, district 1

United States House, District 1For United States House, first district, which is western Kansas, although the district extends east enough to include Emporia and Manhattan, incumbent Tim Huelskamp was challenged by Alan LaPolice. Huelskamp won with 55 percent of the vote. Huelskamp had faced criticism for not being supportive of various subsidy programs that benefit farmers, most notably for ethanol. Outside groups joined the race, running ads critical of Huelskamp for that reason. Some ads were critical of Huelskamp for being removed from the House Agriculture committee, that move seen as retaliation for not supporting Speaker of the House John Boehner. Huelskamp now moves on to face a Kansas State University history professor who was also the mayor of Manhattan.

The meaning of these results

What do these results mean? These three elections — Senate and two House contests — attracted national attention. The Friday before the election, Kimberly Strassel wrote in the Wall Street Journal of the importance of the fourth district contest. She wrote:

A big decision comes Tuesday in the Kansas GOP primary. The Sunflower State is in the throes of political upheaval, with most of the attention on the fortunes of Gov. Sam Brownback and Sen. Pat Roberts. But the race that may say far more about the direction of the GOP is taking place in Wichita, the state’s Fourth District, in the standoff between Rep. Mike Pompeo and challenger Todd Tiahrt.

Pompeo was elected in the 2010 tea party surge, with a particular focus on liberating private enterprise. He’s made a name for himself as a leader in the fight to end corporate welfare and pork, and to cut back on strangling regulations.

A Crony Capitalist Showdown

After detailing some legislative activity and accomplishment, Strassel noted the difficulty that fighters for economic freedom encounter: She wrote “Such principles are precisely what conservative voters claim to demand from their representatives. Yet the antisubsidy line has hardly been an easy one, even in conservative Kansas — which collects its share of federal largess. And Mr. Tiahrt knows it.”

Continuing, she wrote: “The choice voters fundamentally face on Tuesday is whether they want a congressman who works to get government smaller for everyone and to end corporate welfare, or a congressman who grabs what he can of big government to funnel to his district, and embraces crony capitalism. The latter is a return to the unreformed GOP, a groove plenty of Republicans would happily slide back into — if only voters gave the nod. We’ll see if Kansas conservatives do.”

There’s something there that bears repeating: “Such principles are precisely what conservative voters claim to demand from their representatives.” In the case of Huelskamp and Pompeo, voters supported two candidates who have these principals, and who follow them. In the United States Senate contest, that almost happened.

In Kansas, hypocritical criticism of voting records

Kansas fourth district voters may want to be aware of voting record of a congressional challenger, and whether his criticism of his opponent for similar behavior is hypocritical.

Todd Tiahrt has criticized Congressman Mike Pompeo for missing recent votes. A Tiahrt campaign press release contained: “‘Mr. Pompeo’s job is not to raise money or have political events — his job is to vote.’ stated Todd Tiahrt.”

It’s not uncommon for officeholders to be absent during campaign season. Relevant to this is Tiahrt’s own voting record four years ago. At that time he was campaigning for the United States Senate while serving in the House of Representatives, and he missed a lot of votes.

Todd Tiahrt voting record from govtrack.us, showing missed votes during an election campaign. Click for larger version.
Todd Tiahrt voting record from govtrack.us, showing missed votes during an election campaign. Click for larger version.
From July to September 2010, Tiahrt missed 76 of 151 votes. That’s missing 50.3 percent, which placed him in the 99th percentile for missing votes during those months. Data is from govtrack.us.

So if missing votes during a campaign is relevant information that voters might use in making their decisions, voters might want to also be aware of Tiahrt’s record.

More importantly, voters might question a candidate who criticizes another for doing the same as he did. This is hypocrisy, that is, the practice of professing standards and beliefs that are contrary to one’s real character or actual behavior.

U.S. Capitol Dome us-capitol-325341_1280

In Kansas fourth district, fundamental issues of governance arise

The contest in the Kansas fourth district is a choice between principle and political expediency, and between economic freedom and cronyism.

While some news articles and political columns have described the contest for Republican Party nomination for United States House of Representatives between Todd Tiahrt and Mike Pompeo as a yawner, as between two candidates with few and only minor distinguishing positions — there are important differences. The press is starting to notice.

A Crony Capitalist Showdown

In the Wall Street Journal columnist Kimberly Strassel made the case for this contest’s importance as a bellwether of Republican sentiment:

A big decision comes Tuesday in the Kansas GOP primary. The Sunflower State is in the throes of political upheaval, with most of the attention on the fortunes of Gov. Sam Brownback and Sen. Pat Roberts. But the race that may say far more about the direction of the GOP is taking place in Wichita, the state’s Fourth District, in the standoff between Rep. Mike Pompeo and challenger Todd Tiahrt.

The 50-year-old Mr. Pompeo — an Army veteran, Harvard Law grad and businessman — was elected in the 2010 tea party surge, with a particular focus on liberating private enterprise. He’s made a name for himself as a leader in the fight to end corporate welfare and pork, and to cut back on strangling regulations. (Potomac Watch: A Crony Capitalism Showdown, August 1, 2014)

(If the above link does not work for you because you don’t have a subscription to the Wall Street Journal, click here.)

Such principles are preciselyAfter detailing some legislative activity and accomplishment, Strassel notes the difficulty that fighters for economic freedom encounter: “Such principles are precisely what conservative voters claim to demand from their representatives. Yet the antisubsidy line has hardly been an easy one, even in conservative Kansas — which collects its share of federal largess. And Mr. Tiahrt knows it.”

Concluding her column, Strassel outlines the choice that so many writers have failed to realize:

The choice voters fundamentally face on Tuesday is whether they want a congressman who works to get government smaller for everyone and to end corporate welfare, or a congressman who grabs what he can of big government to funnel to his district, and embraces crony capitalism. The latter is a return to the unreformed GOP, a groove plenty of Republicans would happily slide back into — if only voters gave the nod. We’ll see if Kansas conservatives do.

Another example of the difference between the two candidates is the Export-Import Bank. Conservative groups are urging that Congress not reauthorize the bank, a vote that will happen soon. The most common argument is that it harms American jobs, and there are allegations of corruption in its operations.

While in Congress, Pompeo voted against the reauthorization of the bank. He has said he would vote against its reauthorization again unless there is significant reform. Tiahrt, on the other hand, voted in favor of the Export-Import Bank. It’s representative of the type of cronyism he has supported while in office, and would likely support again, especially as his positions tack to the political left.

Finally, Tiahrt has recently criticized Charles Koch and Americans for Prosperity, leading us to wonder if Tiahrt understands or embraces the principles of economic freedom and free markets.

charles-koch-wall-street-journal-2014-04-03

For Tiahrt, economic freedom is not a good thing, it seems

Kansas congressional candidate Todd Tiahrt has criticized Charles Koch and Americans for Prosperity, leading us to wonder if Tiahrt understands or embraces the principles of economic freedom and free markets.

In a recent speech, candidate for United States House of Representatives Todd Tiahrt criticized Americans for Prosperity and Charles Koch, telling an audience “in general, they try to fight programs that they think are not good for Koch Industries.”

He also said that for Mike Pompeo, Tiahrt’s election opponent who is supported by Americans for Prosperity, they “think it’s all about the money.”

These allegations are contrary to positions and actions that Charles and David Koch have taken throughout their lives. As an example, in April of this year Charles Koch penned an op-ed for the Wall Street Journal. In the article, Koch explains his involvement in public affairs:

Far from trying to rig the system, I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs — even when we benefit from them. I believe that cronyism is nothing more than welfare for the rich and powerful, and should be abolished.

Koch Industries was the only major producer in the ethanol industry to argue for the demise of the ethanol tax credit in 2011. That government handout (which cost taxpayers billions) needlessly drove up food and fuel prices as well as other costs for consumers — many of whom were poor or otherwise disadvantaged. Now the mandate needs to go, so that consumers and the marketplace are the ones who decide the future of ethanol. (Charles Koch: I’m Fighting to Restore a Free Society)

In an earlier Journal op-ed Koch wrote “Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.”

If it was “all about the money” as Tiahrt contends, Koch Industries would join the majority of American business firms that seek to rig the system in their favor. But Charles and David Koch, along with Americans for Prosperity, do not do that. Instead, they advocate for reform.

It’s not a recent conversion, either. Charles and David Koch have promoted free markets and economic freedom for many decades. Charles Koch and others founded what became the Cato Institute in 1977, almost four decades ago. Cato has been consistent in its advocacy of economic freedom.

Even earlier that that: An issue of Koch Industries Discovery newsletter contains a story titled “Don’t subsidize me.” Here’s an excerpt describing an event that must have taken place about 50 years ago:

When Charles Koch was in his 20s, he attended a business function hosted by his father. At that event, Fred Koch introduced Charles to a local oilman. When the independent oilman politely asked about the young man’s interests, Charles began talking about all he was doing to promote economic freedom. “Wow!” said the oilman, who was so impressed he wanted to introduce the young bachelor to his eligible daughter. But when Charles mentioned he was in favor of eliminating the government’s oil import quota, which subsidized domestic producers, the oilman exploded in rage. “Your father ought to lock you in a cell!” he yelled, jabbing his finger into Charles’ chest. “You’re worse than a Communist!”

It seems the oilman was all for the concept of free markets — unless it meant he had to compete on equal terms.

Under oath

For more than 50 years, Charles Koch has consistently promoted economic freedom, even when it was not in the company’s immediate financial interest. In the 1960s, Koch was willing to testify before a powerful Congressional committee that he was against the oil import quota — a very popular political measure at the time. “I think it’s fair to say my audience was less than receptive,” recalls Koch.

Years later, Koch warned an independent energy association about the dangers of subsidies and mandates. “We avoid the short-run temptation to impose regulatory burdens on competitors. We don’t lobby for subsidies that penalize taxpayers for our benefit. “This is our philosophy because we believe this will produce the most favorable conditions in the long run,” Koch said.

It seems that candidate Tiahrt doesn’t share these principles.

Following is a transcript provided to me of remarks by Todd Tiahrt on July 25, 2014.

The Americans for Prosperity is an organization that is primarily funded by Koch Industries and, in general, they try to fight programs that they think are not good for Koch Industries. And now they’re trying to support President, excuse me, they’re trying to support Mr. Pompeo. So, I guess because Mr. Pompeo is a Harvard lawyer and President Obama is a Harvard lawyer, sometimes I accidentally slip when I say “President Obama” when I really meant to say “Mr. Pompeo,” because they’re both Harvard lawyers.

Americans for Prosperity have done some good things in the past, but today they’re on the wrong side of the truth. … Mr. Pompeo and Koch Industries think it’s all about the money. You can out-vote Charles Koch if you get one other person to vote with you. Right here we have enough people to out-vote all of the billionaires in Kansas. Right here we have enough people to out-vote most of the millionaires, but they think that they can sway the outcome of this election by just putting more and more money into it. And forget about you! … They, in Washington, are all about the money, and it’s playing out right here in the Fourth District of Kansas.

Kansas Farm Scenic Sky Clouds Wheat Farmland kansas-243079_1280

For GMOs, a patchwork of state regulations would be a nightmare

A complicated regulatory landscape for genetically modified foods would shift power to large food producers at the expense of small companies and innovative startups.

Have you ever seen a product that displayed a label that states: “This product contains a chemical known to the State of California to cause cancer and birth defects or other reproductive harm.” And notifying you that you should wash your hands after handling it?

In my case, it was a cable attached to a computer peripheral.

How is that that the State of California “knows” this product is harmful, but none of the other states or the federal government have such knowledge? And why should I — here in Kansas — be discouraged by buying a product and then be scared to use it, just because California believes it is harmful?

The answer is that California has a list of about 900 chemicals that it believes are harmful. If you want to sell a product in California, and if your product contains one of these, you must provide a warning label on your product.

Now, can you imagine the confusion that would result if other states had their own list of chemicals that they believe are harmful. It’s quite likely that each state would have a different list. Complying with the multitude of different harmful lists and labeling requirements would be a burden. It might be impossible — or very costly — to comply.

Today, we have similar potential for regulatory complexity cropping up in the form of state-based label requirements for foods that contain GMOs (Genetically Modified Organisms). Dozens of states are considering their own labeling requirements for food sold within their borders. It’s quite likely that each state would have a different set of labeling requirements. The complexity of complying with such disjointed regulations is costly and forbidding.

To help in this situation, United States Representative Mike Pompeo has introduced legislation that would eliminate the ability of states to require labeling. The bill is H.R. 4432: Safe and Accurate Food Labeling Act of 2014.

The proposed law does not prohibit voluntarily labeling.

What’s interesting is that opponents say this bill will create a new federal bureaucracy to enforce GMO regulations. I suppose that’s true. But it’s either that, or 50 states with 50 sets of regulations, all different. Cities could add regulations, too, further complicating the regulatory landscape.

Another observation: Critics of this bill say its supporters have “sold out” to the large food producer companies, Monsanto being mentioned most prominently. But it is large companies like Monsanto that are best able to cope with complicated regulations. Large companies have fleets of lawyers and compliance officers that can deal with burdensome regulation. And being large, these companies can spread the cost of regulation over a large sales volume.

But small companies, start up companies, and innovators don’t have lots of lawyers and compliance officers. Being small, they can’t spread the cost of regulation over a large sales volume. These are the companies that are most harmed by regulations like those that H.R. 4432 is designed to squelch.

It’s in the interest of large companies to have regulations that create barriers to entry to markets by new competitors. We often see companies lobbying to create such regulations. But H.R. 4432 will create a uniform playing field that is easier and simpler to navigate and obey.

Finally, markets have a remarkable ability to provide the products and information that consumers want. If a food producer senses that consumers want information about the ingredients in a product, they’ll provide it. Their competitors — if they see themselves disadvantaged — will also provide the information that consumers demand. The alternative is relying on 50 sets of government bureaucrats operating in 50 state capitals, plus ambitious city bureaucrats.

Voting attendance an issue in Kansas fourth district campaign

Todd Tiahrt has criticized Congressman Mike Pompeo for missing votes this month. But when Tiahrt was campaigning for the United States Senate while also serving in the House of Representatives, he missed a lot of votes.

Todd Tiahrt voting record from govtrack.us, showing missed votes during an election campaign. Click for larger version.
Todd Tiahrt voting record from govtrack.us, showing missed votes during an election campaign. Click for larger version.
From July to September 2010, Tiahrt missed 76 of 151 votes. That’s missing 50.3 percent, which placed him in the 99th percentile for missing votes during those months. Data is from govtrack.us.

Tiahrt has made a point of mentioning a specific vote that Pompeo missed, on July 10 for H.R. 4923: Energy and Water Development and Related Agencies Appropriations Act, 2015. During Monday’s debate on KWCH Television, Tiahrt said “We also need to stop the regulations on farmers. The one opportunity that Mr. Pompeo had to do something for farmers was during the energy and water appropriations bill. and he was absent that day. He abandoned his post. And because of that, farmers are going to be facing the EPA and increased water regulations, what is going to hurt the family farmers.”

Later in the debate Tiahrt repeated his assertion that because of Pompeo’s missed vote on H.R. 4923, farmers will face increased regulation on puddles and stock ponds.

To the extent that this bill protects farmers from “onerous” regulations, the bill passed by a vote of 253 to 170, with Republicans voting 218 to 11 in favor of the bill.

Curiously, a Tiahrt campaign press release refers to proposed regulations known as Waters of the US (WOTUS). But H.R. 4923, the bill whose vote Tiahrt criticized Pomepo for missing, did not affect these proposed rules.

United States Capitol, July 2011

How earmarks pay off for the earmarkers

The case of a Kansas Congressman benefiting from earmark spending once out of office should make us glad the practice has ended, and we should be wary of those who call for its return.

The case of United States House of Representatives Appropriations Committee Member Todd Tiahrt and Neumann Systems is an illustration of the revolving door between government and the private sector. It started with an earmark. An Air Force budgetary document indicates that the earmark spending was at the direction of Congress: “In FY 2006, Congress added $1.2 million for the High Power Fiber Laser Program, and $0.5 million for Oxygen Laser Optical Source.”

Excerpt from Air Force budgetary document.
Excerpt from Air Force budgetary document.

Later in the same document we see “CONGRESSIONAL ADD.” So it’s not like the Air Force asked for this money. Instead, it was added by appropriators in the House of Representatives, of which Todd Tiahrt was a member and appropriator. The oxygen laser spending was an earmark, in other words. It went to a company called Direct Energy Solutions, located in Colorado Springs. Its CEO was David Neumann, who also heads a related company named Neumann Systems Group, Inc.

While this may seem like a small amount of federal money spent on a defense research project, the earmark spending appears to have paid off for Tiahrt. Not only did Tiahrt receive contributions from Neumann for his campaigns both past and present, he also received a client for his consulting firm and, ultimately, a job. When Neumann needed to recover from an illness, Tiahrt worked for Neumann’s company and was paid some $380,000 over two years, according to financial disclosures.

Neumann System Groups had received a contract to build an exhaust gas scrubber for an electrical power plant owned by the City of Colorado Springs. The scubber is controversial. In this article from January 2013, Tiahrt said the scubber would removs sulfur dioxide and nitrogen oxides, but the scubber that is being built will remove only the sulfur compound. Costs seem to have soared over original estimates. The contract is “cost plus” and according to reporting, was awarded without competitive bid. (Costs, doubts rise at Colorado Springs power plant, Colorado Springs Gazette)

None of this was illegal or contrary to ethics codes. It’s just the way the way Washington has worked, with earmarks forging and cementing relationships between Members of Congress and their benefactors.

Earmarks have been banned in Congress since 2010. But not everyone is happy, with progressive lawmakers like Sen. Richard Durbin of Illinois calling for the return of the “glue” that used to hold bills together. But the Wall Street Journal recently commented that Congress is working better without earmarks, resulting in more oversight of, and accountability for, spending.

As he campaigns for a return to Congress, Tiahrt has unabashedly called for a return of earmark spending, telling audiences that the practice did not increase the level of spending. There’s plenty of evidence, along with common sense, that tells us that earmarks do increase spending.

But some people think it’s fun to spend other peoples’ money, and as shown by the post-Congress career path of Todd Tiahrt, it can be lucrative, too.

In Kansas fourth district campaign, PAC contributions are an issue

Candidate Todd Tiahrt criticizes Mike Pompeo for accepting PAC money as campaign contributions, but over his career Tiahrt has accepted PAC dollars in greater proportion than has Pompeo.

In a press release and on the campaign trail, candidate for the Republican Party nomination for United States Congress from the fourth district of Kansas Todd Tiahrt has criticized Mike Pompeo for his acceptance of PAC, or political action committee, campaign contributions. An example from a June 19 press release reads “PAC Man Pompeo’s special interest money means special interest legislation.”

Analysis of source of campaign funds for Todd Tiahrt, career starting in 2000 to present. Center for Responsive Politics, July 12, 2014.
Analysis of source of campaign funds for Todd Tiahrt, career starting in 2000 to present. Center for Responsive Politics, July 12, 2014.

Later in the same release: “So, was Mr. Pompeo representing Kansans or his PAC supporters?”

So if Tiahrt is criticizing a candidate for accepting campaign contributions from political action committees, voters may want to know the entire story. As it turns out, the story is easy to learn.

Analysis of source of campaign funds for Mike Pompeo, career to present. Center for Responsive Politics, July 12, 2014.
Analysis of source of campaign funds for Mike Pompeo, career to present. Center for Responsive Politics, July 12, 2014.

The Center for Responsive Politics has summarized campaign contribution data back to the year 2000. According to its summary, 33 percent of campaign contributions to Tiahrt since then were from PACs.

For Pompeo, over his career as a candidate, the figure is 32 percent of campaign contributions from PACs.

Todd Tiahrt television advertisement.

Did Rep. Mike Pompeo vote to fund Obamacare?

A television ad by Todd Tiahrt claims that Mike Pompeo voted seven times to fund Obamacare. What are the facts about those bills?

Todd Tiahrt television advertisement.
Todd Tiahrt television advertisement.
The seven bills referenced in the Tiahrt ad are appropriations bills that fund numerous departments and agencies of the federal government. Three of the bills were to fund the operations of government for as little as one week. One bill was 475 pages in length. Most passed with broad support of Republicans, including the Kansas delegation. Some reduced funding that had been authorized by the previous Congress.

Somewhere deep within these bills there may be funding that went to the Department of Health and Human Services that in some way provided funds for the implementation of Obamacare. The first three votes were short-term measures to continue appropriations established by the previous Congress. Tiahrt voted with a minority of Republicans to support that bill in its original form, then voted along with all Republicans except one against the passage of the conference report.

As to whether voting for these bills constitutes voting “to fund Obamacare,” the Pompeo campaign manager told the Wichita Eagle: “This type of flawed logic would drive someone to believe that Mr. Tiahrt voted eight times for Planned Parenthood funding for federal funding of abortions — which would be grossly misleading.”

The Eagle further reported: “Pompeo’s campaign provided a list of those eight bills. A fact-check found Tiahrt did vote ‘yes’ on the bills. But those bills were also general appropriation measures for departments that dealt with family planning.”

Here are the bills referenced in the Tiahrt television advertisement.

H.J.Res. 44 (112th) votesH.J.Res. 44 (112th): Further Continuing Appropriations Amendments, 2011. This bill provided appropriations for several dozen federal agencies. It passed 335 to 91. Republicans voted 231 to 6 in favor. All Kansans voted in favor. The Hill described this bill as a “two-week spending resolution … to support a measure aimed at averting a government shutdown this week.” (GOP spending bill passes in landslide as 100 Dems defect)

H.J.Res. 48 (112th) votesH.J.Res. 48 (112th): Additional Continuing Appropriations Amendments, 2011. This bill provided appropriations for a number of federal agencies. It also eliminated specific spending that was approved in 2010. It passed 271 to 158. Republicans voted 186 to 54 in favor. All Kansans except Huelskamp voted in favor. The Hill described this bill as a “three-week spending resolution.” (House adjourns, likely until late March)

H.R. 1363 (112th) votesH.R. 1363 (112th): Further Additional Continuing Appropriations Amendments, 2011. As described by the Congressional Research Service, the bill “Provides reduced rates of operation for FY2011 for the following accounts or activities within the Department of Transportation (DOT).” It also provided funds at reduced rates of operation for FY2011 for some accounts within the Department of Housing and Urban Development (HUD). It also appears to have eliminated some earmarks passed by an earlier Congress. This bill passed 247 to 181. Republicans voted 232 to 6 in favor. All Kansans voted in favor. Of this bill, The Hill reported it was “a bill that would fund the federal government for another week.” (House adopts rule for one-week budget stopgap)

H.R. 1473 (112th) votesH.R. 1473 (112th): Department of Defense and Full-Year Continuing Appropriations Act, 2011. This is a large bill at 175 pages in length. The summary from the Congressional Research Service runs nearly 20,000 words. It passed 260 to 167. Republicans voted 179 to 59 in favor. All Kansans except Huelskamp voted in favor. This bill, voted on in April, was described by The Hill as “an agreement to fund the federal government for the rest of fiscal 2011.” The federal fiscal year ends on September 30.

H.R. 2055 (112th) on passage votesH.R. 2055 (112th) conference report votesH.R. 2055 (112th): Consolidated Appropriations Act, 2012. At 486 pages, another large bill making appropriations for many agencies. On passage of the bill in the House, the vote was 411 to 5 in favor. The later vote on agreeing to the conference report passed 296 to 121. Republicans voted 147 to 86 in favor. All Kansans except Huelskamp voted in favor. The Hill reported this bill “covers spending for Defense, Energy and Water, Financial Services and General Government, Homeland Security, Interior, Labor/Health and Human Services, Legislative Branch, Military Construction/VA, and State/Foreign Operations.” (House approves $1 trillion omnibus spending bill in easy 296-121 vote)

H.J.Res. 117 (112th) votesH.J.Res. 117 (112th): Continuing Appropriations Resolution, 2013. This bill provided appropriations for a number of federal agencies. It passed 329 to 91. Republicans voted 165 to 70 in favor. Kansans Huelskamp and Yoder voted against; Jenkins and Pompeo voted in favor. The Hill described this bill as a “six-month spending resolution to keep the government funded.” (Senate passes resolution to keep government funded)

H.R. 933 (113th) votesH.R. 933 (113th): Consolidated and Further Continuing Appropriations Act, 2013. A 240 page bill that provides appropriates to many federal agencies. The House agreed to the conference report by a vote of 318 to 109. Republicans voted 203 to 27 in favor. All Kansans except Huelskamp voted in favor.

Historic National Security Agency machinery

In Kansas fourth district, national security a dividing issue

A letter composed by 14 national security experts clarifies the debate over the role of the National Security Agency, its surveillance programs, and the safety of Americans. This is an issue in the campaign for the Republican Party nomination for United States Congress from the fourth district of Kansas. Challenger Todd Tiahrt has criticized Mike Pompeo for supporting the NSA data-gathering programs, saying that the programs spy on Americans. Pompeo has maintained that the programs are necessary to protect Americans from terrorism and other threats, and that there is sufficient oversight to protect privacy.

I think the most important part of the letter is the final two paragraphs:

Supporting the NSA collection programs illegally compromised by Edward Snowden is politically difficult given the media frenzy that has inaccurately portrayed these programs as domestic spying. We regret that too many politicians are taking a politically expedient position on this issue by siding with the news media on NSA programs in an effort to scare voters and win their support.

Leadership often means taking politically difficult stands on controversial issues. The current debate over NSA surveillance concerns crucial national security programs designed to protect our nation. In our view, supporting these programs and working to reassure the American people about why they are needed is the only responsible position on this issue.

What’s curious — incongruous is more accurate — is how Tiahrt and his supporters have morphed into rabid civil libertarians on this issue. This letter is signed by what we can describe as a neoconservative hall of fame, John Bolton and William Kristol in particular. This group advocates a muscular American foreign policy, which also describes Tiahrt while he was in Congress. He earned the moniker “Tanker Todd,” after all, for his support of building the next generation of air refueling tankers in the United States, and Wichita in particular. Or, maybe he supported building the tankers solely on its potential as a jobs program for Wichita, which if so, is bad policy.

Either way, it’s bizarre to see Tiahrt and his supporters opposing a policy designed to protect the American homeland. The people they’re lining up with: Usually they’d insult them with terms like isolationists and peaceniks. Or worse, libertarians.

I guess it is true, that politics makes strange bedfellows.

Following is the letter and its signatories.

We are a group of foreign policy professionals who are writing to express our concern over statements about NSA surveillance made during the Republican primary for the U.S House of Representatives seat for the 4th district of Kansas.

The illegal leaks of information about NSA programs by former NSA technician Edward Snowden kicked off a divisive debate in this country on whether or not NSA surveillance programs have violated the privacy rights of American citizens.

Many of the NSA programs compromised by Snowden have been portrayed by the news media and many politicians as “spying on Americans.”

While we appreciate the concerns voiced by many Americans over NSA surveillance programs in response to the Snowden leaks, we believe it is highly inaccurate to claim that these programs violate the privacy rights of American citizens. We believe the NSA program that has been most criticized, the NSA metadata program, has been subjected to careful oversight by the courts and the congressional intelligence oversight committees. This intelligence collection program has been upheld in 36 out of 39 decisions before 19 different judges.

We regret that critics of the metadata program and other NSA collection efforts ignore how these programs have helped protect our nation against terrorist attacks. For example, Senate Intelligence Committee Chairwoman Dianne Feinstein stated during a January 14, 2014 Senate Judiciary Committee hearing that the metadata program helped stop terrorist plots to bomb the New York City subway, the New York stock exchange, and a Danish newspaper.

Supporting the NSA collection programs illegally compromised by Edward Snowden is politically difficult given the media frenzy that has inaccurately portrayed these programs as domestic spying. We regret that too many politicians are taking a politically expedient position on this issue by siding with the news media on NSA programs in an effort to scare voters and win their support.

Leadership often means taking politically difficult stands on controversial issues. The current debate over NSA surveillance concerns crucial national security programs designed to protect our nation. In our view, supporting these programs and working to reassure the American people about why they are needed is the only responsible position on this issue.

Sincerely,

Hon. Michael B. Mukasey
81st Attorney General of the United States, former U.S. District Judge, Southern District of New York

Hon. Pete Hoekstra
Former Chairman, House Permanent Select Committee on Intelligence

Lieutenant General William G. Boykin U.S. Army (Ret.)
Former Deputy Under Secretary of Defense for Intelligence

Admiral James A. Lyons, US Navy (Ret.) Former Commander-in-Chief,
Pacific Fleet

Andrew C. McCarthy
Former Chief Assistant U.S. Attorney, Southern District of New York

Hon. Michelle Van Cleave
Former National Counterintelligence Executive

Clare M. Lopez Former CIA Officer

Hon. John R. Bolton
Former U.S. Permanent Representative to the United Nations, former Under Secretary of State for Arms Control and International Security

Hon. R. James Woolsey
Former Director of Central Intelligence

Frank J. Gaffney, Jr.
Former Assistant Secretary of Defense (Acting)

William Kristol
Editor, The Weekly Standard and Board Member, Foreign Policy Initiative

Joseph diGenova
diGenova & Toensing Former U.S. Attorney for the District of Columbia

Victoria Toensing
diGenova & Toensing
Former Deputy Assistant Attorney General and Chief Counsel, Senate Intelligence Committee

Frederick Fleitz
Former CIA Officer and former Professional Staff Member, House Intelligence Committee

United States Capitol, July 2011

Congress is better without earmarks

Controversy over the timing and efficacy of an earmark divert attention from the fact that earmarks are bad government. Congress is better without the practice.

United States Congressional candidate Todd Tiahrt calls for a return to earmark spending in Congress, pointing to a million-dollar grant he obtained for Wichita to help defray costs of the Wichita Police Department in investigating and capturing serial killer Dennis Rader, or BTK. The Daily Caller has a report, as does the Wichita Eagle. Neither story is supportive of Tiahrt’s claim that earmarks were responsible for the capture of the BTK killer.

Speaking to the Wichita Pachyderm Club on May 16, Tiahrt defended the earmarking process, telling the audience “By the way, earmarks don’t raise spending. Earmarks never increase the budget. They simply redirect the funding.” (The complete broadcast of his talk is available at Voice for Liberty Radio: Todd Tiahrt.)

United States Capitol, July 2011
United States Capitol, July 2011
This is the standard argument: Earmarks simply direct the spending of money that is already authorized to be spent. Therefore, earmarking does not increase the amount spent. But this reasoning bypasses the fact that it is Congress that authorizes a certain amount to be spent. If Congress is concerned that too much is being spent, it could authorize less.

This notion that discretionary spending is on a trajectory that can’t be controlled; that all a hapless Congress can do is control where it is spent by earmarking: This is nonsense. Nonsense on stilts. Some of the problems with earmark spending are contained in For Tiahrt, earmarks are good government.

Logrolling, or the selling of earmarks

Many Members of Congress sell earmarks to the home district as a beneficial way to have the country as a whole to pay for our needs. It’s usually presented as though it is free money. Taxpayers across the country are paying for something in the home district, members say.

But as most people know in their hearts, there really is no free lunch. If Members of Congress expect other members to vote for their earmarks, they know they’re expected to vote for the earmarks of other members. This is precisely what happens.

The BTK earmark happened in 2005. In 2007 a group of House Members offered 50 amendments to remove earmarks from appropriations bills. Club for Growth compiled the following list, along with a scorecard of votes for each member. I’ve presented the list of amendments below, and you can view the project at The 2007 Club for Growth RePORK Card. It includes items like $150,000 for the Bremerton Public Library restoration in Washington, $129,000 for the Mitchell County Development Foundation for the home of the “perfect Christmas tree” project, and $100,000 for the Kansas Regional Prisons Museum in Lansing.

So two years after the BTK earmark for the Wichita Police Department, there were 50 opportunities for our representatives to make a simple up-or-down vote on wasteful pork barrel spending projects. Only one of these amendments passed.

Todd Tiahrt voted against all of these amendments. He, along with 81 Democrats and 23 other Republicans, could find no good reason to vote against any of these projects.

So while Wichita received help paying for a police investigation, we in the fourth congressional district had to pay for all these other projects. After all, how could Tiahrt ask his congressional colleagues to support his own earmarks if he did not support theirs?

Congress is better without earmarks

While there has been a ban on earmarks since 2010, some members and candidates call for a return to earmarking. But a recent Wall Street Journal editorial explains the benefit of the ending of earmarks and a return to accountability in legislative decision-making:

Congressional cries to restore earmarks are mounting, and a new favorite argument is that the spenders need the pork authority to properly exercise their Constitutional power of the purse. But if you look at what’s happening inside Congress, the opposite is true: The earmark ban is producing more spending accountability and oversight. … When Senate Democratic Whip Dick Durbin now pines for the days when earmarks were the “glue” holding bills together, what he’s really missing is leadership’s power to dole out home-state patronage. Pork-barrel Republicans who say the earmark ban has transferred spending power to the President are excusing their own unwillingness to set priorities. … This process put House Members in control of spending decisions, even as it required them to choose on the basis of fact and analysis — rather than logrolling.

(“Logrolling” is the practice of supporting others’ projects in order to gain support for yours. Vote trading, in other words.)

At the same May 2014 Pachyderm Club meeting, Tiahrt said that earmark spending is still happening, but now it’s directed through the executive branch. Congress has given President Obama a “blank check,” Tiahrt told the audience. The Wall Street Journal editorial board disagrees.

Following is the list of 50 amendments that would have canceled pork barrel spending projects in 2007.

House Vote 559 — Bars funding of $150,000 for the Clover Bend Historic Site in Arkansas. Amendment failed, 98-331.

House Vote 560 — Bars funding of $100,000 for the St. Joseph’s College Theatre Renovation in Indiana. Amendment failed, 97-328.

House Vote 561 — Bars funding of $150,000 for the Maverick Concert Hall preservation in New York. Amendment failed, 114-316.

House Vote 562 — Bars funding of $150,000 for the Bremerton Public Library restoration in Washington. Amendment failed, 98-333.

House Vote 565 — Bars funding of $140,000 for the Wetzel County Courthouse in West Virginia. Amendment failed, 104-323.

House Vote 566 — Bars funding of $150,000 for equipment for the Conte Anadromous Fish Laboratory. Amendment failed, 97-330.

House Vote 567 — Bars funding of $150,000 for the W.A. Young and Sons Foundry in Pennsylvania. Amendment failed, 104-328.

House Vote 568 — Bars funding of $100,000 for the Ohio Association of Professional Firefighters to renovate a hall in Ohio. Amendment failed, 66-364.

House Vote 569 — Bars funding of $1,200,000 for projects related to the Southwestern Pennsylvania Heritage Route. Amendment failed, 86-343.

House Vote 590 — Bars funding of $231,000 for the Grace Johnstown Area Regional Industries Incubator and Workforce Development program in Pennsylvania. Amendment failed, 87-335.

House Vote 591 — Bars funding of $500,000 for a project in the Barracks Row area of Washington, D.C. Amendment failed, 60-361.

House Vote 592 — Bars funding of $231,000 for the San Francisco Planning and Urban Research Association’s SPUR urban center. Amendment failed, 102-317.

House Vote 593 — Bars funding of $129,000 for the Mitchell County Development Foundation for the home of the “perfect Christmas tree” project. Amendment passed, 249-174.

House Vote 594 — Bars funding of $231,000 for the West Virginia University Research Corporation’s renovation of a small-business incubator. Amendment failed, 101-325.

House Vote 595 — Bars funding of $231,000 for the Abraham Lincoln National Airport Commission. Amendment failed, 107-318.

House Vote 597 — To remove 148 requested earmarks from the bill. Amendment failed, 48-372.

House Vote 636 — Bars funding of $1,000,000 for the Center for Instrumented Critical Infrastructure in Pennsylvania. Amendment failed, 98-326.

House Vote 637 — Bars funding of $1,500,000 for the South Carolina Historically Black Colleges and Universities Science and Technology Initiative. Amendment failed, 70-357.

House Vote 638 — Bars funding of $500,000 for the Emmanuel College Center for Science Partnership in Massachusetts. Amendment failed, 79-337.

House Vote 639 — Bars funding of $1,000,000 for nano-structured fuel cell membrane electrode assembly in California. Amendment failed, 81-348.

House Vote 640 — Strikes numerous earmarks from the bill. Amendment failed, 39-388.

House Vote 654 — Bars funding of $34,000,000 for the Alaska Native Education Equity program and other programs. Amendment failed, 74-352.

House Vote 663 — Strikes all earmarks in the bill. Amendment failed, 53-369.

House Vote 664 — Bars funding of $300,000 for its Bay Area Science Teacher Recruitment, Retention and Improvement Initiative. Amendment failed, 89-341.

House Vote 667 — Bars funding of $300,000 for the On Location Entertainment Industry Craft and Technician Training project at West Los Angeles College in Culver City, CA. Amendment failed, 114-316.

House Vote 668 — Bars funding of $150,000 for the American Ballet Theatre in New York City for educational activities. Amendment failed, 118-312.

House Vote 669 — Bars funding of $150,000 for the South Carolina Aquarium in Charleston, S.C. Amendment failed, 70-360.

House Vote 670 — Bars funding of $100,000 for the Kansas Regional Prisons Museum in Lansing, Kan. Amendment failed, 112-317.

House Vote 671 — Bars funding of $200,000 for the Corporation for Jefferson’s Popular Forest in Forest, VA. Amendment failed, 68-360.

House Vote 678 — Bars funding of $2,000,000 for the Charles B. Rangel Center for Public Service at the City College of New York in New York City. Amendment failed, 108-316.

House Vote 679 — Bars funding of $200,000 for the American Jazz Museum in Kansas City, MO. Amendment failed, 96-327.

House Vote 698 — Bars funding of $300,000 for the Belmont Complex in Kittanning, PA. Amendment failed, 87-335.

House Vote 699 — Bars funding of $400,000 for the North Central Wisconsin Regional Planning Commission in Wausau, WI. Amendment failed, 68-356.

House Vote 700 — Bars funding of $50,000 for the National Mule and Packers Museum in Woodlake, CA. Amendment failed, 69-352.

House Vote 701 — Bars funding of $300,000 for the Friends of Cheat Rails-to-Trails Program in West Virginia. Amendment failed, 81-342.

House Vote 702 — Bars funding of $300,000 for the Houston Zoo in Texas. Amendment failed, 77-347.

House Vote 705 — Bars funding of $150,000 for the Edmonds Center for the Arts in Edmonds, WA. Amendment failed, 97-327.

House Vote 706 — Bars funding for “parking facilities”. Amendment failed, 86-338.

House Vote 735 — Bars funding of $200,000 for the Lobster Institute at the University of Maine in Orono, Maine. Amendment failed, 87-328.

House Vote 736 — Bars funding of $250,000 for the East Coast Shellfish Research Institute in Toms River, NJ. Amendment failed, 77-337.

House Vote 809 — Bars funding of $878,046 for the Catfish Pathogen Genomic Project in Auburn, AL. Amendment failed, 74-357.

House Vote 810 — Bars funding of $628,843 for grape genetics research in Geneva, NY. Amendment failed, 76-353.

House Vote 811 — Bars funding of $400,000 for the alternative uses of a tobacco grant in Maryland. Amendment failed, 94-337.

House Vote 812 — Bars funding of $489,000 for Ruminant Nutrition Consortium in Montana, North Dakota, South Dakota and Wyoming. Amendment failed, 74-355.

House Vote 813 — Bars funding of $6,371,000 for the wood utilization grant in Mississippi, North Carolina, Minnesota, Maine, Michigan, Idaho, Tennessee, Arkansas and West Virginia. Amendment failed, 68-363.

House Vote 839 — Bars funding of $2,500,000 for the Presidio Trust national park in San Francisco, CA. Amendment failed, 94-311.

House Vote 842 — Bars funding of $2,000,000 for the “Paint Shield for Protecting People from Microbial Threats.” Amendment failed, 91-317.

House Vote 843 — Bars funding of $1,500,000 for the Doyle Center for Manufacturing Technology in Pittsburgh, PA. Amendment failed, 98-312.

House Vote 844 — Bars funding of $3,000,000 for the Lewis Center for Education Research in Apple Valley, CA. Amendment failed, 57-353.

House Vote 845 — Bars funding of $39,000,000 for the National Drug Intelligence Center in Johnstown, PA. Amendment failed, 109-301.

Quasi-lobbyist runs as earmarker in Kansas GOP primary

Quasi-lobbyist runs as earmarker in Kansas GOP primary

Washington Examiner writer Tim Carney notices the curious stance of a Republican candidate in the Kansas fourth district primary: He likes earmarks.

Washington Examiner senior political columnist Timothy P. Carney knows how Washington works. Of his 2006 book The Big Ripoff: How Big Business and Big Government Steal Your Money, Paul A. Gigot, who is Editorial Page Editor of the Wall Street Journal wrote “Politicians like to say that government is on the side of the little guy. But with impressive documentation and persuasive examples, Tim Carney shows how government power and regulation are typically used to assist the powerful.”

On the contest in the Kansas fourth district between Mike Pompeo and Todd Tiahrt, Carney observed “Kansas’s 4th District features one of the oddest fights yet of the counter-Tea Party effort: a quasi-lobbyist running running on a pro-earmark platform.”

Quasi-lobbyist runs as earmarker in Kansas GOP primaryCarney isn’t the first to notice the pro-earmark stance of Tiahrt. It’s not a secret, as the candidate himself speaks in favor of earmarks. His voting record reflects his support. In 2007 Club for Growth, whose motto is “Prosperity and Opportunity through Economic Freedom,” compiled a list of 50 votes that canceled what it called wasteful earmarks, explaining as follows:

The Club for Growth has compiled a RePORK Card of all members’ votes on all 50 anti-pork amendments. “Taxpayers have a right to know which congressmen stand up for them and which stand up for the special interests,” said Club for Growth President Pat Toomey. “Unfortunately, the Club for Growth RePORK Card shows that most congressmen care more about lining their buddies’ pockets than they care about protecting American taxpayers.”

Analyzing the results, Club for Growth noted that 16 members voted for all these amendments. These members were all Republicans. The average Republican score was 43%. The average Democratic score was 2%. The average score for appropriators — these are members of the Committee on Appropriations like Tiahrt — was 4%.

Where was Todd Tiahrt on this list? Tied for last place at 0%. He voted for none of these amendments that would have blocked earmark spending. Of the group that Tiahrt voted with, Club for Growth noted “105 congressmen scored an embarrassing 0%, voting against every single amendment. The Pork Hall of Shame includes 81 Democrats and 24 Republicans.”

Club for Growth created a similar tally in 2009, selecting 68 votes. That year, Tiahrt did better, voting for 20 of the 68 measures.

Quasi-lobbyist runs as earmarker in Kansas GOP primary

By Timothy P. Carney, Washington Examiner

Former Rep. Todd Tiahrt is a man on a mission — to reclaim the Republican Party for earmarkers.

Tiahrt represented Kansas’ 4th district for 16 years, and for 14 of those years he sat on the House Appropriations Committee. From that perch, Tiahrt was a prolific porker, dealing out earmarks as if they were playing cards.

Continue reading at Quasi-lobbyist runs as earmarker in Kansas GOP primary.

Club for Growth PAC Endorses Mike Pompeo For Congress

From Club for Growth, whose motto is “Prosperity and Opportunity through Economic Freedom.”

Club for Growth PAC Endorses Mike Pompeo For Congress

Club for Growth President Chris Chocola: “Mike stands on principle to do what’s right for Kansas and America.”

May 29, 2014
Washington, DC — The Club for Growth PAC announced today that it is endorsing Republican Congressman Mike Pompeo for re-election. Congressman Pompeo represents Kansas’s Fourth Congressional District. Former Congressman Todd Tiahrt has announced that he is challenging Congressman Pompeo in the Republican primary.

“Congressman Mike Pompeo is a taxpayer hero with a 90% on the Club for Growth’s congressional scorecard and we hope he is re-nominated by Kansas Republicans,” said Club for Growth President Chris Chocola. “Mike stands on principle to do what’s right for Kansas and America. He’ll never stop fighting the Obama agenda in Washington.”

“Former Congressman Todd Tiahrt, on the other hand, has a liberal voting record that pales in comparison to Mike Pompeo. Congressman Tiahrt was one of the biggest spenders in the Republican Party when he served in Congress,” continued Chocola. “He voted to spend millions on an Exploratorium in San Francisco, a Lobster Institute in Maine, and even to spend millions on a building named after liberal New York Congressman Charlie Rangel. If that wasn’t bad enough, he voted for Obama’s wasteful ‘Cash for Clunkers’ program and to raise his own pay five times. Now that he’s decided to run for Congress, the Club’s PAC will do everything it can to make sure voters in Kansas learn the truth about Todd Tiahrt and his liberal record.”

For Tiahrt, earmarks are good government

Appearing today on The Joseph Ashby Show, candidate for United States House of Representatives Todd Tiahrt defended the practice of earmarking federal spending.

Joseph Ashby Show 2014-06-30The ending of earmarks, he said, has shifted responsibility for allocating funds from Congress to the executive. Earmarks do not increase spending, he said.

United States Capitol, July 2011
United States Capitol, July 2011
He said that Congress should take away the president’s pen, and should do that by allocating funding properly. When pressed by the host, Tiahrt repeated that earmarks do not increase spending.

This is the standard argument: Earmarks simply direct the spending of money that is already authorized to be spent. Earmarking does not increase the amount spent. Which, of course, bypasses the fact that Congress authorizes a certain amount to be spent. If Congress is concerned that too much is being spent, it could authorize less.

There is broad agreement among limited-government conservatives that earmarks are harmful. Taxpayers for Common Sense concludes:

Earmarks reflect a broken budget process. Too often earmarks reward parochial interests at the expense of national needs. The earmarking process also often subverts established merit-based, competitive, or formula-driven budget processes without debate. Ultimately earmarks may fund projects many people consider “good” projects, but the earmark process does not guarantee these are the most beneficial and worthwhile projects.

At The Heritage Foundation, commentary on a Harvard Business school study opened with:

What happens when a state is lucky enough to have one of their Senators ascend to one of the three most powerful committee chairmanships? According to a new study by three Harvard Business School the average state then experiences a 40 to 50 percent increase in earmark spending (the figure is a smaller 20% for powerful House committees). So this new government spending is then a boon to the state right? The public spending stimulates economic growth right? Wrong. Turns out, increased federal spending is connected with a decrease in corporate capital expenditures and employment.

It should be noted that while in Congress, Tiahrt served on the Committee on Appropriations, one of the “powerful House committees” referred to. Further evidence of Tiahrt’s attitude is that today on Ashby’s show he referred to Jim DeMint, the former senator, anti-earmark crusader, and now president of Heritage, as a failure.

At The Cato Institute, Tad DeHaven wrote that earmarks are a symptom of a larger problem:

There just isn’t much difference between the activities funded via earmarking and the activities funded by standard bureaucratic processes. The means are different, but the ends are typically the same: federal taxpayers paying for parochial benefits that are properly the domain of state and local governments, or preferably, the private sector. As a federal taxpayer, I’m no better off if the U.S. Dept. of Transportation decides to fund a bridge in Alaska or if Alaska’s congressional delegation instructs the DOT to fund the bridge.

Therefore, earmarking is a symptom of the problem. The problem is the existence of programs that enables the federal government to spend money on parochial activities.

Also at Cato, Dan Mitchell makes the most important argument:

Last but not least, earmarks are utterly corrupt. The fact that they are legal does not change the fact that they finance a racket featuring big payoffs to special interests, who give big fees to lobbyists (often former staffers and Members), who give big contributions to politicians. Everyone wins … except taxpayers.

In Kansas fourth district, charges of alignment with Speaker

Charges made on the campaign trail by Todd Tiahrt that his opponent is “Boehner’s boy” aren’t supported by Mike Pompeo’s voting record.

At a recent event in Wichita candidate for the Republican Party nomination for U.S. Congress for the Kansas fourth district Todd Tiahrt spoke about his opponent, incumbent Mike Pompeo. Tiahrt told the audience: “Now, Mr. Pompeo was also tied very closely to John Boehner. In fact he’s the only congressman in Washington D.C. that’s been appointed to two select committees. No other Member of Congress has been. But Boehner’s boy has.”

This criticism is meant to appeal to conservatives, many who believe Speaker of the House John Boehner is not conservative, at least on some issues. By linking Pompeo to the Speaker, Tiahrt suggests that Pompeo is not conservative.

There could be a variety of ways to judge how closely linked two politicians may be. One way would be through their voting record, and someone has done that.

Mike Pompeo illustration from The Fix’s complete guide to understanding House RepublicansLast July writers for the Washington Post looked at what they called “fault lines within the House Republican conference.” The group selected six votes that they thought illustrated where the fault lines cut. They concluded there are five “relatively well-defined factions among House Republicans” based on how regularly members vote in concert with leadership — namely, Speaker John Boehner. (See The Fix’s complete guide to understanding House Republicans.)

You might think that someone who is “Boehner’s boy” — that’s the charge leveled against Pompeo by Tiahrt — would be in the group the Post writers called “the Boehner base.” Or maybe the group next to that.

But Mike Pompeo’s votes placed him in a group far away from the Boehner base. Not the group farthest away, but the group next to farthest away.

A referendum on earmarks

From The Weekly Standard, analysis of the primary contest in Kansas district 4, where Mike Pompeo and Todd Tiahrt are candidates.

Voice for Liberty Radio: Todd Tiahrt

Voice for Liberty logo with microphone 150In this episode of WichitaLiberty Radio: Former United States Representative Todd Tiahrt spoke to the Wichita Pachyderm Club on Friday May 16. Tiahrt is the current Republican National Committeeman for Kansas. He is said to be considering running for the position in Congress that he previously held, and which is presently held by Mike Pompeo. Tiahrt was introduced to the Pachyderm Club members and guests by Sedgwick County Commissioner Karl Peterjohn.

Shownotes

Todd Tiahrt, LLC.
Wikipedia page

Voice for Liberty radio logo for featured posts 01

Voice for Liberty Radio: U.S. Rep. Mike Pompeo on Benghazi, Ukraine, and Boko Haram and the continuing threat of Islamic terrorism

Voice for Liberty logo with microphone 150United States Representative Mike Pompeo of Wichita has been appointed to the Select Committee on the Events Surrounding the 2012 Terrorist Attack in Benghazi. I spoke with him today in his Wichita office on this topic and a few others.

On the composition of the committee — seven Republicans and five Democrats — Pompeo explained that the majority party usually has a majority on committees of this type. A “Select” committee like this has a very narrow charter. The committee will have staff and counsel, and will deliver a report. After that, the committee will disband.

Critics of this committee point to the several committees that have already held hearings on this matter and the thousands of documents produced. What can this committee accomplish? Pompeo said that despite all the previous activity, we do not know everything. The Ben Rhodes email that was supplied just last week is an example.

Pompeo said the administration has not been very cooperative. The committee wants to learn what decisions were made on September 11, 2012, how were the decisions made, and by whom.

While the committee operates in a political environment, Pompeo said that the six other Republicans on the committee (the Democratic members have not been named) are “workhorses,” who will work to come to a factual conclusion. It may be, he said, that conservatives will disappointed in the output of the committee, in that the facts show that there was no wrongdoing or malfeasance. If that is what the facts show, that’s what will be in the committee’s report, he said.

It is not known whether Democrats will boycott the committee. Pompeo said it’s important that Democrats participate in the committee proceedings, as this will best serve the American public interest. The decision will be made by Nancy Pelosi, the Democratic leader.

As for the committee being a “witch hunt” or simply a political operation, Pompeo reminded me that Speaker John Boehner was reluctant to call for the formation of this special committee. Pompeo said that the Republican members of the committee, except for chair Trey Gowdy, are members with low profiles, and not widely known by Americans.

On the situation in Ukraine, Pompeo said the situation remains incredibly intense. The Russians have fomented strife in the region, with a propaganda campaign to create the predicate for a Russian invasion. Western Europe has begun to recognize the risk and has started to implement a few more sanctions. Putin’s goal is to reconstruct Greater Russia, he said.

On the subject of Boko Haram, the radical Islamist group that has captured young girls in Nigeria, Pompeo said this is another example of how the war against Islamic terrorism is not over. He said that today there are 8,000 Al-Qaeda in Syria. In 2001, on September 10, there were 200 in Afghanistan. The threat today is far greater than it was 13 years ago, and the Obama administration has thrown in the towel, he said.

Shownotes

Mike Pompeo Congressional office.
Twitter at @RepMikePompeo
H.Res. 567: Providing for the Establishment of the Select Committee on the Events Surrounding the 2012 Terrorist Attack in Benghazi

End the wind production tax credit

wind-power-turbine-closeupU.S. Representative Mike Pompeo, a Republican who represents the Kansas fourth district, and U.S. Senator Lamar Alexander in 2012 contributed the following article on the harm of the wind power production tax credit (PTC). The NorthBridge Group report referenced in the article is available at Negative electricity prices and the production tax credit. While the PTC is a federal issue, the Kansas Legislature could do taxpayers in Kansas and across the country a favor by ending the mandate to produce more of this taxpayer-subsidized power.

Puff, the Magic Drag on the Economy
Time to let the pernicious production tax credit for wind power blow away

By Lamar Alexander And Mike Pompeo

As Congress works to reduce spending and avert a debt crisis, lawmakers will have to decide which government projects are truly national priorities, and which are wasteful. A prime example of the latter is the production tax credit for wind power. It is set to expire on Dec. 31 — but may be extended yet again, for the seventh time.

This special provision in the tax code was first enacted in 1992 as a temporary subsidy to enable a struggling industry to become competitive. Today the provision provides a credit against taxes of $22 per megawatt hour of wind energy generated.

From 2009 to 2013, federal revenues lost to wind-power developers are estimated to be $14 billion — $6 billion from the production tax credit, plus $8 billion courtesy of an alternative-energy subsidy in the stimulus package — according to the Joint Committee on Taxation and the Treasury Department. If Congress were to extend the production tax credit, it would mean an additional $12 billion cost to taxpayers over the next 10 years.

There are many reasons to let this giveaway expire, including wind energy’s inherent unreliability and its inability to stand on its own two feet after 20 years. But one of the most compelling reasons is provided in a study released Sept. 14 by the NorthBridge Group, an energy consultancy. The study discusses a government-created economic distortion called “negative pricing.”

This is how it works. Coal- and nuclear-fired plants provide a reliable supply of electricity when the demand is high, as on a hot summer day. They generate at lower levels when the demand is low, such as at night.

But wind producers collect a tax credit for every kilowatt hour they generate, whether utilities need the electricity or not. If the wind is blowing, they keep cranking the windmills.

Why? The NorthBridge Group’s report (“Negative Electricity Prices and the Production Tax Credit”) finds that government largess is so great that wind producers can actually pay the electrical grid to take their power when demand is low and still turn a profit by collecting the credit — and they are increasingly doing so. The wind pretax subsidy is actually higher than the average price for electricity in many of the wholesale markets tracked by the Energy Information Administration.

This practice drives the price of electricity down in the short run. Wind-energy supporters say that’s a good thing. But it is hazardous to the economy’s health in the long run.

Temporarily lower energy prices driven by wind-power’s negative pricing will cripple clean-coal and nuclear-power companies. But running coal and nuclear out of business is not good for the U.S. economy. There is no way a country like this one — which uses 20% to 25% of all the electricity in the world — can operate with generators that turn only when the wind blows.

The Obama administration and other advocates of wind power argue that the subsidy provided by the tax credit allows the wind industry to sustain American jobs. But they are jobs that exist only because of the subsidy. Keeping a weak technology alive that can’t make it on its own won’t create nearly as many jobs as the private sector could create if it had the kind of low-cost, reliable, clean electricity that wind power simply can’t generate.

While the cost of renewable energy has declined over the years, it is still far more expensive than conventional sources. And even the administration’s secretary of energy, Steven Chu, calls wind “a mature technology,” which should mean it is sufficiently advanced to compete in a free market without government subsidies. If wind power cannot compete on its own after 20 years without costly special privileges, it never will.

WichitaLiberty.TV 2014-04-27 Mike Pompeo

WichitaLiberty.TV: Mike Pompeo on Russia, economic development incentives, and House of Cards

In this episode of WichitaLiberty.TV: United States Representative Mike Pompeo talks about Eastern Europe and Russia, economic development and incentives, and the Netflix television series House of Cards. Episode 40, broadcast April 27, 2014. View below, or click here to view at YouTube.

Kansas wind turbines

Special interests defend wind subsidies at taxpayer cost

man-digging-coinsThe spurious arguments made in support of the wind production tax credit shows just how difficult it is to replace cronyism with economic freedom. From October, 2012.

We often see criticism of politicians for sensing “which way the wind blows,” that is, shifting their policies to pander to the prevailing interests of important special interest groups. The associated negative connotation is that politicians do this without regard to whether these policies are wise and beneficial for everyone.

So when a Member of Congress takes a position that is literally going against the wind in the home district and state, we ought to take notice. Someone has some strong convictions.

This is the case with U.S. Representative Mike Pompeo, a Republican representing the Kansas fourth district (Wichita metropolitan area and surrounding counties.)

The issue is the production tax credit (PTC) paid to wind power companies. For each kilowatt-hour of electricity produced, the United States government pays 2.2 cents. Wind power advocates contend the PTC is necessary for wind to compete with other forms of electricity generation. Without the PTC, it is said that no new wind farms would be built.

Kansas wind turbinesThe PTC is an important issue in Kansas not only because of the many wind farms located there, but also because of wind power equipment manufacturers that have located in Kansas. An example is Siemens. That company, lured by millions in local incentives, built a plant in Hutchinson. Employment was around 400. But now the PTC is set to expire on December 31, and it’s uncertain whether Congress will extend the program. As a result, Siemens has laid off employees. Soon only 152 will be at work in Hutchinson, and similar reductions in employment have happened at other Siemens wind power equipment plants.

Rep. Pompeo is opposed to all tax credits for energy production, and has authored legislation to eliminate them. As the wind PTC is the largest energy tax credit program, Pompeo and others have written extensively of the market distortions and resultant economic harm caused by the PTC. A recent example is Puff, the Magic Drag on the Economy: Time to let the pernicious production tax credit for wind power blow away, which appeared in the Wall Street Journal.

The special interests that benefit from the PTC are striking back. An example comes from Dave Kerr, who as former president of the Hutchinson/Reno County Chamber of Commerce played a role in luring Siemens to Hutchinson. Kerr’s recent op-ed in the Hutchinson News is notable not only for its several attempts to deflect attention away from the true nature of the PTC, but for its personal attacks on Pompeo.

There’s no doubt that the Hutchinson economy was dealt a setback with the announcement of layoffs at the Siemens plant that manufactures wind power equipment. Considered in a vacuum, these jobs were good for Hutchinson. But we shouldn’t make our nation’s policy in a vacuum, that is, bowing to the needs of special interest groups — sensing “which way the wind blows.” When considering everything and everyone, the PTC paid to producers of power generated from wind is a bad policy. We ought to respect Pompeo for taking a principled stand on this issue, instead of pandering to the folks back home.

Kerr is right about one claim made in his op-ed: The PTC for wind power is not quite like the Solyndra debacle. Solyndra received a loan from the Federal Financing Bank, part of the Treasury Department. Had Solyndra been successful as a company, it would likely have paid back the government loan. This is not to say that these loans are a good thing, but there was the possibility that the money would have been repaid.

But with the PTC, taxpayers spend with nothing to show in return except for expensive electricity. And spend taxpayers do.

Kerr, in an attempt to distinguish the PTC from wasteful government spending programs, writes the PTC is “actually an income tax credit.” The use of the adverb “actually” is supposed to alert readers that they’re about to be told the truth. But truth is not forthcoming from Kerr — there’s no difference. Tax credits are government spending. They have the same economic effect as “regular” government spending. To the company that receives them, they can be used — just like cash — to pay their tax bill. Or, the company can sell them to others for cash, although usually at a discounted value.

From government’s perspective, tax credits reduce revenue by the amount of credits issued. Instead of receiving tax payments in cash, government receives payments in the form of tax credits — which are slips of paper it created at no cost and which have no value to government. Created, by the way, outside the usual appropriations process. That’s the beauty of tax credits for big-government spenders: Once the program is created, money is spent without the burden of passing legislation.

If we needed any more evidence that PTC payments are just like cash grants: As part of Obama’s ARRA stimulus bill, for tax years 2009 and 2010, there was in effect a temporary option to take the federal PTC as a cash grant. The paper PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States explains.

Astonishingly, the wind PTC is so valuable that wind power companies actually pay customers to take their electricity. It’s called “negative pricing,” as explained in Negative Electricity Prices and the Production Tax Credit:

As a matter of both economics and public policy, no government production tax subsidy should ever be so large that it creates an incentive for a business to actually pay customers to take its product. Yet, the federal Production Tax Credit (“PTC”) for wind generation is doing just that with increasing frequency in electricity markets across the United States. In some “wind-rich” regions of the country, wind producers are paying grid operators to take their generation during periods of surplus supply. But wind producers more than make up the cost of the “negative price” payment, because they receive a $22/MWH federal production tax credit for every MWH generated.

In western Texas since 2008, wind power generators paid the electrical grid to take their electricity ten percent of the hours of each day.

Once we recognize that tax credits are the same as government spending, we can see the error in Kerr’s argument that if the PTC is ended, it is the same as “a tax increase on utilities, which, because they are regulated, will pass on to consumers.” Well, government passes along the cost of the PTC to taxpayers, illustrating that there really is no free lunch.

Kerr attacks Pompeo for failing to “crusade” against two subsidies that some oil companies receive: Intangible Drilling Costs and the Percentage Depletion Allowance. These programs are deductions, not credits. They do provide an economic benefit to the oil companies that can use them (“big oil” can’t use percentage depletion at all), but not to the extent that tax credits do.

Regarding these deductions, last year Pompeo introduced H. Res 267, titled “Expressing the sense of the House of Representatives that the United States should end all subsidies aimed at specific energy technologies or fuels.”

In the resolution, Pompeo recognized the difference between deductions and credits, the latter, as we’ve seen, being direct subsidies: “Whereas deductions and cost-recovery mechanisms available to all energy sectors are different than credits, loans and grants, and are therefore not taxpayer subsidies; [and] Whereas a deduction of costs and cost recovery with respect to timing is not a subsidy.”

Part of what the resolution calls for is to “begin tax simplification and reform by eliminating energy tax credits and deductions and reducing income tax rates.”

Kerr wants to deflect attention away from the cost and harm of the PTC. Haranguing Pompeo for failing to attack percentage depletion and IDC with the same fervor as tax credits is only an attempt to muddy the waters so we can’t see what’s happening right in front of us. It’s not, as Kerr alleges, “playing Clintonesque games of semantics with us.” As we’ve seen, Pompeo has called for the end of these two tax deductions.

If we want to criticize anyone for inconsistency, try this: Kerr criticizes Pompeo for ignoring the oil and gas deductions, “which creates a glut in natural gas that drives down the price to the lowest levels in a decade.” These low energy prices should be a blessing to our economy. Kerr, however, demands taxpayers pay to subsidize expensive wind power so that it can compete with inexpensive gas. In the end, the benefit of inexpensive gas is canceled. Who benefits from that, except for the wind power industry? The oil and gas targeted deductions also create market distortions, and therefore should be eliminated. But at least they work to reduce prices, not increase them.

By the way, Pompeo has been busy with legislation targeted at ending other harmful subsidies: H.R. 3090: EDA Elimination Act of 2011, H.R. 3994: Grant Return for Deficit Reduction Act, H.R. 3308: Energy Freedom and Economic Prosperity Act, and the above-mentioned resolution.

I did notice, however, that Pompeo hasn’t called for the end to the mohair subsidy. Will Kerr attack him for this oversight?

Finally, Kerr invokes the usual argument of government spenders: Cut the budget somewhere else. That’s what everyone says.

Creating entire industries that exist only by being propped up by government subsidy means that we all pay more to support special interest groups. A prosperous future is best built by relying on free enterprise and free markets in energy, not on programs motivated by the wants of politicians and special interests. Kerr’s attacks on Pompeo illustrate how difficult it is to replace cronyism with economic freedom.

Pompeo responds to Washington’s attacks on Koch Industries

From the office of U.S. Representative Mike Pompeo.

Statement from Congressman Mike Pompeo on Washington’s Attacks on Koch Industries

WASHINGTON — Congressman Mike Pompeo issued the following statement on the unwarranted attacks on Koch Industries in light of the efforts to reform the Internal Revenue Service:

“The IRS’s targeting of individuals demonstrates the administration’s lawlessness at its worst. Public officials have a responsibility to uphold the Constitution and use their office to protect the rights of Americans, rather than attack them for their political advocacy. Silencing critics through government muscle, as the IRS has done, runs counter to every founding principle of the United States of America.

“Yet opponents of the House’s effort to hold the IRS accountable have doubled down and continued to attack two private citizens, Charles and David Koch, as deserving of such government abuse. Senator Reid’s attacks today from the Senate floor are reprehensible.  This cannot be tolerated — not for these two great men or for any individual who disagrees with those in power.

“The Kochs’ Wichita-based company employs close to 60,000 people in manufacturing jobs. These predominantly middle-class employees live in nearly all 50 states and are a benefit to the communities they work and live in. They are good people and good neighbors, my neighbors, and deserve protection under the law that is equal to those lawmakers who seek to marginalize them.

“The jobs created by this company are a far greater benefit to the middle class than any wasteful Washington program. We should be taking lessons from hardworking Americans in the private sector instead of continuing to play politics with people’s lives.”

Earlier today, Senate Majority Leader Harry Reid accused the Kochs of funding ads critical of the Affordable Care Act’s disastrous implementation that he claims are “completely untrue,” a claim that contradicts the thrust of most news coverage of the rollout.

For more information, contact:
JP Freire | Director of Communications and Speechwriter
Office of Congressman Mike Pompeo (R-Kansas)
107 Cannon HOB| Washington, D.C. 20515
Office (202) 225-6216 | Fax (202) 225-3489
JP.Freire@mail.house.gov

Voice for Liberty radio logo for featured posts 01

Voice for Liberty Radio: Mike Pompeo

Voice for Liberty logo with microphone 150

In this episode of WichitaLiberty Radio: U.S. Representative Mike Pompeo of Kansas spoke at a meeting of the Wichita Pachyderm Club. Some of the topics and questions Pompeo answered included:

The size of the defense budget, the threats to our nation, and the importance of the National Security Agency in keeping the country safe. He addressed privacy concerns.

What about tension between the Speaker of the House and tea party and conservatives?

What’s wrong the the just-passed farm bill, and how did it pass?

Attitudes towards and respect for Congress and the President.

The arrest of a suspect in an attack on the Wichita Airport.

The presentation started with a video of Rep. Pompeo questioning Health and Human Services Secretary Kathleen Sebelius.

This recording contains Pompeo’s prepared remarks in full and selected responses to questions at the Wichita Pachyderm Club on February 7, 2014.

Shownotes

Mike Pompeo Congressional office.
Campaign website: pompeoforcongress.com
Twitter at @RepMikePompeo
Wichita Pachyderm Club

Pompeo votes against debt ceiling increase

From the office of U.S. Representative Mike Pompeo, a Republican who represents the Kansas fourth district.

Pompeo Votes Against Unlimited Government Spending
“We can’t keep raising the debt ceiling without addressing the drivers of our debt.”

Washington — Congressman Mike Pompeo released the following statement following his vote on the debt ceiling:

Washington has once more kicked the can down the road by raising the limit on the government credit card without dealing with the drivers our national debt. This means fewer jobs, higher taxes, and ordinary Kansans suffering under the ever-increasing, costly burden of Obamacare that will achieve few, if any, of its goals. We cannot afford this new entitlement and the President is now on track to double the national debt. Every American family has to live within its means, and Washington should do the same. Today’s legislation may well have averted the “crisis of the moment,” but it did nothing to avert the much greater crisis that is inevitable with our current rate of spending that we must fix immediately.

Pompeo addresses ObamaCare, debt ceiling, government accountability

Today U.S. Representative Mike Pompeo, a Republican who represents the Kansas fourth district addressed the Wichita Rotary Club.

He told the audience that despite is not just about what we’ll do next week or even in 2014. The challenge, he said, is changing the nation’s long-term financial trajectory.

On the rollout of ObamaCare, he said that he tried to enroll but failed. He said he was sympathetic with the challenges in rolling out the information technology that implements ObamaCare, but it’s a challenge that should never have been undertaken.

Mike Pompeo, October 7, 2013.

He said he recognizes the risks to the economy that the debt ceiling issue poses. He said we have to take on the obligations of the next 10 to 15 years and we have to do it now.

Pompeo also spoke about government accountability. “It is so easy to spend your money,” he said. “You can be a hero, you can go to ribbon cuttings, … but I have to tell you that when politicians do that in today’s financial situation, they are doing nothing short of lying to you. I use that term intentionally, and with malice aforethought. Because to say they’re misleading you would imply there’s some chance they don’t know that. And they do. This is not politics. This is math.”

On Syria, Pompeo said he’s heard Republicans say we should stay out of the Middle East. But Pompeo said there are from 10,000 to 30,000 soldiers there today. When politicians imply that if we don’t launch some missiles into Syria we’ll be “out” of the Middle East, that is untrue, he said, and “perpetrated with malice aforethought.”

Pompeo votes to delay Obamacare, keep government open

From the office of U.S. Representative Mike Pompeo:

Pompeo Votes To Delay Obamacare, Keep Government Open

Washington –- Congressman Mike Pompeo, R-Kansas, is voting tonight to delay Obamacare for ordinary citizens, pay the armed services, ensure that the government continues running. He released the following statement:

“Well-connected friends of President Obama shouldn’t be the only Americans spared from the looming health care law — delaying Obamacare for businesses and not for individuals is irresponsible and reckless. This continuing resolution would also provide the hard-earned funding for our amazing armed forces and that the government is still providing services to the American people.

“The President has shown his willingness to delay Obamacare unilaterally in some instances, we are simply urging him to do so on a broader scale. I hope that Senate Majority Leader Harry Reid will also vote to keep the government open.”

Wichita performs a reference check, the video

Citizens of Wichita are rightly concerned about whether our elected officials and bureaucrats are looking out for their interests, or only for the interests and welfare of a small group of city hall insiders. The video below explains, or click here to view in HD on YouTube. For an article on this topic, see Wichita performs a reference check, sort of.

Wichita performs a reference check, sort of

Wichita city hall logo

For a video presentation of this material, click on Wichita performs a reference check, the video.

Citizens of Wichita are rightly concerned about whether our elected officials and bureaucrats are looking out for their interests, or only for the interests and welfare of a small group of city hall insiders. Cronies, if you will.

A recent application filed with Wichita City Hall regarding the West Bank Development Project raises two questions: Did the government officials listed as references give their permission, and were any of the references contacted to learn what they knew about the applicants?

The application filed by the River Vista development team shows this: The team, consisting of George Laham, Dave Wells, Dave Burk, and Bill Warren listed numerous local, state, and federal officials as references. Here’s the list of officials that appeared one or more times:

Wichita city manager Robert Layton
Wichita Mayor Carl Brewer
Wichita City Council Member Jeff Longwell (district 5, west and northwest Wichita)
Wichita City Council Member and Vice Mayor Pete Meitzner (district 2, east Wichita)
Sedgwick County District Attorney Marc Bennett
Sedgwick County Sheriff Jeff Easter
Sedgwick County Commissioner Dave Unruh
Sedgwick County Commissioner Tim Norton
Kansas Governor Sam Brownback
U.S. Representative Mike Pompeo

Except for Jeff Easter, none of these officials gave permission for their names to be used in this way. (We didn’t get a response regarding Tim Norton.)

Furthermore, none of these officials were contacted by the evaluation committee whose job it is to vet these potential city partners.

A few questions: First, do you think it is appropriate for the city manager to be listed as a reference, given that anyone who reads this document would take it as an endorsement? No, of course it is not appropriate.

Related: Do you think it’s appropriate for the city manager to endorse one of the applicants? We don’t know if the presence of the city manager’s name as a reference implies an endorsement, because George Laham did not ask the city manager if he could be listed as a reference. We know this because we asked.

Further, the committee that evaluated the development teams did not call the city manager to inquire about George Laham. We asked about this, too. But making inquiries of references: Isn’t that what an evaluation committee or vetting team should do? But we know that the evaluation committee did not contact even one of these officials that were listed as references.

These applicants likely knew that the evaluation committee would not contact these references. Therefore, they freely listed these government officials. Which makes us wonder — what is the point of having an evaluation committee?

Even further: Is it appropriate for the city to partner with people who think it’s proper to list the city manager as a reference without asking if that was permissible, knowing that the manager wouldn’t be contacted? Same question regarding the mayor, governor, our U.S. Congressman, and district attorney?

In light of this — numerous government officials listed as references without their permission or knowledge, an evaluation committee that never contacted these officials, and the information that these references could have provided: Do you think the evaluation committee fulfilled its duty to perform due diligence on behalf of the interests of the people of Wichita?

What the evaluation committee might have learned

If the evaluation committee had contacted these references, here’s what might have been learned.

Dave Wells: Wells is president of Key Construction. Last year the Wichita Eagle reported on “city-financed downtown parking garages that spiraled well over budget.” Noting the cost overruns, reporter Bill Wilson wrote: “The most recent, the 2008 WaterWalk Place garage built by Key Construction, an original partner in the WaterWalk project, came in $1.5 million over budget at almost $8.5 million. That’s the biggest parking garage miss, according to figures from the city’s office of urban development, although the 2004 Old Town Cinema garage built by Key Construction came in almost $1 million over budget at $5.225 million.” (Wichita city manager proposes eliminating no-bid construction projects.)

Also, two years ago Key Construction proposed — and was awarded by the city council — a no-bid contract for a parking garage. But the city later put the contract to competitive bid. Key, which first bid $6 million, later bid $4.7 million. If the desire of the majority of the city council, including Mayor Carl Brewer, had been realized, Wichita taxpayers would have sent an extra — and unnecessary — $1.3 million to a politically-connected construction company.

By the way, the mayor’s relationship with Wells means he should not have voted on this matter.

Dave Burk, Dave Wells: These two were original partners in WaterWalk, which has received over $40 million in subsidy, with little to show for results.

Dave Burk: He’s received many millions from many levels of government, but still thinks he doesn’t get enough. This is what we can conclude by his appeal of property taxes in a TIF district. Those taxes, even though they are rerouted back to him for his benefit, were still too high for his taste, and he appealed. The Wichita Eagle reported in the article (Developer appealed taxes on city-owned property): “Downtown Wichita’s leading developer, David Burk, represented himself as an agent of the city — without the city’s knowledge or consent — to cut his taxes on publicly owned property he leases in the Old Town Cinema Plaza, according to court records and the city attorney.”

rebenstorf-quote-dave-burkA number of Wichita city hall officials were not pleased with Burk’s act. According to the Eagle reporting, Burk was not authorized to do what he did: “Officials in the city legal department said that while Burk was within his rights to appeal taxes on another city-supported building in the Cinema Plaza, he did not have authorization to file an appeal on the city-owned parking/retail space he leases. … As for Burk signing documents as the city’s representative, ‘I do have a problem with it,’ said City Attorney Gary Rebenstorf, adding that he intends to investigate further.”

Council member Jeff Longwell was quoted by the Eagle: “‘We should take issue with that,’ he said. ‘If anyone is going to represent the city they obviously have to have, one, the city’s endorsement and … two, someone at the city should have been more aware of what was going on. And if they were, shame on them for not bringing this to the public’s attention.'”

In a separate article by the Eagle on this issue, Wichita city manager Robert Layton said that anyone has the right to appeal their taxes, but he added that ‘no doubt that defeats the purpose of the TIF.'”

The manager’s quote is most directly damaging. In a tax increment financing (TIF) district, the city borrows money to pay for things that directly enrich the developers, in this case Burk and possibly his partners. Then their increased property taxes — taxes they have to pay anyway — are used to repay the borrowed funds. In essence, a TIF district allows developers to benefit exclusively from their property taxes. For everyone else, their property taxes go to fund the city, county, school district, state, fire district, etc. But not so for property in a TIF district.

This is what is most astonishing about Burk’s action: Having been placed in a rarefied position of receiving many millions in benefits, he still thinks his own taxes are too high. Now he wants more city taxpayer subsidy.

warren-bailout-poses-dilemma

Bill Warren: In 2008 the Old Town Warren Theater was failing and its owners — Bill Warren being one — threatened to close it and leave the city with a huge loss on a tax increment financing (TIF) district formed for the theater’s benefit. Faced with this threat, the city made a no-interest and low-interest loan to the theater. Reported the Wichita Eagle: “Wichita taxpayers will give up as much as $1.2 million if the City Council approves a $6 million loan to bail out the troubled Old Town Warren Theatre this week. That’s because that $6 million, which would pay off the theater’s debt and make it the only fully digital movie theater in Kansas, would otherwise be invested and draw about 3 percent interest a year.”

Besides Warren, you may — or may not — be surprised to learn that the theater’s partners included Dave Wells and Dave Burk, the same two men mentioned above. Also, Mayor Brewer’s relationship with Warren means he should not have voted on this matter.

Pompeo on Syria intervention

This morning U.S. Representative Mike Pompeo appeared on Fox News Network to talk about Syria. Video follows.

Also, KFDI reported this today:

Kansas Fourth District Representative Mike Pompeo has just returned from a week in the Middle East in which he met with national security figures from the United States and its allies.

Pompeo said there is a broad concensus that American foreign policy in the Middle East has been weak and feckless.

The congressman called for a strong response to the alleged use of chemical weapons by Syrian dictator Bashar Assad, who Pompeo called a war criminal.

“We’ve got to make sure that those who control Syria and big pockets of the Middle East are not beholden to the Ayatollahs in Iran and to Hezbollah and to Russia,” he said.

Pompeo said if the U.S. does nothing in response to Syrian actions, we will ultimately have risk to the American homeland.

“We don’t need 20,000 soldiers on the ground,” Pompeo said. “But we need an enormous effort to make sure that, in a post-Assad world, we do not have Iran in control.”

Pompeo said he hopes the president will do more than he has outlined so far, adding that a “shot across the bow” is not enough.

Pompeo on national security issues

On the Joseph Ashby Show today, U.S. Representative Mike Pompeo of Wichita explained his views on our national security programs.

U.S. Representative Mike Pompeo on the Joseph Ashby Show.

When the host drew an analogy between the National Security Agency’s collection of data and the Internal Revenue Service scandals, Pompeo said: “Had there been this kind of oversight of Lois Lerner, this would not have happened.” He went on to explain that oversight of IRS is all by one branch of government, the executive branch. Oversight of NSA is “radically different,” he said.

Pompeo also noted that while we should not minimize the importance of the IRS scandals, national security is a much weightier matter.

Interestingly, the perception of the breadth of data that’s being collected may be overstated. In a June 18 hearing of the House Permanent Select Committee on Intelligence, Pompeo asked these questions of the Director of the NSA (video follows):

Pompeo: Gen. Alexander, from the data under Section 215 that’s collected, can you figure out the location of the person who made a particular phone call?

General Keith Alexander, Director of the National Security Agency: Not beyond the area code.

Pompeo: Do you have any information about signal strength or tower direction? I’ve seen articles that talked about you having this information. I want to make sure for the record we’re got that right.

Alexander: We don’t have that in the database.

Pompeo: Systems are needed, and risk of abuse is low

Recently U.S. Representative Mike Pompeo of Wichita appeared on Stossel to defend the programs the National Security Agency uses to gather data on Americans and others. I wondered about these questions: If it’s true that the information leaked by Edward Snowden has harmed the security of the United States, how is it that this was able to happen? Aren’t there many thousands of people with knowledge and information similar to, or greater than, what Snowden had access to? Is the security of our country dependent on all of them keeping their secrets?

In a telephone conversation, Pompeo told me there are thousands of people who have access to classified material. Each one of these persons represents some risk.

How did the Snowden situation develop? We don’t yet know the answer, Pompeo said. It was a mistake, he said, for the NSA to permit Snowden to have access to, and be able to take from the facility, the breadth of information he has released. But Snowden did not leak actual intelligence data; only an informational presentation about the programs being used.

Snowden has harmed our security, and he may not be finished releasing information. Appearing on Stossel, Pompeo told the host that already Al-Qaeda is behaving differently. “They might well have suspected that some of this was going on. But they learned a couple things. They learned not only what was going on, but they’ve also learned the legal limits of these programs. Having shared that is very dangerous, and allows the enemy to have insights into the things we’re doing, to go catch the really bad guys — the terrorists who still want to kill us.”

Addressing privacy concerns, on Stossel Pompeo emphasized the “tremendous oversight” of intelligence services. Actual telephone calls are not being listened to. Further, the data that’s collected is not “mined” continuously, he said. It’s only for specific purposes, and then with FISA court approval, that the data is used.

An important distinction, Pompeo told me, is that it is data about telephone calls that is being collected, not the actual content of the calls. He emphasized the process and layers of oversight, by both agencies and courts. Even with a president and attorney general who have shown themselves not always worth of public trust, Pompeo says that the depth and scope of oversight gives him confidence that the risk of abuse is low.

Interestingly, the perception of the breadth of data that’s being collected may be overstated. In a June 18 hearing of the House Permanent Select Committee on Intelligence, Pompeo asked these questions of the Director of the NSA (video follows):

Pompeo: Gen. Alexander, from the data under Section 215 that’s collected, can you figure out the location of the person who made a particular phone call?

General Keith Alexander, Director of the National Security Agency: Not beyond the area code.

Pompeo: Do you have any information about signal strength or tower direction? I’ve seen articles that talked about you having this information. I want to make sure for the record we’re got that right.

Alexander: We don’t have that in the database.

On Stossel, Pompeo defends NSA programs

Last week U.S. Representative Mike Pompeo of Wichita appeared on Stossel to defend the programs the National Security Agency uses to gather data on Americans and others.

Stossel has broken with many libertarians on this issue, illustrating, as Pompeo tells him, this issue is not partisan.

As member of the House Permanent Select Committee on Intelligence, Pompeo certainly knows a lot about U.S. Intelligence programs, and probably knows much that he can’t reveal to the public.

But I’ve wondered this: If it’s true that the information leaked by Edward Snowden has harmed the security of the United States, how is it that this was able to happen? Aren’t there many thousands of people with knowledge and information similar to, or greater than, what Snowden had access to? Is the security of our country dependent on all of them keeping their secrets?

The future of Obamacare, now he tells us

This is a sad commentary on the state of politics and governance in the U.S., from the Boston Globe:

Unencumbered by the political pressures of a reelection campaign, Baucus is in a position to call out both the failure of federal officials to prepare for implementing Obamacare as well as the unintended consequences of its complex regulations.

A short while ago, before U.S. Senator Max Baucus announced his retirement, U.S. Representative Mike Pompeo of Wichita noticed the incongruity of Baucus complaining about a law he passed, tweeting the following:

Following are excerpts from a letter Pompeo sent to Baucus, followed by the entire letter.

My shock wasn’t because I disagreed: You’re right to say this legislation has led to great uncertainty for hard-working Americans, small business owners, and families. No, I was shocked because you wrote this bill. I was saddened because your acknowledgment of the harm caused by PPACA has come so late.

No one in the country bears more responsibility for the complexity of this law than you. When your supermajority couldn’t pass the bill using normal procedures, you and your Senate colleagues rammed through the final legislation by using parliamentary gimmickry. Then, in the House, Speaker Pelosi cheerfully urged members to pass the legislation “in order to find out what’s in it.” This was not good policy-making, and now we’re seeing the consequences.

Secretary Sebelius’s implementation of the law is certainly flawed, but the policy process produced a law that could not possibly be implemented successfully. As legislators, it is our responsibility to write bills that clearly explain our meaning and have achievable goals. By your own admission, this law is a disaster.

You drafted it, you twisted arms to get it passed, and, until now, you have lauded it as a model for all the world. Your attempts to pass the buck to President Obama’s team will not work, nor will they absolve you of responsibility for the harm that you have brought via this law.

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Ending the Economic Development Administration

economic-development-administration

If you think a proper function of the federal government is spending your tax dollars to build replicas of the Great Pyramids in Indiana or a gift shop in a winery, you’re not going to like legislation introduced by U.S. Representative Mike Pompeo, a Republican who represents the Kansas fourth district, including the Wichita metropolitan area.

Others, however, will appreciate H.R. 887: To terminate the Economic Development Administration, and for other purposes. In the following article from last year, Pompeo explains the harm of the Economic Development Administration, which he describes as a “politically motivated federal wealth redistribution agency.” Pompeo had introduced similar legislation last year, and this bill keeps the effort alive in the new Congress.

In his article from last year Pompeo mentions the trip by Assistant Secretary of Commerce for Economic Development John Fernandez to Wichita. Since then, Fernandex has moved on to the private sector, working for a law firm in a role that seems something like lobbying.

For more background on this agency, see Economic Development Administration at Downsizing the Federal Government.

End the Economic Development Administration — Now

By U.S. Representative Mike Pompeo, January, 2012

As part of my efforts to reduce the size of government, I have proposed to eliminate the Economic Development Administration (EDA), a politically motivated federal wealth redistribution agency. Unsurprisingly, the current leader of that agency, Assistant Secretary of Commerce for Economic Development John Fernandez, has taken acute personal interest in my bill to shutter his agency.

Last week, Secretary Fernandez invited himself to Wichita at taxpayer expense and met with the Wichita Eagle’s editorial board. Afterwards, the paper accurately noted I am advocating eliminating the EDA even though that agency occasionally awards grant money to projects in South Central Kansas. They just don’t get it. Thanks to decades of this flawed “You take yours, I’ll take mine” Washington logic, our nation now faces a crippling $16 trillion national debt.

I first learned about the EDA when Secretary Fernandez testified in front of my subcommittee that the benefits of EDA projects exceed the costs and cited the absurd example of a $1.4 million award for “infrastructure” that allegedly helped a Minnesota town secure a new $1.6 billion steel mill. As a former CEO, I knew there is no way that a taxpayer subsidy equal to less than one-tenth of one percent (0.1%) of the total capital needed made a difference in launching the project. That mill was getting built whether EDA’s grant came through or not. So, I decided to dig further.

I discovered that the EDA is a federal agency we can do without. Similar to earmarks that gave us the infamous “Bridge to Nowhere” or the Department of Energy loan guarantee scandal that produced Solyndra, the EDA advances local projects that narrowly benefit a particular company or community. To be sure, the EDA occasionally supports a local project here in Kansas. But it takes our tax money every year for projects in 400-plus other congressional districts, many if not most of which are boondoggles. For example: EDA gave $2 million to help construct UNLV’s Harry Reid Research and Technology Park; $2 million for a “culinary amphitheater,” tasting room, and gift shop at a Washington state winery; and $500,000 to construct (never-completed) replicas of the Great Pyramids in rural Indiana.

Several times in recent decades, the Government Accountability Office has questioned the value and efficacy of the EDA. Good-government groups like Citizens Against Government Waste have called for dismantling the agency. In addition, eliminating the EDA was listed among the recommendations of President Obama’s own bipartisan Simpson-Bowles Deficit Reduction Commission.

So why hasn’t it been shut down already? Politics. The EDA spreads taxpayer-funded project money far and wide and attacks congressmen who fail to support EDA grants. Soon after that initial hearing, Secretary Fernandez flew in his regional director — again at taxpayer expense — to show me “all the great things we are doing in your home district” and handed me a list of recent and pending local grants. Hint, hint. You can’t say I wasn’t warned to back off. Indeed, Eagle editors missed the real story here: Secretary Fernandez flew to Wichita because he is a bureaucrat trying to save his high-paying gig. The bureaucracy strikes back when conservatives take on bloated, out-of-control, public spending, so I guess I’m making progress.

Please don’t misunderstand. I am not faulting cities, universities, or companies for having sought “free” federal money from the EDA. The fault lies squarely with a Washington culture that insists every program is sacred and there is no spending left to cut.

A federal agency run at the Assistant Secretary level has not been eliminated in decades. Now is the time. My bill to eliminate the EDA (HR 3090) would take one small step toward restoring fiscal sanity and constitutional government.

Nation can no longer afford wind tax credit

From The Hill:

Sen. Lamar Alexander (R-Tenn.) on Wednesday said the nation’s fiscal situation has become so dire that the government can no longer afford to maintain a wind power production credit that has been in place since in 1992.

“I think there is certainly the largest realization that we’ve ever had that it’s time for it to end,” Alexander said at a Wednesday event hosted by The Hill and sponsored by the American Energy Alliance.

In a longer story, The Hill reports on the efforts of U.S. Representative Mike Pompeo, a Republican representing the Kansas fourth district (Wichita metropolitan area and surrounding counties) to end the wind production tax credit:

Rep. Mike Pompeo (R-Kan.) said he hopes that conversation leads to the elimination of all energy subsidies.

Pompeo has led the House charge against the credit. He got 46 other House GOP members to sign a September letter urging Boehner to nix the provision.

Pompeo said the wind credit’s history is instructive when debating the benefits of tax carve-outs for specific industries.

He pointed to a steep decline in wind turbine installations when the credit last lapsed in 2004 as proof that subsidies distort markets and investment. And planned projects and investments already are down for next year as a result of the credit’s cloudy future.

“I think that’s further evidence that it’s non-economic,” Pompeo said.

Pompeo has been at the forefront of efforts to end subsidies that distort energy markets. He and Alexander recently contributed an op-ed to the Wall Street Journal, which may be read at Puff, the Magic Drag on the Economy: Time to let the pernicious production tax credit for wind power blow away. Pompeo also develops the argument in Governor Romney is right: End the wind production tax credit and Mike Pompeo: We need capitalism, not cronyism. The special interests that benefit from cronyism have struck back, but unsuccessfully: Kerr’s attacks on Pompeo’s energy policies fall short.

Kerr’s attacks on Pompeo’s energy policies fall short

We often see criticism of politicians for sensing “which way the wind blows,” that is, shifting their policies to pander to the prevailing interests of important special interest groups. The associated negative connotation is that politicians do this without regard to whether these policies are wise and beneficial for everyone.

So when a Member of Congress takes a position that is literally going against the wind in the home district and state, we ought to take notice. Someone has some strong convictions.

This is the case with U.S. Representative Mike Pompeo, a Republican representing the Kansas fourth district (Wichita metropolitan area and surrounding counties.)

The issue is the production tax credit (PTC) paid to wind power companies. For each kilowatt-hour of electricity produced, the United States government pays 2.2 cents. Wind power advocates contend the PTC is necessary for wind to compete with other forms of electricity generation. Without the PTC, it is said that no new wind farms would be built.

The PTC is an important issue in Kansas not only because of the many wind farms located there, but also because of wind power equipment manufacturers that have located in Kansas. An example is Siemens. That company, lured by millions in local incentives, built a plant in Hutchinson. Employment was around 400. But now the PTC is set to expire on December 31, and it’s uncertain whether Congress will extend the program. As a result, Siemens has laid off employees. Soon only 152 will be at work in Hutchinson, and similar reductions in employment have happened at other Siemens wind power equipment plants.

Rep. Pompeo is opposed to all tax credits for energy production, and has authored legislation to eliminate them. As the wind PTC is the largest energy tax credit program, Pompeo and others have written extensively of the market distortions and resultant economic harm caused by the PTC. A recent example is Puff, the Magic Drag on the Economy: Time to let the pernicious production tax credit for wind power blow away, which appeared in the Wall Street Journal.

The special interests that benefit from the PTC are striking back. An example comes from Dave Kerr, who as former president of the Hutchinson/Reno County Chamber of Commerce played a role in luring Siemens to Hutchinson. Kerr’s recent op-ed in the Hutchinson News is notable not only for its several attempts to deflect attention away from the true nature of the PTC, but for its personal attacks on Pompeo.

There’s no doubt that the Hutchinson economy was dealt a setback with the announcement of layoffs at the Siemens plant that manufactures wind power equipment. Considered in a vacuum, these jobs were good for Hutchinson. But we shouldn’t make our nation’s policy in a vacuum, that is, bowing to the needs of special interest groups — sensing “which way the wind blows.” When considering everything and everyone, the PTC paid to producers of power generated from wind is a bad policy. We ought to respect Pompeo for taking a principled stand on this issue, instead of pandering to the folks back home.

Kerr is right about one claim made in his op-ed: The PTC for wind power is not quite like the Solyndra debacle. Solyndra received a loan from the Federal Financing Bank, part of the Treasury Department. Had Solyndra been successful as a company, it would likely have paid back the government loan. This is not to say that these loans are a good thing, but there was the possibility that the money would have been repaid.

But with the PTC, taxpayers spend with nothing to show in return except for expensive electricity. And spend taxpayers do.

Kerr, in an attempt to distinguish the PTC from wasteful government spending programs, writes the PTC is “actually an income tax credit.” The use of the adverb “actually” is supposed to alert readers that they’re about to be told the truth. But truth is not forthcoming from Kerr — there’s no difference. Tax credits are government spending. They have the same economic effect as “regular” government spending. To the company that receives them, they can be used — just like cash — to pay their tax bill. Or, the company can sell them to others for cash, although usually at a discounted value.

From government’s perspective, tax credits reduce revenue by the amount of credits issued. Instead of receiving tax payments in cash, government receives payments in the form of tax credits — which are slips of paper it created at no cost and which have no value to government. Created, by the way, outside the usual appropriations process. That’s the beauty of tax credits for big-government spenders: Once the program is created, money is spent without the burden of passing legislation.

If we needed any more evidence that PTC payments are just like cash grants: As part of Obama’s ARRA stimulus bill, for tax years 2009 and 2010, there was in effect a temporary option to take the federal PTC as a cash grant. The paper PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States explains.

Astonishingly, the wind PTC is so valuable that wind power companies actually pay customers to take their electricity. It’s called “negative pricing,” as explained in Negative Electricity Prices and the Production Tax Credit:

As a matter of both economics and public policy, no government production tax subsidy should ever be so large that it creates an incentive for a business to actually pay customers to take its product. Yet, the federal Production Tax Credit (“PTC”) for wind generation is doing just that with increasing frequency in electricity markets across the United States. In some “wind-rich” regions of the country, wind producers are paying grid operators to take their generation during periods of surplus supply. But wind producers more than make up the cost of the “negative price” payment, because they receive a $22/MWH federal production tax credit for every MWH generated.

In western Texas since 2008, wind power generators paid the electrical grid to take their electricity ten percent of the hours of each day.

Once we recognize that tax credits are the same as government spending, we can see the error in Kerr’s argument that if the PTC is ended, it is the same as “a tax increase on utilities, which, because they are regulated, will pass on to consumers.” Well, government passes along the cost of the PTC to taxpayers, illustrating that there really is no free lunch.

Kerr attacks Pompeo for failing to “crusade” against two subsidies that some oil companies receive: Intangible Drilling Costs and the Percentage Depletion Allowance. These programs are deductions, not credits. They do provide an economic benefit to the oil companies that can use them (“big oil” can’t use percentage depletion at all), but not to the extent that tax credits do.

Regarding these deductions, last year Pompeo introduced H. Res 267, titled “Expressing the sense of the House of Representatives that the United States should end all subsidies aimed at specific energy technologies or fuels.”

In the resolution, Pompeo recognized the difference between deductions and credits, the latter, as we’ve seen, being direct subsidies: “Whereas deductions and cost-recovery mechanisms available to all energy sectors are different than credits, loans and grants, and are therefore not taxpayer subsidies; [and] Whereas a deduction of costs and cost recovery with respect to timing is not a subsidy.”

Part of what the resolution calls for is to “begin tax simplification and reform by eliminating energy tax credits and deductions and reducing income tax rates.”

Kerr wants to deflect attention away from the cost and harm of the PTC. Haranguing Pompeo for failing to attack percentage depletion and IDC with the same fervor as tax credits is only an attempt to muddy the waters so we can’t see what’s happening right in front of us. It’s not, as Kerr alleges, “playing Clintonesque games of semantics with us.” As we’ve seen, Pompeo has called for the end of these two tax deductions.

If we want to criticize anyone for inconsistency, try this: Kerr criticizes Pompeo for ignoring the oil and gas deductions, “which creates a glut in natural gas that drives down the price to the lowest levels in a decade.” These low energy prices should be a blessing to our economy. Kerr, however, demands taxpayers pay to subsidize expensive wind power so that it can compete with inexpensive gas. In the end, the benefit of inexpensive gas is canceled. Who benefits from that, except for the wind power industry? The oil and gas targeted deductions also create market distortions, and therefore should be eliminated. But at least they work to reduce prices, not increase them.

By the way, Pompeo has been busy with legislation targeted at ending other harmful subsidies: H.R. 3090: EDA Elimination Act of 2011, H.R. 3994: Grant Return for Deficit Reduction Act, H.R. 3308: Energy Freedom and Economic Prosperity Act, and the above-mentioned resolution.

I did notice, however, that Pompeo hasn’t called for the end to the mohair subsidy. Will Kerr attack him for this oversight?

Finally, Kerr invokes the usual argument of government spenders: Cut the budget somewhere else. That’s what everyone says.

Creating entire industries that exist only by being propped up by government subsidy means that we all pay more to support special interest groups. A prosperous future is best built by relying on free enterprise and free markets in energy, not on programs motivated by the wants of politicians and special interests. Kerr’s attacks on Pompeo illustrate how difficult it is to replace cronyism with economic freedom.

Pompeo: Wind production tax credit should expire

U.S. Representative Mike Pompeo, a Republican who represents the Kansas fourth district, and U.S. Senator Lamar Alexander contribute the following article on the harm of the wind power production tax credit (PTC). The NorthBridge Group report referenced in the article is available at Negative electricity prices and the production tax credit.

Puff, the Magic Drag on the Economy
Time to let the pernicious production tax credit for wind power blow away

By Lamar Alexander And Mike Pompeo

As Congress works to reduce spending and avert a debt crisis, lawmakers will have to decide which government projects are truly national priorities, and which are wasteful. A prime example of the latter is the production tax credit for wind power. It is set to expire on Dec. 31 — but may be extended yet again, for the seventh time.

This special provision in the tax code was first enacted in 1992 as a temporary subsidy to enable a struggling industry to become competitive. Today the provision provides a credit against taxes of $22 per megawatt hour of wind energy generated.

From 2009 to 2013, federal revenues lost to wind-power developers are estimated to be $14 billion — $6 billion from the production tax credit, plus $8 billion courtesy of an alternative-energy subsidy in the stimulus package — according to the Joint Committee on Taxation and the Treasury Department. If Congress were to extend the production tax credit, it would mean an additional $12 billion cost to taxpayers over the next 10 years.

There are many reasons to let this giveaway expire, including wind energy’s inherent unreliability and its inability to stand on its own two feet after 20 years. But one of the most compelling reasons is provided in a study released Sept. 14 by the NorthBridge Group, an energy consultancy. The study discusses a government-created economic distortion called “negative pricing.”

This is how it works. Coal- and nuclear-fired plants provide a reliable supply of electricity when the demand is high, as on a hot summer day. They generate at lower levels when the demand is low, such as at night.

But wind producers collect a tax credit for every kilowatt hour they generate, whether utilities need the electricity or not. If the wind is blowing, they keep cranking the windmills.

Why? The NorthBridge Group’s report (“Negative Electricity Prices and the Production Tax Credit”) finds that government largess is so great that wind producers can actually pay the electrical grid to take their power when demand is low and still turn a profit by collecting the credit — and they are increasingly doing so. The wind pretax subsidy is actually higher than the average price for electricity in many of the wholesale markets tracked by the Energy Information Administration.

This practice drives the price of electricity down in the short run. Wind-energy supporters say that’s a good thing. But it is hazardous to the economy’s health in the long run.

Temporarily lower energy prices driven by wind-power’s negative pricing will cripple clean-coal and nuclear-power companies. But running coal and nuclear out of business is not good for the U.S. economy. There is no way a country like this one — which uses 20% to 25% of all the electricity in the world — can operate with generators that turn only when the wind blows.

The Obama administration and other advocates of wind power argue that the subsidy provided by the tax credit allows the wind industry to sustain American jobs. But they are jobs that exist only because of the subsidy. Keeping a weak technology alive that can’t make it on its own won’t create nearly as many jobs as the private sector could create if it had the kind of low-cost, reliable, clean electricity that wind power simply can’t generate.

While the cost of renewable energy has declined over the years, it is still far more expensive than conventional sources. And even the administration’s secretary of energy, Steven Chu, calls wind “a mature technology,” which should mean it is sufficiently advanced to compete in a free market without government subsidies. If wind power cannot compete on its own after 20 years without costly special privileges, it never will.