Cronyism Archives - Page 5 of 24 Voice For Liberty

Oct

Export-Import Bank threatens a revival

Last week members of the United States House of Representatives successfully executed a maneuver that will force a vote on the reauthorization of the Export-Import Bank of the United States. The method used, a discharge petition, was signed by well over a majority of House members, including perhaps 42 Republicans. If the petition signers vote the same way, the bill to reauthorize the Ex-Im Bank will pass the House. It will then move to the Senate for consideration. No members of the House of Representatives from Kansas signed the discharge petition. In July a vote on an amendment in favor…

Another week in Wichita, more CID sprawl

Sep

By Bob Weeks

Another week in Wichita, more CID sprawl

Shoppers in west Wichita should prepare to pay higher taxes, if the city approves a Community Improvement District at Kellogg and West Streets. Next week the Wichita City Council will consider the formation of a Community Improvement District (CID) surrounding the intersection of Kellogg and West Streets. CIDs are a relatively recent creation of the Kansas Legislature. In a CID, merchants may charge additional sales tax, up to an extra two cents per dollar. For more about their mechanism, see Community improvement districts in Kansas. In the present case, the developer proposes to charge an extra one cent per dollar…

Wichita CID illustrates pitfalls of government intervention

Aug

By Bob Weeks

Wichita CID illustrates pitfalls of government intervention

A proposed special tax district in Wichita holds the potential to harm consumers, the city's reputation, and the business prospects of competitors. Besides, we shouldn't let private parties use a government function for their exclusive benefit. This week the Wichita City Council will consider the formation of a Community Improvement Districts to benefit a proposed hotel in west Wichita. CIDs are a relatively recent creation of the Kansas Legislature. In a CID, merchants may charge additional sales tax, up to an extra two cents per dollar. For more about their mechanism, see Community improvement districts in Kansas. In the present…

Wichita property tax delinquency problem not solved

Aug

By Bob Weeks

Wichita property tax delinquency problem not solved

Despite a government tax giveaway program, problems with delinquent special assessment taxes in Wichita have become worse. It's surprising to read reporting in the Wichita Eagle that the city is owed millions in delinquent special assessment taxes. (City of Wichita owed $4.8 million in delinquent special assessments, August 15, 2015) That's because in 2012 the city adopted a program that rebated property taxes to buyers of new homes. The goal of the program was twofold: To help builders sell homes, and to help the city collect delinquent special assessment taxes. In February of that year, according to city documents, "Current…

In Sedgwick County, expectation of government entitlements

Aug

By Bob Weeks

In Sedgwick County, expectation of government entitlements

In Sedgwick County, we see that once companies are accustomed to government entitlements, any reduction is met with resistance. When an executive of Spirit Aerosystems accused the Sedgwick County Commission of "working against us," the company may have forgotten the assistance and special treatment the company has received from local governments and taxpayers. This assistance has amounted to hundreds of millions of dollars over several decades, when we consider both Spirit and its predecessor, Boeing. Now, Spirit objects to a proposed reduction in funding to Wichita Area Technical College, and also cuts to local attractions such as the zoo. The…

In Wichita, benefitting from your sales taxes, but not paying their own

Aug

By Bob Weeks

In Wichita, benefitting from your sales taxes, but not paying their own

A Wichita real estate development benefits from the sales taxes you pay, but doesn't want to pay themselves. In Kansas, the STAR bond program allows cities to issue bonds (that is, to borrow money), give the proceeds (that is, cash) to a private business firm, and then pay off the bonds with the sales taxes paid by the business firm's customers. But sometimes this gift by taxpayers isn't sufficient. In Wichita, despite benefitting from STAR bonds, a company wishes to skip paying sales taxes itself. This is what the Wichita City Council will consider tomorrow. The Wichita Sports Forum (WSF)…

Jul

By Bob Weeks

Kansas senators vote to advance Ex-Im Bank

In a procedural motion, Kansas Senators Pat Roberts and Jerry Moran voted to advance the revival of the Export-Import Bank. The vote was a procedural motion on an amendment to allow a floor vote (invoking cloture). The amendment passed by a vote of 67 to 26. Among Republicans the vote was 24 to 26 against the measure. All Democrats voted in favor. The Export-Import Bank failed to be reauthorized by a June 30 deadline. It has not been making new loans since. The current legislation that passed the senate would reauthorize the bank. Free market groups have long opposed the…

Government creates obstacles to progress

Jul

By Bob Weeks

Government creates obstacles to progress

"Overcoming obstacles can be a difficult challenge even on a level playing field. We need to change the rigged system that favors the politically connected over the hardworking, honest citizen," writes Charles Koch in a recent edition of Perspectives. Overcoming Obstacles By Charles Koch July 13, 2015 America’s founding fathers had a unique vision for the United States. As the Declaration of Independence famously put it, this country was conceived as a place where people could enjoy “unalienable Rights,” including “Life, Liberty and the pursuit of Happiness.” These concepts are much more than just words to me. I believe the…

With tax exemptions, what message does Wichita send to existing landlords?

Jun

By Bob Weeks

With tax exemptions, what message does Wichita send to existing landlords?

As the City of Wichita prepares to grant special tax status to another new industrial building, existing landlords must be wondering why they struggle to stay in business when city hall sets up subsidized competitors with new buildings and a large cost advantage. From June 2014. Tomorrow the Wichita City Council considers whether to grant property and sales tax exemptions to a proposed speculative industrial building in north central Wichita. If approved, this will be the second project undertaken under new economic development policies that allow for this type of tax exemption. City documents estimate that the property tax savings…

Wichita economic development policies questioned

Apr

By Bob Weeks

Wichita economic development policies questioned

One of the themes of the recent Wichita mayoral campaign was the need to restore trust in city hall. Following, from April 2013, an example of how city hall has created the trust deficit. Although this story was covered nowhere but here, it it exemplary of how Wichita city hall operates. Since then the city's economic development director has retired, but we have the same city manager and nearly all the same council members, with one having moved up to mayor. For an update on this story, see Wichita: No such document. At Tuesday's meeting of the Wichita City Council,…