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North Carolina - Democrats

22
Republican legislators, for years, have stood up and spoken up for free markets. It’s part of their creed. They don’t like government picking ‘winners and losers.’ But when a group of Republican legislators in Raleigh decided to sponsor a bill to break the hospitals’ monopoly on outpatient surgeries and put the free market to work – it didn’t appeal to the Hospital Association at all.

Right now, before, say, an orthopedic surgeon can do outpatient surgeries in his office instead of in a hospital, he has to get a permit called a ‘Certificate of Need’ from the state. And his chances of getting that certificate are slim to none.
 
Now hospitals, naturally, believe ‘Certificates of Need’ are a good thing – they say they protect consumers, prevent duplication, and hold down medical costs.
 
But those free-market-loving Republican legislators disagreed – they concluded what ‘Certificates of Need’ really did was grant the hospitals a monopoly by limiting their competition. So they introduced a bill that would let doctors do outpatient surgeries without getting a state permit.  
 
As far as the hospitals were concerned, that crossed the line – so they came out swinging, setting up a website and running ads defending ‘Certificates of Need.’ They also dispatched lobbyists to the General Assembly to show legislators the error of their ways. And, when the smoke cleared, the legislators’ free market bill ended up in the elephant’s graveyard of legislation – a study commission.
 
Afterwards, commiserating with a legislator serving his first term, an old hand in the General Assembly said, Well, now you’ve seen how government works first hand. The younger legislator bit his lip, shook his head wryly, and said, Yep. And it sure looks like the money changers have gotten inside the Temple.

 

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22
A good Democratic Party chairman would be blasting the McCrory administration’s budding ethics scandals. But that’s hard to do when you’re in Vegas putting $3,327 on the party’s American Express Business Gold Card.
 
Michael Biesecker with AP reported that Randy Voller “said he believes a portion of the Vegas charges, including a $557 dinner at a restaurant within the casino, were justified because he asked friends from across the country to give to the party and was therefore networking with potential political donors.”
 
Of course. Las Vegas is the perfect place for “networking with potential political donors.”
 
Or maybe you could just put all the party’s money on red and hope for the best. Or buy Powerball tickets. Yeah, that’s the ticket.
 
Here is Voller’s record so far: He didn’t pay his taxes. He was widely quoted – and rightly excoriated – for saying Republicans are “raping” the state. He apparently has dumped interim ED Tammi Brunner, whom I know, have worked with and respect. He named himself interim ED. He hired a $7,000-a-month national fundraising consultant, which is fine so long as you raise one hell of a lot of money. He and the consultant went to Vegas together for an annual March Madness trip he makes with his college buddies, who he suggests will “throw a fundraiser in their hometowns of San Francisco, Chicago, New York and so forth.”
 
And, by the way, he promises to investigate $800,000 in prior party expenses. Just the man to do it, obviously.
 
One Democratic TAPster noted the irony: people of conscience submitting to arrest at the legislature, while Voller and his friends party in Vegas.
 
And you ask if the Democratic Party can come back?
 

 

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21
There’re a lot of clever politicians and smart politicians but there’re not many politicians with the courage to take a stand they know is unpopular.
 
The other day, baffled by the raft of tax reform plans floating around the State Legislature, I asked an economist to explain the virtues of ‘consumption taxes’ to me – and he did in a simple way even an economic illiterate like me can understand: He said, Income is good, investment is good, saving is good – so tax them less; spending (consumption) is not so good – so tax it more.
 
Senate Leader Phil Berger sees eye to eye with that economist and he means to reform North Carolina’s tax code to base it on ‘consumption taxes.’  
 
Now, if you’re an average guy studying the tax code, it looks like an irrational muddle. But if you’re a politician studying that same tax code it doesn’t look so irrational at all – instead it looks like the labyrinthine result of legions of smart politicians, over years, carefully calculating which taxes they could raise without getting voted out of office.
 
For example, those politicians decided not to tax food because everybody eats. They decided not to tax prescription drugs because a lot of older people vote. The income tax code is ‘progressive’ because there’re fewer rich people than poor or middle class people. Farmers get the loopholes when they buy a tractor because rural politicians want to be friends with farmers.
 
The whole tax code, politically, is highly practical.
 
And that’s a problem Senator Berger ran into head-on. Because to cut taxes on income and savings, but to do it he had to raise taxes consumption. And to do that he had to close what my economist friend calls tax ‘loopholes.’
 
That’s logical. But it left Senator Berger facing a helluva fight. Because a senior citizen not paying sales taxes on his blood pressure medicine doesn’t see that as a ‘loophole.’ And neither do a whole welter of other groups who enjoy tax exemptions.
 
For instance, the Association of Realtors doesn’t see the home mortgage deduction as a loophole. And it doesn’t see switching to consumption taxes as a cure to the housing industry’s doldrums. So it’s running one ad saying folks will pay 25% in sales taxes (consumption taxes) when they buy a home and another ad with a young man saying, It’s wrong to take away my money for tax reform.
 
The Hospital Association doesn’t see exempting hospitals from paying sales taxes as a loophole either – so it’s weighed in, too, with an ad and website saying hospitals are fighting for their survival and closing their ‘loopholes’ is the worst kind of news for their patients.
 
And, of course, the Democrats don’t like Senator Berger’s plan – they let fly roaring his idea of tax reform is ‘regressive’ and will tax the rich less and the poor more.
 
So Senator Berger’s got a tiger by the tail. Before he’s done ‘closing loopholes’ there’s a fair chance he may be the most vilified elected official in North Carolina. But, anyway you look at it, you have to give Phil Berger credit: He’s no finger to the wind politician. People may be arguing for years whether he’s right or wrong – but, either way, you have to admit he’s got the rarest trait in politics: Courage.
 

 

 

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09
A group of Democrats was decrying the blizzard of bad bills they see from the legislature: cutting education, attacking renewable energy, making it harder for teens to get health care, loosening gun restraints, on and on. They were talking about what could be done to slow down the storm or persuade Governor McCrory to exercise some judgment.
 
Then one gray-haired veteran threw up his hands in mock horror: “Don’t stop ‘em.” They looked at him like he was crazy. He said, “Seriously. Let them go wild. Don’t do anything to slow them down. In fact, do everything you can to make them go even farther.”
 
By now they were sure he was crazy.  But he was thinking ahead, to next year’s elections:
 
“The worse it gets, the more good people will be inspired to run. The more good people will work for them and contribute to them. The more the voters will look a new direction. And the better we’ll do next year.”
 
He’s crazy like a fox.

 

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06
Who’d have thought it was possible – the Internet sweepstakes poker parlor folks have offered ‘to put $500 million’ in the state treasury – if the legislators will just see the light and let them stay in business.
 
Whoever heard of anybody volunteering to pay half a billion dollars in taxes? You have to wonder how much people in North Carolina are spending while sitting in Internet sweepstakes parlors? A billion?  $2 billion? $5 billion?
 
The story started last year when legislators voted to close down the sweepstakes parlors and put ‘em out of business;---of course the sweepstakes parlor operators didn’t much like that so they sued and took their lawsuit all the way to the State Supreme Court. At the same time, in case their lawsuit didn’t work out, the parlor operators got a couple of friendly legislators to sponsor a new bill to let them stay open – and that’s when they dangled that $500 million carrot in front of legislators.
 
And that’s not the only carrot: The newspaper reported sweepstakes operators also contributed $520,000 to politicians. And, a sweepstakes parlor operator told the News and Observer how, since last year, they’ve been spending $40,000 a week to pay lawyers and lobbyists.
 
That’s eye opening too. The politicians received $520,000 in contributions – while the lawyers and lobbyists were paid $2 million. Four times as much. What does that say about the ‘market value’ of politicians as compared to lobbyists?
 
The whole thing’s such a tangle it’s bound to land some of our well-meaning, church going Baptist legislators in a quandary: Righteousness must be whispering it’s wisest to shut the sweepstakes parlors down but temptation must be whispering $500 million is a lot of money to say No to.

 

 

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06
Chairman Randy Voller continues to embarrass himself and the North Carolina Democratic Party. Now it’s for saying Republicans are “raping” North Carolina.
 
After numerous Republicans committed political self-immolation last year by talking loosely about rape, you would think any man in politics would have the good sense to avoid the word. Not Voller.
 
Then he compounded the problem by seeming to deny he said it. Then he defended it, saying he used the word “contextually,” whatever the hell that means.
 
I already called on him to resign for not paying taxes, so I won’t repeat myself. Suffice it to say this isn’t helping the party when it needs a lot of help.

 

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03
Sharp-eyed readers no doubt note I goofed in “Foxx at the Wheel” (below): Mel Watt was named to head the Housing Finance Agency, which is not a Cabinet appointment.
 
Blame Twitter. I had seen a tweet about “Watt to Housing.” I misunderstood. It’s like what The Daily Show’s Jon Stewart said recently when a guest asked if he had read a certain book: “Well, no, but I did read a tweet about it.”
 
Speaking of Charlotte, one TAPster noted that Anthony Foxx’s selection is another sign of “the ascendency of Charlotte onto the national and statewide stage. Remember it wasn’t long ago when a Charlotte guy could not be elected statewide.”
 
Now Charlotte guys are Governor, House Speaker, DOT Secretary-designates and potential Mortgage Czar.
 
We can officially retire the mythical “Charlotte curse.”

 

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02
Liddy Dole rode DOT to a Senate seat from North Carolina and a presidential race. Where will it take Anthony Foxx?
 
Such is the power of a President: Obama elevated Foxx to the head of the political line in North Carolina. He is now a clear contender for Governor or Senate. He is the anti-Pat McCrory, a progressive Charlotte mayor in high office and in prime position to help his city and his state.
 
With Mel Watt, North Carolina will have two Cabinet seats. Pretty good for a state the President didn’t even carry. Obama obviously has his eye on North Carolina and the role it can play in national politics for years to come. Maybe he sees Foxx as a potential successor in the White House.
 
This is not meant to slight Watt, but his age and voting record may preclude him from statewide office. He’s also is in a good place to help North Carolina and those cities that Republicans love to hate.

 

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30
Raleigh has never seen this kind of one-party control.
 
Hold on, you say – especially my Republican friends: Democrats had one-party control for over 100 years.
 
No, not like this.
 
For most of those years, the Democratic Party was two parties. Think Terry Sanford and I. Beverly Lake. Or Jim Hunt and Jimmy Green.
 
After 1972, when conservatives began moving to the Republican Party, Democrats were constrained by their own moderate sensibilities and by practical politics. Marc Basnight and Tony Rand squelched some liberal initiatives from their own caucus because they feared the ballot-box consequences. They caught hell for it sometimes. So did Governor Hunt.
 
That’s not the case today. Only in the most extreme cases – say, establishing a state religion – have Republican leaders squelched their extremes. (If that bill had gone to a vote, most Republicans probably would have voted for it.)
 
So, as Carter has noted (see “Worrying About Primaries” below), Republicans in the legislature aren’t worried about ballot-box retribution from moderates across the board, they are worried about retribution from the most far-right elements of their party.
 
That’s a bad way to run government. I wouldn’t trust things to the most extreme elements of my party. And, in fact, Democrats didn’t.
 
If Republicans don’t rein it in, their reign will be short-lived.

 

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26
A legislator looked at a bill, winched, looked at another legislator and said, ‘Well, if I don’t vote for it I guess I’ll land in a primary.’
 
‘You think,’ the second legislator said, ‘that Republicans in your district are for people carrying guns in bars?’ The bill allowed people carry guns in bars, restaurants and on college campuses (as long as the gun is in a locked box).
 
‘Looking at the emails I’m getting,’ the first legislator said, ‘I’d say they do.’
 
‘How many emails are you talking about?’
 
‘Over a hundred.’
 
‘And how many Republican voters are in your district?’
 
‘About 20,000.’
 
‘So, because you got a hundred emails, you think you’re hearing the voice of 20,000 Republicans saying they support people carrying pistols in bars?’
 
The first legislator bristled. ‘You think that’s wrong?’
 
‘I think if you want to know what voters think you should take a poll.’
 
The first legislator, his mind made up, scratched his head. ‘You ever try that?’
 
‘Yep.’
 
‘What did it show?’
 
‘It said Republican voters have more common sense than legislators give them credit for.’
 

 

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