April 2006 - Foundation for NC Future

April 2006: Voting

By now every one of us have heard why it is important for us to vote. Simply put, the people who get elected are the ones who get to make the rules we all live under. If we have bad elected officials, we get bad laws.

On Tuesday, May 2, there will be a statewide primary for county commissioners, state house and senate members, state judges and appeals court and NC Supreme Court judges. The voter turnout will likely, again, be embarrassingly low. And come next January when the folks who win take office and start doing strange and illogical things, don’t go any further than the mirror if you want to know whose fault it is that the nuts are in office.

Everyone has their personal prism as to how and for whom they decide to support. Here are some of the values I look for when I go into the voting booth.

Note: (These comments are not intended as support for, nor opposition against any person running for election of for or against any political party.)

My 10 Political Rules ( what I look for in candidates as well as elected officials )

Be honest.

Understand that the power you have is not your power – it belongs to the people.

Understand that it’s not your money – it, too, belongs to the people.

If you’re elected to lead…lead. If the voters don’t like where you lead they’ll kick you out and find someone new.

Use the political version of the doctor’s Hippocratic Oath, i.e., “First do no harm.”

If elected, don’t hide behind staff, as in, “This was the staff’s recommendation and I rarely vote against them.” It is funny how few candidates ever say they’ll be a “rubber stamp” for staff when they are campaigning and then turn out to do just that after they get elected. Unelected bureaucrats who never have to stand before the public and face the consequences of their decisions are part of the problem (see FEMA; NC Dept of Transportation ). Although staff often believes they are in charge, nobody ever elected them.

Advance the community’s ball, not just your own. That’s the job.

If a policy idea wouldn’t work or make common sense in your family or your neighborhood, don’t try and push the rest of us into doing it. Common sense is in short supply in politics.

Look for candidate’s who try to solve problems rationally. Most of today’s debates are shaped around the theory of demonizing or belittling the opposition. This rarely makes good public policy.

Think about – and remember – what a candidate for office says during a campaign and then watch what they do after they get in office. If you find them going back on their platform, return them to their former lives and ask for your money back. Just like you would if you got something at Wal-Mart that didn’t work. Beware though, used politicians aren’t worth much.

There are no political kernels of wisdom in the above. These are qualities I personally look for. The important thing is that however you assess the candidates, you become informed and then vote. Voting is the bedrock of any democracy and we stand here today on the “shoulders of the giants” who came before us and fought for those rights. I know. I know. It sounds corny to say all this.

Consider it said.

Please vote tomorrow, Tuesday, May 2.

Robert Pittenger
President, Foundation for NC Future
www.ncfuture.org

March 2006 - Foundation for NC Future

March 2006 Article

There is an old saying, “What’s sauce for the goose is sauce for the gander.” What that means is that if a public policy is good for one segment of our society it should be good for all parts of society. In government, that should especially hold true for tax policy. All too often, however, it doesn’t.

About this time last year, NC State Senate Leader, Marc Basnight, sent a letter to a constituent where he defended the state’s corporate tax policies. Senator Basnight’s letter states in part as follows:

“Our corporate income tax applies on a “separate entity” basis, which allows corporations to engage in strategies to shift income among affiliates so as to reduce or eliminate the amount of income reportable to our state. In addition, our state does not have “throw our” or “throw back” rules that ensure that the income of a multi-state corporation is taxable at the state level. Finally, our corporate income tax has some loopholes, exemptions, and credits – such as the bank tax loophole and the credit for savings and loan supervisory fees – that benefit only certain groups of businesses. Due in part to these and other factors, our effective corporate tax rate is well below 6.9% for many businesses.”

Senator Basnight goes on to say:

“According to a recent national study, the effective state tax rate was 0.1% for BB&T, 2.4% for Bank of America, and 3.7% for Lowe’s, to mention just a few examples. The study also found that the effective state corporate tax rate for the 252 largest companies in the nation was only 2.3% and that the average statutory state tax rate was 6.8%, which is very closely aligned with North Carolina’s statutory rate. Clearly, if our state’s tax structure were modified in accordance with the previous suggestions, the effective rate would increase while the statutory rate for all businesses could be reduced significantly ( note: my underlining). I would be interested to hear your thoughts on how we can restructure the corporate income tax to lower the statutory rate.”

I have no problem with either the companies Senator Basnight names or the tax rates they pay. It is smart business to maintain a favorable tax rate. But this illustration begs the fact that if selected corporations paying fractionally smaller tax rates than other, smaller businesses is good for North Carolina, wouldn’t it be even better for our state if all businesses paid lesser rates?

I have to admit that if I were the neighborhood hardware store or real estate company that paid the full 6.9% corporate rate, I would be discouraged by the unfair tax treatment. It is a widely accepted economic fact that 70% of new job creation is generated by small business. And thus, for all these reasons, Senator Basnight’s letter, albeit unintentionally, highlights better than I ever could, the reason we need lower and more competitive tax rates in North Carolina as well as reform how our state can operate more cost efficiently.

During election years ( and 2006 is one ) finding candidates for office eager to go to Raleigh and bring our bureaucratic behemoth to bay is really easy – almost everyone agrees and supports that agenda. Funny thing is though, that once there much of that eagerness is slowly muted and diverted by older capital veterans who know the rules and have successfully jousted with rookie legislators before. (Dinner invitations and invitations to lobbyist sponsored golf tournaments are very important in Raleigh.) Such patience is why bureaucracies rarely change and survive only to grow bigger and chew up more money. Nonetheless, many of our neighboring states (and competitors for new jobs) have attempted reform. Governor Mark Warner (D-Virginia) a $ 1 billion deficit when he took office. He turned that deficit into a surplus. Governor Mark Sanford (R-South Carolina) has attacked many “sacred cows” in his state and reforming state government has been – and still is – his number 1 priority. Governor Mitt Romney (R-Massachusetts) has done a phenomenal job in a traditionally liberal northeastern state with making successful, fundamental changes in how our state operates. Leadership…these governors made the promise and have tried mightily to keep their word. And North Carolina? Well, North Carolina was rated 37th in the “Ranking of Relative Government Burdens on Small Business” – behind South Carolina (13th), Virginia (15th), Georgia (22nd), and Tennessee (16th) - in 2004 by Small Business Survival Committee.

What kind of reform? Top to bottom. Look at every department and eliminate unnecessary and duplicative layers of management; write a fair and uniform tax code that benefits small businesses as well as big ones; cut the over $ 600 million of pork; fix and build our roads which have fallen into hideous disrepair; pass tort reform so that doctors and businesses will see that North Carolina is a good place to locate; put the education “administrators” back into the classrooms and if they don’t want to go, eliminate their jobs; and let North Carolina be known for clean water, clean air, and fair taxes. Folks, we are not talking “rocket science” here. These suggestions are pretty basic. People in government love to tell the public how complex government is and how you must be careful lest you interrupt the delicate balancing act and thoughtful deliberations that must go on to achieve fairness for all. Number one, government isn’t all that complicated. And number two, the only “delicate balance” that might be disrupted is the removal of the insider’s and lobbyist’s hands from your collective wallets.

I do not – and cannot – understand a system that says its “good business” to reduce tax rates for big business but “bad business” to extend those same tax rates to everyone else. It is no wonder that many major companies in North Carolina have no desire whatsoever to reform either our state or our tax code - it works for them.
However there is a fundamental issue of fairness to others in our state who work equally as hard and are as important as any others in providing jobs and economic development for our state. Go back and reread Senator Basnight’s argument for keeping tax laws right where they are: “…if our state’s tax structure were modified in accordance with the previous suggestions, the effective (tax) rate would increase while the statutory rate for all businesses could be reduced significantly ( my emphasis). Put another way, let’s sacrifice the many to benefit the few. And keep in mind that he apparently thinks this is good public policy. There is an alternate plan – that is to reduce the size, scope and cost of government to enable us to reduce the tax rates for small business commensurate with the lower rates now being paid by major corporations
“Tax reform” in North Carolina is a lot like the weather…many people talk about it but end up doing nothing. If you think the current system is fair and just then sit back and tune out. If on the other hand you are appalled at how blatantly skewed our tax system has become then you need to call…and call…and write…and then call and write some more…and then go vote. If you don’t, then what you see is what you’re going to get.

February 2006 - Foundation for NC Future

Recently, the Foundation for NC Future sent out – with major help and assistance from our friends listed at the end of this article – nearly 800,000 copies (including 30,000 in Spanish) of an emergency preparedness booklet:

“Preparing Your Home and Family for Pandemics, Natural Disasters, and Terrorist Attacks; Some common Sense Suggestions for Getting Ready”

Why did we do this? Because we saw what happened in New Orleans when Hurricane Katrina devastated an urban, modern city that was either unable or unprepared for the disaster that occurred. And then, more ominously, we watched as a sophisticated, world-renowned city descended into lawlessness and chaos within a matter of hours of the storm passing through. We saw what people in Thailand went through when a tsunami hit them unprepared and, of course, we saw what happened to New York City in the aftermath of 9/11. In our area, we are all acutely aware that any time a snowflake hits the ground, milk and bread leave grocery stores by the cart load. We can also remember two years ago when a December ice storm knocked out power in some neighborhoods for more than a week. But is “preparing” our family simply a matter of getting milk and bread? The answer is clearly, “no.” We all know that milk and bread aren’t going to be enough to get us through a real disaster, but few of us have really thought through some of the simple and practical steps we can take to raise the odds of getting through a major devastating event.

Many of us have simply put off developing a plan for our families to follow in the event of a natural disaster because we are too busy taking care of our everyday chores. Some of us haven’t thought about it because we don’t want to think about such bad things happening at all. I have to admit that I fell into both categories. And even if I tried to prepare, two big questions kept coming up: Where would I begin and what could I do that would actually help? And that is the genesis of the pamphlet – i.e., How do I get started and what do I do?

All of the experts agree on the first step: Have a plan.

Chances are that if something happens in our area, our kids will be in school, we may be at work, church, Little League, or the mall. In other words, we’ll be scattered. Our cell phones may not work. How does everybody know what they should do? Because, as a family, you have worked out where to meet and how to get there ahead of time. A simple plan that everyone remembers is preferable to a complicated plan or to no plan at all. Keep in mind though, that you are not planning a landing on the beaches of Normandy on D-Day. How to get home or to a shelter in case of a natural disaster or terrorist attack, particularly if communications are down, is a must. Everyone needs to understand their responsibilities and what they need to concentrate on doing. Panic and fear cause problems because many times people don’t know what to do. So, without being overly dramatic or pessimistic, call your family together and sketch out several options depending on different situations and then practice them several times so everyone feels comfortable with their part of the plan. Communication is the key to making your family safer. Remember two things: First, keep the plan simple, and two, remember that preparation prevents panic.

The second step: Make some common sense preparations.

No, this doesn’t mean that you need to go out and start a bakery (bread) or buy a dairy farm (milk)! It also does not mean to run out and buy up all the plastic and duct tape in town – although there are very few things a big roll of duct tape can’t fix. It does mean to have water (or an ability to purify existing water) on hand for several days; it means having flashlights and fresh batteries and candles; it means having a radio that works if the electricity is out; it means having a supply of both prescription and everyday medicines; it means having extra food for the pets; it means having a can opener and extra cash (because the ATM’s might not be working); it means having copies of your id’s and important papers stored in a safe place; it means having some disinfectants, gloves, waterless soap, and toilet paper; and it means having an appropriate supply of food that has a long shelf life and is easy to both open and prepare. All of the items that are recommended by the Department of Homeland Security and the Centers for Disease Control are covered in much more detail in the Emergency Preparedness booklet.

The point I am trying to make here is to get all of you to stop for a few minutes and give this issue some thought…and then sit down with your family and give it some more thought. Don’t misunderstand, reading this booklet is not going to make a national or local disaster any easier. But in our daily lives we think and try to make our proposals, plans, arguments, term papers, and projections incrementally better so we can succeed at what we do, so wouldn’t it stand to reason that we should take some of that same energy and brain power we put into all of those other activities and focus a little bit of time and attention on something that may – emphasis on may – help our families survive a national disaster, pandemic, or terrorist attack? Of course it does. And if you need help, write us at Foundation for NC Future at 100 North Tryon St., Suite B220-106, Charlotte, NC, 28202-4029; or e-mail us at info@ncfuture.org and we will be happy to send a booklet to you in the mail. The booklet is also available to be downloaded from the website at www.ncfuture.org.

Also, please take a minute to note the corporate sponsors who felt this information was important for people in our area to get because without their desire to help, this effort would not have been possible.

Harris Teeter
Piedmont Natural Gas
Superior Tile and Marble
Carolinas Medical Center
Harrington Associates
Crowder Construction Co.
Christenbury Eye Center
Dole
Interstate Electric Co. Inc.
Consolidated Theatres
Presbyterian Hospital
Regions Bank
The Dowd Company
Edifice
Choate Construction
Microsoft
CPI Security Systems
Time Warner Cable
Citizen Corps
Allen Tate Realtors
North Carolina Research Center

A very big THANK YOU! to each and every one of you for making this effort possible!

January 2006 – Foundation for NC Future

January 2006 – Foundation for NC Future

If you are in the world of politics for any period of time, you learn to be a little cynical at times when you listen to what is being said - and see that what is actually being done – do not bear any resemblance to each other at all. A recent example of this type of “political doublespeak” is the “committee” put together by Governor Easley, Senate Pro Tem Marc Basnight, and House Speaker Jim Black to report to the citizens of North Carolina as to the efficacy of the recent gas tax increase.

Diane Whitaker, in the Charlotte Observer (January 1, 2006), framed the issue accurately in her article (Diverted road funds, not gas tax real issue) when she said:

“Here’s something drivers really should be annoyed about. Not all of the gas taxes you’re paying go to roads. The state regularly takes millions in gas taxes for the general fund, diverting them from highway needs to help balance the budget. Since 1990, we drivers have lost $ 3.2 billion in gas taxes from this maneuver. That’s enough to build at least TWO outerbelts. This year’s diversion, $ 242.5 million, is roughly what the state spent to widen Interstate 77, I-85, and Independence Boulevard – with $ 50 million left over.”

Wanting to appear sensitive to the public outcry of yet another tax being raised, Governor Easley, Speaker Black, and Senate leader Marc Basnight named 40 members of the House and Senate to a committee to “study” the gas tax issue. Never mind that a majority of the committee had already voted to raise the tax in the last General Assembly session and thus would be an unlikely possibility to deem this tax hike an error. So just in case one of the committee members might summon up the temerity to actually call for a repeal of the tax increase or try to establish an ironclad lock on the Highway Trust Fund to prevent future raids, our fearless leaders decreed that the committee could only “discuss” the issues and not pass anything or take any action that would change either the tax or the annual raids from the fund itself. Folks, this is a great example of the leaders of your state showing you the great political talent of being “sincerely insincere.” “Sincerely insincere?” Yes, the talent of appearing to show concern or deliberation on an issue where there really is no concern or deliberation whatsoever. You may ask yourself, “Do they really think we’re that stupid?” Unfortunately, yes they do. “Why?” you ask. Because they’ve been getting away with it for years thanks to a totally uncritical and asleep-at-the-switch media.

House Speaker Jim Black, in an op-ed piece in the Charlotte Observer (January 1, 2006), said that despite pleas from business leaders and citizens across the state to call the legislature into special session to repeal the gas tax increase, he won’t convene the session because it “could have a lasting negative effect…”. OK, now we know that a special session is appropriate when there is a need to sneak in a state lottery but not appropriate when lowering taxes is possible. The Speaker, whom I have the highest respect for, says that repealing the gas tax hike would slow down road construction by $ 74 million. That might be a valid point if the governor and legislative leaders hadn’t stripped about $ 250 million from the Highway Trust Fund just last summer!

Years ago, under Governor Cameron Morrison, North Carolina was known as the “good roads” state. We currently maintain approximately 78,000 miles of roads – the 2nd largest total in the country, but because of our delayed maintenance and construction schedules we are the “good roads state” no more. The demand for wider, safer, and newer roads is a priority for millions of North Carolinians who don’t realize that the people they elected to be good and fair stewards of our state have systematically stripped billions of dollars over the last 15 years to pay for many unneeded pork-barrel type projects.

In reality, the new gas tax will be readjusted again six months from now and that adjustment can be higher or lower depending on the price of oil at that time. However, if we are to get at the bigger issues of fiscal responsibility and infrastructure improvement we are going have to show the leadership in Raleigh that North Carolina is our state – not theirs; and that the money we pay in taxes that is designated to go into state trust funds is our money - and not theirs, the voters will need to be the ones who demand changes.
After all, unless the citizens of NC demonstrate in future elections that there is no accountability for the annual legislative slight-of-hand, why would anything change? At that point, to paraphrase the cartoon character “Pogo,” “we have seen the enemy …and it is us.” If we continue to elect and reelect leaders who take our money and treat their citizens so cavalierly, then we deserve it.

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