REPUBLICANS NOT TRUE TO THEIR IDEALS

By Bob Confer, www.bobconfer.net

For my entire adult life I was either a registered Conservative or Republican. I chose such an affiliation because the ideals of the Republican Party were traditionally very close to my personal beliefs. I have always been desirous of small government, low taxes, and an environment conducive to the pursuit of personal happiness. With the unfortunate emphasis placed upon a two party system in our country I had no choice but to side with the Republicans to satisfy those desires.

As time went on I found this to be a very poor decision. Over a period of time less than a decade in length that began in the mid-90s, the Republican Party made a very startling transformation from the party of small government to a party that was perpetuating a vastness of politics nearly identical to that of the Democratic Party. Not wanting to be aligned with such a travesty I jumped ship over a year and a half ago. I left the party - and the two party system – becoming a registered member of the Libertarian Party which is much closer to my political philosophy.

Many lifelong Republicans and those who have dabbled in the party’s practices must feel the same way. Reflecting this widespread disinterest, the political scene has changed in ways that were thought impossible just a year ago. In the November election Congress dramatically switched to a Democratic majority after being under the GOP’s rule. In the Empire State the Republicans are just a few legislators away from losing control of the State Senate (in a system that was gerrymandered for their own benefit no less). And, right here at the local level, the Niagara County legislature has been in a constant mode of reinvention in an effort to save the party.

Many political analysts say that the war in Iraq has played a huge role in the party’s downfall. Voters identified the war with the Republican Party and GOP incumbents and candidates at all levels of governance were penalized for it this past November. Maybe so, but such analysis tells only part of the story. It can be said as well that many true-blue - or more fittingly, true-Red-State – GOP supporters experimented with the casting of a Democratic vote because they, like me, felt disenfranchised by their traditional party. The Republican leaders abandoned them by moving away from their ideals.

This wandering from core values is best exemplified by overblown government spending. Despite having a president who is labeled as a “Conservative”, federal spending has gone through the roof, the national debt now standing at a mind-numbing $8.8 trillion. New York suffered under a Republican governor (Pataki) whose lack of fiscal sense seems to have rubbed off on his peers as, this year, the NY Senate offered a budget higher than that of the Democratic Assembly and Governor Spitzer. And, here in Niagara County, a republican-led legislature has helped us to garner the unwanted title of the highest-taxed county in the United States.

A key indicator of this ongoing collapse is the suffering of American businesses. The economy is moving along quite well, but (and this is a big “but”) from 2003 to 2006 - which was a period under the Republican’s watch - America’s cost disadvantage versus its major trading partners grew from 22% to 32%. This is an amazing development considering that the GOP has always been identified as the party of business.

What comes will all of this aforementioned spending that has hurt the economy are Republican-sponsored programs that are more befitting of the traditional needs of the Democrats. Flashback to the 80s and the Era of Reagan: back then who in all of their wildest dreams would have imagined that one day the GOP would be touting health care, social services, personal bailouts and a Big Brother police state mentality?

They are doing all of that and more right now, making both parties virtually indistinguishable from one another.

This confusion does not bode well for individuals who believe in the ideals that used to be espoused by the Republican Party. What are they to do? Maybe its time that they, like me and many others, abandon two party politics and explore new options, finding a party that actually lives by the core values it speaks of.

THE EVOLUTION OF NY’S TREE TAX
By Bob Confer, www.BobConfer.net

“I think that I shall never see a poem lovely as a tree.”

In some strange perversion, those immortal words from Joyce Kilmer’s prose have taken on a new meaning. They have become a battle cry for tax assessors across New York State. In their version the word “poem” can be replaced with “taxable asset” for there is a diabolical movement underway to tax property owners for the trees on their property.

Under this practice tax assessors, with guidance from the state’s Office of Real Property Tax Services, thoroughly analyze stands of timber – woodlots and forests alike – to determine the market value of the timber were the land to be logged. This value is then applied to the property tax assessment in the same way that a capital item like a house would be. It can now be said quite literally that many municipalities are “sticking” it to landowners by considering a naturally-occurring tree a man-induced investment.

This means of taxation has been at the disposal of assessors for decades but it was rarely if ever used for three primary reasons that have gradually lessened in obstruction over time. First of all, assessors did not traditionally possess the skill sets necessary for valuing timber. This is now a moot point as the Internet and the Information Age allow everyone to dabble in sciences that they never knew before. A little bit of research and some backing from accredited sources can make everyone – at least in their eyes - an expert on any given subject. So, basically, these assessors are expanding and displaying their newfound abilities to value timber.

The second impediment (the political incorrectness of these taxes) took a dive in recent years. Just a few decades ago the thought of taxing trees would have been met with a huge revolt. Back then, many families owned small farms that had woodlots. But agriculture has changed over the years; many farms have gone by the wayside while others devoured smaller properties becoming larger, consolidated operations. This occurred at the same time that many people opted instead for the woodless suburban way of life or postage-stamp lots. Thus woodlots and forests have become larger in scale while owned by less and less people. This offers fewer voices of dissent by placing the tax burden on the few through the Tree Tax rather than the many with an across the board tax increase. These municipalities don’t mind taking heat from a few farmers or absentee property owners (like owners of hunting camps) if they can keep the voting masses silent. Unfortunately, it’s the very people shouldering this increased burden (the poor farmer or the blue collar sportsman) who can least afford it.

The last hurdle (the cost-benefit equation) to this tax method has also fallen. In the past many municipalities would not tax lumber because they believed there would be minimal payback for the effort invested. That has changed. The current market value of timber is incredibly high thanks to the huge demand for wood and pulp in the global marketplace. Because of this high value, assessors and their bosses are licking their chops over what they could reap from such a windfall. As a matter of fact, in areas where it is now being used, the Tree Tax has resulted in property owner’s tax bills doubling and even tripling!

As the aforementioned hurdles continue to fall and tax revenues become apparent, more and more municipalities in NY are jumping on the Tree Tax bandwagon. In its wake it leaves a meaningful philosophical debate: one cannot help but wonder how the government can tax what Mother Nature has wrought. Most landowners do not harvest timber off their properties…their trees are there not for their bounty but for the bounty of what the Creator had intended for all living creatures. Leave it to New York State to find a way to place a value on the very existence of nature itself and reap something from the course of life. It’s an intrinsically evil form of Big Government that sounds fictional but may one day come to a forest near you.

MATERIALISM, CREDIT AND THE FALSE ECONOMY
By Bob Confer, www.BobConfer.net

Most facets of the American economy have been moving along at a relatively robust pace in recent years. Signs of this success are plentiful. The Dow Jones industrial average is near a monstrous 12,000. Foreign direct investment grew by 67% in 2006. The annualized rate of growth of our gross domestic product is 3%. Core inflation (which does not include food and energy) is expected to rise at decelerated rate versus recent trends.

Despite all of this good news and more there exists a need for real concern regarding continued economic success. As a matter of fact, there should be concern as well for the legitimacy of what is and has occurred in the economy. The causes of this trepidation are consumer behaviors and the use of credit.

Consumers are the most important component of free markets and they are what drive the economy. This is especially the case in the United States where materialism is king and people want endless supplies of consumer goods and services. Unlike the case in most nations, there is a certain level of luxury that exists across all social classes in our country. Thanks to modern high-tech and/or global manufacturing even the poorest of Americans can and do buy discretionary items like gadgets, entertainment systems, and multiple vehicles.

This opulence and lack of frugality seems to grow larger in each subsequent generation. The generation that grew up during the Depression was raised in and thusly lived a life of fiscal prudence. They lived within their means but spawned a trend of materialism that was a result of technologies produced in the robust post-WWII economy. Their children (the Baby Boomer generation), almost in act of rebellion against what they did not have growing up, spent and continue to spend at high rates and are the generation most responsible for America’s materialism mystique. Their children (Generations X and Y) keyed off such behavior and are proving to be even more materialistic, hence their role as the key target audience in most marketing endeavors.

With this urge to buy and keep up with the latest trends if not “the Jonses” comes a lack of thriftiness. Americans consumers are spending at unprecedented levels. At first glance that’s a good thing. But, understand that it’s a tenuous line they tread because more so than ever before they are spending money that they don’t have.

In 2006, for the second year in a row, personal savings rates were negative (-1%). The average consumer spent all of his/her earnings and then some, leaning on borrowing and financing. In 2005 this negative scenario occurred for the first time since the days of the Great Depression (1933). This has transpired thanks to gimmicky credit card plans, the extreme ease in obtaining credit, and the willingness of consumers to carry credit. People are consciously allowing themselves to live beyond their means.

There comes with this way of life a huge personal risk. A report issued last week indicated that the credit issue has become so bad that a growing number of homeowners are defaulting on their mortgage payments (especially in the sub-prime market) and foreclosures have reached a four-decade high. Also, many people are still declaring bankruptcy despite the passing of the federal government’s bankruptcy act in 2005, which was supposed to prevent the fiscal abuses that lead to bankruptcy.

The end result of this heightened personal risk is an even greater economic risk. We may be living in a “false economy”. The desire by the consumer class to spend beyond reason means that the “money” being used to buy consumer goods and services is not real. Goods and services are being transferred via electronic non-cash funds in a veritable food chain of financial middlemen. Our economic system is perpetuated by what could be considered legalized money laundering for most of our nation is accounting for money that really does not (and may never) exist. The credit card and loan companies are fronting consumer expenditures and not being paid on the backend, meaning that far too many transactions being done in our economy have no true backing.

Under such circumstances one has to worry about the economic bubble bursting one day. Yes, times are good now, but the reality of their value is suspect at best. Cumulative consumer debt and the inability to satisfy it may one day yield a universal debt that invades all facets our economy, sending us into a recession or depression that will be difficult to escape, especially with the luxurious mindset of nearly all US consumers.

The IRS’s mind game
By Bob Confer, www.BobConfer.net  

A strange thing tends to happen this time of year: Many people who typically have some distaste for the government end up praising it. These suddenly-brainwashed people feel rewarded by what appears to be government benevolence, for Uncle Sam will soon be giving them a sizable tax refund.

“Brainwashed” might seem to be a harsh description of the mindset of these folks but it is a very truthful assessment proved through a basic analysis of human behavior. Think about how often you hear people bragging about how much money the government is giving to them via refund. Only brainwashed individuals could be made downright giddy by the act of an enterprise returning to them only a little of the money that was rightfully theirs to begin with.

While this glee occurs they completely ignore what really matters. They are focused so intently on the last line of a 1040 form’s calculations that they completely ignore the what are the most important lines on the document and its supporting schedule. If they were behaving logically they would instead focus their attention on federal, state, and real estate taxes paid. It is from those line items that one can understand how much of one’s hard-earned money is really being taken away rather than returned. But, the system inhibits such an inquiry because it is devised in such a way by the IRS that the instant gratification of a check in your name trumps the thievery that preceded it.

This is only one piece of the federal government’s taxation mind game. The IRS’s refund victory can only occur due to the act of income tax withholdings. Looking back through history these withholdings were brought about through the best of intentions as a scheduled – rather than lump sum – collection of taxes that were meant to consistently fund our forces in World War II. Unfortunately, the best intentions oft become soured. It didn’t take the post-war government long to figure out that it created a profound method of collections that could be applied to all future taxation and that would, for all intents and purposes, create a passive captive audience.

For starters, by demanding that every business act as a tax collector on its behalf the IRS could make the taxpayers wrongly point a disappointed finger at their employers. A tax-deflated paycheck or bonus can be frustrating to a hard worker and it is easier for them to blame than the one who issued the paycheck (the business) rather than the one who pilfered from it through the backend (the IRS).

Secondly, the weekly infringement upon one’s financial well-being softens the blow that government yields. If these withholdings did not occur and Americans were obligated to pay a massive lump sum on April 15 then the taxpayers would realize how badly they are being mistreated. The ecstasy of tax refunds would be replaced with the agony of cash outlays. Based upon Census Bureau statistics, the average taxpayer would have to write a check to the IRS in the range of $3,500 (married, spouse not employed) to $5,700 (single).

Most taxpayers would be utterly mortified - if not borderline revolt-minded - by such a massive payment. Withholding quells such dissent and it is without a doubt our government’s greatest brainwashing trick of all. By slowly and deliberately taking from the taxpayers and keying on human passiveness the IRS can confuse and confound them in regards to what the final bill will be.

These sorts of epic mind games truly limit the “concerned citizen” mindset in America. The average person pays little attention to what happens in politics and governance because to them there is no reason to care…government’s most abusive act – the leeching of our pocketbooks - is kept almost clandestine, muted to the point that the average person does not realize how much they’ve “invested” - and truthfully lost - in the floundering system around them.

SPITZER AS GOOD AS ADVERTISED
By Bob Confer, www.BobConfer.net  

Eliot Spitzer’s ascension to New York’s governorship was filled with promises of reform that made the voters hopeful for a better future. In most campaigns such boasts are vote-garnering rhetoric that never materialize. This is not the case with Spitzer. His promises are becoming reality! Day in and day out Spitzer has made or alluded to much-needed change in NY. His accomplishments are truly remarkable considering that he has been in power since only January.

Last week he pulled a major coup, announcing an agreement to change the workers compensation system. This was previously thought to be impossible as reforming the system was on George Pataki’s radar during his entire tenure but the system wound up becoming progressively worse. Only in NY could businesses pay the highest comp rates in the United States while the injured workers received some of the lowest benefits. In such a lost cause many firms left for other states due to this incredible cost of business while crippled workers struggled to make ends meet. But, Spitzer showed uncommon leadership in working with the legislature and Labor to come to an amicable agreement that reforms the weaknesses of the system to the point of decreasing rates by 15% and increasing benefits by 50%.

Such a victory is a miracle in itself because it followed weeks of hardball with the legislature. Since the get-go the legislature has been appalled by Spitzer’s in-your-face approach. The deadweights of Joe Bruno and Sheldon Silver seem truly threatened by what he is doing (and will be doing) and have put up barriers. The piece de resistance of this impasse was the legislature in all its self-serving glory choosing one of its own (a non-financial person no less) to be the state comptroller, despite Spitzer wanting a man of his choice who truly understands financials. This – a slap in the face to Spitzer and the citizens - is perhaps one of the dumbest moves that the legislature has pulled this year, for now that he has been scorned, Spitzer has become even more intense, singling out politicians by name and attacking the machine. As the role of governor requires, he is beholden to the people and not the politicians. Disassociating himself from the pols proves that he understands that they – not we – are they enemies.

He proved this understanding two weeks ago when he visited Niagara County. Rather than hosting a huge press conference in some gimmicky hall with elected officials and staff in tow, he instead took the press along with him to the home of the Kinney family, whereby he showed how down-to-earth he is and that he can address the importance of his position without leaning on a bunch of stuffy helping hands. He effortlessly expounded on the need to change the bloated Medicaid system, offer tax cuts to property owners, and make NY a better place. It is evident that he understands the issues and believes in what he preaches.

Not only does he know the people who truly matter, he also knows that there is a world outside of Albany and the New York metro area. In his campaign he addressed the need to improve upstate. Unlike the downstate majority he has not ignored this cause, appointing someone to be an upstate economic czar who will work hand in hand with him to return Buffalo, Rochester, and Syracuse to their glory days.

Even when Spitzer does something wrong he does it with promise. His budget proposal for 2007-08 comes with a 7.8% increase which is more than twice inflation and almost as ugly as this budget year’s growth (11.2%). Yet, the dark cloud has a silver lining. Rather than pasting past practices into the budget it comes outfitted with a wide variety of cuts (despite the growth) and reform standards. Among these endeavors was increased funding for education that came with a politically-profound let completely-logical caveat: if the schools fail to live up to standards they lose funding and their key personnel are harshly reprimanded if not terminated. For once we have a politician who understands that if you’re going to throw money at something there had better be results or the flow of money will stop.

One can’t help but be impressed. In two short months Spitzer has proven to be someone New Yorkers have needed for decades: a force to reckon with in Albany and a hero of the people. He really is as good as advertised and he might even be better. If he can maintain this vigor and focus over his entire reign then he will definitely go down as the greatest governor in the storied history of the Empire State.