Paul vs. Paul: Popular Economic Minds Debate on Bloomberg TV

Ok economic enthusiasts (I’m careful not to say "geeks" here), here is your Super Bowl. Famed libertarian Rep. Ron Paul against popular economist, author and left-leaner Paul Krugman on Bloomberg TV yesterday. In the comments section, let us know who you think wins this debate (and why) on the Federal Reserve and government’s role in the American economy.

Small Business Owners Send Clear Message in Poll

Small business owners are confident, but economic growth is not following due to too many regulations and concerns about energy prices. Those are among the results in the latest U.S. Chamber small business survey. More than eight in 10 respondents want Washington to "get out of the way."

Concerns about regulations and energy prices continue to impede growth for small businesses, according to a recent poll commissioned by the U.S. Chamber of Commerce. The survey, conducted by Harris Interactive between March 27 and April 2, 2012, found that while small business confidence grew in the first quarter of 2012, small businesses continue to lose employees. 30% of small businesses reported laying off employees in the last year.

“This survey confirms that slow gains in economic growth are being undermined by uncertainty over rising gas prices, an onslaught of pending regulations, and stalled pro-growth bills in Congress,”  said Dr. Martin Regalia, the Chamber’s chief economist. “To deliver long-term confidence to small businesses, Washington should act to provide certainty and enact regulatory reform that will boost their ability to grow.”

The poll of 1,339 small business executives found that eight out of ten of small business owners cite higher energy prices as an immediate threat to the success of their business. Concern about gas prices has more than doubled in the last three months, increasing from 10% to 24%. The majority of small businesses (78%) do not think the administration is doing enough to keep prices low, increase domestic sources of energy, or support American job creation. Additionally, three out of four (73%) say the new health care law is an obstacle to hiring new employees.

Overall small businesses see Washington as the problem instead of the solution, with 81% asking Washington to get out of the way and 92% believing the business community is the best entity to lead the economic recovery.

Almost all small business owners (97%) say it is important to vote for a candidate who is a strong supporter of free enterprise; 84% say it is very important. Only 9% of small business owners approve of the job the Democratic Senate Majority is doing on the economy; 87% disapprove. The House Republican majority’s approval rating on handling the economy has increased from 40% approval in January to 46% in April.

“Small business owners are increasingly demanding accountability from members of Congress on how they vote on the issues that impact their operations,” said the Chamber’s Senior Vice President and National Political Director Rob Engstrom. “We’re seeing small businesses unable to hire, or worse, forced to let employees go because of the Senate’s refusal to take up job-creating measures like domestic energy exploration and regulatory reform.”

The survey defined a small business as a company with fewer than 500 employees and annual revenues of less than $25 million.  To read a complete copy of the Q1 Small Business Outlook Survey, please visit: https://www.uschambersmallbusinessnation.com/community/small-business-outlook-survey—march-2012

Plain and Simple: Communications Missing the Mark

The 2010 Plain Writing Act, an attempt to make government communicate more clearly with the public, was a great idea. Saying it has to happen, however, is proving a lot easier than making it happen.

An update from The Washington Post:

Advocates estimate that federal officials have translated just 10 percent of their forms, letters, directives and other documents into “clear Government communication that the public can understand and use,” as the law requires.

Official communications must now employ the active voice, avoid double negatives and use personal pronouns. “Addressees” must now become, simply, “you.” Clunky coinages like “incentivizing” (first known usage 1970) are a no-no. The Code of Federal Regulations no longer goes by the abbreviation CFR.

But with no penalty for inaction on the agencies’ part, advocates worry that plain writing has fallen to the bottom of the to-do list, like many another unfunded mandate imposed by Congress. They say many agencies have heeded the 2010 law merely by appointing officials, creating working groups and setting up Web sites.

There are examples of plain language working.

In Washington state, a revamped letter tripled the number of businesses paying a commonly ignored use tax, bringing $2 million in new revenue in a year, according to law professor Joseph Kimble, author of a forthcoming book on the benefits of plain language.

And after the Department of Veterans Affairs revised one of its letters, calls to a regional call center dropped from about 1,100 a year to about 200, Kimble said.

“People complain about government red tape and getting government out of your hair,” said Rep. Bruce Braley (D-Iowa), House sponsor of the Plain Writing Act. “If every one of these forms was written in plain language, the number of contacts to federal agencies would plummet.” 

Tweeting for the People (and Making Them Pay for It)

This story from the Philadelphia Inquirer is filled with some of the more entertaining quotes about social media — and the public sector — you’re going to find.

TEN-YEAR-OLDS can tweet on their own.

But Councilman Jim Kenney apparently needs help. Professional help.

The at-large councilman is spending $28,800 in taxpayer money this fiscal year for the Center City-based company ChatterBlast to perfect his "social-media strategy." The company monitors his Twitter and Facebook pages, and has posted on Kenney’s campaign-funded website.

No other Council member pays a contractor to help with Twitter. Just Kenney, who has the third-priciest staff on Council. He has 10 staff members with a payroll of $654,034, including his salary – plus another outside communications consultant.

Why does he need ChatterBlast on top of that?

"I, at 53 years old, do not have that facility," he said. "So I need consultant advice to communicate with a group of folks who are not necessarily in my age group."

Martin O’Rourke, the politically connected PR man whom Kenney’s office already is paying $30,000 this fiscal year for a communications contract, doesn’t have that facility, either.

"I have no clue how to tweet; I still don’t understand the mechanics of it. It’s a thing of the future," said O’Rourke, who has earned big bucks through contracts with City Controller Alan Butkovitz’s office and the Philadelphia Parking Authority.

ChatterBlast, perhaps not coincidentally, has contracted with both of those agencies. O’Rourke said Tuesday that he has no financial stake in the company, but he "suggested that people talk with them."

Matthew Ray, a co-founder of ChatterBlast, which calls itself a social-media marketing company, defended ChatterBlast’s work for Kenney as a good use of taxpayer dollars. He said that citizens’ problems have been solved thanks to Kenney’s account.

"Having the councilman connect with people via social media is as important as having people read the Twitter feed for Target or Kim Kardashian," he said.

"I think everyone knows $28,000 isn’t a huge amount."

Kenney’s account often tweets several times a day, about everything from his legislation to what he’s having for lunch. So, is ChatterBlast behind such tweets as the one quoting Irish soccer superstar George Best saying, "I spent 90% of my money on women and drink. The rest I wasted"?

Ray said that Kenney sometimes tweets without help from ChatterBlast and that ChatterBlast sometimes tweets without input from Kenney. But most of the time, he said, Kenney comes up with the tweets and then runs them by ChatterBlast to publish. That’s what happened with the tweet about Best.

"What we actually do is type it in," Ray said. "It’s no different when someone dictates a letter to somebody."

Local lawyer Jared Klein learned that Kenney wasn’t manning his own Twitter account on Election Day last November when he tweeted that people should vote for Kenney, only to have Kenney’s account tweet back: "I’m not on the ballot today, but I thank you for the support and for supporting my friends!"

Short Session Long on Achievement

The following is a message from Indiana Chamber President Kevin Brinegar:

It was the tale of two sessions in 2012. Act one centered on making Indiana the 23rd right-to-work state, giving current and future Hoosier workers the right to choose whether or not to join a labor union. Act two set the stage for such vital public policies as a statewide smoking ban, protection of our water rights and the inheritance tax elimination to become reality.

The passage of right-to-work (HB 1001) was truly monumental. Now, Indiana has further distinguished itself from neighboring states and given companies another big reason to bring their business and jobs here – and not there. In the short time since it passed, there has already been documented interest from several companies now putting Indiana at the top of the list for their business relocation or expansion. And it’s only just beginning!

Under the state’s new smoking ban law (HB 1149), Indiana will now protect 95% of people while at work and also allow citizens to eat at any restaurant in the state without having to encounter cigarette or cigar smoke. That will make a huge difference in all parts of the state. Many Hoosier towns are not part of a metro area and did not have a non-smoking ordinance previously in place. This new state law will protect residents in those locations.

Also now covered are companies that wanted to make their workplaces smoke-free but couldn’t due to existing labor agreements. Meanwhile, local governments still can enact stricter ordinances and the ones already passed remain in place. Sure, an even more comprehensive ban would have been preferred. What passed, however, was the strongest possible that could be done at this time and nothing short of a major accomplishment.

You can also count the inheritance tax elimination (SB 293) as a big victory. This tax only amounts to 1% of the total state revenue but made things unnecessarily difficult for so many Hoosiers. For a small family-owned company, the inheritance tax was often a tremendous hindrance to even staying in business after the death of the owner.

Effective at the end of the year, the more favorably-treated Class A category of inheritors expands (to include stepchildren and children’s spouses) and the amount excluded from the tax increases from $100,000 to $250,000. Beginning next year, the inheritance tax will be phased out equally over nine years – going away completely in 2022.

One bill that didn’t get a lot of press, but was among the most important to pass involves the state’s water supply (SB 132). Now water utilities are required to report usage to the Indiana Utility Regulatory Commission; only 15% of utilities previously did so. It also clarifies the water usage laws to confirm that private property owners, not municipalities, have control of the underground wells on their property. Both are needed steps toward a statewide plan for the protection and effective regulation of Indiana’s water resources.

In the local government arena, a multi-year effort to eliminate nepotism and conflict of interest for local government office holders and employees (HB 1005) finally made it across the finish line. There are too many examples where taxpayers pay for excessive costs because an employee also serves on the legislative body that approves that local government unit’s budget.

The grandfathering in of current employees is too generous, but nonetheless was a positive step that new local government employees will have to abide by.

We thank House and Senate leaders, along with Gov. Daniels, who took on several high-profile, emotional issues this session and guided them to passage. It was a fitting conclusion for Daniels’ final legislative session, with accomplishments that will leave a lasting positive impact on Hoosiers for generations to come.

See the full 2012 Legislative Report and Scorecard.

Chamber Celebrates Three Key Highlights of the 2012 Session

The 2012 legislative session should be remembered for far more than being the forum for Indiana becoming the 23rd right-to-work state, says Indiana Chamber President Kevin Brinegar.

"While right-to-work was deservedly the headliner, we finished with the passage of two impressive supporting acts: the statewide smoking ban and the inheritance tax elimination. Both have the potential to positively impact Hoosiers for generations to come," he offers
 
Details and specific comments from Brinegar on these three public policies:

Right-to-work for employees (HB 1001) – Prohibits unions from forcing Indiana workers to join or pay dues and fees to a labor union to get or keep a job in this state; makes it the employees’ choice. Does not eliminate unions or collective bargaining.

"With the passage of right-to-work, Indiana has further distinguished itself from neighboring states and given companies another big reason to bring their business and jobs here – and not there. In the five weeks since it passed, there has already been documented interest from several companies now putting Indiana at the top of the list for their business relocation or expansion."

Statewide smoking ban (HB 1149) – Prohibits smoking in the majority of workplaces (bars/taverns, gambling institutions are biggest exceptions), all restaurants and within eight feet of a building’s public entrance. Local governments may enact stricter ordinances.

"Smoking has direct financial ramifications for all businesses that offer health care insurance and the employees who are covered, not to mention the health implications for those non-smokers who unavoidably encounter second-hand smoke.

"Indiana will now protect 95% of Hoosiers while at work and also allow citizens to eat at a restaurant without having to encounter cigarette or cigar smoke. That is a huge positive development and legislators should be commended for coming together and taking that important step at this time."

Elimination of the state’s inheritance tax (SB 293) – Phases out the inheritance tax incrementally over a nine-year period beginning in 2013, with elimination of the tax complete in 2022. Also expands the more favorably-treated Class A category of inheritors and raises the inheritance amount (currently very low) that’s excluded from the tax; both provisions take effect this year.

"This tax only amounted to 1% of total state revenue but made things unnecessarily burdensome for so many Hoosiers. For a small family-owned business, the inheritance tax could be a tremendous hindrance to even continuing after the death of the owner."

We Agree? Maybe?

NPR has a story around a premise that may not shock you: Americans have a hard time agreeing with each other. But, being the head-in-the-clouds optimist my friends and coworkers know me to be, I’ve skipped to the end of the article, where it mentions some things we actually do agree on.

Here are a few areas of national accord:

  • More than 90 percent of Americans believe in God or in some form of universal power, according to a 2008 study by the Pew Forum on Religion and Public Life.
  • More than 90 percent of Americans believe that future generations should be prepared for the ramifications of living in a global society, according to a 2007 report by NAFSA: Association of International Educators.
  • More than 90 percent are proud of the members of the U.S. military who served in Iraq, a CNN/ORC International poll finds.
  • More than 90 percent of Americans agree that the development of good math skills is essential to success in life, an Ogilvy PR survey revealed in 2010
  • So God, globalism, troop support and math — these are things all Americans can agree on.

"We have several other issues on which 80 percent of Americans agree, such as, I believe, giving tax credits to manufacturers to bring back jobs from overseas," Newport says.

And when he is asked if Gallup has found any one salient issue that really brings all Americans together, Newport says there is one: More than 90 percent of Americans believe it was right to kill Osama bin Laden.

Governor to Support Overdue Government Reforms

The Indiana Chamber and MySmartGov have been champions of sensible government reform in Indiana, and have supported suggestions from the Kernan-Shepard Report that would eliminate townships, among other excesses. The Evansville Courier & Press now reports Governor Mitch Daniels will firmly put his weight behind these measures in the 2012 session:

Gov. Mitch Daniels will make one last push for local government reforms – this time, a select and scaled-back set of them – during the final legislative session of his administration, he announced Friday.

Daniels unveiled his legislative agenda for the Indiana General Assembly’s 10-week 2012 session, which starts Jan. 4, during a speech at the Kiwanis Club of Indianapolis.

He said he will lobby for structural changes at both the township and county levels, as well a crackdown on conflicts of interest among municipal workers who also sit on the elected bodies that set the budgets for their employers.

It’s another try at implementing more of the recommendations offered in 2007 by a blue-ribbon panel chaired by former Gov. Joe Kernan and Indiana Chief Justice Randall Shepard.

This year, as freshman Rep. Kevin Mahan, R-Hartford City takes over the chairmanship of the House Government and Regulatory Reform Committee, Daniels said he believes the conditions are right for more progress than he has made in the past.

“We’re going to try to approach it in a little simpler way,” Daniels said.

He said he hopes four local government changes that have stalled out in previous sessions can gain more traction this year. Those four are:

– Allowing counties to switch their executive structure from three-member groups of commissioners to a single county commissioner.

– Abolishing three-member township advisory boards that oversee township trustees’ budgets and bumping their fiscal oversight duties up to county councils.

– Eliminating nepotism – that is, the ability for local elected officials to hire their relatives to do the area’s work.

– Restricting “conflicts of interest,” or situations where those who are paid by local government, such as police, firefighters, park employees and more, also serve on the councils that set their budgets.

“I think if we could get action on two, three, four fronts like those, this would be good. Those are some important reforms. I’ve always believed that we wouldn’t do this in one or two big gulps; it would have to be an incremental process, and this would get the process moving forward,” he said.

Indiana Chamber Outlines Legislative Priorities

Creating more jobs for Hoosiers by making Indiana the 23rd right-to-work state heads the list of the top 2012 legislative priorities for the Indiana Chamber of Commerce.  Eliminating the state’s inheritance tax, protecting the education reforms of last session and implementing a statewide smoking ban are also among the group’s key goals.

"Far too often, Indiana is not in the running for business growth and expansion plans, as site selection experts across the country repeatedly emphasize that companies won’t even consider non-right-to-work states for these opportunities. And, with these opportunities come thousands of jobs – none of which are currently coming to our state," offers Indiana Chamber President Kevin Brinegar.

He expects the right-to-work debate to be intense at the Statehouse, but says that should not be viewed as a deterrent to pursuing the policy – or used as an excuse to stay on the sidelines.

"The stakes are too high. With over a quarter million Hoosiers unemployed, ways to generate more jobs should be welcome and top of mind for everyone. We need to do everything possible to lower our state’s unemployment rate and improve our economic competitiveness," Brinegar stresses.

"Right-to-work is the most impactful way to tackle those two needs, plus it offers workers more freedom. Right-to-work protects employees from being forced to join a union and pay dues. It does not prohibit labor unions or collective bargaining; it lets employees decide."

The 10 pre-session objectives fall into seven public policy areas: economic development, education, energy, health care, labor relations, local government and taxation.

Below are the Indiana Chamber’s top legislative priorities. The complete list is also available here.

ECONOMIC DEVELOPMENT
– Support the state adopting a right-to-work statute banning the practice of requiring union membership or financial support as a condition of employment.  Would remove a significant impediment to investment and job creation. Would help Indiana continue to distinguish itself from neighboring states and to build a national leadership position in economic development.

EDUCATION
– Support protecting the 2011 reforms involving charter school expansion, school choice, merit pay for teachers and teacher collective bargaining. These new laws are the most significant enhancements to the state’s education system in more than 20 years; they put the focus where it should be – on students and increasing their potential for academic achievement. We need to make sure these reforms stay intact and are executed as intended.

– Support expanding school accountability. Our system, while improving greatly under current state leadership, still offers far too many loopholes for perpetual failure.

ENERGY
– Oppose renewable energy mandates. Indiana already has significant renewable energy development without benefit of a mandate, which would present unreasonable costs to power consumers and utilities.

HEALTH CARE
– Support ban on smoking in the workplace. Smoking is detrimental to employee health and productivity, and contributes to higher premiums for businesses providing employee health benefits.

– Oppose any health care mandates or assignment of benefits (AOB) policy. Mandates and AOB both serve to increase the cost of health care premiums for employers and their employees.

LABOR RELATIONS
– Support work share component incorporated into state’s unemployment insurance system. Would allow employees to collect reduced wages and partial unemployment benefits – as opposed to losing their jobs; is a temporary and practical alternative to layoffs.

LOCAL GOVERNMENT        
– Support common sense simplification and reforms to local government structures and practices. Current local government system lacks high standards against nepotism and allows for too many conflicts of interest. This, coupled with the streamlining of duties and functions as appropriate in county and township government, will result in a more effective system and better use of taxpayer dollars.

TAXATION
– Support elimination of the state inheritance tax. Only 1% of the state’s revenue pool comes from this tax, but the consequences are much higher. Why? This tax serves as a big deterrent for high income individuals to remain in Indiana (and spend money), or keep their assets here. It’s more beneficial for the state and its residents to remove the tax.

– Support exempting the taxation of machinery and equipment. Indiana needs to be on a level playing field with surrounding states – some of which have already made this move or are considering it now. Exempting machinery and equipment from property tax would be another strategic step in our economic development efforts.
 

Bosma, Torr: Time is Now for Right-to-Work

More than 100 Indiana Chamber members "tuned in" Friday to hear the latest on right-to-work from Indiana Speaker of the House Brian Bosma and Rep. Jerry Torr. After the latest in our monthly Policy Issue Conference Calls, one had to be impressed with the leaders on this critical issue, their strong knowledge of the facts and their dedication to setting Indiana apart from its competitors.

Bosma addressed some of the myths out there about RTW:

  • Myth: It’s an attempt to destroy unions. Fact: "I carried a similar bill in 1995 that passed that was basically right-to-work for teachers" and no one can argue about the ongoing strength of the Indiana State Teachers Association.
  • Myth: Wages will drop: Fact: One must adjust for cost of living and real purchasing power to accurately compare states. When doing so, workers in right-to-work states win.
  • Myth: Hoosiers don’t want RTW. Fact: No matter the demographic, support for RTW is strong. Young people, in particular, regardless of political affiliation, favor the move by a 3-to-1 margin.

Torr adds that many opponents simply don’t understand what the bill does. When the opportunity to explain presents itself, the viewpoint often changes.

The bottom line is all about jobs. Bosma: "Despite all we’ve done in the last decade to make Indiana a job creation hub, we still have 9% unemployment and that’s just the official number. People are removing themselves from the search and others hold two part-time jobs and that doesn’t show up in the numbers. The simple, single reason is the need for jobs."

Another benefit, Torr explains, is the border effect. Indiana would be the only RTW state that would have non-RTW neighbors on every border. The others would likely move quickly to try and adopt RTW, but Indiana would have the definite advantage.

The two legislators urge business leaders and employees to contact their legislators and let them know their support. Legislators knowing that they have the backing of their constituents in taking this important step could ultimately decide whether this important initiative becomes a reality.

Need more information? Check out our new web site — and get involved!