The Free Enterprise Nation

Bell, Calif. taxpayer funds abuse not a singularity

7/29/2010 3:32:22 PM by Jo-Lynn Brown

A few weeks ago three top officials from the small, low-income city of Bell, California made nationwide news. Unbeknownst to other officials in the state, and apparently the taxpayers of Bell, the city manager was making a yearly salary of $787,637, the police chief was making $457,000, and an assistant city manager was making $376,288. Anyone want to move to Bell?!

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Tax reporting in HC reform will swamp small businesses

7/28/2010 1:47:56 PM by Christine Erickson

Senator Mike Johanns (R-NE) is promising to fight the increased 1099 reporting that was included in healthcare reform. According to the IRS’s own assessment of the new reporting requirements, the measure will result in tens of millions of additional 1099 forms being filed. The IRS says it will have to hire an unspecified number of new employees simply to keep up with the extra paperwork, and predicts that “it is highly likely that the IRS will improperly assess penalties that it must abate later, after great expenditure of taxpayer and IRS time and effort."

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Unemployment Benefits Extensions: Where do we draw the line?

7/22/2010 9:47:31 AM by James MacDougald

The extension of unemployment benefits that just passed in Congress presents a dilemma. While most of the unemployed are members of the private sector and, therefore, the very people our organization represents, we also represent the individuals and companies that are taxed to provide these benefits, as well as their children and grandchildren who will be the ones left picking up the tab. The latest extension alone adds an estimated $34 billion to the national deficit that future generations will have to find ways to cover.

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US heading toward a lost decade?

7/20/2010 9:10:28 AM by Christine Erickson

I recently read an article on CNN.com that said economists are worried that the United States is headed toward a "lost decade," similar to what was experienced in Japan in the 1990s. This term refers to a decade of stagnant economic growth and poor employment numbers. If the upcoming decade, 2010-2020, is at risk of being a "lost decade," what should we call the past 10 years in this country?

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Relief for public sector financial woes: Privatization

7/14/2010 11:43:48 AM by Jeri Risin

Privatization remains a controversial issue in the United States. However, there are many examples of why it works, and how it has worked in the past. According to Leonard Gilroy, editor of the 2009 Annual Privatization Report,” privatization can be done well, or it can be done poorly.” There are many examples of how privatization can be done well. Cities like Phoenix and Philadelphia have seen positive results from privatization, as well as states like West Virginia. Specific organizations, like private prisons, have also demonstrated that privatization can work.

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Federal:

Financial reform is now law
President Obama officially signed the financial reform bill into law. The law was created in response to the financial crisis that spurred the recession, and increases regulatory oversight of complex financial products, such as derivatives, and creates a consumer protection agency that will oversee financial products such as credit cards and mortgages. Read more...

Unemployment benefit extension approved by Congress
The bill extending the deadline to apply for federal unemployment benefits was passed in both chambers of Congress, and now goes to the President for his signature. The benefits will be retroactive to June 2, and restores benefits to nearly 3 million Americans. Read more...

Government support for financial and housing markets hits $3.7 trillion
The latest report on the Troubled Asset Relief Program (TARP) said that while the program is winding down, government support for financial companies and the housing market continues to rise. The total amount is up 23% to around $3.7 trillion from $3 trillion the previous year. Read more...

Northeast:

RI firefighter compounded COLA could set a costly example
The latest contract for city firefighters is held up in a committee because some claim it will cripple the city’s pension system and allow unions to go after more costly benefits. The contract allows firefighters a 3 percent compounding cost-of-living adjustment. One fire chief, who retired in 1991 at a salary of $54,616, already receives a 6 percent compounded COLA and is one of the state’s top pensioners at $165,247, but in another five years, his pension is expected to increase to $221,139. Read more...

Pittsburgh parking privatized for the sake of public pensions
Meetings are set to discuss a plan that will privatize parking garages to pay for the municipal pension system. The plan is to lease 12 garages and 9,000 parking meters to bring in a one-time lump sum of $200 million and transfer it into the pension system and another $105 million for the Parking Authority. Read more...

South:

GA state health plan losing financial ground
Georgia’s State Health Benefit Plan could go broke by next spring. Consequently, state workers will see their contributions increase by ten percent for a second time in two years. The state Legislature has already shifted $33 million from the state treasury, and is applying for $100 million in federal money, to meet their obligations for these benefits. Read more...

Central:

Biz bankruptcies up 3.8% in St. Louis
The number of business bankruptcy filings in St. Louis increased 3.8% in the second quarter. There were 110 individual cases which is a new high. Business bankruptcies are up 13% over the last 12 months. Read more...

Omaha mayor proposes controversial 4% tax on restaurant, bar and catering bills
Omaha Mayor Jim Suttle’s new 4% tax proposal for restaurant, bar and catering bills is not too palatable for local restaurant owners and industry leaders. If the tax is passed, Omaha restaurant or bar patrons will be paying 11% on their bills in taxes. Read more...

West:

Oakland’s next target will be taxes
Oakland lawmakers may put a handful of new taxes on the November ballot, including an increase on marijuana businesses, from 1.8 percent to 8-10 percent, a 7.5 percent tax on garbage and water services, a parcel tax of $360 per home to help pay for police services, and an increase in the sales tax by .25 percent. The city is struggling with a $50 million deficit. Read more...

Former L.A. mayor says in two years the city could forgo libraries and parks for pensions
The former mayor of Los Angeles told a group of activists, L.A. Clean Sweep, that unless lawmakers address the rising costs of pensions the city will have to close public parks and libraries within the next two years. The Los Angeles Times goes on to say that the mayor has already laid off nearly 100 library workers, cut library hours, and sent out layoff notices to child care workers at local parks. Read more...