January 18, 2012
-{6:52 am}-
Filed by trumwill from Statehouse, Car

Roadside Symbols

As I have mentioned in the past, it’s a bit ironic that so many of the white cross arguments involve Utah. By “white cross” arguments, I mean the desire on the part of secularists to do away with the tradition of white crosses to mark the death of someone. The ironic thing about Utah is that it is the one state in the continental United States where the cross is not a symbol of the dominant religion (Mormons don’t really do crosses). In fact, it’s Utah first and foremost that I look at and actually believe that no, the cross does not have to be an establishing symbol of a specific religion (or series of religions). If that is what Utah were going for, they’d have little tooting Moronis on the site of the road. Or something.

As far as such crosses go, I can understand the objections even though I don’t actually share them. If anything, Christians themselves should be kind of anxious about their holy symbol being used for something that isn’t religious in nature. Sort of like the secularization of Christmas.

Arapaho makes extensive use of roadside crosses. And there is more of an establishment concern here than elsewhere, because they are put up by the state. There is one stretch of dangerous highway where my wife and I counted 30-something over just a few miles. They were put up by the state to underline, once twice and thirty-something times to drive carefully.

And part of the problem is that there is no other symbol that you see on the side of the road and know immediately what it means.

Which brings me to the point of this post: If crosses are really a problem, those that want to take the crosses down need to come up with a replacement. That would sell me on the issue. Instead of saying “Take down that cross” they should say “How about we use this instead.” I don’t know, and don’t really care what is used. It could be just a white stake in the ground. Something immediately recognizable and identifiable. Arapaho can put up a sign as you enter the Danger Zone saying (more concisely so that people don’t get into accidents as they try to read the sign) “Hey, you’re about to see a bunch of white stakes in the ground. This is where people died. So drive carefully!”

January 16, 2012
-{6:27 am}-
Filed by trumwill from Statehouse, Rec Room

Boss, Love and Power

This post is at least partially about the new TV series, Boss. It will contain little in the way of spoilers and will also not require you to have actually seen the show.

In the beginning of the first episode, Chicago Mayor Tom Kane (Kelsey Grammer) is hit with what may be the worst medical diagnosis there is, something called Lewy Body. It’s a cross between Parkinson’s and Alzheimers. His body, and his mind, are betraying him. His time left as an independent, cognoscente person is perilously short. The show is about Grammer’s attempts to conceal his illness and reaffirm his political power in the face of various external and internal threats.

It’s not The Wire, but I thought it was a really good show. If I were Tom Kane, though, it would have likely been a very boring show. It would have been a show about using my last day’s to assure a stable and ordertly transition into quiet retirement. Kane, though, fights on. The only transition he tries to manage is to replace Governor Cullen (Francis Guinan) with young upstart State Treasurer Zajac (Jeff Hephner), and rather than backing down from politics, he throws himself further and further into it. The notion of backing down, or losing, never occurs to him even to the point where he does something that left me literally uttering “Oh, my god.” It becomes apparent, as the show progresses, that Kane has little or nothing to retire to. He is in a loveless marriage and he and his wife both disowned their only child in the name of political expediency. There are some attempts to reconcile with his daughter, but that’s about as personal as he gets.

The whole mentality is rather alien to me. That’s one reason why I would never have a successful career in politics.

Of course, I look back at some political figures in astonishment at the degree to which they went the opposite track. There was a young politician in Colosse, Alex Leventis, who had an astonishing career ahead of him. Some were saying that he could go on to become president. A moderate Democrat, he was thought highly of across party lines. Then, in an announcement that everyone assumed was going to be for a gubernatorial bid, Leventis announced his retirement from politics. Nobody had any idea why. Less than a decade later, Leventis was in prison.

The bizarre thing about the Leventis story is what it came to be apparent did happen to him. He fell in love with a stripper. Apparently, an avaricious one. And in an attempt to make her happy, he did things in his political office that he shouldn’t have done. He retired to go to the private sector (and so that he could marry a former stripper without cocking as many eyebrows) and made more money there until his past caught up with him. The guy that everybody loved suddenly had no friends. He’d burned his bridges with Democrats by being something of a maverick. He’d burned his bridges with Republicans by being a Democrat. The stripper left him while he was in prison.

Leventis and Kane represent opposite sides of the political spectrum. One who threw it all away for the woman that he loved and the other held on tight in part because he loved nothing but what he had.

December 6, 2011
-{5:48 pm}-
Filed by trumwill from Statehouse

Bad Fiction: The GOP Field in 2012

A while back Knight asked me to do a write-up on the Republican presidential field in 2012. I still haven’t done a candidate-by-candidate evaluation (and don’t expect to), but I took my response to him on that post and turned it into an entire post over at the League:

It occurred to me the other day as I was leaving a comment elsewhere: if someone had written a TV show and the plot followed the current Republican primary, I would have some serious problems with it. Namely, I would pan the show as unrealistic. A joke. Liberal Hollywood’s parody of what the Republican Party is. Herman Cain? Who the hell acts like that. There is no way that a party would seriously give a serial-adulturing, ideologically muddled, lobbying-compromised former House Leader a shot at the nomination. Hollywood couldn’t devise a more repugnant figure as the potential head of a party that they want noting to do with. The comparisons between Rick Perry and Rob Ritchie have, of course, frequently been made. But in some sense, Ritchie would seem downright normal compared to a lot of the candidates. And though the connection hasn’t been made, I see some similarities between Mitt Romney and Bob Russell, the simply unpalatable (to many) candidate who doesn’t belong there but is there because he’s there and his biography doesn’t entirely discount his presence.

Of course, what would be missing from a TV plot is the “good guy” Republican. Which is to say, the Republican that demonstrates his commitment to morality and apple pie by spending his time criticizing other Republicans (as opposed to Matthew Santos, who demonstrates his commitment to morality and apple pie by being well to the left of Democratic Party candidates). Jon Huntsman comes close to this, but more recently has revealed himself to actually be pretty roundly conservative and the sense of “moderation” is more about temperament than policy. Also, whatever else might be said of him, he is not “leading man” material in the way that even Bob Dole was. Unless it was all a comedy. And, for that matter, maybe it is.

Since this is an overtly political post, I am turning off comments here. The original post has drawn a lot of comments, or if you want a place where it won’t be lost in a sea of comments, you can put your two cents in here.

October 27, 2011
-{8:18 am}-
Filed by trumwill from Statehouse

Should FICA Be Considered A Tax?

In response to Web’s post on the 53%, wherein Web points out that even the 43% who “pay no taxes” contribute in the form of payroll taxes, Brandon Berg asks:

Are we agreed, then, that Social Security and Medicare are welfare? Because if they’re insurance programs, then the contributions aren’t really taxes.

It’s an interesting question. Social Security and Medicare are both sold as (mandatory) “insurance programs” instead of tax and welfare*. For the sake of this post, I am going to focus on social security, though most of the arguments carry over.

There are two basic possible answers to this question:

  • No, it’s insurance. The payouts aren’t “unearned” because you have to put in in order to take out. And what you get in return will correspond roughly with what you put in. If you have a low-wage job or an uneven job history, your social security checks will be smaller than if you work regularly at higher wages. These payments are made without regard to need (there is no “means-testing”) and high-earners do not pay into the system above a certain amount (roughly $107k) because their payout checks will not correspondingly go up upon retirement.
  • Actually, it’s welfare. It’s a wealth transfer from the young, who are paying out, to the old, who are receiving. The original recipients did not put any money in. The correspondence between pay-in and take-out is rough at best. The revenues generated from the payroll taxes are not treated especially differently than other revenues.

People tend to make arguments on either side of this as it suits them. I am, in fact, no different. I tend to get aggravated when people talk about the hypocrisy of folks who decry “hand outs” but cash the social security checks. My reasoning is, basically, that they put money in their entire working lives and therefore what they are receiving is not a “hand out” as much as a social insurance payout. At the same time, I take a view similar to Web’s with regard to the 53%/47% question: If you pay FICA, you pay taxes.**

Is this contradictory? In a way, yes. If someone pays FICA and only FICA to the federal government, and social security is an insurance program, then they are paying insurance and not taxes. And if someone is collecting a social security check that they are not presently working for, they are in fact accepting hand outs not much different than the person on food stamps that they are criticizing because the money they put in actually already went out to someone else or into some other program and certainly wasn’t earmarked for them. So I guess I am having it both ways.

But that’s because it is a complicated question. And I guess, to some extent, I can’t entire view it as an either/or proposition. The income is a tax, but the outgo is an obligation of sorts. And the full name of FICA is the “Federal Insurance Contributions Act tax”, containing both the words “tax” and “insurance.” So it was intended to be both, at least to some extent.

This is an unsatisfactory answer because it lets people (like me!) make arguments on whichever side of the hybrid is more convenient. While I tend to believe my parsing is justified, I get annoyed with people on the other side of various issues, defending social security as an insurance program but then at the same time suggesting that means-test it or criticizing people for accepting the payouts. Or alternately, arguing that FICA taxes “don’t count” because they’re not real taxes but then arguing that the things they pay for are “entitlements” (and therefore, tax-based). I’m not sure that there is any way around this, though.

Some have suggested that we dispense with the “insurance” aspect of it, collect it the same way that we collect other taxes (ie less regressively). But, except when it’s not, the illusion that it is its own thing is too convenient to get rid of, ultimately. I suspect that, as we look for ways to tighten the budget, we will start doing more and more things that make it seem like tax-and-welfare (lift FICA caps, means-test). But I don’t think we will ever stop calling it insurance.

* - Web questioned how we define “welfare.” For the sake of this post, coinciding with what I believe to be Brandon’s intent, we will define welfare as “Money from the government, either to the recipient or directly to somebody else specifically on the recipient’s behalf, spent on something other than basic infrastructure, which the recipient did not earn nor do anything positive to entitle themselves to it.” It’s not a perfect definition and subject to interpretation on the meanings of “basic infrastructure” and “positive,” but it will have to do for now. Perhaps at a later point we will explore the subject more thoroughly.

** - And arguably, even if we didn’t actually call it a tax, it is psychologically indistinguishable from a tax. My wages from substitute teaching are so low that almost no money is taken out by the federal government in the form of direct income tax. But when I look at the difference between my gross pay and how much I take home, I think “tax.” The same was true when I was a teenager working at minimum wage.

-{This is a political issue and there’s certainly no way around that. So this is not one of those “no politics” posts. I do ask, however, that we refrain from presuming that those who disagree with us are lying, stupid, selfish, or less good and noble people than we are. I do suggest that people are using terminology out of convenience, but I do not suggest that any particular side is being fundamentally more dishonest than the other. It’s easier to discuss things when we operate from this perspective.}

September 7, 2011
-{8:04 am}-
Filed by trumwill from Statehouse

Internet Sales Taxes & Revenue Streams

Ramesh Ponnuru makes the argument for sales-state-side sales taxes for interstate commerce:

A far better solution would be for states to levy sales taxes based on where products are coming from rather than on where they’re going — or for Congress to tell them to do so. Under an origin-based tax rather than a destination-based tax, for example, Washington state would have the power to tax Amazon.com’s sales. For physical stores, sales taxes would keep being collected as before.

The immediate problem with this is obvious: Shipping centers (and/or corporate headquarters) would all relocate to states with no sales tax. Pannuru notes this, and actually approves.

This would be a much simpler tax system with lower compliance costs. It would tend to constrain sales taxes by increasing competition among the states: A state that raised its rates too high would induce businesses, particularly catalog or Internet businesses that can sell remotely, to locate elsewhere.

Anti-tax fetishes aside, does this really promote good tax policy?

The answer is… partly, depending on your point of view. But ultimately, at least from my perspective, no.

By and large, those like Ponnuru that favor lower taxes would welcome more states either lowering the state sales taxes or eliminating them altogether. Typically speaking, the more revenue streams a state has, the more taxes it will ultimately collect. While you might think that, for instance, states with a state income tax would have low sales taxes, but it isn’t necessarily the case that they get you here if they don’t get you there. There are differences between how much each state brings in, and it’s the states that do not have one form of tax or another that tend to tax the least, in the overall. This is true of conservative-leaning states like Texas and Tennessee, but also liberal-leaning states like Washington and Oregon.

Having said that, some states have sales taxes with no income tax, and some states have income tax with no sales tax. So the question should be asked: should we be rewarding one over the other? And if so, which one?

Ponnuru is a conservative, so you would think that he would favor the sales tax over the income tax. The sales tax is broadly more regressive. The income tax provides very specific opportunities to, as Ponnuru might see it, “stick it to the rich.”

From a practical standpoint, though, I really prefer state sales taxes and property taxes over income taxes. Most notably because the federal government already collects a pretty hefty income tax. So while a sales tax might go from 0% to 7%, a state income tax is raising overall levels of taxation from what might already be 25%. In other words, the income tax hurts a specific activity more, while the sales tax targets another that is untouched at the federal level.

In the greater scheme of things, perhaps this should matter since a state government that spends 10% of its state’s GDP is going to get its money anyway. But each of the taxes target a particular activity, and there are questions about whether or not you want to target any specific activity too much. An excessively high property tax, for example, encourages people to buy or rent smaller housing accommodations. Sales taxes encourage people to buy things outside of the sales tax zone (as it pertains to Ponnuru’s idea, to buy from online companies based out of Oregon or Montana). Income taxes can discourage second household jobs, working overtime, or taking on additional responsibilities for additional pay that they will be seeing less of.

While there are arguments to avoid balancing taxes too much, as that can simply lead to higher overall taxation (not necessarily a bad thing, but it certainly is in Ponnuru’s worldview), if we’re going to focus state revenue on only one or two of the streams, I don’t see any particular reason why we should favor the income tax over the sales tax (except progressivity, but you can account for that with the property tax).

So if Ponnuru’s policy were to be enacted, the end result is that states like Washington which have high sales taxes and no income tax would become states like Oregon. And while Oregon might be preferable to California for its overall legel of taxation, it seems far from clear to me that the Oregon model is preferable to the Washington model and should be rewarded for it.

August 24, 2011
-{8:50 am}-
Filed by trumwill from Statehouse

Uncle Sam’s Take

I’m finally starting to get paid for my Commodus work on a more regular basis. The paychecks are nice. A little too nice, actually. Uncle Sam and the state are only taking out about a third, when it needs to be about 40-45%. This was not entirely unexpected. Though I had taking 0 deductions, anything I make goes to our highest tax brackets. They had a formula that you can use in order to take more out, but it appears that you can’t say “take out an additional 10%” but only “take out an extra $x.” Which would be fine if my paychecks were a constant amount. But depending on if I have scant work or am working overtime, they could be taking an extra $100 out of a paycheck for $120, or taking $100 out of a paycheck out of $x,000. Until my hours stabilize, I’m going to just have to remember that I am going to owe the government(s) some money.

August 16, 2011
-{4:04 pm}-
Filed by web from Statehouse, Elsewhere

Dissecting Ron Paul

I’ve got a number of friends on Facebook today who have jumped on the question of “why is [insert media outlet name here] ignoring Ron Paul in their Iowa Straw Poll coverage when he took second?” It seems that there are a number of people who, if not being Ron Paul supporters, are at least giving Ron Paul a look (and seeing the tone of his media coverage as something sinister) after his performance in the latest debate.

Looking at his positions over at On The Issues, there are some things I can appreciably get behind. Of course, there are also things that it’s hard to get behind as well, at least for a number of people. Still, I suspect that for a number of the positions he takes, Ron Paul at least carries the same positions as some of the other groups - Tea Partiers, Republicans, Democrats and his actual home party, Libertarians.

Why, then, would media outlets not want to bother covering him? Well, for one, a Straw Poll is completely nonscientific. It’s not a ballot-box primary. It’s not even a caucus. It’s a matter of figuring out how to bus your supporters in, drive them in, or convince them to show up and either pay their $30 ticket or convince them to pay for it themselves. According to the indicated figures, there were ~4000 people who took tickets provided by the Bachmann camp and voted for somebody else. I’m willing to bet a good number of them went over to the Ron Paul camp.

Second, Ron Paul’s supporters have a reputation for being a little… ahem… cuckoo. As in, they have a history of hijacking straw polls and unscientific, uncontrolled online polls and making a mockery of them, even using hijacked computers to spam online polls. In many ways, the Ron Paul supporters remind me of the Lyndon LaRouche supporters who used to pop up in various places on the SoTech campus trying to sell buttons, coffee mugs, reading material, and above all else, entry into the Cult of LaRouche. In 2004 and 2008, LaRouche supporters heckled the Democrat party debates before being escorted out of the auditorium; in the last debate, the Fox “chatroom” for the online stream was so spammed by Ron Paul supporters that no other discussion other than “why isn’t every question directed at Ron Paul” could be had.

The sum total of this is that I don’t really think the media are giving Ron Paul a disservice or failing in their duty by not giving him wall-to-wall coverage. Ron Paul’s been in the position of “winning straw polls, never gaining real traction” before. His supporters are highly motivated, more than enough to spam and tip straw polls and unscientific online polling. At the same time, they aren’t very numerous, and we eventually have to look at what they are selling - Ron Paul.

Here’s where it all falls apart. Ron Paul, while sincere, is sincere in the same manner that makes people look at the Lyndon LaRouche crowd, or the Al Sharpton crowd, or the Tea Party, or any other fringe movement and say “wow, there goes a nutcase.” He’s almost an octegenarian, but he can go into incredibly manic periods during interviews. He may make some good points, but he has a habit of making them in the worst possible way - that “blowback principle” audioclip, where his voice went squeaky/creepy, was on talk radio stations for months afterwards.

At the end of the day, they’re selling “Crazy Uncle Ron in the Tinfoil Hat.” And few people are buying, media coverage or not.

June 16, 2011
-{9:56 am}-
Filed by trumwill from Hospital, Statehouse

Medicine & Politics

As Physicians’ Jobs Change, So Do Their Politics

They are abandoning their own practices and taking salaried jobs in hospitals, particularly in the North, but increasingly in the South as well. Half of all younger doctors are women, and that share is likely to grow.

There are no national surveys that track doctors’ political leanings, but as more doctors move from business owner to shift worker, their historic alliance with the Republican Party is weakening from Maine as well as South Dakota, Arizona and Oregon, according to doctors’ advocates in those and other states. {…}

Because so many doctors are no longer in business for themselves, many of the issues that were once priorities for doctors’ groups, like insurance reimbursement, have been displaced by public health and safety concerns, including mandatory seat belt use and chemicals in baby products.

Even the issue of liability, while still important to the A.M.A. and many of its state affiliates, is losing some of its unifying power because malpractice insurance is generally provided when doctors join hospital staffs.

Because doctors are, apparently, completely unaware that the medmal liability insurance that their employer has to pay on their behalf comes at the expense of the value that they add (and therefore the compensation they can demand) to the overall organization. Oh, and the reimbursements they make are completely unrelated to how much of a salary that they can expect. I can buy that these things are not as much on the forefront of their minds as they previously were since they are negotiated or paid by their employer, but there’s something in the air in Maine if doctors up there no longer think medical malpractice doesn’t matter to them. Or more likely, it’s not an issue there because the issue isn’t pressing because Maine has remarkably low malpractice insurance rates despite the lack of traditional tort reform.

It also entirely contradicts my experience. Even in tort-unfriendly states, frivolous lawsuits weigh very heavily on doctors minds. It weighs on my wife’s, despite the fact that her medmal is paid for. It matters above and beyond dollars and cents. It’s partly a matter of pride, wherein a doctor doesn’t want to have to explain to a jury of 12 people who know little of medicine while the baby didn’t have a chance while John Edwards is on the other side talking to the dead baby’s spirit. Maybe this is impossibly arrogant. Maybe this is foolish. But in the years I have been surrounded by doctors - some liberal, some conservative - I have never once heard that it’s not a big deal. If anything, I think that they are too obsessive over it. But then, that’s easy for me to say because it’s not my ass - and career - on the line.

Unfortunately, this “see, they’re coming around!” tone taints my view of the rest of the article. But really, I think that there is something to the article in its totality. Particularly in family medicine, which is disproportionately populated with women and less entrepreneurial men. But I wouldn’t be surprised if it’s happening more generally. Doctors are, I think, caught between two realities. The first is that they have lived in a very Republican world. They worked hard, they were smart, they got ahead. Others that worked hard and were smart got ahead, too. It’s a very meritocratic atmosphere. Then, when they’re out of their education and residencies and/or fellowships, they are thrust into a world where they have mountains of debt but are getting taxed like they’re rich. Further, they’re taking care of people who have often broken their own bodies through ignorance or gross misjudgment and expect someone else to put them back together (almost always having worked in charity hospitals, where the expectation is that you will do so on someone else’s dime). This all lends itself to a more conservative worldview. Even the liberal docs I know have suspicious attitudes towards those below the working class.

But on the other hand, there’s this: they’re educated, high-earning individuals. This group has been trending Democratic for a while now. Regardless of the merits of conservatism and the Republican Party, the peer pressure is leaning against it. The Republican Party has become increasingly embarrassing, on a social level. The party that went from embracing George H. Bush to embracing his son to embracing Sarah Palin. Yes, yes, conservatives can argue that George W. Bush wasn’t actually conservative or was a RINO, but among the friends and colleagues of educated individuals, that is not the perception. Medicine and engineering seem to be the last two strongholds of educated, white collar (or white coat, anyway) Republicanism. So, especially when considering the demographic shifts (women into medicine, foreign imports into engineering), it’s not surprising to see the movement.

Obama, whether by benign policy or crude politics, is making the transition particularly easy for primary care physicians. Regardless of our resistence to his health care plan, there is at least the sense that Obama “has our back” in a way that previous presidents did not. By “has our back” I mean the backside of primary care docs and their families. He named a primary care doc as surgeon general. His reimbursement restructuring favors primary care over specialists. At least rhetorically, he “gets it”. He also defines “rich” as income above what most primary care physicians will make (and those who do make that much are more likely to have been doing it a while and less anxious about it). If it’s all rhetorical or political posturing, it’s really quite shrewd. Driving a wedge between primary care docs and specialists isn’t particularly hard and primary care docs are more likely to be supportive anyway, for a variety of reasons (more likely to be female, less likely to be money-driven).

I don’t know how this would translate to specialists, though, and the extent to which the Democrats may be making gains there. Obama hasn’t been as kind to them, though he might not need to be. Since they earn a lot more than their primary care counterparts, they might feel less stingy when it comes to taxes as they can pay off their student loans and such a lot faster than primary care docs can.

Or it’s possible that the NYT is drawing a trend from nothing but some weirdness in Maine.

June 14, 2011
-{4:10 pm}-
Filed by trumwill from Statehouse

Coming Out Of The Closet

As discussed previously, Hit Coffee is a non-partisan, generally apolitical site. So much so that I have taken pains to conceal my own ideology. I don’t really know how successful I’ve been, but even if I’ve been failing the attempt has kept me from going off on political tangents and has forced me to at least try to represent both sides of issues I’ve discussed (usually tangentially) with neutral (non-partisan, at least) language. Now that the tone of the site is set, though, I think that I’m ready to take another step forward. Partially because some of the things that I would write about, I can’t without disclosing this tidbit, and partially because it looks like I might be doing some contributing elsewhere. So without further ado, I am… (more…)

June 6, 2011
-{9:09 am}-
Filed by trumwill from Statehouse, Market

No Longer Going Postal?

Businessweek ran an article on the Postal Service that’s creating a lot of buzz. Basically, it’s in pretty bad shape. What else is new? In this case, it’s actually running close to complete implosion:

Since 2007 the USPS has been unable to cover its annual budget, 80 percent of which goes to salaries and benefits. In contrast, 43 percent of FedEx’s (FDX) budget and 61 percent of United Parcel Service’s (UPS) pay go to employee-related expenses. Perhaps it’s not surprising that the postal service’s two primary rivals are more nimble. According to SJ Consulting Group, the USPS has more than a 15 percent share of the American express and ground-shipping market. FedEx has 32 percent, UPS 53 percent.

The USPS has stayed afloat by borrowing $12 billion from the U.S. Treasury. This year it will reach its statutory debt limit. After that, insolvency looms.

A few years ago, when the USPS was talking about cutting out Saturday deliveries, there were howls of protest. I’m not entirely sure how many would protest that now. The USPS would actually have been better off if this had happened five years ago, when the prospect of life without the Post Office might have seemed scarier.

The right has latched on to the notion that this is a public sector unions issue. But it does deeper than that. The main issue is that the USPS is an uncomfortable mixture of independent and governmental. They are independent insofar as they are expected to fund themselves. They negotiated their own deals with the unions and such. But they’re governmental insofar as the government can prevent them from doing some of the things they would need to do in order to become solvent again. It’s not just the unions that don’t want post office locations to close, but also congress. And their relationship with the government makes it difficult for them to raise prices to the extent that they can become solvent again. There’s really no excuse for them to be losing money on junk mail, for instance, but they can’t unilaterally raise the price. (Is there a junk mail lobby that stops congress from doing this? I’m not sure. It wouldn’t surprise me if this were an issue where of concentrated benefits and dispersed costs where the concentrated beneficiaries have undue influence.)

But ultimately, this brings to light the question of what, precisely, we want from the post office. And how much we’re willing to pay for it. The Postal Service incurs costs that UPS and FedEx don’t due to statutory requirements that they delivery to everywhere and that they do so every day. There are many that are suggesting that if left to the private sector, some places wouldn’t get mail delivery or would do so only at very steep rates. As though that is what is causing all the problems. While it is true that there are some places that UPS and FedEx won’t deliver, they are actually very few. Mostly parts of Alaska and on reservations. They really aren’t the problem. And FedEx and UPS actually charge pretty competitive rates whether a package is being delivered to the city or the country. I ran some checks on Glasgow, MT (pretty much defined as the middle of nowhere) and Denver and Seattle in a package shipped from Tampa. Sometimes the delivery was more expensive. Sometimes it was cheaper. But it was never a huge difference.

So at least in theory, we could simply have a stripped down USPS that delivers to the places that UPS and FedEx won’t at a fraction of the price. That still leaves the issue of door-to-door mail. Right now, the Post Office ostensibly has a monopoly on that, though when you try to pin down what exactly the monopoly consists of. It’s illegal to use mailbox and I’ve heard from at least one person that they can’t deliver “non-urgent” envelopes. But even if they could, I doubt they would do so competitively with the USPS. Or that they would want to so long as the USPS actually exists. So if you got rid of the USPS, would either of them step up? Would both? I would imagine that at least one would, but the price increase would probably be substantial.

So I think that the answer for the Postal Service falls into one of three categories: (1) beef it up and offer services that post offices in other countries offer, such as scanned mail and bill-pay, (2) raise prices and reduce costs as necessary to be profitable, or (3) marginalize losses by scaling down and becoming the sender of last resort. I think a lot of the services they would provide in the first would give a lot of Americans the heebie-jeebies. The second is difficult or impossible between the union contracts and congressional meddling to go forward with. The third would likely involve will-call and weekly deliveries, which would also be difficult to square with the unions. So all of these are pretty problematic, leaving to the fourth option: just pay the piper. Undo the legislation that forced the Postal Service to be solvent in the first place. That, I suspect, is what is going to happen.

Regarding the unions, I have three things to add. First, I agree with the left that union wages are not the primary issue. There are reasons why the USPS would spend a higher portion of its money on people: you need them to deliver door-to-door. You spend on people what FedEx and UPS spend on planes. And salaries at USPS are not actually higher than those at UPS, from what I understand. Second, while salaries are not the issue, the inflexibility regarding hiring and firing are. The most obvious route to solvency appears to me to be a reduction in services. But the cost savings would come from personnel reductions that would be hard to negotiate. Third, I do believe that the government has to live up to the pension promises that it made. I think that there is a grace period to such things, but the grace period has passed as far as the USPS is concerned. However, and this is important, this is why we should never, ever make these promises to begin with and making alternate arrangements for new employees to whom these promises have not been made. When you find yourself in a hole, the first step is to stop digging.

June 1, 2011
-{1:58 pm}-
Filed by trumwill from Statehouse, Car

TLOOG: The Car & The City

The folks over at The League have kindly given me a forum to talk about why I believe that the end result of increased fuel costs, fuel taxes, or road taxes will result in the strengthening of the suburbs at the expense of cities:

Peak Oil has been right around the corner for decades. Global warming requires a response that is going to make energy – oil in particular – more expensive. Commuters and drivers are subsidized with general funds. The solution to all of this is, of course, to stick it to the commuters. It’s nothing personal (ignoring everything negative we’ve said in the past about suburbanites), but we’ve got problems and it’s going to be up to them to change their lifestyles (which, coincidentally, we’ve never really approved of anyway). They’ll just have to take public transportation and live in walkable neighborhoods, like we do (or would like to, if it weren’t for the car culture making it nigh-impossible).

There seems to be an assumption, on the part of a lot of urbanists*, that solidifying our future (in terms of energy needs and/or the environment) or basic fairness (in terms of taxing negative externalities or subsidizing roads) will lead to a world more of their liking. If we just taxed gas or stopped requiring highways and parking (or if gas simply gets more expensive), the world will simply have to acclimate to their preferences.

As it happens, I do not oppose a carbon tax. I am in favor of increasing road taxes and fees so that the car culture subsidizes itself (though I do worry about it being regressive taxation). But I get off the train when we talk about the effect that these policies are going to have. Namely, while road construction and maintenance (for instance) subsidize suburban residents, they also subsidize downtown business. While the growth of suburbia was assisted by tax policy, now that people have gotten used to it, and now that our urban/suburban infrastructures have been built, I have enormous difficulty seeing mass conversion to smaller abodes, more restricted mobility, and so on. Not without a fight, anyway.

“But whether they want to or not, they’ll have to!”

Except that they won’t. Arguably, they will not be able to.

{Continue Reading…}

May 20, 2011
-{12:02 pm}-
Filed by trumwill from Statehouse

Small-Staters Are Americans, Too

It has become a widespread belief in some circles that our smaller-population states are pampered with outsized representation in the Senate (and, to a lesser extent, the Electoral College and the House of Representatives - though in actuality the best and least represented states in the House both have one rep). While this is true, without these mechanisms these states would be outright ignored. Even in the current system, the larger states arguably have undue influence. Even when a state like Montana or New Mexico is up for grabs, presidential candidates aren’t going to spend a whole lot of time there. Even though California and Texas are not up for grabs, Republicans will spend some time in the former and Republicans in the latter for fundraising reasons alone.

Of course, the complaints are not without merit. If you look at donor and beneficiary states, you see not only the red/blue distinction that many comment on, but an urban/rural distinction as well (the major exception being the rust belt). It’s a fair point. Also worth noting, however, is that in some cases it just costs more on a per-capita basis to service a large and sparse state than a primarily urban one. So if Wyoming is getting its mail, and New York is getting its mail, but on a per-tax-dollar basis the former costs a lot more than the latter, they’re not exactly getting a freebie. As Americans, they’re getting the same services as their urban counterparts because they, like their urban counterparts, are Americans and thus due the same services. The same goes for roads. It was Washington DC that drew the map for Montana. Should Washington then complain that it costs so much to service Montana’s roads in comparison to Rhode Island’s?

It also overlooks the fact that these states are often getting this money in return for a service. Surely, we wouldn’t consider a NASA engineer* to be the moral equivalent of someone getting federal food stamps, would we? But when people talk about beneficiary and donor states, they often fail to make these distinctions. Further, it’s advantageous not just to North Dakota’s economy, but also the United States government when we put nuclear silos there rather than upstate New York because it’s cheaper. The same goes for Nevada* and Utah accepting nuclear waste, because it’s safer (except for Nevada and Utah, that is). And military bases in Kansas instead of California. It wouldn’t save the government any money to put these in any of the donor states. It’s not unlike saying that my car mechanic is a “beneficiary” because I pay him for goods and services and he doesn’t pay me (directly) for any.

Of course, you can even put these aside and you’ll probably still also find a disparity. Partially due to per-capita income, but also because rural states do exploit the senate in order to get earmarks and the like. I am not wholly unsympathetic to the undemocratic nature of it.

But the big states gain from the fact that they have larger congressional delegations. And so they have natural alliances that they can then use to get outsized influence. It’s easier for eleven reps in Chicago to team up than the sole representatives from Wyoming, Montana, and the Dakotas to team up with the two reps in Idaho, the three in Utah and Nebraska even if they represent roughly the same population. Further, even under the current system, the big states get almost all of the presidents.

The last 13 Presidents have come from Illinois*, Texas, Arkansas, Texas, California, Georgia, Michigan, California, Texas, Massachusetts. Kansas, Missouri, New York. Clinton is exceptional and Eisenhower’s base was the mighty US Army rather than sparsely-populated Kansas. All the others come from one of the 20 most-populous states.

So too do most defeated Presidential nominees. Since FDR beat Wendell Wilkie the losers have come from: Arizona, Massachusetts, Tennessee, Kansas, Texas, Massachusetts, Minnesota, Georgia, Michigan, South Dakota, Minnesota, Arizona, California, Illinois, New York.

Note the paucity of small-state nominees. Arizona wasn’t a major state when Goldwater ran while Bob Dole (Kansas), Mondale (Minnesota), McGovern (South Dakota) and Humphrey (Minnesota) were each Washington figures. If it’s tough to win the Presidency from the Senate it’s even harder to do so as a former governor of a small state.

Clinton, again, is the only ex-governor to reach the White House from one of the 30 least-populous states. Those states account for roughly 25% of the population and, obviously, 60% of governors and yet they produce very few successful candidates.

There are some good reasons for that: what works in a small state may not scale to national level and, just as importantly, the governor of a small state lacks names recognition in major media markets and, rather importantly, in major media newsrooms. Sure, you might have done a good job in your tiny, empty state thousands of miles from Washington but that means nothing on the national stage and it certainly doesn’t earn you the right to be taken seriously by sagacious pundits and handicappers.

All of this is more than compensated for by Senate representation, of course, and the electoral college benefit the senate seats give the small states (Al Gore would have won in 2000 is the EC counts had been determines solely by House representation).

Now (leaving aside for the moment the Chicago vs UT-ID-MT-WY-ND-SD-NE equation), in a perfectly democratic system, the response would be “screw the small states because they’re such a pitiful minority. If you want more representation, move!” But while we live in a democracy, we do not live under one whose primary goal is to represent the view of a majority of the people to the exclusion of everyone else. The states were designed to mean something. Maybe you consider them anachronistic, and in a sense maybe they are. But while you can argue “the founders never accounted for the kind of population differential you see between California and Wyoming”, it’s also the case that the initial compromise did intend for their to be disparities.

Of course, I am not an unbiased observer in this, seeing as how I live in a small state with outsized senate representation. But the same “move!” argument made above can be made here. If it’s that important to you, you’re more than free to join me in Arapaho. If you are disinclined to because of the lack of job opportunities or city amenities, than just consider it a bone thrown our way: We get maintained roads and mail service, too.

* - Florida (NASA), Texas (NASA), and Nevada (nuclear waste) are actually donor states. You get the point, though.

May 16, 2011
-{8:15 pm}-
Filed by trumwill from Statehouse

Fat Men for Prez

Below is the entire conversation, but the part that I am pointing to is here. The case for Chris Christie or Haley Barbour running as fat men.

My own sometimes-defenses of the obese aside, I do think that there is value in being a role model, and so in that sense Mike Huckabee and Newt Gingrich provide a better role model of sorts (err, as it pertains to weight, in the case of the latter). But I do consider it sad commentary that Christie’s weight did become an issue in the campaign. Whether deserved or not, the reputation of fat men is that they are lazy or undisciplined. Both Christie and Barbour have entire biographies that disprove this as it applies to them (regardless of whether one agrees with their policy positions or not).

On a sidenote, it’s odd that all four candidates mentioned are Republicans. Are there any really fat - or formerly fat - Democrats out there? Montana has a governor a little on the hefty side, and Maryland has Barbara Mikulski, but nobody else really comes to mind and nobody is talking about them for president. Al Gore? Bill Richardson? Neither were huge when they were public figures, by my recollection (though Gore got pretty heavy for a while after he lost). But most that come to mind are Republicans. Denny Hastert. A local congressman back home. Coincidence, or something to do with the female vote in the primaries?

There was actually a candidate for congress back in Delosa whose web-site had clearly photo-shopped his head. Actually, it was a pretty good photoshop job that just didn’t survive scrutiny. Up to that point he was actually considered a serious candidate. He wasn’t even that overweight.

April 13, 2011
-{2:28 pm}-
Filed by web from Courthouse, Statehouse, Elsewhere

False Confessions

Slate is running a series this week on cases where the justice system got it wrong; somewhat spurred by the Illinois legislation abolishing the death penalty, partly just a good conversation.

The author, Brandon L. Garrett, is a bit pimping his new book but is also providing a good look at two of the most widely believed - but at the same time not entirely reliable - types of evidence on which many criminal cases rely. The first is eyewitness accounts and identification, the second is the confession of guilt.

Now that we know—with the benefit of the DNA tests—that Sterling is innocent, one wonders how an innocent man could have guessed at incredibly specific crime scene details? Sterling later explained it this way: “They just wore me down.” “I was just so tired.” “It’s like, ‘Come on, guys, I’m tired—what do you want me to do, just confess to it?”"

In a pair of videos I link to very often, there’s a great answer to how someone “knows unreleased details” - the cops slip them to the accused in one form or another, or lead the accused into guessing until they have them “guessing right” on tape.

More interestingly to me, however - Garrett finally comes up with some hard numbers. I’ve chided the Innocence Project before about this, because they make a habit of releasing only their “number of innocent people freed” number, rather than giving us the chance to see the total number of cases they’ve examined. Will has said - and I agree - that even this may not be an exact figure, since IP only takes cases “likely to exonerate” on their early examination before proceeding all the way down the line, but it at least would give us something to work with.

Garrett, however, gives us a gem.

In 16 percent of the first 250 DNA exonerations, or 40 of the 250 cases I studied for my book, Convicting the Innocent, innocent defendants confessed to crimes they did not commit. (Additional DNA exonerees did not deliver confessions in custody, but they made incriminating statements or pleaded guilty to crimes they did not commit).

The false confessions pose a puzzle. All but two of the 40 DNA exonerees who falsely confessed were said to have confessed in detail.

Now, this is not perfect. His study is only on those cases that are proven false convictions. But we at least have a hard number here - 250 cases of proven innocent, 40 cases of false confession, 38 of which are said to be an “in depth” confession. And every one proven innocent almost-definitively by DNA evidence. This leads to at least a reasonable suspicion that confessions in districts across the nation are contaminated or even coerced by the cops - perhaps by cops who don’t know what they are doing, or perhaps by the type of behavior we commonly associate with not-so-honest cops who start and stop the recording on TV shows, only recording the parts of the interview they want to be available in court.

April 12, 2011
-{5:17 pm}-
Filed by trumwill from Statehouse, Car

Speeding Westward

The State of Texas is looking at raising speed limits to be the fastest in the nation:

The Texas House of Representatives has approved a bill that would raise the speed limit to 85 mph on some highways. The bill now goes to the state Senate, the Austin Statesman reports. {…}

Texas currently has more than 520 miles of interstate highways where the speed limit is 80 mph, according to the Associated Press. The bill would allow the Texas Department of Transportation to raise the speed limit on certain roads or lanes after engineering and traffic studies are conducted. The 85 mph maximum would likely be permitted on rural roads with long sightlines.

Texas is currently one of the only two states currently allowing 80mph speed limits on a few stretches. Utah is the other.

The two main groups against it are the insurance companies and environmentalists. Though I could have sworn I saw 80mph speed limits on my original move from Delosa to Deseret, I can’t find anything to back me up on that. So I guess I have never driven on an 80mph road. I would think that you would want to be careful about where you put them, but there are some stretches of road that are asking for it. Particularly in the great plains region. When moving to Deseret, I took a route that had me going north through (a tip of) New Mexico, Colorado, and Wyoming instead of the GoogleMaps approved route that takes you through Kansas, Nebraska, and so on. The main reason for the detour was the scenery, but if the great plains had 85mph speed limits, I probably would have gone that route.

April 8, 2011
-{11:08 am}-
Filed by trumwill from Statehouse, Coffeehouse

Lotteries: Pro & Con

The following are a couple of arguments for and against state lotteries. I often find that the best way to explore issues is to create arguments from the perspective of characters in my novel-writing. So that’s what I’ve done here. Neither BC nor RK are straight-line partisans, though they each have their histories and backstories. BC is coming from a more liberal perspective (particularly economics, he considers himself socially liberal but has a stubborn conservative streak on some issues). He comes from a Catholic, blue collar background, though he himself has gone to college and “made good”, so to speak, with a career in computers. RK comes from a thoroughly white-collar, WASP family. He went to law school, but is among those that had difficulty converting that into a sustainable legal career and instead works as a security/investigations consultant for a Pinkerton-like organization. He is a soft libertarian, but breaks to the right on some cultural issues.

The case against state lotteries (BC)

The role of a government in society is a subject of constant debate. Some believe that it is the role of society, through its government, to protect the least among us. Others believe that doing that interferes with the free market, which ultimately helps everybody or if not is otherwise more just. Whether we believe in the redistribution of wealth or not, one thing we should all agree on is that it should not be the business of the government to specifically target the poor and working classes for the benefit of the middle class and beyond. Ultimately, however, that’s precisely what lotteries do.

One of the jobs I had in college was working at a gas station and truck stop on the edge of town, right beside an industrial park. With the manufacturing sector struggling, I spent a lot of time serving people with generally poor economic prospects. Some of them worked in the industrial park, some stopped by just to go place to place in search for a job. Some worked part time. Some worked off the books for a meager income. One of my job functions was to cash checks. Often, very meager checks. Some days I would think that it is the responsibility of the government to help these people out. Other days I would think that the government already is often helping these people out and subsidizing self-destructive behavior. But even apart from the welfare quandary, the government already assists in their counterproductive behavior. Every Thursday and Friday, generally paydays, they would cash their checks and spend the first of their newfound money on three things: cigarettes, alcohol, and lottery tickets.

There aren’t any easy answers on what to do about cigarettes and alcohol. We could criminalize them, but that hasn’t really worked historically. We can tax them, but in addition to providing a (maybe needed) disincentive, it is also regressive. The end result isn’t that my patrons would buy less, but rather they would just end up spending that much more. But the third item - the lottery - is really extremely easy. Gambling is illegal in {BC’s home state}. While it still goes on, I’m sure, it’s made inconvenient enough that those that want to destroy their lives gambling will go to Las Vegas, Atlantic City, or Louisiana. The fact that they can instead gamble at any local convenience store creates demand. Markets tend to do that, and for some things (like the City of Las Vegas) perhaps it is the free market at work. But state run lotteries are not. They are run by the state. The enemy isn’t some marketing guru in a Vegas high-rise that has determined that if you add this smell and take away the windows and clocks people will piss away more and more of their income. It’s the state. It’s us.

Lotteries are popular because they are generally instituted to pay for things that people like, such as education. Others like it because it “taxes stupid.” But aren’t the stupid taxed enough already? Not in the literal sense, but they will live their lives stupid. I have no delusions that my former customers would be a-ok but for the state lottery. They were often alcoholics or worse. Some of them maybe just need a good job to get back on their feet, but others would screw it up even if they had it. Their position in life is the result of their screwups. Due, in large part, to the fact that they are stupid. They lack impulse control. The odds against winning the lottery as so high that they can’t even wrap their heads around the numbers. They are (usually) the products of our public school system. It is the height of irony that our system takes money from the ill-educated to put right back into the system that failed to educate them in the first place. But even if the system can’t educate them, their own limitations mean that they will likely live their lives without financial or physical security. They will never be able to afford the lifestyle of the smart. They’ll never be able to achieve it. They’ll never be able to plan for it. While it may give us satisfaction to tax this, we’re aiming our barrels at people that cannot really take care of themselves or we’re contributing to the decisions that make it so they will not. One way or another, the state will end up taking care of them anyway.

Whether gambling itself should be legal is a difficult question. But even if we agree that it should, it shouldn’t be the government doing it. The only reason we might want the government to do it is if we believe that they will do it more ethically. But they see the same dollar signs that private industry does. {BC’s home state} recently fiddled with the rules to make already long odds of winning even more long. Because they, like any good marketing company, recognize that sales go up as jackpots rise. And jackpots rise when people don’t win. So less winners equals more money. They’ve essentially discovered the same scent that Las Vegas casinos push through their vents.

The case for state lotteries (RK)

It’s a fact of life that very, very few of us will grow up to be rich. The more you redistribute income, the more you’re preventing people from becoming wealthy in the first place. The less you redistribute income, you’re supporting a status quo in which the wealthy get wealthier while the rest of us get by. Sure, there are people that find the magic formula to become the new rich, but that is exceedingly rare. It requires risks that few want to take. It requires smarts that few have. So you have those that already have money - and lots of it. You have those that have the smarts and gumption to risk it all to become rich. But that’s not most people. Most people just want enough money to get by and a savings to retire on. That’s hard enough. Making millions? That’s for other people. It may be a depressing thought, but it’s true.

Lotteries circumvent that. They provide a way for anybody with a dollar in their pocket to become wealthy. Almost none of them will, of course. The numbers are out there for everyone to see. And even the innumerate among us know that the odds are longer than we can possibly imagine. But as they say, you can’t win if you don’t play. And if you can’t win, you can’t dream of becoming a millionaire. When you buy a lottery ticket, you’re buying more the long odds at a jackpot. You’re buying a ticket to dream.

This is particularly true when it comes to the working class and below. Not only will these people never be wealthy, but they will probably never be comfortable. They’ll likely never have a comfortable retirement. They’ll probably always be living from one paycheck to the next. The lottery doesn’t change this. This is the way of the world. But the lottery provides them the ability to imagine a different life. A better one. We’re talking about a lot of people who don’t have anything to look forward to. Even if it’s almost entirely illusory (and even if winners lives don’t actually improve), the lottery is a little, quiet voice that says “it could happen to you.” It’s a reason to get up in the morning. It’s a form of entertainment. We spent all kinds of money watching people throw balls of various sizes and shapes around. That’s a game we have no stake in. If our team wins, we don’t materially benefit. There is no material benefit at all, no matter what happens.

If you look at the lottery in this way, it’s no less counterproductive productive than paying $3 to drink a beer so that you can watch the game on the bigscreen or spending $50 a month for cable so you can watch a game on TV. Most members of society have their basic material needs met. Even the losers who used to come to BC’s convenience store most likely had a roof over their heads and were (statistically) more likely to be overweight than not eating enough. So what do you do with the rest of that money? There’s really no right answer. But the lottery is, itself, not really the wrong one. I remember reading a comic strip once that said “Leo forgot to buy his lottery ticket, so he decided to play the home version” and shows him burning a $1. But isn’t it worth something to have that ticket in your pocket, to turn on the TV and watch the news for the winning numbers, and for some portion of the day to imagine how life could be if you won? But almost nobody expects to win. It’s all part of a carnival roller coaster. It’s living.

And if we’re going to allow for this sort of thing, then why not have the state do it? The state may be no more responsible than private industry (something “my side” has been saying for years). But it’s profits to the state that would otherwise go to someone else. And, though this argument doesn’t appeal all that much to me, if you’re concerned about gambling, it makes the state less likely to legalize it writ-large, because it would cut into the state’s profits. Allow people to bet on horse-races or drop their quarters in casinos, then they will will devote less money to the system that the state profits from. And given the short time horizon on horserace bets and slot machines (which don’t even make you pull down a lever anymore), you run the risk of the dumb population throwing a whole lot more money a whole lot more quickly with just about any major form of gambling than a daily lottery outside of the stock market.

April 5, 2011
-{6:27 pm}-
Filed by trumwill from Statehouse, Car

The Drunk Man’s Rep

I know that Mike Hunt, Dave Hackensack, and others have suggested that there shouldn’t be any laws against drunk driving. Well, your cause has a champion!

When first tipped to the video, I thought that I might actually agree with him because he was against some new DUI law and I think we already have enough on the books (unless we’re talking about a new law to differentiate between buzzed driving and drunk driving). I don’t typically respond to political stuff on Facebook (or I try not to) anyway, but it’s sometimes after a fair amount of kvetching over what, if anything, I would say in disagreement with the Facebook Friend. I find it interesting that in this case, there was simply no way that I was going to say anything even though I thought I might agree with the video in question. The stigma against “defending drunk drivers” is really that great.

In any event, the law in question is actually a new law I can support. They want to extend prior act consideration from five years to ten. Apparently, Montana’s law currently says that a judge can consider previous offenses in the last five years and this would extend that to ten. I think that extending it to ten is probably a good idea. Caught once and you might have just been unlucky. Caught twice and there’s a good chance that you do it with alarming regularity. I can’t remember the exact statistic, but something like two-thirds of single-DUI arrestees meet the definition for being an alcoholic and when it comes to people twice caught, the number is north of 90%. Those really are the people that we need to be worried about.

March 31, 2011
-{10:33 am}-
Filed by trumwill from Statehouse, Car

The Origins of HOV

Unfortunately, I can’t link to the original article, but a long while back Joan Didion wrote a blockbuster piece on the creation of HOV Lanes. From Jon Last:

Caltrans decided that it would prefer to eliminate 7,800 of those vehicles—that was, literally, their precisely-stated goal—by forcing people to carpool. Thus the Diamond Lanes reserved 25 percent of the available highway space for 3 percent of the vehicles. As you might imagine, pandemonium ensued.

Traffic on the Santa Monica ground to a halt. The number of accidents increased by about 400 percent. The public flipped out. Lawsuits were filed; people scattered nails in the Diamond Lanes in protest. Apparently, people thought that Caltrans was trying to surreptitiously make their lives harder to achieve some statist social-engineering target. Why would they have ever gotten that idea?

Well, for starters, Caltrans leaned on the municipal engineer of L.A.’s surface streets. They didn’t have jurisdiction over these local roads, so they wanted him to create a “confused and congested situation” (their words) on the surface roads so that drivers would be forced onto the gridlocked freeways. And Caltrans knew that the freeways would be gridlocked, because that’s the way they wanted them.

From the other coast (and thirteen years ago), Joe Sharkey wrote:

In New Jersey, many motorists are annoyed because they’re suddenly faced with longer commutes on Routes 80 and 287 and in the newly opened stretch of the Turnpike where the HOV lanes opened in December. But often, their ire is directed at the next lane, not the highway planners.

‘’People punish others for using the HOV lane,'’ Mrs. Sanchelli said with a nervous laugh. ‘’In the HOV, you’re all the way over in the left. And a lot of times, they won’t let you back in. They’re brutal! Usually, I get off at the Morristown 287 exit on 80, but when they don’t let me over, I have to go down to the Lake Hiawatha exit a mile down, which throws me off by 10 to 15 minutes.'’

She said she would join a real car pool but, ‘’I don’t know anybody around me whose hours fit. I couldn’t even car pool with my husband, who goes in at 7 A.M.'’

Which really is the biggest problem with carpooling. Especially sprawling cases like Colosse where husbands and wives leave in different directions at different times. Back when I was living in Cascadia and commuting through awful traffic to get from Soundview to Enterprise City, I seriously considered looking into joining a carpooling club. But ultimately, I couldn’t because my hours varied too much. Even in jobs with more standard hours, sometimes I would want to hang around work city a while before going home. There are a whole lot of reasons that our lives cannot revolve around carpooling.

There has been a recent shift away from HOV to HOT (High-Occupancy Toll) lanes. Combining the two seems like a pretty good fit. Allowing those willing to pay more to get through quicker seems like a reasonably good “voluntary tax.” When I was working at Wildcat back in Colosse, my commute involved either driving on a toll-road or sticking to the free access road. Most of the time I did the latter, though when I was running late or in a hurry, it was really nice to have the former option. I am pretty indifferent to the notion of HOV lanes, but if we’re going to have them, stuffing them in with toll lanes seems like a good way to go.

March 22, 2011
-{10:18 am}-
Filed by trumwill from Statehouse, Market

The Taxman Visits the Amazon

Are Amazon’s days as a (mostly) tax-free merchant coming to an end?

Retail analyst David Strasser, a managing director at Janney Montgomery Scott, suggests that they could be. “There’s a lot of momentum building,’’ he said Friday. “(Amazon founder) Jeff Bezos has built a company strategically around avoiding sales tax. But they’re going to have to deal with this,” he added.

Wait a minute. Hasn’t Amazon successfully fended off pesky state tax collectors for 16 glorious years? Yes, but the battle has entered a new stage as Amazon builds warehouse/fulfillment centers in more locations, states grow hungrier for revenue, and a rising sales tax rate (it now averages 9.64% nationwide) puts retailers who do collect tax at an ever bigger disadvantage.

There was a time when I would have scoffed at the notion. And truthfully, I think that it’s great that online retailers got that benefit when they were just starting out so that we would get used to buying things online (which was once considered scary by some and foolish by others). Besideswhich, it seemed that what you saved in sales tax you lost in shipping (wherebouts). These days, though, you can almost always get something cheaper online with or without sales tax. When I lived in a state that did collect sales taxes from Amazon sales, I still purchased from Amazon.

But what started off as a perhaps-needed inducement to get people to shop online has basically become a tax loophole. It has also incentivized inefficient behavior, purchasing something from across the country rather than from down the street. And it puts some states at a real disadvantage. People who live in Pullman, Washington, for example, have to pay the sales tax while people who live six miles down the road in Moscow, Idaho, do not. And whenever I am on eBay, I remain glad that I am not a Californian because it seems that most of the stuff I order is from California. And, of course, Barnes and Noble’s early online push had to compete with Amazon while the former (generally) had to collect sales tax and the latter (generally) did not. Does it make sense to punish B&N for having storefronts and reward Amazon for not having them?

Of course, there are three things stopping us. First, people like the idea of tax-free and so it’s often an unpopular thing to do. I don’t think I am completely alone in coming around on this, though. And there has been movement in many states to see if they can find a way to collect it. That brings us to the second problem:

The back story is well known: In 1992, the U.S. Supreme Court ruled in Quill v. North Dakota, that only sellers with a physical presence (“nexus” in taxspeak) in a state are required to collect that state’s sales taxes. Just shipping into a state by say, FedEx or UPS, isn’t enough to establish nexus. Consumers still owe “use” (meaning sales) tax to their states, but few bother to pay.

Several years back, there was a big to-do in Delosa when the State Treasurer went after the State Insurance Commissioner (both were expected to be vying for the same job in the next election) for not paying sales taxes on some furniture he bought from abroad. It was expected that the Treasurer was trying to make his potential future opponent look bad as a “tax-dodger” but instead it just reminded everyone that they’re “tax-dodgers” too, in this regard. About the only place this is regularly enforced is with cars, because they can easily verify what they need to when you go to register it.

Anyway, back to the subject at hand. So the second problem is that there is a jurisdiction problem. I guess it’s hard to make a company that doesn’t have so much as a business license in your state pay taxes to it, though I’m not sure how this differs from income taxes. I know that as the resident of a state with an income tax and as an employee of a company without one, my employer is still legally bound to take withholdings for my home state. It’s one of the things that has been holding up my contract. I suppose they make some sort of distinction between collection and withholdings, or employees and customers. But the courts have spoken.

So then we have to the third problem, which is that the entity in the best position to do anything about it is not the one that would reap the benefits. Congress would be essentially seen as “raising taxes”, which is a political liability, without actually getting any of the revenue that comes with it. If they’re going to be tax-raisers, they might as well have an interstate sales tax that they collect themselves, if that’s constitutionally permissible (just about everything else is under the commerce clause).

So what happens now? Amazon relies pretty heavily on its affiliates. When one or two states threaten to collect sales taxes, Amazon can write off that state’s affiliates. But when every state does it, they could lose all of their affiliates and a lot of their utility. That would leave an opening for an affiliate-based rival to offer nearly as wide a selection as Amazon, but with sales tax. Amazon might indeed win such a war based on price, but it would hurt. Or Amazon and Affiliazon could both lose to eBay, which has an amazing selection, good prices, and is nearly impossible to tax, though also has a chaotic marketplace (hard to find what you want) and trust issues.

Of course, even if Amazon itself throws in the towel, the overall inefficiency problems are not solved. It still makes sense to order something from across the country on eBay than buy something across the street. It would ultimately just put Amazon in similar footing with B&N, Walmart, and so on. Which would be good for the competitors, though it doesn’t really solve this problem:

State officials have long lamented the shortfall and sought ways to collect a bigger portion by using a mix of education and threats. California, for instance, expects to be shortchanged $1.15 billion in 2010 from e-commerce and catalog sales, according to estimates from the state Board of Equalization.

Amazon is surely responsible for some of that, but so are a lot of others, who are not such easy targets.

February 27, 2011
-{11:22 pm}-
Filed by trumwill from Statehouse

Daylight Misers

Arapaho is considering a vote on whether or not to do away with Daylight Savings Time. As a critic of the custom, I mostly hope they do it. I say “mostly” because, while it would be nice to do away with spring forward and have earlier sunrises, it would also be decidedly inconvenient if Arapaho did it alone. That would mean that every time we crossed state lines, we would have to deal with a time change. We go to Deseret and Shoshona periodically. More importantly, though, the last time we flew, we flew out of Deseret and decided that it might be more advantageous to drive five hours to the major airport to get a non-stop flight versus driving a couple hours to Alexandria (Arapaho) and making a two-legged flight. It’s pretty easy to imagine us forgetting that Deseret is an hour ahead of us and missing a flight.

Most likely, the vote will fail. Apparently it has been proposed before. They nipped and tucked it this time around to satisfy some of the objections (Shouldn’t the people get to vote? What if the federal government mandates DST?). But I’m a proud citizen of one of the few states applying scrutiny to this DST madness.