R I Taxes -- Taking Responsibility

 As the election season heats up here in Rhode Island and the candidates stake out their positions and false promises, I find it interesting as each competes to become the new Wizard of OZ. They attempt to lull voters into their "vote" trap with the smoke of "political weed."  The smoke is the promises designed to cloud the mind of the voting public and to get their vote.


Of course, the average RI voter will take the promised bait and end up on the hook for the cost, one way or another. However, I think there is one candidate, Lincoln Chafee, who is being honest when he proposes how we might pay for those promises of jobs, etc. through a broader application of the sales tax, while at the same time lowernig the rate to 2%. At least, he has the courage to point out that "the king has no cloths." when it come to the annual budget deficit and is proposing a way to resolve the problem. 


A recent Projo a story, R.I. governor candidates trade promises at series of public forums, illustrates this point.


I have to agree with the Ethnographer's comment  that before you make promises, tell us how you will pay for it. Here is what Ethnographer had to say:

"Caprio will go out and get the money to repair the infrastructure. He is to be praised for focusing on infrastructure. Commerce in Rhode island is made expensive by the lack of good roads and dangerous/closed bridges. Commerce brings jobs. Go Frank.

However, how will he get the money? If there is no tax increase or tax restructuring to provide the money, are we going to borrow more?

Wouldn't the $75 million going to Studio 38 do more good fixing the Route 95 Pawtucket bridge rather than have business reroute their trucks around the bridge? This is a hidden tax on business and a deterrent to business coming into the state.

I'm glad to see Linc Chafee point out that you can't keep making promises and not pay for the promises. Linc is asking Rhode Islanders, all of us, to stop weaning and start thinking about the future of our children. That starts by addressing the problem of paying for our services as we go.

We (adults) made the problem by buying into the Democrat controlled GA mismanagement of the State budget. As responsible adults it is time to take personal responsibility and clean up the mess and not leave it to the next generation.

If taxes are too high, watch them go higher as we let the state's infrastructure rot away on empty promises."

When are Rhode Island voters going to overcome their denial? When are they going to recognize that there is a direct relation between the government services they demand and the taxes they need to pay to get them?


It is time for voters to give serious thought to the basic question: "What is the proper role of government?"  To answer this question they must answer three basic questions. "What do we need from government that we can agree upon? What can we afford? and, What are we willing to pay for (and what are we not willing to pay for) ?"


For example, is it fair to use public money to help the unemployed construction worker, who is a fellow citizens, by rebuilding our failing infrastructure; or is it better to invest $75 million in an outside private company with no product, no local employees and which could not convince private investors to fund it without a guarantee by the tax payers of RI?


Right now it seems Rhode Islanders want both, but Rhode Island can't afford both. The question before the local gubernatorial candidates is not "What can I promise you to get your vote?"


Rhode Island needs candidates who have the courage to explain honestly what choices Rhode Islanders face and what they will cost? Rhode Island needs candidates who are leaders with the courage to say "NO!" to ideas and practices that do not promote the common good. Rhode Island needs leaders who can help educate the public about the problems facing the State and explain what their real options are to solve these problems.


It is up to the voters to take responsibility and ask these questions of their candidates. If the voters don't or don't care, and if the media does not press the candidates for specifics, then Rhode Islanders will continue to get high on the political smoke  bleaching out of these want-a-be Wizards of Oz. And then the day after the election, the voters will wake up to the same old mismanaged reality they went to bed with..


The Rhode Island Voter should be asking themselves:

If I do not take responsibility or hold my elected representatives responsible for their promises, then WHO will?

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.