The Blog

Open letter to Wichita City Council regarding AirTran subsidy

January 24, 2005 Dear Councilmember: I am writing to express my concern about the upcoming renewal of the subsidy being paid to AirTran Airways. You may recall that I appeared before the Council last May and spoke in opposition to the subsidy. Since then I have learned more about the Fair Fares program. As an example, Mr. Troy Carlson, then Chairman of Fair Fares, wrote a letter that was published on September 16, 2004 in the Wichita Eagle. In that letter he claimed $2.4 billion economic benefit from the Fair Fares program ($4.8 billion for the entire state). I was…
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Wichita News Media Coverage of Downtown Arena Issue

On the November 2, 2004 ballot the voters of Sedgwick County approved an additional one percent sales tax to fund an arena in downtown Wichita. I opposed the taxpayers funding an arena for this reason: Proponents claimed that the arena would pay for itself (and be a good ting for Wichita) through various forms of economic benefit, both direct and spillover. But I found no research that supported this claim, except for one report prepared by the Center for Economic Development and Business Research at Wichita State University. I was able to find, however, much research that showed that these…
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The motivations of politicians

Presently Mr. Bob Knight of Wichita, a private citizen, is promoting the building of a casino in Park City, Kansas. These articles from The Wichita Eagle have reported Mr. Knight's position on casino gambling in Kansas when he was the mayor of Wichita: GOP governor hopefuls stake their positions (July 3, 2002) "Knight and Kerr said they oppose gambling but would consider voter approval." Trump has no plans for local casino (May 9, 2003) "Last year, Ruffin said, he approached former Mayor Bob Knight about the possibility of relocating the track to downtown and adding a casino if lawmakers approved.…
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Stretching figures strains credibility

I recently read that the Wichita Airport's economic impact was estimated at $1.6 billion per year. I thought this seemed high, so I investigated further. I became aware of this study prepared by the Center for Economic Development and Business Research at Wichita State University, available here: Wichita Mid-Continent Airport Economic Impact. By reading this study I learned that the employees of Cessna and Bombardier -- 12,134 in total -- are counted in determining the economic impact of the airport. Why? To quote the study: "While it might appear that manufacturing businesses could be based anywhere in the area, both…
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Let’s Pay for Our Own Health Insurance

Having most people obtain medical insurance, and therefore their healthcare, from their employers is a peculiar tradition that leads to several less-than-optimal situations. I would venture to guess that most employees don't know the cost of their insurance. They probably pay a portion of the cost through a deduction on their payroll checks and they know what that amount is, but that is a long way from knowing the total cost. Knowing -- and having to pay for -- the entire cost of something is a good motivator for controlling its cost. It makes no more sense for employers to…
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A Taxpayer Bill of Rights for Kansas, Please

Taxes in Kansas are high, and may increase this year. The recent school finance ruling by the Kansas Supreme Court and the passage of the downtown arena sales tax referendum in Sedgwick County are just two reasons why. We should act now to restrain the growth of state government spending. The Taxpayer Bill of Rights, or TABOR, has shown to be effective in Colorado. We in Kansas could have this, too. The law is quite simple: state spending and debt could not grow faster than the rate of annual population growth plus inflation. It doesn't prescribe how the state should…
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End Corporate Welfare, Starting with Industrial Revenue Bonds

"While corporate welfare has attracted critics from both the left and the right, there is no uniform definition. By TIME's definition, it is this: any action by local, state or federal government that gives a corporation or an entire industry a benefit not offered to others. It can be an outright subsidy, a grant, real estate, a low-interest loan or a government service. It can also be a tax break -- a credit, exemption, deferral or deduction, or a tax rate lower than the one others pay." (Time Magazine, Nov. 9, 1998) States and localities aggressively compete with each other…
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Guest post: The Sedgwick County Downtown Arena Sales Tax

(It has been suggested that the following message, which I have sent as email to all Kansas State Senators and Representatives, may be of interest to you. The article, as written and sent, does contain some minor inaccuracies, both in fact and in interpretation; but this merely shows that those of us who relied on the Wichita Eagle, my primary news source, for information prior to the arena tax vote were denied needed information and were, probably deliberately, given false, incomplete, and/or misleading information. I have made no effort to update it since a week or two after the election.…
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Let free markets, not laws, regulate smoking

Today, in the town of Hutchinson, Kansas, an indoor smoking ban takes effect. I hope Wichita does not pass the same law. I believe the evidence that shows smoking is tremendously harmful to the health of the smoker, and also dangerous to those around the smoker. Personally, I don't care to be around smokers and I take measures to avoid places where I will be exposed to cigarette smoke. So shouldn't I favor a smoking ban in Wichita? We should let free markets instead of the government decide whether there will be smoking in places like restaurants and bars. In…
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Vioxx and personal liberty

A recent column by Thomas Sowell titled Free lunch 'safety': Part II (a link to part one is here) started with this paragraph: "The government will allow you to risk your life for the sake of recreation by sky-diving, mountain climbing or any number of other dangerous activities. But it will not allow you to risk your life for the sake of avoiding arthritis pain by taking Vioxx." I was quite astonished to see the issue of Vioxx framed this way, but it is perfectly valid to do so. It appears that taking large doses of Vioxx increased the risk…
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