Creative Legislating 101 – XXX Tax Rates – Literally

The 102nd Legislature, 1st Session just concluded its 12th official day and I know I am already getting…tired, nauseated, and grouchy. (No, I don’t have a virus…unless you call politician-itis.) Why?

In addition to more wrangling than you would see at a Texas rodeo, I’m disappointed and in some cases, appalled about some of the legislation introduced.  Many result from the influence of very particular special interests or are the pet projects crafted by political parties. There are too many bills that would hand even more power to government, raise our taxes in some very slick ways,  or were crafted for the sole purpose of handing out political pacifiers to the public.

If you’re for legislation that is in pursuance of the Constitution, limited government, and rule of law that respects your liberty, and you think there has been a legislative measure introduced that will satisfy a need in some critical area, it appears you may very well be disappointed at the end of the day. After spending more time on the whole endeavor, I hope to ultimately learn that I am mistaken.

While it is difficult to sort out what bothers me most so far, it may be how very coordinated so much of the Legislature’s business appears. Too often, especially on critical matters, there is only one bill being introduced. It really does make one wonder – where is that smoky backroom down at the Capitol where Session plans are coordinated prior to “the show” put on for the citizens’ benefit?

I’ve been using the first person here thus far, but I’m not alone in my sentiments; I’ve received emails, had conversations, and seen comments here. When pondering a graphic for this session of the Unicameral that conformed to GiN’s neighborhood bar theme, Linda and I really only had one question: What imagery would properly convey what seems to be going on at our State Capitol?

That’s how we settled on the classic painting of the dogs playing poker; the only things that may be missing? Maybe there’s not enough smoke hanging in the air, and it’s certain that the walls of the poker room should be lined with mirrors.

For our very first article using our new sign, an ideal topic literally came to me last night. We can all thank District 45 Senator Abbie Cornett for providing such a gem of an opportunity.

Cornett is the Chair of the Legislature’s Revenue Committee. Our thanks for the information goes to a site visitor (again), who most appropriately has adopted the username of “Taxed Enough Already”. I think I’ll call him or her TEA for short. TEA tipped us off to legislation introduced by Senator Cornett that proposes to raise our taxes in several different ways.

Cornett introduced three separate bills, as reported by the Omaha World Herald:

LB559: Raises state income tax

LB561: Increases the state sales tax

LB560: Subjects a long list of previously exempt services to sales taxation.

Note the title of this article includes the phrase “creative legislating”. The reason I dub Senator Cornett’s work “creative” can best be understood by taking a quick look at LB561, which proposes to raise Nebraska’s sales tax on October 1, 2011, from its current 5 1/2% to “XXX” percent. The language directly from the bill:

“(5) Commencing October 1, 2011, the rate of the sales tax levied pursuant to section 77-2703 shall be XXX percent.”

Obviously, Senator Cornett introduced a placeholder bill for the purpose of inserting an actual tax rate.

Nebraska’s tax revenues have been lower than projected for most months since the “financial crisis” of 2008. Rather than drastically cutting the state budget to the extent necessary to contend with the shortfalls, increasing the rate is a solution under serious consideration.

User “TEA” reports that Senator Cornett said she introduced such legislation in the event of “emergency only” and the Omaha World Herald story bears out that statement.

I should not be surprised at the introduction of Cornett’s bills. On June 29, 2010, several members of GiN attended a hearing for an Ad Hoc Committee comprised of Committee Chairs and the Speaker created for the purpose of dealing with Nebraska’s ongoing budget shortfalls (LR542).

Towards the end of the meeting, Committee Chairs reported the status of their respective Committees. Here is what I have in my notes (They can be read in full by clicking here.) regarding what the Revenue Committee reported: 1

“…there were few opportunities for elimination in her department, and further reported that the committee was looking at the potential elimination of the homestead exemption and they were also ‘putting together matrixes to supplement revenue’.”

While I’m certain such news may well induce some of the same “symptoms” in others that I mentioned earlier, there is yet more good news to share. Since Nebraska runs its legislative sessions in two year cycles, Senator Cornett’s tax increase bills will be carried over to 2012′s session even if they go nowhere this year.

  1. My notes list Senator Deb Fischer as Senator giving the report on June 29, 2010. Although my notes were reviewed by Linda, who also attended, I am now uncertain whether Senator Fischer was the previous Chair of the Revenue Committee or sitting in for Senator Cornett and my notes are in error.

Stubborn_Facts

Shelli Dawdy is first and foremost the mother of three children whom she has taught at home via the classical method since removing her children from school in 2001. During her early years as a homeschool mother, she worked part-time as a freelance writer. Born and raised in the Iowa, Shelli and her husband moved to the state of South Dakota in 1997, attracted to its more limited government and friendly tax environment. In 2006, Shelli and her family relocated to Lincoln, Nebraska, when her husband’s employer offered a new position. She took a break from work and politics for a time, recognizing the need to focus solely on her childrens’ schooling with two now of high school age. Distressed by many things she was witnessing on the national political scene and disillusioned about the Republican Party, she decided to start writing again, this time online. Motivated to get involved with others at the grassroots level, she networked with activists on the social media tool, Twitter. She was involved in organizing the first tea party rallies inspired by Rick Santelli’s “rant” on CNBC in February 2009. Recognizing that activism should generate on the local level, she founded Grassroots in Nebraska in March of 2009. The group’s mission is a return to Constitutional, limited government, according to its original meaning. While the group has held several tea party rallies, it’s focus is to take effective action. Among its many projects, GiN successfully coordinated testimony for the hearing of the Nebraska Sovereignty Resolution, networked with other groups to ensure a large show of public support at the hearing, and coordinated follow up support to ensure its passage in April 2010. While working to build up GiN throughout 2009, she was asked to work as writer and producer of the documentary film, A New America, which lays out how Progressivism is responsible for how America has moved away from its Constitutional roots. You can see more of her work on Grassroots in Nebraska (GiN) and StubbornFacts