Voice For Liberty

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  • Kansas fiscal policy is stifling the state’s economy

    Dave Trabert of Kansas Policy Institute explains that Kansas economic policies are leading to the growth of government at the expense of private sector economic activity. Separately, KPI released figures showing that it will be very difficult for the state to meet the revenue projections made for the current fiscal year, which ends on June 30, 2011. Kansas tax collections in March were below projections, meaning even more trouble balancing the current year budget.

    State Fiscal Policy is Stifling the Kansas Economy

    By Dave Trabert, Kansas Policy Institute.

    Kansas’ fiscal policy has stifled the state’s economy for more than a decade and the effects are now being severely felt. Policy debates are often thought of in terms of party identification but the dividing line in Kansas is about the size and role of government; specifically, limited government versus large, expanding government. Most major policy debates really come down to whether government or taxpayer interests take precedent.

    For example, last year’s 19 percent sales tax increase was designed to allow government spending to increase by more than $200 million. Efforts to instead have government operate more efficiently were rebuffed by the demand for higher revenues, even though both academic studies of the proposed sales tax increase concluded it would cost thousands of jobs. The February employment report from the Kansas Department of Labor confirms those predictions.

    Kansas employmentKansas employment

    Kansas continues to lose private sector jobs, while government jobs increase. The adjacent table shows a loss of 12,100 private sector jobs over the last year; you have to go back to 1997 to find fewer jobs in February. To fairly compare February employment to the July implementation of the sales tax, we have to use seasonally adjusted data from the U.S. Department of Labor. On that basis, there are 23,200 fewer private sector jobs since the sales tax increase.

    There’s been talk of repealing the sales tax but opponents say it would make it harder to balance the state budget. That’s true, but it can be done by having government operate more efficiently, eliminating programs no longer deemed effective, and treating government employees the same as all other taxpayers. Others oppose repealing the sales tax because they’d rather retain it and use the revenue to begin reducing income tax rates. The March to Economic Growth Act (MEGA) would restrict the growth in state revenue and ease the tax burden but opponents are concerned about the impact on government. Never mind that Kansas has one of the highest state and local tax burdens in the country (number 19 according to the Tax Foundation and getting worse) and that jobs and population are migrating to states with lower tax burdens.

    Last year’s smoking ban was another fine example of putting government interests first, with state-owned casinos getting an exemption. Opponents of an effort to remove that exemption say it would cost state-owned casinos millions of dollars in lost revenue and reduce state tax revenues. Bar owners said the same thing last year but their concerns were dismissed.

    And then there’s the Kansas Public Employees Retirement System (KPERS). The debate over resolving a KPERS deficit of at least $9.3 billion is perhaps the most egregious example of fiscal policy favoring government growth. KPERS is one of the worst funded plans in the country and provides benefits many times greater than received by most private sector workers. Fully funding it will have catastrophic impact on taxpayers and the economy, but even minor benefit reductions are vehemently opposed. Even a proposal to reduce benefits for employees not yet hired can’t get off the ground.

    Continuing to strip taxpayers of their economic freedom so that we can sustain and grow government will eventually cause the state’s economy to implode, as governments in California, Illinois and many nations are currently experiencing. This isn’t theory, it’s history — and we should avoid repeating it.

  • Occupy Koch Town protestors ignore facts

    Below, Paul Soutar of Kansas Watchdog provides more evidence that the campaign against Wichita-based Koch Industries regarding their alleged involvement in the Keystone XL pipeline is not based on facts. Besides this article, U.S. Representative Mike Pompeo of Wichita has also written on this issue in The Democrats continue unjustified attacks on taxpayers and job creators.

    Another inconvenient fact is that if the Canadian oil is not sold to the U.S., it will be sold to and consumed in China. If we are concerned about greenhouse gas emissions leading to climate change, it should be noted that it doesn’t matter where the greenhouse gases are produced. The effect is worldwide. But as we know, the radical environmental movement cares nothing for facts in their war on capitalism and human progress.

    Facts Refute Environmentalist Claims About Keystone XL Pipeline

    By Paul Soutar. Originally published at Kansas Watchdog.

    Protesters are gathering on the Wichita State University campus this weekend for a Sierra Club-sponsored Occupy Koch Town protest against the Keystone XL oil pipeline and Koch Industries, Inc. Koch and its subsidiaries are involved in a wide array of manufacturing, trading and investments including petroleum refining and distribution.

    Many Keystone XL opponents have focused on Koch, claiming its Flint Hills Resources Canada subsidiary’s status as an intervener in the regulatory approval process in Canada proves Koch is a party to the pipeline project. Keystone XL would carry petroleum from Canadian oil sands to the U.S. Gulf coast.

    In a Jan. 25 House Energy and Commerce Committee hearing, California U.S. Rep. Henry Waxman, D-District 30, demanded that the Koch brothers, Charles and David, or a representative of Koch Industries appear before the committee to explain their involvement in the pipeline.

    Philip Ellender, president of Koch Cos. Public Sector, which encompasses legal, communication, community relations and government relations, responded to Waxman on a Koch Industries website:

    Koch has consistently and repeatedly stated (including here, here, here, and here) that we have no financial interest whatsoever in the Keystone pipeline. In addition, this fact has been verified by TransCanada’s CEO here.

    Russ Girling, CEO of TransCanada, owner and builder of the Keystone pipelines, addressed criticism of the pipeline and supposed collusion with the Koch brothers in a Nov. 1 conference call to discuss TransCanada’s earnings. “I can tell you that Koch (Industries Inc.) isn’t a shipper and I’ve never met the Koch brothers before.”A March 2010 document from Canada’s National Energy Board (NEB) approving the pipeline does not mention Koch or its subsidiary, Flint Hills Resources Canada, on any of its 168 pages.

    The report does note that on June 16, 2009, TransCanada Corporation became the sole owner of the Keystone Pipeline System, acquiring ConocoPhillips’ interest in the pipeline.

    A map of the existing Keystone and planned Keystone XL pipelines shows that Koch’s two refineries in the 48 contiguous states at Pine Bend, Minn., and Corpus Christi, Texas, are not on or near the pipeline routes. Koch also has a refinery in North Pole, Alaska.

    Koch does have substantial interests in Canadian oil though, including the thick oil sands mined in Alberta. Those interests are precisely why Flint Hills Resources Canada requested intervener status in the pipeline approval process in 2009.

    Flint Hills’ application to Canada’s National Energy Board for intervener status said, “Flint Hills Resources Canada LP is among Canada’s largest crude oil purchasers, shippers and exporters, coordinating supply for its refinery in Pine Bend, Minnesota. Consequently, Flint Hills has a direct and substantial interest in the application.”

    Critics have claimed that statement is a smoking gun proving Koch is a party to the pipeline or will benefit from its construction.

    Greg Stringham, Canadian Association of Petroleum Producers (CAPP) vice president of markets and oil sands, told KansasWatchdog, “Their intervention itself is not a trigger that says aha, they have a commercial interest or are a shipper on this pipeline.”

    The US Legal, Inc. definitions website says an intervener is, “A party who does not have a substantial and direct interest but has clearly ascertainable interests and perspectives essential to a judicial determination and whose standing has been granted by the court for all or a portion of the proceedings.”

    US Legal, Inc. provides free legal information, legal forms and help with finding an attorney for the stated purpose of breaking down barriers to legal information.

    Stringham said anyone — business, organization or individual — can be an intervener in NEB regulatory proceedings as long as they can show some potential impact, good or bad, from the proposed action. “Then they make a decision whether they’re going to actively engage through evidence and cross examination or whether they’re just there for interest, to get materials and monitor the situation.”

    Market interest

    Like Koch, Stringham said CAPP is an intervener in the pipeline approval process, because the pipeline will have a direct impact on the Canadian oil market. Stringham said:

    The fact that it’s an intervention for interest does not mean that there is a financial ownership or shipping interest. It’s really to make sure that they understand what’s going on in the process and that they have some connection to the project that can be either positive and beneficiary or potentially negative to them. That’s why I believe Koch has intervened in this process.

    The Canadian pipeline company Enbridge, Inc.; Marathon Oil Corp. and Britain’s oil giant BP are also among the 29 interveners in the pipeline application. So is the environmental activist organization Sierra Club.

    Keystone XL would compete with the Enbridge pipeline that carries the thick bitumen oil from Hardisty, Alberta, for delivery to Koch’s Pine Bend, Minn., refinery. If supplies prove insufficient for both pipelines, Stringham said, Koch could be at a competitive disadvantage since it is not a shipper on the Keystone pipelines.

    The National Energy Board’s approval document noted:

    Keystone XL shippers have indicated that they are seeking competitive alternatives, and by providing access to a new market, Keystone XL would be expanding shipper choice. The Board places considerable weight on the fact that Keystone XL shippers have made a market decision to enter into long-term shipping arrangements negotiated through a transparent competitive process. New pipelines connecting producing regions with consuming regions change market dynamics in ways that cannot easily be predicted.

    Political motivation

    On Feb.10, 2011 Reuters published an Inside Climate News article that started the Koch-Keystone explosion. The third paragraph put a political spin on the Koch claims.

    What’s been left out of the ferocious debate over the pipeline, however, is the prospect that if President Obama allows a permit for the Keystone XL to be granted, he would be handing a big victory and great financial opportunity to Charles and David Koch, his bitterest political enemies and among the most powerful opponents of his clean economy agenda.

    Former U.S. Solicitor General Theodore Olsen, in a Wall Street Journal op-ed, highlighted the political dimension of attacks on the Kochs and recent attempts to compel their testimony before Congress.

    When Joseph McCarthy engaged in comparable bullying, oppression and slander from his powerful position in the Senate, he was censured by his colleagues and died in disgrace. “McCarthyism,” defined by Webster’s as the “use of unfair investigative and accusatory methods to suppress opposition,” will forever be synonymous with un-Americanism.

    In this country, we regard the use of official power to oppress or intimidate private citizens as a despicable abuse of authority and entirely alien to our system of a government of laws. The architects of our Constitution meticulously erected a system of separated powers, and checks and balances, precisely in order to inhibit the exercise of tyrannical power by governmental officials.

    Market and environmental realities

    Canada produces about 2.7 million barrels of oil per day with about 1.6 million going to the United States. “About a million of that comes from the oil sands,” Stringham said. “All of that moves through the existing pipeline systems.”

    Two Kansas refineries, the Holly Frontier refinery in El Dorado and National Cooperative Refinery Association’s facility in McPherson, refine Canadian oil, including from oil sands, delivered over existing pipelines.

    With or without the Keystone XL, oil from Canada’s oil sands will continue to go to markets, according to Stringham. “We have been investigating a number of alternatives. Keystone XL clearly is the most direct route to get to the gulf coast and that’s why the market really spoke up and said this is what we want,” he said.

    In a 2010 op-ed in the National Journal, Charles T. Drevna, president of American Fuel & Petrochemical Manufacturers, presciently said, “Canada’s leaders have made clear that if the U.S. won’t buy their oil, they won’t abandon development of their oil sands. Instead, they have said they will ship Canadian oil across the Pacific to China and other Asian nations. That will result in America having to import more oil from other countries. Sending Canadian oil to Asia would actually increase global greenhouse gas emissions, according to a 2010 study by Barr Engineering.”

    The Barr study, Low Carbon Fuel Standard “Crude Shuffle” Greenhouse Gas Impacts Analysis (pdf), concluded that transporting oil to Asia for refining would mean not just a lost opportunity for the U.S., but increased greenhouse gas emissions because of transportation by ship instead of by pipeline and less stringent refinery emission standards.

    TransCanada has said it will continue to seek approval of the Keystone XL and work is proceeding on alternatives to Keystone XL, Stringham said. “There are other pipeline routes being investigated by Enbridge and BP and a number of others as well to move this oil,” he said.

    He said Canada’s oil market is looking at diverse opportunities beyond the United States. “We are looking to the West Coast, which could move it on to tankers. We looked at Asia, it is one of the options, but once it gets to the West Coast, it can also move to the California market,” he said.

    Stringham said a proposal for Enbridge to build a pipeline carrying oil to the West Coast has more than 4,000 interveners.

    Occupy Koch Town promotional materials say they’ll also protest against the Kansas Policy Institute. KPI helped launch KansasWatchdog.org in 2009 but is no longer affiliated with this site.

  • Kansas Blog Roundup for September 5, 2008

    In Kansas this week, blog coverage of local issues is a little light, partly due to the holiday, but also the Republican convention.

    A local blog I’ve just become aware of (but has been around for a few years) is Book Nut. It covers, naturally, books. It’s always amazing to me to see the effort that people put into their blogs, especially ones like this that are hobbies. Douglas and Main remains the leading place to learn about Wichita-area blogs and their posts.

    Kansas Liberty features KansasLiberty.com RNC journal report, a series of posts by Kansas Republican national delegate Maria Holiday. Other reporting from this site includes Education PACs gearing up for November, Western Kansas residents take energy price hikes in stride, and 200 judges evaluated – but not a single one recommended for ouster.

    The Kansas Meadowlark contributes two posts covering Kansas politics and ethics. New ethics commissioner in Kansas. Updated political profile of Ethics Commission. provides useful political background on members of the Kansas Governmental Ethics Commission. Then Do we need Alaska Gov. Sarah Palin’s ethics reforms in Kansas? reports on how a few things Sarah Palin has done in Alaska could be helpful here in Kansas. Next week I will be attending a conference along with the Meadowlark, and I hope to learn more about conducting investigations like his.

    Americans for Prosperity-Kansas reports on the Topeka Sales Tax Increase Proposal and why it is bad.

    Kansas Progress reports on their progress in appearing well in Google searches in the post A thanks to readers. This blog now has a Facebook group.

    At The Kansas Trunkline (The Official Blog of the Kansas Republican Party), blogger Christian Morgan posts from the Republican National Convention. KS GOP Political Director Corrie Kangas also contributes.

    Stay Red Kansas reports on a new television advertisement by third district congressional candidate Nick Jordan. You can view the commercial. Also, news that Brownback Confirms Gov. Candidacy.

    Over at The Kansas Republican, Custer contributes Convention Talk of New KS GOP Chair. Wild Bill posts Convention Day 1, but then nothing more.

    The Wichita NAACP blog contributed the mini-debate post What YOU need to know about the Proposed School Bond Issue, in which I was pleased to be invited to participate.

    Boyda Bloc has no new posts this week, which is unusual for this prolific and anonymous blogger (or group of bloggers).

    At the Voice For Liberty in Wichita (home of the Kansas Blog Roundup) a few posts cover environmental issues: The Problem of Environmental Calculation, Wind Power: Why Special Tax Treatment?, Alaska Climate Change Sub-Cabinet: Not an Example of Sarah Palin’s Transparent Government, and Kansas Electric Rates Increase Because of Wind Power Generation.

    Education issues are covered in Carol Rupe, Kansas School Board Member, Speaks for the Wichita School Bond Issue and Kansas State SAT Scores Continue a Gradual Decline. Kansas National Education Association Candidate Questions starts a series of articles exposing the bias and misinformation present in the Kansas teachers union candidate questionnaire. George Fahnestock’s Wichita School Bond Issue Invitation!!! reports on a possible tell by a school bond spokesman. I interviewed Wichita school bond issue activist Helen Cochran in Mark McCormick’s Wichita School Bond Challenge: The Inside Story.

    Local Wichita politics are covered in Wichita Smoking Ban Starts. Sharon Fearey is Excited. Also a useful Wichita resource is discovered in Web Map of Wichita.

  • Kansas Economic Freedom Index launched

    The purpose of the Kansas Economic Freedom Index is to identify Kansas legislators who vote in favor of economic freedom — and those who don’t. Financial issues like taxes and spending will be important, but I will include issues like smoking bans and seat belt laws.

    This is the first version of the index. As I become aware of votes that should be included, and as new votes are taken, I’ll update the index.

    In the index, each bill has a weight. This is a number from 1 to 10, with 10 meaning the bill is of greatest importance. When I calculate the index value for a legislator, I add up the weights for the bills being considered, and add up the weights the legislator “earned” based on their votes, and that’s the basis of the calculation.

    As this is a new project that I just started, I welcome feedback. Please write to bob.weeks@gmail.com or call me at 316-708-1837, day or evening.

    The permanent page for the index is Kansas Economic Freedom Index.

    Links to current versions of the Kansas Economic Freedom Index:

    Kansas Economic Freedom Index, Senate
    Kansas Economic Freedom Index, House of Representatives

  • Brownback, Colyer announce in Wichita

    On Tuesday, United States Senator Sam Brownback formally filed to become a candidate for the Republican party nomination to be governor of Kansas. He also introduced his running mate.

    On Friday, it was speculated that Kansas Senator Jeff Colyer was Brownback’s selection to run on the ticket for lieutenant governor. Suspense was largely eliminated when a reader of Hawver’s Capital Report noted that the location scheduled in Hays for a campaign stop was Colyer’s high school.

    On Tuesday morning in Overland Park, it was made official: Colyer is the nominee for lieutenant governor.

    In a late Tuesday afternoon campaign stop in Wichita, Wichita City Council Member Sue Schlapp introduced Brownback to the audience. Schlapp is one of four leaders of Brownback’s statewide committee and state co-chair of the campaign.

    Schlapp said that Brownback coming back to Kansas is “good news.” She said that Brownback is business-friendly, saying that she agreed with him that “you can’t tax yourself into prosperity.” She told the audience that “Sam listens” and follows through, getting things done.

    She noted that Brownback is fulfilling his pledge to serve no more than two terms as United States Senator.

    In his remarks, Brownback said that Kansas is home. For the last 15 years, he said he’s commuted to Washington as he represented Kansas in both the United States House and the Senate, but “Kansas has always been home, and it’s still home.”

    Brownback said that in his time in public service, the most effective campaign and governing document he’s seen was the “Contract With America.” This was a set of proposals that were laid out in a campaign, and then used to govern, he said. Brownback said the he will soon present a “Roadmap for Kansas.” This, he said, will be a series of detailed policy proposals which will be used in the campaign and then used to govern from.

    The thee challenges that he wants to focus on are growing the economy, improving education, and protecting families.

    On the economy, Brownback said that the state has lost tens of thousands of public sector jobs, personal income has dropped, but government bureaucracy and taxes went up. “Government is too big, and taxes are too high,” he added. While some have said that government needs to do more with less, Brownback said that government needs to focus on core functions and do those better at less cost. Controlling state spending, pro-growth tax policies, and sensible regulation will be goals of his administration. Success will be measured by private sector jobs and personal income.

    Brownback said that education is a core function of government. The school finance formula, he said is “confusing, illogical, unfair, not flexible, doesn’t support innovation, fails to prioritize classroom learning, and discourages excellence.” The formula should not force consolidation. He said that his administration would see that education dollars go to the classroom instead of administration or the courtroom, a reference to school funding lawsuits.

    On family issues, Brownback said that “strong families make a strong state.” Tax, budget, and welfare policies would be evaluated on how they affect families, and they should do no harm to families.

    In his remarks, Colyer said he is a fifth-generation Kansan. He grew up in Hays, and learned there that “we’re here to serve other people.”

    As a White House fellow for President Reagan, he said he learned that the key to solving difficult problems is that when “individuals in America work and prosper, America works and prospers.”

    His experience volunteering as a physician in Africa, Iraq, and Afghanistan taught him that “ordinary people can do extraordinary things in the most horrific of times.” He added that in Kansas, our best days are ahead of us, but these days are not just around the corner. Even though Kansas just passed its biggest tax increase, the budget is under water and getting worse, he said. Problems have been “papered over,” and will explode in the near future.

    He told the audience that the Kansas state pension plan (KPERS) ranked next-to-last in solvency, after California and New York.

    The Kansas economy has not been growing as it should due to years of high taxes and unnecessary regulation, he said.

    In questioning after the event, Brownback said he considered candidates from the Wichita area for his running mate. He said that he and Colyer have known each other for 20 years and work well together.

    If elected, Colyer said he would be required to resign from the Kansas Senate. I asked since the lieutenant governor has so few prescribed duties, what would Colyer do with his time, should he be elected? He said that Brownback said he should be prepared to work “double time.” He said he would keep his medical practice. Brownback said he expected much from Colyer, and that he would be working full time on problems in the state.

    I asked whether a Brownback administration would repeal the increase in the statewide sales tax due to take effect on July 1. Brownback said that he wants to look at fundamental tax policy and develop a pro-growth tax policy.

    In response to my question as to what he would do to increase school choice, particularly charter schools in Kansas, Brownback said that the school funding formula be the centerpiece of education reform in Kansas. Within that, the state could review the charter school law.

    Neither candidate would express a preference in the United States Senate Republican primary.

    Analysis

    Many conservatives look forward to Brownback as Kansas governor, as they feel Kansas has not had a conservative governor for many years, even through there have been Republicans in the governor’s office. While delivering a conservative message at this event, Brownback’s record in the U.S. Senate, according to National Journal vote ratings for 2009, places him near the middle of Senate Republicans in terms of voting for conservative positions.

    Generally, Colyer is described as conservative. He has, however, cast some votes that some conservatives might not agree with. In particular, he voted for the statewide smoking ban during the 2009 session. That bill carried over to this year and was passed in the House and signed into law by Governor Parkinson.

    In the Kansas Economic Freedom Index, Colyer cast four votes that were not in favor of economic freedom, earning a score of 69% and ranking 13th in the Senate. The votes not in favor of economic freedom were voting for an expansion of the historic preservation tax credit program, voting for a primary seat belt law and texting ban, voting for regulation of sexually oriented businesses, and voting against an amendment that would have required the state to sell assets to raise revenue. The last measure was promoted by conservatives as a way the state could raise enough revenue to avoid having to raise taxes.

    In the Republican primary, the Brownback/Colyer ticket will square off against a ticket headed by Joan Heffington, a Derby businesswoman who has many political views that might be considered out of the mainstream.

    If Brownback and Colyer prevail in the primary, they will likely face Kansas Senator Tom Holland and his unnamed running mate. Holland has not yet filed but has been campaigning, and no other Democrats are expected to file by the June 10 deadline.

    Other coverage: Brownback ticket gains surgeon as lieutenant, Brownback announces, picks Colyer, Brownback Names Colyer as Lt. Governor in Race for Governor, Holland Responds, Brownback picks Jeff Colyer as running mate in governor’s race, and Brownback chooses physician as running mate.

  • How does Kansas rank in economic freedom?

    In measures of economic and personal freedom, Kansas ranks relatively well among the states, but lags behind some neighboring states. Recent actions by the Kansas legislature might drive its ranking down.

    Last year the Mercatus Center at George Mason University published a paper that ranks the states in several areas regarding freedom. According to the authors, “This paper presents the first-ever comprehensive ranking of the American states on their public policies affecting individual freedoms in the economic, social, and personal spheres.”

    What is the philosophical basis for measuring or determining freedom? Here’s an explanation from the introduction:

    We explicitly ground our conception of freedom on an individual rights framework. In our view, individuals should be allowed to dispose of their lives, liberties, and property as they see fit, so long as they do not infringe on the rights of others. This understanding of freedom follows from the natural-rights liberal thought of John Locke, Immanuel Kant, and Robert Nozick, but it is also consistent with the rights-generating rule-utilitarianism of Herbert Spencer and others.

    According to the authors, “No current studies exist that measure both economic and personal freedom in the fifty states.” So this is a ground-breaking work.

    How does Kansas do? Surprisingly, not too badly. Not outstanding, but not as bad as I might have thought.

    For the four areas measured, here’s how we did: In fiscal policy, Kansas is 28. In regulatory policy, 4. In economic freedom, 18. In personal freedom, 15. (In all cases, a ranking of 1 means the most freedom.)

    Our overall ranking is 12.

    Some of the remarks the authors made about Kansas include noting our large public employee payroll, even though state employees are not paid as well as private sector workers. Also: “The area of spending that could most stand to be cut is education, while the taxes that should have priority for cutting are individual income and property taxes.”

    Some of our neighbors do pretty well in the overall ranking. Colorado is 2, Texas is 5, Missouri is 6, and Oklahoma is 18. Nebraska is not as good at 28.

    Colorado undoubtedly benefited from its taxpayer bill of rights (TABOR) law, which places limits on the rate of growth of government spending, although it had been suspended for several years. Those in Kansas who favor government spending over private sector spending use Colorado as an example of a state that TABOR has destroyed, but in terms of economic freedom, it does very well.

    In case you’re wondering, for overall ranking, New Hampshire is best. The worst? It’s no surprise that it’s New York by a wide margin, with New Jersey, Rhode Island, California, and Maryland rounding out the bottom five.

    If this index were to be recomputed this year, Kansas might fall in rankings due to outgoing Governor Mark Parkinson‘s two landmark achievements — the increase in the statewide sales tax and the statewide smoking ban. Some of the other enacted laws detailed in the article In Kansas Legislature, a bad year for freedom and liberty would push Kansas’ ranking down, too.

    But since rankings are relative and consider what happened in other states, Kansas might not have changed much, as many states have passed tax increases and other freedom-killing legislation and regulations.

    The full study contains discussion of the politics surrounding these rankings, and a narrative discussion of the factors present in each state.

    You may read the entire study by clicking on Freedom in the 50 States: An Index of Personal and Economic Freedom.

  • Articles of Interest

    Obama’s volunteer corps, Kansas cigarette taxes, U.S. Auto industry, Austrian economics

    The Rise of ObamaCorps (Americans for Limited Government) “Unless the Blue Dogs can muster enough support to halt Speaker Pelosi’s march to madness, the American taxpayer will have to pony up another $5 billion for paid ‘volunteers’ (an oxymoron if there ever was one) to politically-oriented organizations, the aims of many of which they will invariably oppose.”

    Study documents historic trend of decreased state tax revenues following cigarette tax increases “This study clearly shows that raising cigarette taxes simply drives Kansas consumers to other states to purchase tobacco products,” said AFP-Kansas state director Derrick Sontag. “It clearly results in lower cigarette tax revenues, not because more people are quitting, but because people go elsewhere to avoid paying those higher per-pack taxes. … We hope this document will show to lawmakers that raising cigarette taxes is an ineffective deterrent to smoking and that it is simply unwise to fund government programs with revenue that is likely to dwindle once the new tax takes effect.”

    Detroit’s Fate Sealed in West Wing (Wall Street Journal) Describes President Obama and his team’s involvement in the remaking of General Motors. “Mr. Rattner broke the news to [General Motors CEO] Mr. Wagoner at his office at the Treasury, according to an administration official. Afterward, Mr. Rattner met with Mr. Henderson, and told him he would take over as GM’s CEO.” The president plans to put some of his own staff into the auto companies. We can be sure that as the president and his team assert more control over GM and Chrysler, Congress will want to get in on the act too.

    The Obama Autoworks: At GM and Chrysler, politics is now Job One (Wall Street Journal) More analysis of just how bad things are likely to get now that the American automobile industry — at least GM and Chrysler — is on the road to nationalization. “Bankruptcy or not, the larger problem here is Washington’s industrial policy. Even if Chrysler merges and GM restructures, Mr. Obama wants the companies to make the kind of cars the political class favors, whether or not consumers want to buy them. ‘The United States of America will lead the world in building the next generation of clean cars,’ the President said yesterday. He didn’t mention a goal of profitability. … Mr. Obama’s industrial policy vision runs directly counter to a strategy that would get the companies back to profitability as soon as possible. … All of which is to say that the taxpayer commitment to the Obama autoworks is only getting started.”

    Austrians Can Explain the Boom and the Bust (Robert P. Murphy at the Ludwig von Mises Institute) An Austrian explanation of the recent boom and bust cycle, including the Austrian model of the structure of capital. Interest rates, as it turns out, are very important.

  • Sedgwick County trash franchising: on the road to economic perdition

    I received this letter to Sedgwick County (Kansas) Commissioner David Unruh “over the transom” and I thought it merited reading by the general public. The author speaks of the “road to economic perdition.” I had to use the dictionary to refresh my memory of the exact meaning of the word “perdition.” While that term seems at first to be a little strong, I believe that trash franchising, like a ban on smoking, is just the first step in the plans of our local government officials. If politicians and newspaper editorialists can convince us that we require the force of government to take care of something as simple as picking up the trash — something that works very well already – it’s an easy jump to the next level of control. So perdition seems appropriate.

    The May 21 Wichita Eagle reported that you and a number of other commissioners want to impose some sort of franchise on trash collection by cities operating in the area where Sedgwick County is responsible for trash disposal with state authorities. The Eagle quotes you as supporting a government franchise monopoly by haulers in specific areas as well as uniform terms for collection of residential refuse.

    Before joining the commission I know that you were a businessman in the car repair business. Since government monopolies and uniformity in service is apparently preferable to free markets and open competition I hope that you will want to extend government into providing uniform monopoly in car repair as well as other private sector businesses. If the county’s goal is ending duplication of services and allegedly “wasteful” competition what basis do you have for only limiting franchising to trash hauling?

    It is very clear to even the most casual consumer that there is significant variations in pricing among the folks repairing automobiles just like there are in the trash hauling business. There is a lack of uniformity in people getting their cars repaired too.

    I must also note that an Unruh repair shop near 13th St. W. and Maize Rd. is only a short distance away from Westlink Auto Service. Having two firms competing for customers is obviously as duplicative and excessive as multiple trash firms going down the same street to collect refuse.

    We have a similar situation nearby where two instances of two separate firms selling groceries are located on adjacent corners at 21st W and Maize Rd. (Walmart and Dillons) as well as Maize Rd. and W. Central (Aldi and Dillons).

    Government monopolies have also a proven track record of performance. There is a name for this when university students study 20th century governments where these types of restrictions are commonplace.

    Look how Wichita water and sewer rates have performed in the last few years and how it now appears likely that the city will be once again raising these rates significantly soon. Municipal power plants that dot many small Kansas towns also have a similar track record of costly performance for the citizens who have to pay the rates.

    The City of Wichita got out of the trash hauling business in the late 1970’s for a reason. Establishing private/public franchise monopolies is a power that should be exercised very cautiously and carefully and has failed in the past. However, if you are going to expand local government’s roles in establishing ways of eliminating duplication of services and wasteful competition, you should fully understand where this road to economic perdition leads.

  • Kansas Blog Roundup for June 6, 2008

    At Voice For Liberty in Wichita, guest author James Barfield contributes Wichita City Manager Search: Look Before You Leap, urging Wichita to be wary of the presumptive new city manager, Pat Salerno. Mr. Barfield has done some investigation on his own, and uncovers some troubling facts. An abridged version of this post was printed in The Wichita Eagle.

    The Kansas Meadowlark continues coverage of the controversy surrounding the visit of notorious abortion doctor George Tiller to Cedar Crest, the home of Kansas Governor Kathleen Sebelius: Did Gov. Kathleen Sebelius violate Kansas ethics laws by donating auction items and not reporting them? No, not if they were personal donations. At The Kansas Republican, Will Bill contributes Sebelius, Tillergate, Communiongate, Hyperion, NBAF, etc.

    The Kansas Meadowlark explores the wisdom of appointing district court judges in Johnson County (rather than electing them as we do in Sedgwick County, but that has its own list of problems) in Political Profile of Tenth Judicial District Nominating Committee and Gov. Sebelius appoints new District Court judge — one of her political contributors.

    Also the Meadowlark reports on some problems with voters potentially voting in both Kansas and Missouri in Prominent Kansas City Star staff member, registered to vote in Missouri, can still vote in Kansas thanks to Gov. Sebelius’ veto of voter ID law. (Someday I must speak to the Meadowlark about these lengthy post titles!)

    At The Joyful Cynic, Sharon DuBois reports on being a delegate to the Libertarian Party national convention: Conventioneering and Conventioneering Odds and Ends. Also: Is it depressing to belong to a political party that doesn’t have a chance of winning the presidential election? The answer is here: Throw the Libertarians to the Lions.

    At Right-Wing Agenda, Wichita lawyer Kevin Mark Smith reports on a trip to a convention of home schoolers: Guess what? You are probably more qualified to teach your kids than their “government” school teachers.

    At The Kansas Republican, Custer reflects on the state of the Kansas Republican Party in The Kansas Republican Party- a Time for Reflection. Some of the comments to this post are worth reading. Will Bill offers some coverage of Kansas campaigning and some fishing news in Slattery and lobbyists, Jenkins Kick Off, Six, Tiahrt and Bass Fishing.

    At The Kansas Trunkline read about Jim Slattery’s lobbying activities (really the lack of knowledge about them) in Slattery: Concealing Facts Kansans Deserve to Know. Also Moore and Boyda: How bad on taxes are they?

    The mysterious “Boondoggler” at Wichita 259 Truth exposes the several problems with a letter from a Wichita school bond supporter printed in The Wichita Eagle in the post BOE Meetings and Letters.

    Wichita Eagle reporter Brent Wistrom reports on some seemingly-lavish spending by Wichita when it entertained presumptive city manager Pat Salerno in City spent thousands welcoming Salerno.

    At Voice For Liberty in Wichita, these posts may be of interest: Support the Wichita School Bond Issue For Our Community, The Smoking Ban in Wichita, Tax Abatements in Wichita, and Wichita School District Economic Impact, which reports on defects in an economic impact study that the Wichita school district relies on.

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