Citizen Tom

One can only guess what a politician who has been in office a long time thinks of his constituents.  Day after day, he must contend with two problems.  How does he raise money?  How does he spend it?  This little post addresses the former problem.

Consider the article referenced below.  It begins…

Behold, America: the taxman cometh.

Even as taxpayers are struggling to make ends meet in a crumbling, tumbling economy, your friendly neighborhood (and state and federal) government is having a hard time making do with the meager trillions you’re throwing its way, so it’s relying on an old maxim:

If it exists, it can be taxed.  (continued here)

A politician must raise two sorts of money.  He must raise revenues to fill the coffers of the government treasury.  In addition, he must find donors for his campaign.  What is his ideal solution?  He finds a tax that raises money for his projects by taxing somebody else’s constituents.  At the same time the excuse for the tax gives him an excuse to direct government revenues to potential political donors.

It would appear that the Speaker of the House of Delegates, William J. Howell, has hit upon such a lovely, ideal solution.

Virginia House Speaker William J. Howell proposed Thursday that his state construct a sweeping network of highway and road tolls that could be leased to private companies, generating new transportation funding to offset declining revenues from gasoline taxes.

The tolls could be modeled after successful projects that have generated billions of new dollars in the Midwest and would allow Virginia to collect user fees from the millions who traverse its roads – from the Interstate 95 corridor that is a key gateway to the Southeast to the Hampton Roads arteries that lead to the state’s beaches and tourist destinations, Mr. Howell told editors and reporters of The Washington Times.

“I love the concept of tolls,” Mr. Howell, a Stafford Republican, said. “I think we’re going to have to see more tolls in Virginia.” (from here)

While I too favor the idea of tolls and user fees (see here), I see no need for complex, hard to regulate, public/private partnerships that are bound to be abused (see here).  Without giving any rich fatcats any sweetheart deals, we can use bonds to fund the construction and maintenance of roads.  What is important about tolls is that the need to collect tolls discourages the government from building roads that citizens do not want.  Do we need suspiciously cozy public/private partnerships just to build toll roads?  NO!

The point of a toll or user fee is to have the USER PAY for the thing that the user is using.  We do not force people to pay taxes just for the sake of financing the government, giving politicians money to spend, or to give sweetheart deals to Friends of Bill.

We must remember that Speaker Howell was amongst the vanguard leading the charge for HB3202.  Unfortunately, he has proven he cannot be trusted.

What are the likely ramifications for Howell’s tax?  If we implement a system of public/private toll roads for Howell’s sweethearts, we risk having anything that moves taxed as much as Howell can connive to tax it.  Tourists coming into the state will be taxed just to reach their destination.  Your food, clothing, and anything that must be moved will be taxed even before you can buy it — and pay a sales tax.   The net result could be that Virginia becomes a very expensive place to live and do business.

Other Views

Fred2Blue objects to the inconvenience (see here).   Please note the horses.  Toll collection technology has advanced a bit since the horse and buggy era.

Tertium Quids wonders if the numbers will add up (see here).

BlueVirginia proves once again it does not like anything with a Republican label (see here).

As one of his constituents, here is a legislative update I just received from Del. Bob Marshall.

Monday, February 2;  vote on Roads at no cost to taxpayers

Virginia can get “free” road money under HB 1642 (Del. Bob Marshall) which allows Virginia to name a highway, bridge, or interchange for a living person, group, or business if the cost of construction is paid by the person, group, or business as is done for buildings on a college campus and professional sports stadiums and arenas.   HB 1642 is at http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB1642.

The bill is before the House Transportation Appropriations Subcommittee Monday, February 2.  Please urge these members to support HB 1642.

Del. Joe May (Loudoun)  804-698-1033 DelJMay@house.virginia.gov Del. Beverly Sherwood (Winchester) 804-698-1029 DelBSherwood@house.virginia.gov Del. John O’Bannon (Henrico) 804-698-1073 DelJOBannon@house.virginia.gov Del. Scott Lingamfelter (Prince William) 804-698-1031 DelSLingamfelter@house.virginia.gov

Del. Jim Scott (Fairfax)  804-698-1053 DelJScott@house.virginia.gov Del. Algie Howell (Norfolk) 804-698-1090 DelAHowell@house.virginia.gov Del. Dan Bowling (Richlands)  804-698-1003 DelDBowling@house.virginia.gov

Tuesday, February 3:  vote on Credit Crisis & Financial Risk bill A major reason for the nationwide economic crisis has been the use of Credit Default Swaps [CDS] by large banks, businesses and investment funds to cover shortfalls in mortgage and bond payments.  CDS’s are a form of unregulated financial insurance in which no reserves, no public disclosure and no government regulations of any kind are required to back up insurance policies on multi-billion dollar investments.

HB 2320 (Bob Marshall) requires that any Virginia business which provides financial guarantee insurance against losses on bonds, insurance policies, or mortgages must be regulated by the VA Bureau of Insurance.  HB 2320 is based upon New York’s financial guaranty insurance article as outlined in a September 2008 circular released by the New York Insurance Department.

HB 2320 requires that financial guarantee insurers must disclose all risks, hold capital and sufficient reserves against insured risks, be subject to underwriting restrictions that ensure diverse investments, and prohibit acceleration events, downgrade triggers or collateral calls which led to the downfalls of Bear Stearns, Lehman Brothers, AIG, Countrywide Mortgages, etc..

HB 2320 is before the House Labor and Commerce Committee which will hear a report of a subcommittee which failed to report HB 2320.  HB 2320 can be found at http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB2320.   HB 2320 was rejected in subcommittee, in part, because members are hoping Congress will act.  If Congress does not act, Virginians (including our state and local governments) who purchase a CDS for their investments are at high risk of financial loss,  Waiting for Congress to act when it has gone in the opposite direction for more than 30 years is, in fact, another gamble.

Congress authorized this legal form of high finance gambling in December, 2000 in a little read 11,500 page Appropriations bill for the US Departments of Labor and Health and Human Services!

Former Federal Reserve Chair Alan Greenspan who pushed CDR’s now acknowledges the problems.

America’s financial system is a risk with CDS because there is no overall management of risk, there are NO standards for the financial solvency of seller and buyer, no rules on how many additional parties the original CDS can be assigned to or sold to.  Buyers cannot know how much risk the seller has or how much he has in capital or liquid assets.

Members of the House Labor and Commerce Committee are listed below.  Please urge them to support HB 2320.

Del. Lee Ware  (Powhatan) 804-698-1065;  DelLWare@house.virginia.gov Del. Frank Hargrove (Hanover) 804-698-1055;  DelFHargrove@house.virginia.gov Del. Chris Saxman (Staunton) 804-698-1020;  DelCSaxman@house.virginia.gov Del. Sam Nixon (Richmond) 804-698-1027; DelSNixon@house.virginia.gov Del. Harvey Morgan  (Glouster)  804-698-1098;  DelHMorgan@house.virginia.gov Del. Bill Janis  (Glen Allen) 804 698-1056; DelBJanis@house.virginia.gov Del. Kenny Melvin (Portsmouth) 804-698-1080;  DelKMelvin@house.virginia.gov Del. Mark Sickles; (Fairfax)  804-698-1043;  DelMSickles@house.virginia.gov Del. Jeion Ward (Hampton)  804-698-1092; DelJWard@house.virginia.gov Del. Johnny Joannou (Portsmouth) 804-698-1079; Del. Terry Kilgore (Gate City) 804-698-1001; DelTKilgore@house.virginia.gov Del. Bob Purkey VA Beach (804) 698-1082 DelBPurkey@house.virginia.gov Del. Kathy Byron Lynchburg  (804) 698-1022 DelKByron@house.virginia.gov Del. Tim Hugo (Fairfax)  (804) 698-1040 DelTHugo@house.virginia.gov Del. Tom Rust  (Fairfax)  (804) 698-1086 DelTRust@house.virginia.gov Del.  Daniel Marshall (Danville) (804) 698-1014  DelDMarshall@house.virginia.gov Del.  Ben Cline  (Amherst)  (804) 698-1024 DelBCline@house.virginia.gov Del.  Ken Plum (Fairfax)  (804) 698-1036 DelKPlum@house.virginia.gov Del.  Joe Johnson (Abingdon)  (804) 698-1004 DelJJohnson@house.virginia.gov Del.  Ken Alexander (Norfolk)  (804) 698-1089  DelKAlexander@house.virginia.gov Del.  Jennifer McClellan (Richmond) 804-698-1071 DelJMcClellan@house.virginia.gov Del.  Lynwood Lewis, Jr. (Accomac) 804-698-1000 DelLLewis@house.virginia.gov

Marshall’s effectiveness as a legislator depends on us.  If you want Marshall to succeed, then please contact your legislators.  Good government depends on good citizens.  Without our support, good government does not happen.

The Cartoons

Cartoon from here.

Cartoon from here.

There is no such thing as winning all the time.  Sometimes all you can do is continue to struggle and hope for the best. 

Some time back Hearing Examiner Alexander F. Skirpan Jr. asked the public what they thought of the Meadow Brook to Loudoun 500 kV Line.  Most people generally had a low opinion of the whole idea.  Undoubtedly, many complained just because they did not want it in their backyard.  However, many also complained because they honestly thought it wasteful.  Nonetheless, Skirpan ruled in favor of Dominion.

In a report filed Monday, Hearing Examiner Alexander F. Skirpan Jr. said construction is necessary to serve northern Virginia and resolve overloads projected to occur beginning in 2011.

Skirpan recommended that regulators approve the Virginia segments as long as the parts of the line in other states are approved.

In determining the route for the Virginia portion, Skirpan recommended the SCC consider locating the lines partially or wholly within existing transmission right of way.

The commission has the final decision on whether to approve the line.  (from here)

Before you judge Skirpan as a pawn of powerful special interests, I suggest reading his report.  Of course Dominion has posted the report on its website (see here), but it is also on the SCC website (see here).  Note that the document takes a while to download from the SCC website.  :grin: (There is a way to download the document from the SCC website, but it is easier to set up a link to the Dominion website.).

Newspaper reports are generally neutral (See here, here, here and here for other examples.).

The PIEDMONT ENVIRONMENTAL COUNCIL is still fighting (see here).

Other Views

Bacon’s Rebellion jumped on the issue (see here).

The Capon Valley Coalition expressed its disappointment (see here).

Raising Kaine is rooting for the Southern Environmental Law Center (see here).  (Author’s Note:  Although I have little use for this power line, I have less use for environmental lawyers.  I think the lawyers are the reason we are building this infernal thing.  The SCC has a job to do.  Our job is to make certain our leaders appoint the right people to the SCC.)

Bruce Roemmelt has a fascinating post (here).  What he has done is post both his own and Bob Marshall’s testimony before the State Corporation Commission (SCC).  Both gentlemen testified to SCC on the Dominion Virginia Power’s proposal to build the Meadow Brook to Loudoun 500 kV Line.   Roemmelt used this testimony to fashioned a “debate”.  Undoubtedly Roemmelt believes this debate portrays him in a better light than it does Marshall.  But does it?

Different jobs emphasize different character traits.  Some jobs require individual initiative and swift on-the-spot decisions.  Others require careful study and deliberation.  Some require salesmanship and coordination.  Others require patient listening.  And so forth.  We each have a calling — some task for which we are best fitted.  When we elect someone to public office, what does the job require?  What character traits does the job require? 

Rommelt went before the SCC and straightforwardly said he opposed the power line.  He spoke about the solution he thinks the public deserves and supports.  Marshall, on the other hand, admitted his lack of engineering skills.  Instead, he spoke about Dominion’s unsatisfying and inconsistent justification for the power-line.   He also spoke about a subject about which he knows much, recent legislation passed by the General Assembly.  Marshall closed by expressing his confidence in the SCC.

What does it take to be a good legislator?  Sometimes it takes self restraint.

A little knowledge is dangerous.  With just a little knowledge, we may oversimplify a complex task.   With just a little knowledge, we can easily be tempted to tell other people how to run their business.  When we actually have the power to force people to run their businesses our way, that can be dangerous.

In olden days, kings often presumed to tell other people how to run their business.  To manage “their” economy, kings would, for example, establish royal monopolies.  Even in our more enlightened era, much of our economy is micromanaged and too often run by politicians.  Do our leaders know enough to take such tasks upon themselves?  From time-to-time, we need consider how little knowledge each of us has.  Are our leaders that much more brilliant than the rest of us? 

Before the SCC, Marshall admitted he is not an engineer.  In effect, he admitted he does not have the competence to tell Dominion Virginia Power how to run its business.  Should he tell Dominion how to run its business?  Should he tell the SCC in advance what their decision should be? 

Consider the problem a bit of humility earned John McCain.

McCain cast doubt on moderator Tim Russert’s assertion that the candidate had said he was no expert on economics. Russert claimed that McCain had repeatedly said, “I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated.” McCain responded, “Actually, I don’t know where you got that quote from. I’m very well-versed in economics.”

Russert’s quote comes from a 2005 interview with the Wall Street Journal on Nov. 26, 2005: “I’m going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated.”

We could not find that McCain has said that quote “repeatedly,” but he has made similar comments recently The Chicago Tribune quoted McCain talking to reporters on Dec. 18, 2007: “The issue of economics is something that I’ve really never understood as well as I should. I understand the basics, the fundamentals, the vision, all that kind of stuff.” (from here)

We say we want our leaders to be honest with us, but all a few honest words got McCain was an absurd amount of flak.  When one of our leaders has the humility to admit his ignorance or exercise a bit of self restraint, is that such a bad thing?  Don’t we want our leaders to have the humility to make the best use of all the experts they can assemble around them?  Doesn’t our country work best when our leaders do not claim to know how to run our business better than we do?

Today, I got a bit of a surprise.  My little blog got a visit (see here) by a former candidate for office, the Honorable Bruce Roemmelt.  For some reason, my blog has received a lot of comments of late, and I have enjoyed it.  I was reminded of a poem,  The House by the Side of the Road. 

Here is the stanza that seems most relevant.

Let me live in a house by the side of the road,
Where the race of men go by;
The men who are good and the men who are bad,
As good and as bad as I.
I would not sit in the scorner’s seat,
Or hurl the cynic’s ban;
Let me live in a house by the side of the road
And be a friend to man.

Roemmelt has run for office, which is more than I have done.  And a lot of people took him seriously.  So I expect his opinions are heartfelt and well-reasoned.  Nevertheless, we do not agree, and I think my opinions — and Bob Marshall’s – are at least as well reasoned.

Roemmelt posted his comment in response to the previous comment asking about Bob Marshall’s endorsement by some green groups.  Rather than debate that issue, I think the best thing to do is to let Marshall speak for himself.  Fortunately, Marshall’s website for his senate campaign is still up.  Here is a link to the page he posted on Environmental Issues.  The entire page is well worth reading, but here is the most relevant part.

As a state delegate I received a “2007 Legislative Hero Award” from the Virginia League of Conservation Voters for my 100% voting record in environmental preservation.  I also received an endorsements from the Farm Bureau and Sierra Club, a rarity for a social conservative legislator.

In a post on his website (here), Roemmelt attacks the legislation that Marshall sponsored with respect to offshore oil drilling (see this post).  Since I am not authorized to speak for Marshall, I will let his words stand on their on.  I will just give my own opinion. 

There are no perfect solutions.  So long as we insist on living, we will eat and drink.  So long as we insist on living, we will urinate and defecate.  So long as we insist on living, we will pollute.   Just as we came up with toilets and sewage treatment plants to minimize the ill effects of human excrement, we have also come up with ways to minimize the ill effects of securing and using petroleum products.

Democrats, in the name of environmentalism, have prohibited offshore oil drilling.  However, the technology for drilling offshore is well developed.  We have been doing it a wide variety of places for years.  The most notorious offshore oil spills have come from oil tankers, not oil wells.  Shipping oil to America poses the greatest risk, not drilling for it off our shores.

In his post, Roemmelt references the Pickens Plan.  This is an interesting idea to build a bunch of windmills in the center of our country to generate electricity.  Supposedly, we could then use the methane we are using to generate electricity to power our autos.  While Picken’s idea may or may not be sound, it exists now merely as speculation.  What do we do if the environmentalists who think windmills are a environmental problem succeed in banning them?  Sounds stupid, but windmills kill birds (see here).  Rather than transport electricity from the Great Plains, some people want to site them in the breeze offshore.  These people are having the same sort of problem as the folks who want to drill for oil offshore.

There are already more than 20 offshore wind farms producing electricity in Europe but, in this country, such proposals have sparked opposition from the Great Lakes states to Long Island. Opponents, including seafront homeowners, say such installations would threaten avian and aquatic life and ruin scenic vistas. With such environmental concerns pitted against the demand for clean energy, there is not a single offshore turbine anywhere in the United States.  (from here)

Will windmills work?  I don’t know.  The current reality is that we are paying a lot of money to unfriendly nations for oil we could be taking out of wells just off our shores.  Why?  Some people don’t like the idea, and with all our lawyers and judges, we are doing a great job of tying up every new idea in knots.  Instead of spending so much money in court, why not come up with a system that estimates the damage done by polluters and tax them when they pollute?

Americans, not America’s government, fix problems.  When Americans pollute, the problem usually results from the fact that the Americans causing the pollution do not bear the direct costs of the pollution they produce. So they do not have an economic incentive to fix their problem.  Fortunately, there exists an effective way encourage Americans to fix their problem.  We can tax the problem.

You have heard of Western Europe’s Value Added Tax (VAT)?  America can scrap its income tax system and give our accountants some useful work. We can tax pollution with a Pollution Added Tax (PAT). The PAT would make clean energy sources far more competitive.

Consider our trash problem. When you go to the store, half of what you bring home is used to wrap the other half. Your mailbox is loaded with junk mail. That trash litters the environment and is costly to dispose. The people responsible should pay the cost.

We could apply the PAT to anything that results in litter or any other form of pollution. If somebody insists on making a mess, that somebody should pay for the privilege.  Then they will either stop polluting or their competitors will put them out of business.   Problem solved.

Stopping pollution.  Why don’t we make it a good business practice?

Roemmelt also complained that the Special Session did not accomplish anything.  I have already addressed that complaint in this post.