Today's political briefing:
Key developments and analysis for Utah policymakers

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  • Call to "un-tax" banks doesn't make sense

  • News Highlights

    Gov. Jon Huntsman's tax plan is gutted (Morning News, and Tribune). Tribune editorial agrees with the action.

    Utah's first openly gay senator is sworn in (Salt Lake Tribune and Deseret Morning News).

    Mayor Rocky Anderson wants more religious diversity on the Salt Lake City Council (Deseret Morning News).

    Rep. Rob Bishop tells legislators closure of HAFB is a real threat (Standard-Examiner) but president’s budget includes new funding for HAFB projects (Morning News).


    Quote of the Day

    “Somebody shot Common Sense between the eyes. There are some things that don't mix with driving an automobile. Drugs is one of them. So is alcohol. A loaded gun would be high on the list, too.”

    -- Columnist Doug Robinson on a bill that would allow loaded guns in cars (Morning News).


    Tuesday Buzz
    Compiled and Written by LaVarr Webb

    We’re at about the halfway point in the legislative session and action is fast and furious on Capitol Hill. Read the latest updates from Utah’s newspapers in the news links at the right.


    National Politics
    Democrats Will Carry Berkeley for Decades to Come

    Despite calls from some Democratic leaders that the party must project a more moderate image if Democrats want to win a presidential race any time soon, ultra-liberal Howard Dean is apparently going to be new national Democratic chair (see Morning News story).

    Dean’s ascension is probably good news for Republicans, although Dean is very smart and he learned a lot, no doubt, from his bungled presidential race. We can expect to hear a lot of soothing, inclusive words from Dean. On one hand, Dean will bring plenty of new ideas and techniques to the party. He broke new ground in use of the Internet for raising money and organizing supporters. He will be a high-tech party chair who will use the new tools of technology to the extent possible.

    But he will also be a polarizing figure. New York Times columnist David Brooks wrote an interesting commentary the other day arguing that part of the Democrats’ problem is that they have become the party of college students and the educated class, and no longer connect with average citizens.

    While there are a lot of educated and wealthy Republicans, the party also attracts blue-collar NRA followers and evangelical Christians, which connect corporate elites to the middle class. The Democrats, says Brooks, notwithstanding organized labor, have fewer organizations that reach down to the middle class. So Republicans have an easier time putting together electoral majorities.

    Adds Brooks: “Over the past two years, what we might loosely call the university-town elite has come to dominate the Democratic Party not just intellectually, but financially as well. Howard Dean, in his fervent antiwar phase, mobilized new networks of small donors, and these donors have quickly become the money base of the party. Whereas Al Gore raised only about $50 million from individuals in 2000, John Kerry raised $225 million, including $87 million over the Internet alone. Many of these new donors are highly educated. They tend to be to the left of the country, especially on social and security issues.

    “Many Republicans are mystified as to why the Democrats, having lost another election, are about to name Howard Dean as party chairman and have allowed Barbara Boxer and Ted Kennedy to emerge unchallenged as the loudest foreign policy voices. The answer, as Mickey Kaus observes in Slate, is that the party is following the money. The energy and the dough are in the MoveOn.org wing, which is not even a wing of the party, but the head and the wallet. Only the most passionate and liberal voices can stir up this network of online donors from the educated class.

    “Howard Dean may not be as liberal as he appeared in the primaries, but in 1,001 ways - from his secularism to his stridency -- he embodies the newly dominant educated class, which is large, self-contained and assertive. Thanks to this newly dominant group, the Democrats are sure to carry Berkeley for decades to come.”


    Success Tip: Make 10 Phone Calls

    I tell my kids and co-workers that most problems in life can be solved by making 10 phone calls. When I was a reporter I disciplined myself to make at least 10 calls a day to keep up to speed on my beat. When I needed information for a story, I knew that if I made 10 phone calls, I would get it.

    Internet research might replace some of those phone calls today, but nothing completely replaces working the phones, whether you are trying to resolve a problem, find information, or you just need a good plumber.

    What happens when you make 10 phone calls is that within a few calls you will find someone who vaguely has an idea of someone else who just might get you on the right path. By call 4 you’re on the scent, by call 6 you’re usually getting close, and by call 8 or 9 you usually have it.

    Probably the best proof of all of this is a guy named Kimball Thomson. Kimball, an accomplished writer, magazine editor/publisher, and public relations professional, is now affiliated with the Exoro Group as a senior consultant. He works the phones like no one I’ve ever seen. I know this for a fact, because his office is right next door to mine and his office phone, cell phone (and sometimes both at once) are permanent ear outgrowths. He runs through thousands of minutes on his cell phone each month and his voice mail box often fills up.

    When Kimball needs information, needs to find a particular person, needs just the right fact or quote for an article or press release, he’s an animal with the telephone. Kimball is walking, talking (especially) proof that most problems in life can be solved by making 10 phone calls.

     

    Words to Live By

    The late Pres. Ronald Reagan’s birthday was Feb. 6, and the Federalist Patriot published several quotes by and about President Reagan. Here are a couple:

    "Families must continue to be the foundation of our nation. Families -- not government programs -- are the best way to make sure our children are properly nurtured, our elderly are cared for, our cultural and spiritual heritages are perpetuated, our laws are observed and our values are preserved. Thus it is imperative that our government's programs, actions, officials and social welfare institutions never be allowed to jeopardize the family. We fear the government may be powerful enough to destroy our families; we know that it is not powerful enough to replace them." --Ronald Reagan

    "Ronald Reagan's basic beliefs were truly that -- beliefs. And because he was a believer he did not suffer from the dismal plague of doubts which has assailed so many politicians in our times and which has tendered them incapable of clear decisions." --Lady Margaret Thatcher


     

     

    Tuesday
    February 8, 2005

    Salt Lake Tribune
    - Utah: Dugway, HAFB fare well; parks, health funds among the losers
    - Repeal of corporate tax hits House roadblock
    - Medical device bill introduced in House
    - House committee OKs group home overhaul
    - Big-box retailer foes in Sandy ask court to validate signatures
    - Flood funds a likely washout
    - Repeal of corporate tax hits House roadblock
    - Bumper battle may deliver some cash
    - Records law nears review
    - Bill recasting college-savings plan law advances
    - Funding foundations
    - Students receive proximity preference
    - Senators seek increased revenue for road projects
    - Despite pleas, lawmakers tinker with sick-leave rules
    - Legislators honor late law enforcement official
    - Parents' rights bill advances
    - Gay senator sworn in
    - Editorial: Parker: An unbalanced bill
    - Editorial: Wishful thinking

    Daily Herald
    - Web pop-up ads targeted by House bill
    - Op-ed: SB 34 will fix infringements on patient rights
    - Editorial: Waste? Not. Want? Not.

    KSL Editorial Board
    - Good news on B & C waste

    Standard-Examiner
    - Bishop: surviving BRAC threat will take everything
    - Goal: $95 million for roads
    - Parental rights bill could dismantle DCFS

    Deseret Morning News
    - Guv's tax plan gutted
    - Rocky has new target - all-LDS City Council
    - Fed funds: More for parks, less for CUP
    - Workman trial may see new questions
    - First gay senator sworn in
    - Doug Robinson: What's next - Uzi mounted on car hood?
    - Subcommittees fight for surplus funds
    - State workers fight sick-leave proposal
    - 2nd District race 'surprising'
    - President's budget bodes well for future of HAFB
    - Senate panel approves film-incentive measure
    - House committee passes telecom bill
    - Marjorie Cortez: Stiffer penalties for hate crimes reflect our values


    Sponsored Article
    Call to “Un-tax” Banks is
    180 Degrees Off Course

    By Hugh Matheson
    President of CSTP

         The best way to fix a leaky boat is to simply sink it. Or so goes the logic behind HB 227, sponsored by Rep. Wayne Harper.

         Instead of fixing the credit union tax exemption that will cost the Utah’s uniform school fund somewhere around $50 million in the next five years, Rep. Harper proposes removing the taxes on banks, a move that would cost that much in its first two years alone!

         That’s right, the legislative analyst’s fiscal note on HB 227 is $14 million in year one and $36 million in year two. $36 million will pay the salaries of a thousand teachers! And the losses will likely continue to mount in later years.

         Harper introduced his bill as an alternative to HJR 1, which calls on Congress to reexamine the credit union tax exemption as it relates to today’s large, aggressive credit unions. Even though HJR 1 can not impose a tax on credit unions, lobbyists for the big credit unions are pulling out all the stops to kill it.

         Is the credit union league’s million-dollar media campaign so intimidating that legislators would blow $50 million in school funding in order to skirt the issue?

         Such faulty, fear-based reasoning is the result of oversimplifying this issue as a mere “bank v. credit union” battle. It leaves out of the equation the taxpayers and tax revenues that are at risk because of the growing cost of the tax subsidy for billion-dollar credit unions.

         This isn’t about “leveling the playing field” between banks and credit unions. It’s about maintaining a broad and healthy tax base. It’s about what’s fair to all taxpayers and what’s best for education funding.

         The fiscal note on Rep. Harper’s bill highlights the value of the financial services industry as an important part of Utah’s tax base. And it foreshadows the cost to Utah taxpayers if permissive federal regulators continue to allow a few large credit unions to exploit their tax-exempt status to aggressively expand into commercial lending and serve virtually any person or business in the state.

         Such policies have allowed credit union assets, loans and deposits to double in the past seven years in the United States. This growth would be fine if it didn’t indicate an acceleration of the speed at which the financial services industry is leaving the tax rolls.

         HB 227 goes in exactly the wrong direction. Instead of spending $36 million per year to duck the issue, the Legislature should call on Congress to wake up to the fact that federal regulators are aiding and abetting some big credit unions in rapidly eroding local, state and federal tax bases.


    Political Calendar

    Please submit calendar items to Daily@UtahPolicy.com

     

    - Feb 12: Morgan County Lincoln Day Dinner.
    - Feb 12: Utah County Lincoln Day Dinner.

    - Feb 12:  Davis County Democrats “No Host” breakfast/monthly food drive, 8:30 am, Grannie Annie’s restaurant, 286 N 400 W, Kaysville.  The public is invited and everyone is asked to bring a non-perishable food item to benefit the food banks in Davis County.
    - Feb 16: Voice for Moderation meeting, 6 pm to 7:30 pm, Anderson/Foothill Library.  Guest speakers Jay Blain, a Granite School Administrator, and Dave Gessel, VP Utah Hospital Association, will discuss educational and medical issues being debated by the legislature. 
    - Feb 18: Last day for legislators to prioritize bills and other programs with fiscal impact.
    - Feb 23: Final meeting for the Executive Appropriations Committee on all budget matters.
    - Feb 25: Massachusetts Gov. and 2008 presidential hopeful Mitt Romney speaks at Salt Lake County Republican Lincoln Day Dinner, 7 pm, Little America Hotel. For ticket information see: www.lincolnclub.net.
    - Feb 25:  Salt Lake County Lincoln Day Dinner.

    - See the entire calendar

    Elected Officials Birthday List


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    Publisher: LaVarr Webb
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    News: Golden Webb
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