Happy Anniversary! The Tax Reform Act of 1986 Turns 27, Underscoring the Need for Another Overhaul of the US Tax Code

US President Ronald Reagan signs the Tax Reform Act of 1986 Last week taxpayers saw some of the worst of what happens when elected officials in Washington come together and make bad deals out of bad situations, harming taxpayers as opposed to providing solutions. October 22nd, 2013 is the 27th anniversary of the Tax Reform Act of 1986 and there is no better time to discuss this landmark legislation and how the current class of lawmakers can learn from the example of tax reform set nearly three decades ago. The Tax Reform Act of 1986 was the last comprehensive restructuring of the tax code in United States history. Among the noteworthy accomplishments of the 1986 reform was that Democratic House Speaker Tip O’Neil, and a Republican President, Ronald Reagan, negotiated the bill. The bipartisan act did several things to alter the tax code.

Continue ReadingHappy Anniversary! The Tax Reform Act of 1986 Turns 27, Underscoring the Need for Another Overhaul of the US Tax Code

Coming Soon From Obamacare: Substandard Medical Care

This article originally appeared on Townhall.com on October, 15, 2013 The Obamacare train is clearly in motion, and it has had quite a bit of trouble leaving the station. It’s important that we not let the technical issues with the rollout distract from the far worse consequences of the law that loom on the horizon, including a movement to re-define what constitutes a “doctor.” This change could harm patients and taxpayers. Instead of at the national level, many healthcare fights will play out in state legislatures across the country. One of these battles is where the scope of procedures medical practitioners can perform are determined. Over the past year, legislation that would allow healthcare practitioners that are not medical doctors to perform increasingly complex procedures has been proposed in both red and blue states – Tennessee, Louisiana and California in particular. In each of these states, Democrat legislators have tried to give what are often termed “allied health professionals” – like optometrists, pharmacists, and nurse practitioners – the ability to perform procedures reserved for highly trained medical doctors.

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Debt Ceiling Debacle Redux Reveals Need for Aggressive Entitlement Reform

With the fiscal cliff last January and the recent shutdown and debt ceiling debacle, the past 9 ½ months have been a model of congressional dysfunction. And, as we have been doing for years, the Taxpayers Protection Alliance has been following developments on the government shutdown debate and the ongoing fiasco of the endless impasse to agree to terms to reopen the federal government. The biggest deadline is quickly approaching, the debt ceiling, a limit set by Congress regarding the amount of money that the government can borrow for public spending. During the Budget Control Act of 2011, part of the deal was to raise the limit to $16.4 trillion, in return for spending cuts (those cuts coming now in the guise of sequestration after the failure of the Super Committee). The United States actually hit the ceiling on December 31, 2012, but “extraordinary measures” were taken by the Treasury Department to enable spending to continue and the debt ceiling is at $16.699 trillion now. The new deadline is set for Thursday, October 17, 2013. Should Congress fail to negotiate a deal that would be signed by the President to lift the debt ceiling, the government would have $30 billion (and cash-on-hand) to continue to spend for services, and payments to creditors; otherwise the US risks default and some early warnings have already come as we inch further towards the deadline. Though that may be a great deal of inside baseball, that is very watered-down and to the point in terms of what is going to happen at midnight tonight.

Continue ReadingDebt Ceiling Debacle Redux Reveals Need for Aggressive Entitlement Reform

All Trick No Treat for Taxpayers: Congress Poised to Once Again Chooses Big Government Over Taxpayers

The Taxpayers Protection Alliance (TPA) has been keeping a close eye on the House, Senate, and White House as they have been going back and forth trying to resolve the current impasse that has kept the government closed (or at least slowed down many services) since the fiscal year began on October 1. Now, with the debt ceiling deadline less than 48 hours away and the threat of default a very real possibility, it appears that leadership on both sides of the aisle in Senate have reached a deal that would both extend the debt limit and keep the government open into early 2014. The crisis is by no means over, and it remains to be seen how this will play it out in the House, where many Republicans are wary to accept a clean Senate bill. The uncertainty is still very much a real factor in all of this, but one thing clear: this deal highlights another failure of elected officials to protect taxpayers, and instead is another sign that the era big government is still very much alive. It is also a sign that Congress will continue to budget by crisis and not by common sense and fiscal responsibility. It is almost fitting that this fiscal fiasco plays out in October, a month known for Halloween and scaring people.

Continue ReadingAll Trick No Treat for Taxpayers: Congress Poised to Once Again Chooses Big Government Over Taxpayers

TPA Joins Coalition Urging Support for Efforts to Curb Crop Insurance Subsidies

The Taxpayers Protection Alliance (TPA) has been paying close attention to the government shutdown and the upcoming debt-ceiling deadline that are the main attractions in DC right now, but beyond that there are important issues that elected officials are continuing to hammer out and one of them just won’t go away: the Farm Bill. The Farm Bill remains unfinished business and as of now the work that has been done collectively by the Senate and the House has been nothing short of a disaster, as well as an insult to taxpayers across America. There is a real need and sense for reforms in agriculture policy. But, TPA has been disappointed in what has taken place so far with the Senate and House versions of the Farm Bill. Now, it has been revealed that the chambers will go to conference on the legislation to put something together between the two and though both versions are flawed this is yet another chance to enact meaningful reforms. One reform in particular is crop insurance and how to reign in the program’s wasteful spending (more than $14 billion last year alone) and the conferees have an opportunity to push for reform to the program. With that in mind, TPA was eager to join a coalition effort led by the R Street Institute, which also included American Commitment, American Conservative Union, Americans for Tax Reform, Campaign for Liberty, Center for Individual Freedom, Coalition to Reduce Government Spending, Council for Citizens Against Government Waste, Cost of Government Center, Less Government, National Taxpayers Union, and Taxpayers for Commonsense sending this letter urging conferees to “insist upon inclusion of a means test for crop insurance subsidies.” The currently passed versions of the Farm Bill from the House and Senate are highly unpalatable but when opportunities to protect taxpayers and lessen their burden on legislation that is almost certain to become law, the effort must be made to ensure those opportunities are met with action! To read the full letter, click 'read more' below

Continue ReadingTPA Joins Coalition Urging Support for Efforts to Curb Crop Insurance Subsidies

Maryland Taxpayers Balk At Getting Hosed on Orioles’ Owner’s Property Taxes

Oriole Park at Camden Yards in Baltimore, MD (courtesy Wikimedia Commons) Stadium schemes aimed at having the cost billed to taxpayers by state and local governments tend to be the most frustrating for taxpayers. The Taxpayers Protection Alliace (TPA) has always stood firm that if voters don’t want to pay for a sports owner’s property, then they shouldn’t be forced to do so. Here’s a new twist though, in a story just north of DC, Maryland taxpayers are likely to feel the heat after an accounting error on a tax credit neglected to accurately tax a resident sports franchise owner on some of his property. In late September, the Baltimore Sun reported that the city underbilled Baltimore Orioles majority owner Peter Angelos to the tune of $390,000 for a downtown office tower. This has been ongoing since 2011, and though the Mayor’s office has classified this as an “isolated incident,” there is evidence that similar underbilling occurred over the last four years for two other large buildings totaling over $300,000. Those of you who can do math understand that the city of Baltimore made accounting errors on property tax assessments that total more than $700,00; and guess where city officials are looking to make up that lost revenue? Here’s a hint: not the owners of the property. The lost revenues may have to be generated by taxpayers, and not Angelos (though a rep for Mr. Angelos said the bill would be paid). The errors involved Maryland’s enterprise zone credit, which “reduces a company’s local property taxes on the value added by new construction or improvements to an existing building.

Continue ReadingMaryland Taxpayers Balk At Getting Hosed on Orioles’ Owner’s Property Taxes

Corporate Cronyism Paused in Government Shutdown

This article originally appeared in Townhall.com on October 4, 2013 As the American people grapple with the consequences of a government shutdown, there are many federal agencies that are vital to the United States economy that will be affected. However, the closure of at least one government agency should be met with relief, the United States Export-Import Bank’s (Ex-Im Bank). Thankfully operations at Ex-Im Bank have ceased and this is probably for the best, especially in light of recent revelations that the Bank loaned $33.6 million in taxpayer funds to a Abengoa – a Spain-based green energy company – whose advisory board includes former New Mexico Gov. Bill Richardson. The loan in and of itself is not so egregious, but what is detestable is the fact that it just so happens that Mr. Richardson also sits on the Export-Import Bank’s Advisory Board. The conflict of interest is only part of a broader trend of cronyism that the agency has consistently perpetrated. In a statement, the Bank denied that Mr. Richardson played any role in the financial transaction, but Ex-Im has a sordid history of similar transactions that almost makes it too coincidental. The Ex-Im Bank previously provided a $10.3 million loan guarantee to the now bankrupt Solyndra. Had Ex-Im conducted due diligence (normal due process performed daily by any major lending institution) concerning whether to do business with Solyndra, the likelihood of providing any financial assistance would have been minimal. It should also be noted that coincidentally one of the Solyndra’s top investors was a major Obama donor. The Bank’s kickbacks transcend partisanship, as Enron – a company that was extremely well connected politically on both sides of the aisle – received financial assistance from the Ex-Im Bank during the Clinton and Bush Administrations. The Bank is an exemplary model of corporate welfare and a shining symbol of everything the American people despise about Washington.

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TPA Joins Coalition Urging Full Repeal of the Renewable Fuel Standard

Renewable fuel reform is an issue that is becoming more prominent over the last several months with a movement in Congress to “reform” the Renewable Fuel Standard (RFS). The RFS is a “command and control mechanism that requires a certain level of ethanol to be blended into the nation’s transportation fuel supply and currently the requirement for gasoline is 10 percent. However, the Environmental Protection Agency (EPA) is planning to increase the amount of ethanol blended into gasoline by 50 percent. The RFS policy is already a flawed one to begin with, and this directive by the EPA will only make a bad policy worse, for consumers and business. Taxpayers are also hit directly as the government's fleet of more than 600,000 owned or leased vehicles that guzzle more of the expensive fuel. One of the most obvious ways to fix this bad policy is for congress to repeal the RFS; and just recently TPA, in an effort led by Frontiers of Freedom, joined with American Commitment, National Center for Public Policy Research, National Black Chamber of Commerce, Independent Women’s Voice, Less Government, R Street Institute, 60 Plus, Energy Makes America Great Inc. Citizens’ Alliance for Responsible Energy, Americans for Tax Reform, Americans for Prosperity, Tea Party Nation, American Energy Alliance, Capitol Research, Freedom Action, National Tax Limitation Committee, Congress of Racial Equality, Independent Women’s Forum, Heartland Institute, and Council for Citizens Against Government Waste and sent this letter to the House of Representatives and Senate to call for a full repeal on the Renewable Fuel Standard. There is no justification that an agency like the EPA wrought with recent scandals and a clear lack of transparency should have expanded power over the lives of the working Americans and the economy. Click 'read more' below to read the full letter

Continue ReadingTPA Joins Coalition Urging Full Repeal of the Renewable Fuel Standard

TPA President David Willams Debates Washington Post’s Chris Cillizza on Earmarks and the Government Shutdown

The Taxpayers Protection Alliance (TPA) has recently commented on the possibility of a government shutdown, and as it stands now we are headed to day four of the government shutdown that began at midnight on October 1st. The Republican-controlled House and Democrat-controlled Senate are at an impasse on Obamacare and spending which has resulted in the first shutdown of the federal government in 17 years. TPA has said from the outset that there was no reason to be at this point and the clear failure in leadership is disgraceful on all sides as everyone has a share in the blame, be it policy or process. Taking a closer look at how to come to a resolution to solve the current deadlock between the Senate and House, Washington Post’s Chris Cillizza asked TPA President David Williams whether earmarks could have prevented the shutdown. That’s right, earmarks! TPA has decried earmarks in the past and welcomed the decision to get them out of the political system in DC considering the negative impacts on spending, and behavior with cases of corruption on both sides of the aisle. The debate between Mr. Williams and Mr. Cillizza can be seen here!

Continue ReadingTPA President David Willams Debates Washington Post’s Chris Cillizza on Earmarks and the Government Shutdown

Obamacare Launch Not Exactly A Smooth Liftoff

The Taxpayers Protection Alliance (TPA) has written quite extensively about Obamacare, warning about the harmful impact the law will have on healthcare, taxpayers, consumers, and business across the country. As we moved closer towards the official rollout of the law there were multiple indicators of just how much of a “train wreck” the nation would be faced with once Obamacare became official. The problems we have already seen in the last several months as the Administration began to gear up for the October 1st launch date of Obamacare came at the painful cost of lost jobs, tax hikes, increased premiums, dropped coverage, special exemptions, selective delays, and even privacy concerns that would give any individual pause about a law that influenced so much of the American economy it wasn’t difficult to understand why continued decline in public approval of the law was a constant. The President just recently admitted, speaking about the law, that “we raised some taxes.” TPA recently joined a coalition urging a full delay for all Americans noting how it was unfair for the President to delay the mandate for employers only, while leaving middle class families behind. Yesterday, citizens were able to see the first indications of what we may come to expect now that Obamacare has officially opened their exchanges for individuals to sign up. The launch was anything but smooth so TPA thought it would be a good opportunity to look at some of yesterday’s lowlights.

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