Voice For Liberty

Tag: Kansas fourth district

  • Goyle, Pompeo file campaign finance reports

    Here’s a summary of the campaign finance reports filed on October 16, 2010 for candidates for United States Congress from the fourth district of Kansas, Democrat Raj Goyle and Republican Mike Pompeo.

                      Third quarter        Election cycle
                  Goyle   Pompeo      Goyle     Pompeo
Opening balance 749,493  286,032          0          0
Contributions   368,902  921,943  1,624,308  1,877,030
Expenditures    776,772  692,669  1,283,027  1,341,724
Cash balance    341,623  535,306    341,623    535,306

    The “third quarter period” was from July 15, 2010 to September 30, 2010.

    Pompeo raised much more — 2.5 times as much — than Goyle during this period, which was necessary as Pompeo was engaged in a competitive primary election and spent nearly all his funds in that effort. For the entire election cycle, the amounts raised are fairly close.

    For expenditures during this reporting period, Goyle spent slightly more — about 12 percent more — than Pompeo.

    Going forward, Pompeo has a cash balance (as of September 30) $193,683 (57 percent) greater than Goyle.

    Soon the campaigns will start filing reports of contributions received almost daily as last-minute contributions are received.

  • Kansas and Wichita quick takes: Thursday October 14, 2010

    Wichita mayor to lead LKM. City press release: “Wichita Mayor Carl Brewer was elected as the 81st president of the League of Kansas Municipalities (LKM) during the organization’s annual conference Tuesday morning in Overland Park. … He also urged his fellow local leaders to restore the public’s confidence in government. ‘We need to have our citizens recognize the value of competent government, and why our freedoms and security depend on it,’ he said.” As noted a few days ago on these pages, the League of Kansas Municipalities is a special interest group working in favor not of the citizens who live in Kansas towns and cities, but the politicians and bureaucrats that run them — and their cronies — who benefit from the LKM’s advocacy of things like TIF districts, STAR bonds, tax abatements, and eminent domain for economic development. So I don’t know if we should be proud that our mayor is the president of this group.

    Goody Clancy in Topeka, too. The Topeka Capital-Journal reports that Goody Clancy, the planning firm working for Wichita is also working in Topeka.

    FactFinder 12: Pompeo campaign ad. Analysis of an advertisement by Kansas fourth Congressional district candidate Republican Mike Pompeo by Michael Schwanke of KWCH 12 Eyewitness News concludes that Pompeo used some of the techniques that he and Republicans strongly criticized Democrat Raj Goyle for using. Schwanke concludes: “Goyle made those statements, but the ad doesn’t provide complete context.” This is the same issue that got Republicans riled up a few weeks ago.

    Pompeo poll released. The Pompeo campaign has released a poll that was commissioned and paid for by the campaign. The results are Pompeo with 58 percent of the vote, and Goyle with 31 percent. Two minor party candidates get three percent each, and undecided voters are at 16 percent. In its analysis the polling firm notes “the confrontational attacks by Goyle have backfired and have resulted in Goyle’s negative rating increasing substantially.” Candidate-produced polls need to be considered carefully. Goyle’s campaign has released their own polls in August and September which showed a smaller Pompeo lead than public polls. FiveThirtyEight indicates it flags polls which meet its definition of a partisan poll, which it defines as a poll conducted [on behalf of] any current candidate for office. It also says “Nevertheless, they are included in the ratings. If a pollster releases a poll into the public domain, we assume that they are interested in doing their best and most accurate work, regardless of whom the poll is conducted for.” The firm that conducted this poll for Pompeo conducted a poll for the same campaign July 6th through 8th, about a month before the August primary election, with results of Pompeo leading Wink Hartman 27 percent to 21 percent. The actual results were Pompeo 39 percent, Jean Schodorf 24 percent, and Hartman 23 percent. Public polls underestimated Pompeo’s actual vote total, too.

    Kansas legislator Merrick honored. American Legislative Exchange Council, described as a “nonpartisan individual membership organization of state legislators which favors federalism and conservative public policy solutions” has recognized Kansas Representative and Majority Leader Ray Merrick with its highest award. “The American Legislative Exchange Council (ALEC) is pleased to announce that Representative Ray Merrick of the Kansas House of Representatives recently received the highest honor that a setting legislator can receive from the organization — Legislator of the Year. Rep. Merrick received the award at ALEC’s 37th Annual Meeting, held in San Diego, Cal., August 5 — 8, 2010. Nearly 1,500 state legislators, policy experts, and private-sector leaders from across the United States attended three days of intensive discussions on the critical issues facing the states and our nation. This award is given to state legislators who are ALEC members in good standing and have distinguished themselves by advancing, introducing, and/or enacting policies based on the fundamental Jeffersonian principles of free markets, limited government, federalism, and individual liberty.”

    Education reform setback. Wall Street Journal Review & Outlook: “Michelle Rhee described her decision yesterday to step down as Washington, D.C., schools chancellor after 3½ years as ‘heartbreaking.’ We share the sentiment. That one of the nation’s most talented school reformers was forced out does not bode well for students … Ms. Rhee’s resignation ‘won immediate support from the Washington Teachers’ Union,’ a strong signal that her departure is a victory for the adults who run public education, not the kids in failing schools. … One reason education reform is so difficult is because unions believe their political influence and money will outlast even the bravest reformers in the end — which is why they’re cheering today in the District of Columbia.”

    Wichita Eagle voter guide available. Click here. You can get a list of the candidates, along with their responses to questions, customized for your address. The first advance voter ballots were mailed yesterday.

    Kansas Jackass blogger guilty. Kansas Watchdog reports: “Former blogger Jason Croucher entered a plea of guilty to 3 counts of child pornography on Wednesday morning at the U.S. Court House. Croucher’s progressive ‘Kansas Jackass’ blog was widely read by members of the Kansas Legislature and others in Kansas in 2009. The blog is no longer online.” Croucher operated anonymously until “outed” by Earl Glynn and myself, although he planned to become known on his own at some time. His style was to poke fun at his opponents, using anything negative about them as material for his attacks. Rarely was public policy discussed in a meaningful and serious way.

    Wichita Eagle Opinion Line. “Gov. Mark Parkinson: I have six employees. I need to expand my business or quit. Please loan me $1 million to be paid back with my employees’ income tax. Thank you.” A fine example of government intervention crowding out private investment and initiative.

  • Kansas and Wichita quick takes: Wednesday October 13, 2010

    FactFinder 12: Goyle campaign ad. From KWCH Television: “FactFinder 12 found no evidence Sentry International directly outsourced manufacturing work, only that it partners with companies in China and many other countries to purchase foreign made products.” What’s not talked about in regard to this issue is that U.S. companies don’t manufacture products overseas just for the heck of it. Competitive pressures force them to.

    The energy future will look familiar. George Will takes a look at the future of energy in America. But a reminder of the past, in case you forgot: “In 1977, Jimmy Carter said mankind could ‘use up’ all the world’s proven [oil] reserves ‘by the end of the next decade.’ Since then, the world has consumed three times more oil than was in the proven reserves.”

    The truth about our jobs crisis. BankruptingAmerica.org has a short video illustrating the depth and magnitude of the crisis. “The jobs report released on Friday shows that unemployment persists at 9.6 percent. As high as this number is, it doesn’t tell the whole unemployment story.” Additional resources are available at the site.

    Sowell on government greed. “Those who are always accusing people in the private sector of “greed” almost never accuse government of greed, no matter what it does. Indeed, the question of whether the government is greedy almost never comes up, so most of us probably never think about it. … Perhaps one of the most unconscionable acts of greed by government is confiscating people’s homes, in order to turn this property over to other people, who are expected to build things that will pay more taxes.”

    Tweets from Communications Week. At Wichita State University I served on a panel on social media and political campaigns. Some tweets from the audience: “Denae Herrman: Bob Week’s advice for candidates on Twitter: Be more candid & informal. Loosen up! I agree. What makes SM fun is the interactivity.” … “Shae Blevins: @bob_weeks says Goyle, Brownback and Pompeo have failed at using social media for their campaigns in some way. UPDATE your stuff!” … “Lou Heldman: Brownback, Goyle, Pompeo campaigns criticized by @bobweeks on Elliott School panel for sometimes inept use of social media.” I’m sorry, campaigns … but it’s true.

    DCCC cuts back on Moore support. From The Atlantic: “The Democratic Congressional Campaign Committee has pulled some funding from 10 districts, canceling their ad buys in six and reducing their buys in another four. … The committee has also continued cutting time in KS 03, where Stephene Moore (D) is running for her husband’s seat.”

    Liberal Billionaires Take On The Koch Brothers In California Energy Fight. Clare O’Connor in Forbes: “Much has been written about the oil and gas billionaire Koch brothers and their multimillion-dollar donations to right-wing causes. … However, in recent days a handful of liberal billionaires have decided to take on the Kochs in one of the most hotly contested battles this election season: Proposition 23, the California ballot that may well prove a bellwether for the future of energy legislation in the U.S.”

    Election dates to note: October 13 — advance ballots start to be mailed. October 18 — last day to register to vote or change party affiliation. October 29 — last day election office will mail advance voting ballots, so make sure your application arrives at your county election office before this date. November 2 — election day.

    Obama and the Politics of Outsourcing. William S. Cohen, writing in the Wall Street Journal: “For every job outsourced to Bangalore, nearly two jobs are created in Buffalo or other American cities.” … American popular opinion: “A Wall Street Journal/NBC News poll released Sept. 28 found that outsourcing was the top reason cited by Americans as the cause of the country’s economic problems — and that for the first time in years a majority (53%) of Americans say free-trade agreements have hurt the U.S.” This sentiment is unfounded. Continuing: “Most people treat outsourcing as a zero-sum game — one foreign worker replaces one American worker. But this is not how the dynamic global economy works. … [An analysis] found that when U.S. firms hired lower-cost labor at foreign subsidiaries overseas, their parent companies hired even more people in the U.S. to support expanded operations. … Those new U.S. jobs were higher-skilled and better-paying.” The politics of it: “During difficult economic periods, people are tempted to seek refuge in the false promise of protectionism. … Politicians are not above exploiting an issue by appealing to popular sentiment even when that sentiment is belied by economic reality.” Outsourcing of Kansas jobs is the major campaign theme — and attack ad hammer — of Kansas fourth district Congressional Democrat candidate Raj Goyle.

    Will Wichita have a government “bank” to fund downtown? The Wichita Eagle reports that the Wichita contingent visiting Louisville is being pitched the benefits of a government-run fund to spur downtown development. Two takeaways: “The fund, says JPMorgan banker Louis Straub II, doesn’t provide ‘free money’ to developers. ‘It’s a loan with much more favorable terms’ than developers would get through a traditional bank loan.” I would say that sounds like free money to me — as long as you consider paying interest on a loan a cost. Then, a real whopper: “Gary Schmitt, executive vice president at Intrust Bank, said the creation of such a fund in Wichita is possible. … there is precedent for Wichita-area banks getting together to help finance downtown projects. He said it was done in the case of the Hyatt Regency Wichita, for which local banks came together and created a participation loan to finance the hotel. ‘History has shown that the banks will come together for the betterment of the community,’ Schmitt said.” So wow did that work out? The Hyatt failed and is now owned by the city of Wichita, and can operate without concerns about profit. In 2001 the Eagle editorialized: “Having a marquee downtown hotel wholly owned by a city can’t be good for stimulating more private hotel development … Who’s going to be willing to finance, build and open a hotel in direct competition with one supported by public dollars?” As we’ve seen by recent action regarding the Broadview Hotel and Fairfield Inn, no one will — unless the government contributes millions in subsidy.

    Wichita Eagle opinion line. “The reason some people can’t find voter fraud in Kansas is the same reason a thief can’t find a policeman.”

  • Kansas and Wichita quick takes: Monday October 11, 2010

    Moran at Wichita Pachyderm: This Friday’s speaker at the Wichita Pachyderm Club is current United States Representative and Republican Party Senate nominee Jerry Moran. As a large audience is expected, please arrive by 11:45 to get your buffet lunch in time for the noon start (the larger meeting room will be used). Cost is $10, which includes lunch.

    Wichita, get control of incentives: Rhonda Holman’s lead editorial in yesterday’s Wichita Eagle urged caution and restraint in Wichita’s use of tax incentives — a welcome message not expected from the Eagle. One conservative wrote to me: “I am stunned to find myself to be largely in agreement with today’s editorial by Rhonda Holman. Wow.” The editorial was critical of past city policy and practice, with Holman referring to special taxing districts as “tax tricks.” On the need for public investment in downtown, she wrote “the city must ensure its use of special taxing districts is strategic, fair, farsighted and defensible.” Whether our present political and bureaucratic leadership can accomplish this is, in my opinion, unlikely.

    Rasmussen key polls from last week: California Senate moves from “leans Democrat” to “toss-up” … Most Americans feel Nobel prizes are political … Harry Reid’s son trails in race for Nevada governor … Cyber bullying seen equally dangerous as physical bullying.

    Kansas initiative and referendum: The Wichita Eagle takes a look at initiative and referendum. A focus of the article is Secretary of State candidates Chris Biggs and Kris Kobach, which is a little misplaced, as they don’t have a say in whether Kansas has I&R, although they would administer the process and Kobach has made it a campaign issue. Key takeaways: “States with initiatives spend and tax less than states without them.” Politicians of both stripes hate I&R, with Kansas Senate President Steve Morris — a big-spending, big-taxing, liberal Republican — hating the idea, according to the article. Same for Speaker of the Kansas House of Representatives Mike O’Neil, a conservative. Not reported in the article is one of the first things the people may do in states that have I&R: impose term limits on their elected officials, an idea most of the political class hates.

    China Emerges as a Scapegoat in Campaign Ads: The New York Times reports: “With many Americans seized by anxiety about the country’s economic decline, candidates from both political parties have suddenly found a new villain to run against: China. … Democrats and Republicans are blaming one another for allowing the export of jobs to its economic rival.” Kansas fourth district Congressional hopeful Democrat Raj Goyle is mentioned as one of 29 candidates using China as a foil in campaign ads, just in case you thought Goyle’s attacks were novel. But the issue is murky, as the Times notes: “Never mind that there is hardly any consensus as to what exactly constitutes outsourcing and how many of the new overseas jobs would have stayed in American hands.”

    Regulation — Baptists and Bootleggers: “Here is the essence of the theory: durable social regulation evolves when it is demanded by both of two distinctly different groups. ‘Baptists’ point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired regulation. Baptists flourish when their moral message forms a visible foundation for political action. ‘Bootleggers’ are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds. They are simply in it for the money. The theory’s name draws on colorful tales of states’ efforts to regulate alcoholic beverages by banning Sunday sales at legal outlets. Baptists fervently endorsed such actions on moral grounds. Bootleggers tolerated the actions gleefully because their effect was to limit competition.” From Bruce Yandle, Bootleggers and Baptists in Retrospect. A podcast on the topic is Bruce Yandle on Bootleggers and Baptists.

    Obama fails education: From Three Reasons Obama’s Education Vision Fails at Reason: “While he brags constantly about his Race to the Top initiative, in which states competed for $4 billion to fund innovative programs, he’s spent more than $80 billion in no-strings-attached stimulus funds to maintain the educational status quo.” Obama also killed a school choice program in Washington, and has snuggled up to the teachers unions with a stimulus bill to preserve and add union teacher jobs “despite the fact that there are already more teachers per student than ever.” The status quo describes outgoing Kansas Governor Mark Parkinson and his education “vision.” Not that presumptive incoming governor Sam Brownback is a radical on school reform, however. His education plans are quite tepid and not likely to produce the results Kansas schoolchildren need.

    Wichita Eagle Opinion Line: “If Kansans want lower taxes and less government, why are there so many homeowners’ associations here?” I guess the distinction between government and voluntary action escapes this person.

  • Kansas and Wichita quick takes: Sunday October 10, 2010

    Countryman back on air: Gene Countryman, host of a long-running radio show that went off the air earlier this year, returns to the airwaves tonight with the Gene Countryman Show. The new show airs Sunday evenings from 6:00 pm to 8:00 pm on KNSS Radio 1330 AM.

    Koch article criticism: Andrew Ferguson, media critic for Commentary, provides a critical look at the left-wing hysteria over Jane Mayer’s New Yorker Magazine “exposé” of Charles Koch, David Koch, and Koch Industries. Best quote: “The only support in Mayer’s article for this extravagant charge comes from second-hand assertions, usually in quotes from the brothers’ critics. Many are anonymous. Others are incompletely identified. Conservative think tanks and activists are carefully pinned with the ideological tag; liberal think tanks and left-wing activists are, well, just think tanks and activists.”

    Who wins here? Letter from Pat Risley in Wichita Eagle: “Westar is requesting approval to recover direct costs and lost revenues associated with the implementation of the SimpleSavings program. Basically, it means that as homes become more energy-efficient, the lost revenues to Westar would be passed on to all Westar customers.” I thought we were all supposed to win with conservation measures. At its core, I imagine this has something to do with Westar being a regulated utility, rather than operating in a free market for energy.

    ‘Down-ballot’ races also are important this year: Writing in the Wichita Eagle, Kansas University political science professor Burdett Loomis discusses the “minor” statewide races in Kansas this year. Minor perhaps in terms of the public policy impact of some of these offices, but not for some of the candidates. Writes Loomis: “Beyond the races themselves, these statewide offices offer the real pathways for advancing to the governorship or Congress.”

    Informed choice: The Lawrence Journal-World notes the lack of debates in this election season, both statewide and local: “The near lack of joint debate or forum appearances by the two major party candidates for Kansas governor has drawn considerable attention across the state, but the gubernatorial candidates aren’t the only ones opting out of such events. The unwillingness of candidates to participate in voter education events is reaching all the way to the local level.” An exception might be the Kansas fourth district. Raj Goyle’s events page lists several past and upcoming forums and debates.

    Equity in education? Ken Stephens of the Hutchinson News contributes a story looking at the Kansas school finance formula and the issues involved in its reform. It contains a rare piece of wisdom from school lobbyist Mark Tallman, who advocates for more school spending at any expense to the state. Stephens reports: “Mark Tallman, a lobbyist for the Kansas Association of School Boards, once suggested that he would like to lock a group of the smartest superintendents in the state in a room to rewrite the formula. The kicker, though, would be that when they were done, all their names would be placed in a hat and their names would be randomly drawn to determine which district they would serve in the future. ‘So don’t write the formula for the district you’re in now,’ Tallman said. ‘Write a formula you think will work for whatever district.’” This reminds me of the wisdom of Walter E. Williams, who wrote “The kind of rules we should have are the kind that we’d make if our worst enemy were in charge.”

    Wichita Eagle Opinion Line: “Thanks to the Sedgwick County commissioners for saving us from another tax-increment financing district. Wish the city had some backbone to do what is right for taxpayers.” … “Did anyone else notice that the Republicans’ Pledge to America didn’t include one word about earmarks and pork-barrel spending? I guess that’s just too much to ask.”

  • Kansas and Wichita quick takes: Saturday October 9, 2010

    This Week in Kansas: Tomorrow on KAKE Television‘s “This Week in Kansas” Kansas Policy Institute President Dave Trabert will be a guest speaking about economic development in Kansas. This is an important topic as Kansas is in “whack-a-mole” mode as we — case by case — defend our industry from poaching by other states. This Week in Kansas airs at 9:00 am on KAKE channel 10. The Winfield Daily Courier has other notes on this upcoming episode.

    Sue Schlapp: Wichita Eagle Opinion Line Extra today: “At a past Wichita City Council meeting, council member Sue Schlapp got on her soapbox about needing less government in our lives. Then last week she turned around and voted for the community improvement district tax for the Broadview Hotel. Is this talking out of both sides of her mouth?” I’m glad someone other than I has noticed this.

    Dave Unruh campaign billboardDave Unruh campaign billboard

    Unruh’s record on taxes: A reader sent in this photograph of a Dave Unruh billboard supporting his run for reelection to the Sedgwick County Commission, noting the irony of the “Lower Taxes” message. The reader may have been referring to Unruh’s support of a solid waste management fee (a tax by another name), his vote in August 2006 to increase the county mill levy, and his enthusiastic support of the tax for the downtown arena, now known as the Intrust Bank Arena. The vote for a tax increase in 2006 was in part to build the National Center for Aviation Training, said to be necessary to keep Wichita aviation companies in Wichita. Nonetheless, Cessna, Bombardier Learjet, and recently Hawker Beechcraft have found it necessary to shake down the state and local government for even more corporate welfare. Still, I don’t recommend voting for Unruh’s opponent Betty Arnold, who recently wondered where was the government stimulus for USD 259, the Wichita public school district, on which board she serves. Evidently Arnold doesn’t realize that nearly every dollar the Wichita schools spend is government money.

    Arnold’s website missing: By the way, Google can’t find a website supporting Betty Arnold’s campaign, which says a lot right there.

    Goyle and Pompeo: Tomorrow Kansas fourth Congressional district candidates Democrat Raj Goyle and Republican Mike Pompeo debate at Congregation Emanu-El at 7011 E. Central in Wichita. State of the State KS reports: “The debate will be moderated by KAKE-TV’s Tim Brown from This Week In Kansas and will focus on both local economic, political and foreign policy issues facing the U.S. The debate is free and begins at 10:40 am. A brunch will be served before the debate for $7.” It appears that Reform party candidate Susan Ducey and Libertarian Shawn Smith will not appear. The two minor party candidates made credible appearances on a recent KWCH televised forum.

    Goyle video, polls: Speaking of Goyle, video of Goyle endorsing presidential candidate Barack Obama in Texas has surfaced. And, more bad polls for Goyle.

  • In Kansas fourth, Pompeo ups lead over Goyle

    A new KWCH Television and SurveyUSA poll of candidates for United States Congress from the fourth district of Kansas shows Republican Mike Pompeo increasing his lead over his primary challenger, Democrat Raj Goyle.

    The new poll shows Pompeo increasing his share of the vote from 50 percent to 53 percent, compared to the previous poll by the same organization 22 days earlier. Goyle’s share remains unchanged at 40 percent.

    Only three percent of the voters are undecided.

    Other results from the poll include Reform party candidate Susan Ducey with two percent, and Libertarian Shawn Smith checking in with two percent as well. Smith replaced David Moffett on the Libertarian Party ticket.

    A recent discussion with a veteran Kansas political reporter reminded me of how unreliable polls can be. About three weeks before the August primary election, this same polling organization showed Goyle slightly trailing his opponent. Goyle won the primary with 80 percent of the vote, with a poll shortly before the election showing Goyle leading 63 percent to 19 percent.

    Kansas fourth district Congressional pollKansas fourth district Congressional poll

  • Raj Goyle tax cut votes not exactly as advertised

    In his campaign, Democratic Party candidate for Congress Raj Goyle says he has voted to cut taxes 50 times. Examination of the record shows some genuine votes against taxes, but also examples of voting with the herd, and some votes that actually increase taxes on most Kansans.

    On Goyle’s campaign website, we can read these words: “He is a proven fiscal conservative who voted to cut government spending and lower taxes on middle class families and small businesses every year he has been in office. Other candidates talk about cutting taxes, but Raj has done it. In just four years, he has voted to cut $500 million in wasteful government spending and voted more than 50 times to relieve Kansans of a total of $900 million in taxes.”

    Other material on his site promotes his “record of bipartisanship and fiscal responsibility.” So an examination of his votes against taxes is in order.

    The record of tax cut votes claimed by Goyle is on his campaign website at the page Pompeo distorts Goyle’s record on taxes. Some votes, such as his vote against the statewide sales tax increase that took effect on July 1, are actual votes against increased taxes. To which I say — even though it’s widely believed that this vote was election-year window dressing during a campaign for Congress — thank you.

    Some of the measures Goyle voted for passed nearly unanimously. In these cases, these votes are simply him following the legislative herd. An example is his vote for HB 2264, where on March 14, 2007, he was on the winning side of a 121 to one vote. Another example given was his vote on HB 2004 in 2007, where he was again in the majority of a 117 to three landslide.

    What is more important from a public policy perspective, however, is Goyle’s votes for various tax credit programs. These programs are not tax reductions with broad application. Instead, these programs spend money using the tax system as the vehicle. Unless the legislature votes for offsetting spending cuts — and it hasn’t — other taxpayers must pay more.

    Ironically, the Center for American Progress, where Goyle once worked, has an article that accurately explains how tax expenditures (tax credits) masquerade as tax cuts. See Tax Expenditures 101: What They Are and How They Slip Under the Radar. Other information may be found at The ‘tax expenditure’ solution for our national debt.

    Here are some of the tax credits that Goyle’s campaign website says he voted for:

    Goyle Voted For A Historic Preservation Tax Credit: In 2007, Goyle voted for HB 2405.

    Goyle Voted For An Amendment Regarding Corporate Tax Credit: In 2010, Goyle voted for an amendment that would have allowed a business to receive up to $50,000 in tax credit for complying with smoking regulations

    Goyle Voted Twice For Rural Business Tax Credits: In 2007, Goyle voted twice for HB 2004. The bill continued the annual $2 million Rural Business Development Tax Credits. The bill also created a tax credit for Kansas film production.

    All of these tax credit programs increase taxes on the vast majority of taxpayers in order to convey benefits to a chosen few.

    Finally, some of the tax cuts that Goyle voted for are outright corporate welfare that benefited only one company, on in another case, a narrow range of companies. An example is this item, again from Goyle’s campaign website: “In 2007, Goyle voted for SB 240, which was a bill that established a single-factor corporation income tax apportionment formula option for manufacturers constructing a new facility in Kansas that would cost at least $100 million and would employ at least 100 new employees by December 31, 2009. The bill was designed to help keep Hill’s Pet Nutrition in Kansas.”

    Goyle’s site explains that this measure was necessary to keep this company located in Kansas, and that the company added at least 100 jobs. Perhaps it was necessary, and maybe even wise. But it wasn’t a vote to cut taxes — except for the taxes on one company. This is more properly described as corporate welfare for which other Kansas taxpayers have to pay.

    Besides Goyle, other candidates in the race are Reform Party candidate Susan Ducey, Republican Mike Pompeo, and Libertarian Shawn Smith.

  • Raj Goyle anti-outsourcing plan likely to backfire

    A plan advocated by Democratic Party candidate for Congress Raj Goyle to reduce the outsourcing of jobs from the United States is likely to produce the opposite effect, according to the Wall Street Journal.

    Goyle is candidate for United States Congress from the fourth district of Kansas. He has criticized his leading opponent, Republican Mike Pompeo, claiming that Pompeo, as president of a manufacturing company, outsourced Kansas jobs to Mexico.

    On Goyle’s campaign website, under the heading “Economy: Jobs” we find: “It’s vital to create jobs and keep jobs in Kansas. The very first thing I will do in Congress is work to immediately repeal tax cuts for companies that ship jobs overseas. We must start providing tax breaks and incentives to those who create jobs and manufacturing bases in Kansas.”

    In a “Review and Outlook” piece titled The Send Jobs Overseas Act, the Journal explains how the tax breaks Goyle wants to end actually work. This is something that probably very few people understand, so here’s the explanation: “Under current tax law, American companies pay the corporate tax rate in the host country where the subsidiary is located and then pay the difference between the U.S. rate (35%) and the foreign rate when they bring profits back to the U.S. This is called deferral — i.e., the U.S. tax is deferred until the money comes back to these shores.”

    So it’s not really a tax break — if by that we mean the corporation never pays taxes on its profits. Instead, payment of the tax is deferred, although the deferral does have value.

    The Journal notes that the only major country with a higher corporate income tax rate is Japan. The tax rate on new capital investment in the U.S. is nearly twice the average of that in OECD countries.

    This high tax in the U.S. encourages investment overseas. A report this year by the White House tax reform panel concluded: “The growing gap between the U.S. corporate tax rate and the corporate tax rates of most other countries generates incentives for U.S. corporations to shift their income and operations to foreign locations with lower corporate tax rates to avoid U.S. rates.”

    And as other countries cut their tax rates, the inventive to leave the U.S. and its high taxes becomes stronger, the report also says.

    The piece also cites an earlier tax reform from 1986 where the U.S. eliminated tax deferral on shipping income. This is the same reform Goyle touts as good for the entire U.S. economy. But the Journal notes this reform was “a real disaster for U.S. shipping,” with U.S. shipping capacity falling by 50 percent over a period of years following this reform.

    The path advocated by Goyle — President Obama wants this too — would be a disaster for America. “CEO Steve Ballmer has warned that if the President’s plan is enacted, Microsoft would move facilities and jobs out of the U.S.”

    The best solution for job creation in the U.S. is to reduce our corporate income tax rate to match or undercut the rate of other developed countries. This would spur investment in America, not only by domestic companies, but by foreign companies, too. Goyle’s plan to raise taxes on American corporations will only harm job creation both here and abroad.