TPA Joins Coalition to Urge Congress to Repeal Obamacare’s Independent Payment Advisory Board (IPAB)

Today, the Taxpayers Protection Alliance (TPA) joined with 20 other limited government organizations to urge Congress to enact H.R. 351, the Protecting Seniors’ Access to Medicare Act, which would repeal provisions relating to the Independent Payment Advisory Board (IPAB) contained in the Patient Protection and Affordable Care Act (PPACA). IPAB’s most expedient tools for holding down Medicare costs would closely resemble price controls, which have been a proven failure here and abroad for many areas of the economy. Because its mission is defined by PPACA’s framework, IPAB will focus on cost-containment measures whose scoring windows are narrow. IPAB’s mechanics would work against fiscal discipline as well as transparency. Click here to read the full letter.

Continue ReadingTPA Joins Coalition to Urge Congress to Repeal Obamacare’s Independent Payment Advisory Board (IPAB)

No Congressional Pay Raises Gets Bi-Partisan Support

Just when taxpayers’ faith in Congress reaches a low point, a beacon of light shines through this week when Senators David Vitter (R-La.) and Claire Mc Caskill (D-Mo.) reintroduced legislation that would end the procedure of automatic annual pay raises for members of Congress. Ok, that opening sentence was a bit dramatic but the fact is that any good news coming out of Washington should be embraced and celebrated. Existing law provides automatic pay adjustments for members of Congress every year, regardless of what they do right, or nowadays more like what they do wrong, the members get a pay bump automatically to adjust for cost of living increases. It would be nice if everybody received a guaranteed raise. The problem is that in the real world this concept is completely unconceivable. But that quality seems to fit with a lot of what Congress does these days. There’s one more catch with the current law governing these pay increases. Under the current law, members never have to go on record and admit they think they’re deserving of this raise. What this fact demonstrates is that members of Congress are not always as clueless as they appear. When it comes to protecting their own interests, it’s shocking how well they know what to do. And that is precisely why the law that’s currently on the books does not force them to vote, or go on record, for a raise. If they had to reveal their intentions by publically casting a vote, you bet they’d reconsider what their vote should be. The bottom line is that the current arrangement removes the transparency and accountability that all constituents deserve when it comes to the actions of the members of Congress that they elected. If members of Congress think they deserve a raise then they should have the chutzpah to come out and state it publically. And fortunately, Sens. Vitter and Mc Caskill agree.

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Taxpayers Need Real Tax Reform, Not Broken Promises

In the culmination of the fiscal cliff talks and despite what politicians said, taxes increased for all working Americans. Now is the time for all taxpayers to join together and seize the opportunity to pursue the long overdue reform to our nation’s tax code. Fortunately, some members of Congress agree and understand the need for change. In a Politico op-ed from last week, Senator Rob Portman (R-Ohio) wrote, “Our tax code has become an obstacle to growth, and only a robust, growing economy can create the new jobs (and future tax revenues) that we need.” Senator Portman also stated that, “Since 2001, taxes on everything from salaries and small business income to investment earnings and gifts have been temporary — a source of economic uncertainty and perennial fiscal fights. New permanent rates create a clear starting point for tax reform and end disputes over the baseline that have vexed past reform attempts.” Another problem with the shenanigans of the past several years is the significant uncertainty Washington’s game playing imposes on businesses. With so many unknowns, businesses are cautious about making large investments (and creating new jobs in the process) for future gains because they lack any assurance that Congress won’t change the tax rates with its next whim.

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TPA Slams Minnesota Governor for Proposed Tax Increases

On Friday, January 18, the Taxpayers Protection Alliance (TPA) sent a letter to Minnesota Governor Mark Dayton urging him to not raise taxes in order to balance the budget in Minnesota (read the letter here). Tax increases are the siren song of politicians across the country, as politicians look to fill budget holes. The problem is that tax increases hurt taxpayers and consumers. One popular tax increase has been tobacco and Governor Dayton is reportedly looking at raising that tax, a dramatic shift in policy considering that Governor Dayton once opposed a tobacco tax increase. According to the Minnesota State News, “During Wednesday’s budget negotiations with legislative leaders, Governor Mark Dayton offered two new budget proposals, both featuring substantial tax hikes. Dayton's options included a temporary 2% income tax increase on Minnesota millionaires or, alternatively, a $1-per-pack cigarette tax increase.” The same article noted that “Since 2003 there have been 57 cigarette tax increases across the nation and 68% of them have failed to meet projected revenues. In 2006, New Jersey raised cigarette taxes with the hope of pulling in $30 million in extra revenue each year. Not only did the tax hike fail to bring in extra revenue, but the state actually collected $20 million less in cigarette sales.” TPA urged Governor Dayton to cut spending. The Minnesota Budget Solutions Coalition has identified reforms that could save Minnesota taxpayers more than $6 billion, including eliminating all corporate welfare including corporate subsidies, incentives, and credits; abolishing ethanol grants; and reducing legislators’ and constitutional officers’ pay by 5%.

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TPA Demands Answers from GSA about LEED

Today, the Taxpayers Protection Alliance (TPA) intensified it’s investigation into the Leadership in Energy and Environmental Design (LEED) green building certification system by submitting three Freedom of Information Act (FOIA) requests (click here, here, and here.) to see what kind of collaboration there was between the General Services Administration (GSA) and the U.S. Green Building Council USGBC (USGBC). Since 2010, GSA has mandated LEED gold standards for all new federal buildings. TPA has been concerned about private, non-science based non-profit organizations like the USGBC being involved in creating environmental standards that are then relied upon to dictate government policies and in turn cost taxpayers millions of dollars. Last year, TPA highlighted the fundamental problems with LEED and the attempt to institute LEED v.4 (read here and here). In TPA’s public comment letter to the USGBC, TPA pointed out that products such as plastic insulation, vinyl roofing, and LED lighting are discouraged through the chemical avoidance credits in LEED v4, which uses the European Union’s REACH regulations as a benchmark. This is a standard that small and medium U.S. based manufacturers are unfamiliar with and will struggle to meet. Moreover, there are credits for certification in this new standard that could reward architects for rejecting modern technology and chose instead to use a thatched straw roof, yet the standards dissuade builders who use bullet resistant glass in federal courthouses. LEED v4 is filled with arbitrary and requirements that pick winners in losers in the marketplace. The USGBC seems to have undue influence in mandating LEED standards and now TPA wants answers.

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Solyndra: The Bankruptcy That Keeps on Taking Taxpayer Money (Part II)

On Monday (January 14) the Taxpayers Protection Alliance showed that bankrupt doesn’t mean the taxpayer-funded gravy train has to stop, with a bankrupt Solyndra still receiving taxpayer funds (read previous blog posting here). Today’s blog examines two contracts the government awarded to the law firm Morrison & Foerster to assist in the cleanup of the failed Solyndra experiment. These examples reveal an alarming trend, one that doesn’t look like it’ll stop anytime soon—especially considering that one of the contracts was modified as recently as November 2, 2012. There is no telling when the government will stop punishing taxpayers for mistakes made by the government.

Continue ReadingSolyndra: The Bankruptcy That Keeps on Taking Taxpayer Money (Part II)

Solyndra: The Bankruptcy That Keeps on Taking Taxpayer Money (Part I)

Even though the now infamous Solyndra has disappeared from the headlines, the financial mess of Solyndra still takes its toll on taxpayers. Not many people have reported that over the past year the Departments of Energy (DOE) and Justice (DOJ) have doled out approximately $2.5 million in taxpayer money to clean up the ripple effects of the failed Solyndra experiment. Unfortunately, the federal government has failed to realize that when you’re in a hole, quit digging. This blog is the first in a two-part series of a closer examination of Solyndra. Today’s examination involves two of the three companies, Lazard Freres & Co. and Labat Anderson. The second blog, tomorrow, will discuss federal contracts awarded to the law firm Morrison & Foerester. According to the Heritage Foundation, the awards and contracts are separate from the money awarded to Solyndra as part of the loan guarantee program in the Energy Policy Act of 2005. When the government willingly risked $570 million of taxpayer money to fund Solyndra, there was good reason to be upset. But it reaches a whole new level when the federal government continues to award contracts intended to clean up the very mess it created. It’s ironic that the government is spending even more taxpayer dollars in an attempt to recoup the money it never should have spent. So how many companies received Solyndra-related contracts? How much money was awarded and for what purpose? Three companies were awarded four different contracts totaling an estimated value of $2.5 million in taxpayer money. All involve throwing good money after bad in hopes of ameliorating the problems that the government’s poor discretion caused in the first place.

Continue ReadingSolyndra: The Bankruptcy That Keeps on Taking Taxpayer Money (Part I)

Another Questionable Government Owned Network

(TPA would like to apologize for anybody who is trying to read this blog posting on a government owned/taxpayer subsidized broadband network that is taking forever to download) Taxpayers understand the need to fund essential government services like public safety and transportation. What taxpayers don’t understand is when the government ventures into areas that they have literally have no business being a part of. The failure of government owned cable television/broadband networks across the country have reminded taxpayers of the proper role of government and that taxpayer funded cable television/broadband is NOT an essential function of government. The most recent example of this failed multitasking is with a cable television/broadband company in Groton Connecticut. As the Groton Patch newspaper reported, “Groton City borrowed $34.5 million to build an independent cable company to give viewers choice. Last month, it sold Thames Valley Communications for $150,000 to the only taker.” The failure of this (or any other) company is bad news but this fiscal disaster is compounded by the fact that this company was taxpayer subsidized and the collapse could have been entirely avoided. At the time the idea for a new cable company was floated people in the Groton area were already served by established cable providers like Comcast, with AT&T nipping at Comcast’s heels by planning to serve Groton. With satellite service, this would have given Groton residents plenty of options without using taxpayer dollars.

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More (Tobacco) Money More Problems

These are the interpreted words (except for the word "tobacco") spoken by the late rapper Notorious B.I.G. Unfortunately, these words run true not only when it comes music lyrics, but also in real life and even government spending. Unfortunately, the more money the government takes in the more it wastes. This is true when it comes to defense waste as it is with entitlement programs like SSDI and Medicare. Now it is even true when it comes to tobacco taxes and settlement money. As a December 6, 2012 story in The New York Times reported, “States are on track to collect a record $25.7 billion in tobacco taxes and settlement money in the current fiscal year, but they are set to spend less than 2 percent of that on prevention, according to the report, by the Campaign for Tobacco-Free Kids, which compiles the revenue data annually.” And, according to CNN, “The Tax Foundation said that 60.9% of cigarettes sold in New York State are smuggled in from other states. This makes New York the biggest importer of black market cigarettes, along with the state's highest tax rate of $4.35 per pack.” While the results of the report should be disappointing to most taxpayers and even antismoking advocates, it is par for the course the way governments spend money. As the Times explained, “The settlement awarded states an estimated $246 billion over its first 25 years. It gave states complete discretion over the money, and many use it for programs unrelated to tobacco or to plug budget holes. Public health experts say it lacks a mechanism for ensuring that some portion of the money is set aside for tobacco prevention and cessation programs.” The one bright spot with this type of mismanagement is that governments only have themselves to blame if they don’t have enough resources for anti-smoking campaigns. The loser in this is likely the taxpayer because even if there is not enough money in a budget for an anti-smoking campaign it will likely be diverted from a more worthy program or even worse, financed from a tax increase.

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Real Welfare Reform is Needed

With an increase in the number of welfare recipients there has also been an increase in the spending on those recipients. With a $16.4 trillion national debt and trillion dollar plus annual budget deficits, it is time for serious controls on the expenditure of these and all expenditures. For example, records indicate that there was a record number of people using food stamps last year (nearly 48 million participants). In addition, the spending of welfare benefits has increased during this period of anemic economic growth. A December 7, 2012 article in The Weekly Standard indicated that, “For fiscal year 2011, CRS [Congressional Research Service] identified roughly 80 overlapping federal means-tested welfare programs that together represented the single largest budget item in 2011—more than the nation spends on Social Security, Medicare, or national defense. The total amount spent on these federal programs, when taken together with approximately $280 billion in state contributions, amounted to roughly $1 trillion.”

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