Tag: Featured

  • NOTA a needed voting reform

    NOTA a needed voting reform

    “None of the Above” voting lets voters cast a meaningful vote, and that can start changing things.

    As a voter, would you like to express your displeasure with the choices on your ballot? Are you tired of voting for the lesser of two evils? Would you like to have a reason to go to the polls even though it seems the contests are already settled?

    If so, then NOTA, or “None of the Above,” may appeal to you. In this system, candidates for offices are listed on your ballot. Then, an additional choice is added: “None of the Above.” (Sometimes the language is like “None of these candidates.”)

    Politicians don’t like “None of the Above.” Appearing on WichitaLiberty.TV recently, John Fund told of how a politician worried that he might lose to an empty chair, meaning that “None of the Above” received more votes. Fund retorted that would be true only if the chair was better.

    What would we do if “None of the Above” won the election, having received more votes than any other candidate?

    Would the second-place candidate be declared the winner and take office? This is the case in Nevada. In this case, the “None of the Above” vote’s role is advisory, indicating widespread dissatisfaction with the candidates. But that’s a powerful message.

    Or, would the election be declared to have no winner? Then, would a new election be held? Could the same candidates run again, or would they be eliminated? This would be disruptive and have the cost of holding a new election. But this is better than electing someone who can’t earn more votes than “None of the Above.”

    Why is voter turnout so low? One common reason given is that some people don’t like any of the candidates, so they don’t vote. But if a person doesn’t vote, what message do they send? What statement do they make? Apathy? Disgust? Adding a NOTA choice to ballots lets these dissatisfied voters cast a vote, and a meaningful vote. There is no confusion. It says to the parties: “I don’t like the choices you’ve given me. Try again.”

    Other people regularly vote. Perhaps a person votes because they really like one or more candidates. These people are able to make satisfying votes. Or if they really dislike a candidate, they can cast a satisfying vote against that person. But: What if the other candidate (or candidates) are no better, or have other problems? Must a person vote for the “lesser of two evils” in order to make a statement? What statement is that? In election results, a vote for candidate A from someone who really likes him is indistinguishable from a vote for candidate A solely because the other candidates are worse.

    On the choices we had in the 2016 presidential election, Zach Ruby wrote in The Federalist:

    Our government’s legitimacy is based on the consent of the governed. But our elections are structured so that the only way to withhold consent is not to vote. Low turnout may signal our disinterest or disapproval, but one of the unqualified candidates will still become president. We need a way to withhold consent through voting. That means we need None of the Above (NOTA) to be on the ballot.

    With “None of the Above,” voters can take a positive step that says, “we do not consent to these choices.”

    (Ruby noted that there were candidates besides Hillary Clinton and Donald trump on most ballots. But votes for third-party candidates often feel like “wasted” votes. Ranked preference voting can help in this regard.)

    A vote of protest is important. Often I’ve refrained from voting for any listed candidates because I felt none were worthy to hold office. Sometimes I’ve felt that there should not be an office (Insurance Commissioner comes to mind), so I did not cast a vote for that office. It’s my own little way of protesting. In election lingo this is called an “undervote.” It has little meaning, because people undervote for many reasons. But voting for “None of the Above” gives voters a meaningful choice in instances like this.

    Voting for the lesser of two evils is a choice we often face as voters. In the recent Wichita school board election, there was one contest between a thoroughly despicable incumbent and a challenger whose ideology is distinctly Marxist. Who to vote for in this instance? “None of the Above” would be a satisfying — and correct — choice. Voting for “None of the Above” sends a message that neither candidate is acceptable.

    Voters who really need a “None of the Above” choice are those in Alabama. Do you want to send a liberal Democrat to the United States Senate? If your answer is no, then your only choice — if you want to vote — is to vote for a candidate facing credible charges of child molestation. That’s a choice we shouldn’t have to make. “None of the Above” voting lets voters cast a meaningful vote that says “I do not consent to these choices,” and that can start changing things.

  • WichitaLiberty:TV: Ron and Susan Estes

    WichitaLiberty:TV: Ron and Susan Estes

    In this episode of WichitaLiberty.TV: United States Representative Ron Estes joins Bob Weeks to talk about the tax bill, his op-ed in the Wall Street Journal, and Susan Estes tells us what Mrs. Smith does when Mr. Smith goes to Washington. View below, or click here to view at YouTube. Episode 174, broadcast November 25, 2017.

    Shownotes

  • PEAK benefits across Kansas

    PEAK benefits across Kansas

    The use of PEAK, a Kansas economic development incentive program, varies widely among counties.

    An economic development incentive program in Kansas is PEAK, or Promoting Employment Across Kansas. This program allows companies to retain 95 percent of the payroll withholding tax of employees. 1

    Data is available for fiscal years 2010 through 2015. For this period, we can see that the application or use of PEAK varies widely among counties. Here is data for the two largest counties in Kansas:

    Johnson County: 135 projects, 17,643 new or retained jobs, $36,085,527 cumulative annual benefits.
    Sedgwick County: 8 projects, 1,113 new or retained jobs, $1,858,516 cumulative annual benefits.

    According to the U.S. Census Bureau American Fact Finder, the 2016 population of Sedgwick County was 511,995. Johnson County population was 584,451. So Johnson County has 1.14 times the population of Sedgwick County, but it receives some 16 to 19 times the PEAK benefits as Sedgwick County.

    Of note, this data is available on Kanview, the state’s data download portal. The data is from a spreadsheet compiled in August 2015. It contains data through fiscal year 2015, which ended on June 30, 2015. Upon my inquiry, it appears no similar data compilations were created in August 2016 or August 2017. I have asked for the data and it is taking some time to prepare it, which leads us to wonder how diligently the state collects data regarding economic development programs.

    You can access an interactive visualization of PEAK data here.


    Notes

    1. Weeks, Bob. PEAK, or Promoting Employment Across Kansas Available at https://wichitaliberty.org/kansas-government/peak-promoting-employment-across-kansas/.
  • WichitaLiberty.TV: Kansas Representative John Whitmer

    WichitaLiberty.TV: Kansas Representative John Whitmer

    In this episode of WichitaLiberty.TV: Kansas Representative John Whitmer joins Karl Peterjohn and Bob Weeks to discuss current issues in state government, and why he supports Wink Hartman for governor. View below, or click here to view at YouTube. Episode 173, broadcast November 18, 2017.

    Shownotes

  • PEAK, or Promoting Employment Across Kansas

    PEAK, or Promoting Employment Across Kansas

    PEAK, a Kansas economic development incentive program, redirects employee income taxes back to the employing company.

    An economic development incentive program in Kansas is PEAK, or Promoting Employment Across Kansas. This program allows companies to retain 95 percent of the payroll withholding tax of employees.

    Flow of tax dollars under normal circumstances, and under PEAK.
    Flow of tax dollars under normal circumstances, and under PEAK.
    PEAK incentive payments can be a substantial sum. Tables available at the Kansas Department of Revenue indicate that for a single person with no exemptions who earns $40,000 annually, the withholding would be $27 per week (for weekly payroll), or $1,404 annually. For a married person with two children earning the same salary, withholding would be $676 annually. Under PEAK, the company retains 95 percent of these values. (These illustrations are based on 2016 tax rates.)

    There are requirements regarding the minimum number of jobs to be created or retained. Also, companies must pay wages greater than or equal to the median county wage. 1

    Then, the Secretary of Commerce has “discretion to approve applications of qualified companies and determine the benefit period.”

    Legislators and public officials like programs like PEAK partly because they can promote these programs as self-financing. That is, the state isn’t subsidizing a company. Instead, the company is paying its own way with its own taxes (actually, its employees’ taxes). PEAK supporters say the state is not sending money to the company. Instead, the company is just holding on to 95 percent of its employees’ withholding taxes instead of sending the funds to the state.

    Schemes like PEAK call into question one of the fundamental principles of taxation: That tax funds be used to fund the operations of government, not to enrich one particular person or company. But continually, states and local government use programs like PEAK — and others like tax increment financing (TIF) districts, Community Improvement Districts (CIDs), Industrial Revenue Bonds, and others — that turn over a public function to private interests.

    Illustration of a shortfall under PEAK
    Illustration of a shortfall under PEAK
    Here’s another consideration regarding the PEAK program. The amount of money withheld from a worker’s paycheck is not the same as the amount of tax the worker actually owes the state. Withholding is only an approximation, and one that is biased in favor of the state. Many Kansas workers receive an income tax refund from the state. This is in recognition that the sum of the withholding taxes paid by a worker is larger than the actual tax liability. Therefore, the state is returning money that the state was not entitled to.

    Now, what about workers who are employed at a company that is in the PEAK program and who receive a state income tax refund? Their withholding taxes — 95 percent, anyway — have already been given back to their employer.

    So: What is the source of the money used to pay these refunds? How much money is paid in refunds to employees working at PEAK-participating companies?

    We should note that the funds don’t come from the PEAK company’s employees, as the employees receive credit for all their withholding taxes, even though 95 percent never contributed to the state treasury.

    Inquiry to the Department of Revenue revealed that there are no statistics on actual income tax liability of PEAK employees vs. the amount of withholding tax credited to that employee that was retained or refunded to the PEAK employer. The Department of Commerce referred inquiries to the Department of Revenue.

    If we wanted to know how much money was paid in refunds to PEAK-company employees, I believe we would need to examine the account of each affected employee. I’m sure it’s not possible to come up with an answer by making assumptions, because the circumstances of each taxpayer vary widely.

    Whatever the amount, it represents state tax revenue being used to fund an economic development incentive program that is pitched as being self-funded.


    Notes

    1. “PEAK requires the qualified company to commit to creating five new jobs in non-metropolitan counties or ten (10) new jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick over a two-year period. The qualified company must also pay wages to the PEAK jobs/employees, that when aggregated, meet or exceed the county median wage or North American Industry Classification System (NAICS) average wage for their industry.” Kansas Department of Commerce. Promoting Employment Across Kansas (PEAK) Program. Available at http://kansascommerce.gov/141/Promoting-Employment-Across-Kansas-Progr.
  • Wichita personal income up, a little

    Wichita personal income up, a little

    For 2016, personal income in Wichita rose, but is still below 2014 levels.

    The Bureau of Economic Analysis, an agency of the United States Department of Commerce, has released personal income figures for metropolitan areas through 2016. For the Wichita metropolitan statistical area, personal income in 2016 rose slightly from 2015 level, but is still below the 2014 level. In real (inflation-adjusted) dollars, personal income fell in 2016.

    Click for larger.

    The trend in personal income mirrors that of the Wichita-area GDP, which is the value of goods and services produced. That fell in 2016. 1

    To access an interactive visualization of personal income for all metropolitan areas, click here.

    Example from the visualization. Click for larger.


    Notes

    1. Weeks, Bob. Wichita economy shrinks. Available at https://wichitaliberty.org/economics/wichita-economy-shrinks/.
  • Wichita employment up

    Wichita employment up

    Employment in the Wichita metropolitan area is on an upward tick.

    Wichita MSA employment. Click for larger.
    Using seasonally-adjusted figures, employment in the Wichita Metropolitan Statistical Area 1 was 294,800 in January 2017. For September, it is 302,700, an increase of 7,900, or 2.7 percent. This data is from the Bureau of Labor Statistics, part of the United States Department of Labor. 2

    Wichita MSA employment. since 2010 Click for larger.
    The employment data comes from the BLS Current Employment Statistics program, which surveys employers. 3

    BLS also collects data regarding employment and unemployment through the Local Area Unemployment Statistics (LAUS) program. 4 It is part of the Bureau’s Current Population Survey (CPS), which is a “monthly survey of households conducted by the Bureau of Census for the Bureau of Labor Statistics.” 5 This data is collected from a survey of households, and the monthly data is not adjusted for seasonality. This is the data series that produces the oft-cited unemployment rate.

    It’s important to understand the nature of the unemployment rate. Being a ratio, it has two moving parts, specifically the number of unemployed people and the number of people in the labor force. (The labor force, broadly, is the number of persons working plus those actively looking for work.)

    It is possible that the unemployment rate falls while the number of people employed falls or rises slowly. This is the general trend in Wichita for the past seven years or so. The nearby table illustrates this. Because the values in this data series are not adjusted for seasonality, I use the average of the proceeding 12 months.

    In the first example, the unemployment rate fell by nearly half for the time period chosen. (2010 was the first full year after the most recent recession ended.) That improvement was produced by a small increase in the number of employed people and a large decline in the labor force. Is our area better off for this? Local politicians and bureaucrats seem to think so, as the low unemployment rate is widely cited as a measure of their success in managing the local economy.

    The second example uses as its starting point 2008, which was the high mark for employment in the Wichita MSA. The unemployment rate then is nearly the same as today. But both the labor force and the number of employed persons is down.

    If we consider only the unemployment rate, it looks like the Wichita area is prospering. But the unemployment rate hides bad news.

    In the nearby chart you can see these effects. The unemployment rate has been declining, although it has recently increased slightly. The labor force has been declining. The number of employed persons has increased, although it has also recently declined.

    Wichita MSA employment and labor force. Click for larger.
    Wichita MSA unemployment rate. Click for larger.


    Notes

    1. Butler, Harvey, Sedgwick, Sumner, and Kingman counties. See https://en.wikipedia.org/wiki/Wichita,_KS_Metropolitan_Statistical_Area.
    2. The labor force, specifically the civilian labor force, are those people working, plus those people actively searching for work, minus people under 16 years of age, minus people living in institutions (for example, correctional facilities, long-term care hospitals, and nursing homes), minus people on active duty in the Armed Forces.
      BLS defines unemployed people as: “Persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.”
      The unemployment rate is “the number unemployed as a percent of the labor force.”
      Bureau of Labor Statistics. Glossary. Available at https://www.bls.gov/bls/glossary.htm.
    3. “The Bureau of Labor Statistics (BLS) has two monthly surveys that measure employment levels and trends: The Current Population Survey (CPS), also known as the household survey, and the Current Employment Statistics (CES) survey, also known as the payroll or establishment survey.
      Both surveys are needed for a complete picture of the labor market.
      The payroll survey (CES) is designed to measure employment, hours, and earnings in the nonfarm sector, with industry and geographic detail. The survey is best known for providing a highly reliable gauge of monthly change in nonfarm payroll employment. A representative sample of businesses in the U.S. provides the data for the payroll survey.
      The household survey (CPS) is designed to measure the labor force status of the civilian noninstitutional population with demographic detail. The national unemployment rate is the best-known statistic produced from the household survey. The survey also provides a measure of employed people, one that includes agricultural workers and the self-employed. A representative sample of U.S. households provides the information for the household survey.
      National employment estimates from both the household and payroll surveys are published in the Employment Situation news release each month. The estimates differ because the surveys have distinct definitions of employment and distinct survey and estimation methods.” Bureau of Labor Statistics. Comparing employment from the BLS household and payroll surveys. Available at https://www.bls.gov/web/empsit/ces_cps_trends.htm.
    4. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS) program. Available at https://www.bls.gov/lau/.
    5. Bureau of Labor Statistics. Current Population Survey. Available at https://www.bls.gov/cps/.
  • WichitaLiberty.TV: Sedgwick County Commissioner Richard Ranzau

    WichitaLiberty.TV: Sedgwick County Commissioner Richard Ranzau

    In this episode of WichitaLiberty.TV: Sedgwick County Commissioner Richard Ranzau joins Karl Peterjohn and Bob Weeks to discuss Sedgwick County government issues, including allegations of misconduct by a commission member and the possibility of a Tyson chicken plant. View below, or click here to view at YouTube. Episode 172, broadcast November 11, 2017.

    Shownotes