Tide Continues to Turn on Earmarks

by | Nov 5, 2010 | News and Updates, Uncategorized

Flake gets backing from Lewis to join Appropriations panel

By Vicki Needham – 11/05/10 06:17 PM ET

Rep. Jeff Flake (R-Ariz.) got a nod Friday from the House Appropriations leading Republican to join the panel.

House Appropriations Committee ranking member Jerry Lewis (R-Calif.), who has voiced support for adding fiscally conservative members the panel, gave his support to Flake, a well-known budget hawk who has refused earmarks.

“There are numerous talented and capable fiscally conservative Members and incoming freshmen who would make many valuable contributions to our committee,” Lewis said today in a statement. “While these decisions will be made by the Steering Committee, I will encourage the addition of Republicans to the Appropriations Committee – including Congressman Flake – who are ready to roll up their sleeves and work with their colleagues to conduct critical and time-consuming oversight, and get down to the serious work of cutting government spending.”

Lewis, who is seeking to lead the committee but will need a waiver to do so, said the panel will “be ground-zero” in the fight to rein in government spending.

“Our new Republican majority will meet these challenges head-on, will engage in aggressive budget oversight, and enact significant spending cuts across the entire federal government,” he said.

Keith Olbermann Suspension: What Really Happened

by | Nov 5, 2010 | News and Updates, Uncategorized

It’s being reported that MSNBC suspended Countdown host Keith Olbermann for financially contributing to three Democratic candidates, including two in Arizona: Raul Grijalva and Gabrielle Giffords.  According to these reports, Olbermann violated company policy by not clearing his donations with superiors.

When I read this, I thought it must have come from The Onion.  Only they could make up something this funny.

What must have really happened was that Olbermann, who only appears to be a raging liberal,  actually gave donations to Ruth McClung and Jesse Kelly.

Key Arizona Propositions to Support

by | Nov 2, 2010 | News and Updates, Uncategorized

Prop. 106 – Health Care Freedom – YES
Protects right to obtain the health care of your choice and prohibits federal government from levying fines for not participating in federal health care system

Prop. 107 – Ending racial quotas – YES

Prop. 113 – Right to a Secret Ballot – YES
Protects the right to a secret ballot when workers vote whether to form a union

Prop. 302 – YES
Would divert funds currently directed to early childhood education program to state general fund to help address $1.7 billion budget deficit.  The fund (known as First Things First) currently has $325 million on hand and collects approximately $200 million annually from taxes on tobacco.

Karl Rove + New York Times (Update 2)

by | Nov 1, 2010 | News and Updates, Uncategorized

On Oct. 2 and Oct. 7, I wrote about Karl Rove’s U.S. Senate predictions and then juxtaposed his with the NY Times/Nate Silver model.

On Oct. 2, Rove had the Dems losing 10 seats, the GOP gaining six, and four as toss-ups.

I examined the four toss-ups using the NYT model.  Again, at that time (Oct. 2), the model predicted that the Dems would retain the majority in Senate with 51 seats to the GOP’s 49.

On Oct. 2, West Virginia’s Joe Manchin (D) had a 63% chance of winning, according to the NYT.  But on Oct. 7, John Raese moved to a 64% probability of winning, meaning if everything else remained the same, the Senate would be split 50-50.

What does the NYT say about those four toss-ups on the eve of the election?

Washington:
Oct. 2
Murray (D) – 50%
Rossi (R) – 47%
Probability Murray wins – 74%

Nov. 1
Murray – 52%
Rossi – 48%
Probability Murray wins – 84.7%

MURRAY IMPROVES BY 11%

Nevada:
Oct. 2
Reid (D) – 48%
Angle (R) – 48%
Probability Angle wins – 55%

Nov. 1
Reid – 47%
Angle – 50%
Probability Angle wins – 82%

ANGLE IMPROVES BY 27%

Illinois:
Oct. 2
Giannoulias (D) – 48%
Kirk (R) – 47%
Probability Kirk wins – 54%

Nov. 1
Giannoulias – 48%
Kirk – 49%
Probability Kirk wins – 61%

KIRK IMPROVES BY 7%

West Virginia:
Oct. 7
Manchin (D) – 48%
Raese (R) – 50%
Probability Raese wins – 64%

Nov. 1
Manchin – 50%
Raese – 47%
Probability Raese wins – 23%

MANCHIN FLIPS PROBABILITY, IMPROVES PROBABILITY BY 71%

If this holds, the Senate will be 51 – 49, in favor of the Democrats.

Let’s see how the model holds up.

Highway Bribery

by | Oct 29, 2010 | News and Updates, Uncategorized

The Oct. 17 edition of Bloomberg Businessweek featured a story about Terry McAuliffe’s new business endeavor: building an electric car company.

McAuliffe, a successful businessman and multi-millionaire, is perhaps the most well-connected Democrat in the country who has never held elective office.  He is close friends with Bill and Hillary Clinton, served as the head of the Democratic National Committee, and has raised millions upon millions of dollars for Democrats all over the country.   But ever the businessman, he’s also working on his next great investment, one that he believes will be a “billion-plus company.”

But for McAuliffe’s investment to pay off, he says he first needs government assistance.

“You want this, you’ve got to offer incentives,” he says as he woos leaders in states where McAuliffe is considering building his electric car company, MyCar.  “I want to see legislation.  That’s part of our negotiation.”

It’s already working.  After McAuliffe bought MyCar from the Chinese government, Mississippi governor Haley Barbour bestowed enough incentives on McAuliffe that he located a 400,000 square foot facility in Tunica, Mississippi.  (Gov. Barbour is the former head of the Republican National Committee and before becoming governor, was one of the most successful and well-connected Republican lobbyists in the country.)

Did Smurfit-Stone Container Corporation, or Spiral Fab, Inc., or Etheridge Enterprises, or other manufacturers in Mississippi receive similar subsidies?  Doubtful.  The incentives must have been hefty too, because as a resident of Virginia and gubernatorial candidate last year, McAuliffe would have done wonders for his political future had he located the plant in his home state.  In this case, return on investment trumped political expediency.

McAuliffe is not only after state subsidies.  According to Businessweek, he plans to lobby the federal government to revive portions of the failed Cap and Trade legislation that died in the U.S. Senate.  Predictably (if not shamelessly), McAuliffe is looking for federal tax breaks for green energy, requirements that electricity producers use renewable sources, and subsidies for stations where electric vehicles can recharge.

“I implored to President Obama, let us have an Apollo project on electric cars,” McAuliffe said in an interview.  In other words, he implored to President Obama, Please make my investment pay off.  Please help me become much wealthier.

In fact, subsidies are the central financial component McAuliffe’s business plan.   Of course they are.  Why pay market value for a plant in Mississippi when you don’t have to?  And why stop there?

He wants cities to not charge for parking if you drive one of his cars, he wants federally or state mandated charging stations, and toll-free toll lanes.  All of these incentives increase the chances that his will investment will pay off.

Yes, this kind of thing happens all the time, although not often so brazenly.  Usually, the beneficiary of favorable legislation is a little more circumspect.  He will typically hire a team of lobbyists who espouse the “greater good” arguments before unsuspecting lawmakers.

A couple of years ago in Arizona, for example, the owners of land in the remote city of Eloy, who also happened to be investors in a Rock-n-Roll theme park, hired lobbyists to create a special entertainment district in, you guessed it, Eloy.  The district would subsidize both income and property taxes for the investors and provide tax free bonds.

In another example, manufacturers of renewable energy components told lawmakers that they would not locate in Arizona unless they received special tax breaks.  Lawmakers obliged.

These examples are no different from McAuliffe’s.  Government should always refrain from picking winners and losers.  It is indefensible to subsidize some people at the expense of others.  Not only must other taxpayers foot the bill for the subsidies, but too often the government subsidizes the new competition of the ones footing the bill.

Terry McAuliffe needs about as much government assistance for his investment portfolio as Warren Buffett.  Perhaps governor Barbour’s not aware of voter angst these days.