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
    State parks and wildlife resources face budget cuts (Salt Lake Tribune).

    Salt Lake Mayor Rocky Anderson and Davis County Commissioner Alan Hansen still squabbling (Standard-Examiner and Tribune).

    Gov. Jon Huntsman urges Utahns to help homeless by donating to charities on tax forms (Deseret Morning News and Daily Herald).

    New senator could face residency challenge (Tribune).

    Executive Appropriations Committee approves $70 million for highways (Morning News and Tribune).


    Quote of the Day
    "I'm not saying drain Lake Powell. I'm saying that Mother Nature is doing it for us. Lake Powell is starkly beautiful but also very sterile, with its blue water, red walls and very little wildlife."

    -- Chris Peterson, executive director of the Glen Canyon Institute, which advocates decommissioning and removing Glen Canyon Dam (Standard-Examiner).


    Thursday Buzz
    Compiled and Written by LaVarr Webb

    The National Political Scene
    Having lost the presidential election and lost ground in both the U.S. House and Senate, just how deep do the misfortunes of the Democratic Party go? Here’s what James Carville and Stanley Greenberg, two top Democratic strategists/commentators, recently said: "But on the key dimensions essential for the Democrats' re-emergence as a dominant national force, the party falls woefully short. As voters compare the parties, they see a Democratic Party without purpose and defining ideas; a party not at all strong (weak politically, without strong leaders and direction); not the go-to party on protecting the country; ambivalent on basic values, like right and wrong and responsibility; and only marginally ahead on advocacy for people, being on their side." (Source: The Federalist Patriot)

    Republicans also have their challenges. Conservative commentator John Fund recently said this: "A Republican president sits in the White House. The GOP enjoys clear majorities in both houses of Congress. If now isn't the time to control federal spending, when will it be?"

    This Blogging Thing Might Catch On
    Back in the early ‘90s, when the Internet was new but was obviously going to have a real impact on society, I had a friend who used to joke: “You know, this Internet thing just might catch on.” The same might be said of blogging today.

    Soon, many politicians and business leaders will have their own blogs. Soon, there will be advocacy blogs (like the Legacy Parkway Hotsheet on most of the major issues facing Utah. Soon, there will be blogs serving as Utah news media watchdogs, criticizing poor reporting and media bias. There will be highly specialized Utah blogs on nearly every topic imaginable, including all sorts of sports and hobbies.

    The Tribune reported Wednesday about two new political blogs, the Utah House Majority blog, written by Greg Curtis, Jeff Alexander, Steve Urquhart and Ben Ferry (nothing’s been posted yet) and Jeff Alexander’s personal blog.

    As the blogosphere develops, there will be some really good blogs, and many more really bad ones. Blogging can make anyone a publisher, but not everyone has interesting things to say. The trouble with blogging is that it’s hard work, takes a lot of time, and is basically a waste of time unless people are reading your blog. As in all things, quality matters. To keep readers coming back, the writing has to be compelling and insightful. I want to learn and gain insights from a blog. I don’t want to waste my time reading something that is boring, naïve or pedestrian. The good blogs will survive and have an impact. Blogs will become another channel in the communications game, and they will be taken seriously.

    Blogs feed on each other. By linking to each other, the Utah political blogs can keep traffic circulating. Utah Policy Daily will, of course, continue to serve as a clearinghouse for Utah’s blogs, with frequent links to compelling posts. We’ll use this newsletter that goes to about 5,000 opinion leaders, to announce new blogs and we’ll keep a list of relevant blogs on the Utah Policy Political Portal at www.utahpolicy.com.

    Utah Trivia

    • Utah’s size is 84,900 square miles, which makes it the 11th largest state in the country.
    • Utah has 11,000 miles of streams and 147,000 acres of lakes and reservoirs.
    • Annual precipitation varies from less than five inches in the arid Great Salt Lake Desert to more than 60 inches in the northern mountain ranges.

    Words to Live By
    (This is for my 16-year-old daughter who procrastinates doing homework until the wee hours of the night.) “Perhaps the most valuable result of education is the ability to make yourself do the thing you have to do, when it ought to be done, whether you like it or not; it is the first lesson that ought to be learned; and however early a man’s training begins, it is probably the last lesson that he learns thoroughly.” – Thomas H. Huxley

    "His integrity was most pure, his justice the most inflexible I have ever known, no motives of interest or consanguinity, of friendship or hatred, being able to bias his decision. He was indeed, in every sense of the words, a wise, a good, and a great man." --Thomas Jefferson on George Washington (Source: The Federalist Patriot)


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

    By Hugh Matheson
    President, Council for Sound Tax Policy

         The best way to fix a leaky boat is to simply sink it. Or so goes the logic behind the move to eliminate the income tax on most financial institutions.

         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, legislation has been considered on Capitol Hill that would remove 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 the legislation, 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.

         The legislation was introduced 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 HB 227 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.


     

     

    Thursday
    February 10, 2005

    Tooele Transcript Bulletin
    - Wendover merger faces more hurdles

    Davis County Clipper
    - Environmentalists take aim at UDOT
    -
    WFRC predicts ‘boom and gloom'

    Salt Lake Tribune
    - Bills target immigrants' run on Utah licenses
    - Senator could face residency challenge
    - Jury debates Workman fate
    - Parent czar is set to be dethroned
    - Legislative budget cuts may force closures
    - Utah hopes to persuade feds to loosen No Child rules
    - Davis County official still wants Rocky's apology
    - Legislature: Amended Venture Capital Act likely to pass
    - State, 6 counties sue federal government
    - School board prayer advisory challenged
    - Mullen: Legislature should not forget past
    - Minorities director named
    - Bill holds back slow readers
    - Cities, counties disagree on bill to limit RDAs
    - Lawmakers OK bill to ban B and C waste
    - Panel votes to kill written dissent
    - Panel puts $70M in fund for highways
    - Qwest deregulation bill passes House
    - Editorial: Restoring local control

    Standard-Examiner
    - Drain or keep?
    - 'Renovate, renovate!'
    - Legacy Highway feud still ablaze
    - Centerville board backs Wal-Mart
    - College teacher programs may benefit
    - Editorial: Hate triumphs again

    Daily Herald
    - Lawmakers looking at licenses for immigrants
    - Federal loan saves local taxpayers over $200M
    - Huntsman encourages residents to donate to charities on tax forms
    - Editorial: Time to pass hate crime law

    Deseret Morning News

    - Senators target license abuses

    - Effort to boost reading clears House panel
    -
    RDA bill may hurt pro soccer plans
    -
    Workman trial awaits jury verdict
    -
    $70 million for roads? Hill battle looms
    -
    Wal-Mart foes lose again in Centerville
    -
    Hill disruption unlikely over McCoy residency
    -
    Single tax rate bill dies
    -
    House votes to ban importing of B, C wastes
    -
    Lawmaker halts efforts to modify state divorce law
    -
    Proposal may raise costs, say health care providers
    -
    Law enforcers help push retirement bill through
    -
    Senate confirms judge to 3rd District bench
    -
    College housing subject to development law
    -
    Senate to consider divorce mediation bill
    -
    House votes down bill hiking boat registration
    -
    'Zero tolerance' DUI bill moves to House floor
    -
    Help homeless, Huntsman urges
    -
    Provo board flays tax-credits plan
    -
    House zips health bill through with no debate
    -
    Editorial: Fix fingerprint-check backlog


    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.
    - Feb 25: Bonding bill available to legislators by noon and final action taken on it by calendared closing time.
    - Feb 25: Last day to pass bills with fiscal note of $10,000 or more.
    - Feb 27: Last day to consider bills from own house.
    - Feb 27: Last day for a motion to reconsider.
    - Feb 28: General appropriations bill, supplemental appropriations bill, and school finance bill available to legislators by calendared floor time and final action taken on each bill by calendared closing time.
    - Mar 2: Second supplemental appropriations bill available to legislators by calendared floor time and final action taken by noon.
    - Mar 2:  2005 legislative session ends.
    - Mar 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.
    - Mar 22:  Last day governor may sign or veto bills.
    - Mar 26:  Republican Women Federation Fundraiser and Auction, "Heroes of the Heart,"  5:30 pm, McKay Events Center, UVSC, Provo.  Speakers: First Lady Mary Kaye Huntsman and Sen. Orrin Hatch.  For more information, please contact Suzanne Merrill - 801-796-0831.
    - Apr 9:  Davis County Democratic Party Organizing Convention, 11 am, Farmington Jr. High School,150 S. 200 West, Farmington.
    - Apr 30: Utah County Republican Party Organizing Convention, 7 pm, Canyon View Junior High, 950 N 700 E, Orem.
    - May 1: Last day a veto-override session may begin.
    - May 2: Normal effective date for bills.
    - May 2: First day to file bills for the 2006 General Session.
    - May 14:  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.

    - See the entire calendar

    Elected Officials Birthday List


    Utah Policy Daily is a service
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    Publisher: LaVarr Webb
    Editor: Paul Hollingshead
    News: Golden Webb
    Calendar and Subscriptions: Luci Webb