Rhode Island legislattive logic - in three stories.

Well the state's General Assembly is doing its last minute sweeping under the rug as it goes through the process of putting together a fiscal budget.

There are three separate stories I came across this morning that lead me to wonder if we will ever get it right before we go bankrupt as a state.

First, is an article in the Providence Journal by Bob Kerr entitled
What’s needed is more of the real stuff (01:00 AM EDT on Friday, June 26, 2009)

Rhode islander's have turned down Casino gambling for everyone including the Narragansett Indian tribe in a number of elections spanning a decade. Yet, we continue to depend more and more upon the revenues generated by Twin River Slot Machine Parlor and Newport Grande Slot Parlor. Kerr points out the darker side how we look at or fail to look at our gambling addiction in Rhode Island.

Thank God for the global economic meltdown. We can plug the projected budget gap with federal recovery dollars (this year, like we did with the tobacco settlement money in the past).

The second story is Governor Carcieri's speech
Governor Carcieri Calls for Tax Reform to Stimulate Economy, Grow Revenues and Create New Jobs

"The Governor stressed the need for tax reform in Rhode Island to stimulate the economy and to grow revenues and jobs." The Governor also posted a web video which outlines his three tax reform proposals: "phase out of the corporate income tax, personal income tax reform, and increasing the estate tax exemption."


Governor Carcieri stated in his video, 'As we struggle through this difficult economy, we need jobs more than ever before."

So we need jobs, entrepreneurship, and lower taxes. I agree. Rhode Island is caught between its legacy of big Corporatie Mill Owner vs Big Unions past and its small business entrepreneurial future. That legacy of the past is the anchor




in the state symbol that is dragging us toward bankruptcy and holding us back from the future.

So as we struggle with a gambling addiction and forgo structural changes in the way government operates,I received a notice in my email this morning. It was from Amazon.com. There maybe other similar announcements going out from Ebay for example, to small businesses and entrepreneurs with a home based, web based start-up business.

I quote this here.

From Amazon 6 26 2009

We regret to inform you that the Rhode Island state legislature is preparing to pass an unconstitutional tax collection scheme that, if passed and not vetoed by the governor, would leave Amazon.com little choice but to end its relationships with Rhode Island-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of Rhode Island.

Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.

But because the new law is drafted to go into effect once enacted, we will have to terminate the participation of all Rhode Island residents in the Amazon Associates program on or before the day on which is it enacted. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Rhode Island residents.

Note that other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states residents.

The governor's website is http://www.governor.ri.gov/ [ http://www.governor.ri.gov/ ], the Rhode Island legislature's website is http://www.rilin.state.ri.us/ [ http://affiliate-program.amazon.com/ http://www.rilin.state.ri.us/?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=assoc-center-1&pf_rd_r=&pf_rd_t=501&pf_rd_p=&pf_rd_i=RhodeIsland062609 ], and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/ [ http://www.performancemarketingalliance.com/ ].

We thank you for being part of the Amazon Associates program, and we will apprise you of next steps.

Sincerely,

Amazon.com

So we are to gamble the money we don't have to make sure the state has enough money to pay its bills and support the many social programs that support the people who have no jobs because we have taxed the business they worked for out of existence and now when responsible people try to start small web based businesses to support themselves we create a tax on those businesses that drives out the sources that the new businesses depend upon it live. Is that correct???

If you think this last sentence makes no sense -- your right. But it's Rhode Island legislative logic.

The Donkey and the Scorpion-- A tail of Rhode Island

Some years ago I had the opportunity to be working in the middle east. As we all know middle eastern politics are strange, convoluted and often self destructive. I was working on a USAID funded agricultural development program in what is today Yemen (then it was North Yemen.)

Yemen is a beautifully barren, rugged, mountainous area on the southwestern corner of the Arabian Peninsula. North Yemen and South Yemen had been at war for more than a quarter century as a result of cold war alliances US vs USSR, their colonial histories (Ottoman Empire, British rule, etc.), the regional politics (Egypt, Saudi Arabia, Israel)among other factors.

In truth nobody would have cared except that Yemen commands the entrance/exit to the Red Sea and the Suez canal.

Trying to understand the complexities of the area, I asked a Yemeni counter-part to explain why his people were allow themselves to be caught up in this global and regional power struggle when there were so many other more immediate issues.

"Yemen is a "Modern State" only because we are a member of the UN. Under this thin veneer of 20th century technology you see, is a 16th century medieval Arab confederation of sheikdoms." he reported.

Then he said, "Let me tell you a story -The Story of the donkey and the scorpion.

Once there was donkey who was walking along a path when he came to a rushing stream. The stream was wide but fairly shallow. The path the donkey was following lead across the stream and up the side of the small canyon. As he stepped into the water a small voice called out,

"Hey Donkey!"

The Donkey turn in the direction of the voice but saw nothing.

"Hey Donkey, can you give me a ride?"

The Donkey turned and looked until his eyes fell upon a scorpion standing in the path.

"Hello!?" responded the Donkey.

"Hello! I see you are going to cross the stream. Can I ride on your back and get across? asked the scorpion.

"No," answer the Donkey. "I don't trust you. I'm afraid that you'll sting me."

Waving his hook tail with the sharp poisonous spike, the scorpion replied, "No I won't. Why would I?"

"I don't know. I just don't trust you. Your sting can kill me."

"Why," said the scorpion, "would I want to kill you if you are carrying me across the stream? I would drown."

"True," said the Donkey. "Ok! Climb up and get on my back! I'll take you across."

The scorpion climbed up the donkey's leg and position himself on the donkey's back just above the shoulders.

"Are you ready?" the donkey asked.

"Yes!"

The donkey started out into the stream, the scorpion comfortably seated between the donkey's shoulders. They were in the middle of the stream when suddenly the donkey felt a sharp pain in the base of his neck.

"You stung me!" cried the donkey. "Now we are will both die. Why? WHY DID YOU STING ME?"

The scorpion chuckled. "Because that's what I do. WELCOME TO THE MIDDLE EAST."

This story came to mind as I read the following story in the Projo this morning. I thought, "We, the tax payers of Rhode Island, are the donkey and the Providence fireman's union is the scorpion."

U.S. Mayors' Conference in Providence
Controversy has swirled around the meeting, after a city firefighters' threat to picket led some political leaders to debate whether to attend.
http://newsblog.projo.com/2009/06/ready-3.html


Update: Firefighters fulfill picket threat at mayors' meeting

PROVIDENCE, R.I. -- Providence firefighters, some armed with signs, have showed up outside the Rhode Island Convention Center, the site of the U.S. Conference of Mayors, which kicked off this morning. They're gathered across the north entrance, on Sabin Street.

MAYORS WELCOME TO RHODE ISLAND!