E!!

Well, we now have proof positive that hanging out at the New York Times will muddle up anyone’s brain.  David Brooks, once a semi reliable conservative thinker, has penned a lamentation (“Revolt of the Nihilists”) so full of hand-wringing angst that, as Laura Ingraham quipped this morning, “it makes my hair hurt.”

Brooks says the failure of the “rescue package” (that’s an Obama-ism, BTW, and does nothing to endear me to the concept since I abhor victim mentalities of all kinds) means our political leaders have ”failed utterly and catastrophically to project any sense of authority, to give the world any reason to believe that this country is being governed.”

Apparently for Brooks, defeat of this bill equals de facto anarchy in America.

Brooks then makes a few apt remarks (ok, so he has not completely lost it), but quickly disappoints again:

And let us recognize above all the 228 who voted no — the authors of this revolt of the nihilists. They showed the world how much they detest their own leaders and the collected expertise of the Treasury and Fed. They did the momentarily popular thing, and if the country slides into a deep recession, they will have the time and leisure to watch public opinion shift against them.

No:  they showed the world that they were willing to listen to the people who elected them, the constituents in their own districts, who bombarded their offices with variations of “vote no” via email and telephone because they (we) don’t trust the “leaders,” and the “experts” at the Treasury and the Fed.  And why the heck should we, after a colossal failure of social engineering the likes of which this nation has never seen…?!

House Republicans led the way and will get most of the blame. It has been interesting to watch them on their single-minded mission to destroy the Republican Party. Not long ago, they led an anti-immigration crusade that drove away Hispanic support. Then, too, they listened to the loudest and angriest voices in their party, oblivious to the complicated anxieties that lurk in most American minds.

Good freaking grief, Mr. Brooks!  These House Republicans (and the 95 Democrats who voted with them) are the ONLY people standing up for proper conservative principles, including taking a careful, pragmatic approach to complex problems rather than giving people like Paulson a blank check. 

And nobody on the right led an “anti-immigration crusade”:  they just asked the U.S. government to enforce its own laws (what nerve, ay?!)  As for your take on the ”complicated anxieties that lurk in most American minds,” stick with the op-eds because a gifted psychoanalyst you’re not.  The only anxiety we’re having is over whether this bill will really fix what’s wrong, and whether anyone in D.C. is willing to do the hard work of making sure it does.

Now they have once again confused talk radio with reality. If this economy slides, they will go down in history as the Smoot-Hawleys of the 21st century.

So now we’re all just mindless sheep who totter zombie-like after Rush and Laura who are themselves out of touch with real life?  Do you have any idea how elitist and left wing that sounds?  Perhaps you’d like to come out in favor of the Fairness Doctrine also so we can get a dose of “reality” and not be hypnotized by the likes of the evil Limbaugh?

I can’t quote the rest of your op-ed, because frankly, my hair hurts.  My advice to you is stop wringing your pretty little hands and give it some time.  A bill will be passed; the markets will not collapse; and all will be well, if a little dicey for a time. 

And please stop calling it a “rescue” because that’s one of the words that is turning us off out here in Sheepville.

I’m borrowing my post header from P.J. O’Rourke.  (VERY funny book if you have never enjoyed it.)

I do wish names would be Named, no matter the party affiliation:  who started and voted for all of the federal legislation, who harassed the lenders to conform, which lenders not only conformed but went above and beyond the call, and who made big bucks.

It won’t happen, of course, because they are all in bed together to some degree.

As Anne of Idaho quipped, “Someone needs to go to Washington and Wall Street and close down the whorehouses.”

After supporting a huge sales tax hike in Cali and quashing the last vestiges of conservative hope for him, Governator Schwarzenegger has slightly redeemed himself.

Prior to signing the new budget into law, Arnold used his line-item veto to totally eliminate the U of California Institute for Labor and Employment. Conservatives in the state say the institute was being used to push pro-union, anti-worker propaganda using taxpayer dollars.

All gone!

(H/T:  Friends of ATR blog)

The following letter was sent yesterday to Treasury Secretary Henry Paulson:

September 24, 2008

The Honorable Henry Paulson
Department of the Treasury
1500 Pennsylvania Ave., NW
Washington, DC 20220

Dear Secretary Paulson:

As you continue to craft a financial stabilization plan with Congressional policymakers, I wanted to once again urge you to consider a move that could be executed unilaterally by the Treasury Department: indexing the basis of capital assets to inflation for purposes of calculating gain or loss.

There is a body of legal opinion which holds that the Treasury Department has the power to define “cost basis” when taxpayers calculate capital gain or loss. To date, Treasury secretaries of both parties have chosen to define “cost” as nominal purchase price.

This creates a situation whereby an asset held for many years and later sold may generate a capital gains tax liability when much or all of that gain is purely from inflation. For example, a stock purchased in 1990 for $1000 and sold today for $1676 would face a capital gains tax liability on the $676 “profit.” But in reality, 100% of that “gain” is attributable to inflation.

If the Treasury Department were to re-define “basis” to discount the effects of inflation, it would have a timely and pertinent effect on the current financial challenges. Households and businesses would be able to sell assets, unlock liquidity, and pay a much lower level of taxes. This liquidity is badly needed by capital markets. Best of all, this can be done by you unilaterally, substituting Congressional permission in favor of mere consultation.

Sincerely,
Grover Norquist

– E!! says:  This is better than nothing, but I’d like it much more if we eliminated the capital gains tax altogether.  (Yes, I realize that is probably a pipe dream.  That being the case, Grover’s suggestion is excellent.)

On the subject of lining one’s own pockets under the pretense of helping needy kids:

The Las Vegas Sun reports that Willa Chaney, a candidate for the State Board of Education, owes the Nevada Education Department more than half a million bucks for funds she misused while running a program to provide aid to needy students.

The NV Education Dept. sued Willia Chaney’s company and in August a District Court judge ordered Chaney to pay back the money.  The Sun reports:

“From 1993 to 1999 Chaney operated a federally funded program to provide meals to poor children during summer vacations and other school breaks. The state shut down the Smart Start Summer Food Service Program in 1999 after the inspector general identified $1.01 million in questionable expenses.”

Apparently investigators found that Smart Start was serving far fewer children than it claimed in its reports of meals delivered to 13 apartment buildings in Las Vegas and North Las Vegas.  Also among the investigator’s audit findings (quoted from the Sun):

• More than $250,000 in salaries was paid to 15 Smart Start employees, “even though they apparently did little or no work” and no time cards were maintained. Chaney’s husband, James, served as the program’s director and her son and daughter were on the payroll.

• Federal money was used to purchase five vehicles. The titles were in the Chaneys’ names rather than in the name of the Smart Start program.

• The program’s costs included $2,000 a month paid to Chaney’s day-care center, Smart Start Daycare, for use of its kitchen and parking spaces. Investigators determined the food program’s facility had ample parking, and the child-care center was paying $1 a year to lease its entire location.

Chaney is running for the District 3 seat on the State Board of Education, which sets policy for the Nevada Education Department and the state’s school districts.  She denies any wrongdoing.

I had the honor of meeting and assisting Pat Toomey last week at the Conservative Leadership Conference here in Las Vegas.  This morning, Club for Growth says/releases the following (excerpted):

Eighteen months into the credit crunch, many largely capitalized financial services firms are experiencing serious difficulties but the overall economy continues to grow.  GDP growth over the past 12 months was 2.25 percent and 3.5 percent when excluding the drag imposed by the housing sector.  Even within the financial sector, many banks are doing well.  Regional bank indices had risen significantly since the lows of last July—prior to the bailout announcement—and thousands of community banks are thriving.  It is extraordinary that a massive government intervention in the economy is considered inevitable when the economy is not even in a recession.

Indeed it is.  On what is the panic of Wall Street types based?  Could it be fear that lack of liquidity and credit in the market will affect their own bank accounts?

At the same time, socializing economic risks come at a great cost to the American economy by misallocating capital, inviting political manipulation, and putting taxpayers on the hook for possibly a trillion dollars.  Such a large takeover by the government will surely be accompanied by adverse, unintended consequences.  Already, other companies and industries are lining up at government’s door asking for their own bailout.  And if the government incurs $700 billion in debt to finance the purchase of bad bank assets, the danger that it will eventually monetize that debt and trigger dramatic inflation is very worrisome.

“Unintended consequences.”  This concept is one of the great underlying tenets of conservative thought.  The idea is that when one makes broad, sweeping changes there are always unplanned effects, and they are often worse than the problem with which you began.

Our Do Nothing Congress should, in this case, do nothing (other than what Newt said yesterday).  We ought to free things up where we can, allow the market to self-correct, and let those who must (and should) take their proverbial Lumps. 

Access to unlimited cash and credit is not a “human right,” and we should stop behaving as if it is.

Well, as a writer/journalist/blogger, there is nothing like reading something you strongly disagree with to wake you up and get your day started right.  Such is the case with Treasury Secretary Paulson’s statement before the Senate Banking Committee.

Since hearing word of widespread support (Paulson, Congress and the President) for the latest, greatest Bailout I’ve been feeling increasingly dejected.  And concerned.  And angry.

Treasury Secretary Henry Paulson has a “plan” which will “shift” $700 billion in obligations from private companies to the American taxpayer.  Apparently he sees this as the only Way and has 9,000 wizards on stand-by to make it so.  (The same Wall Street wizards that got us into this mess, no doubt?)

And evidently most members of Congress are spellbound and preparing to waft more money New York’s way.

One can only imagine what Banking Committee Chairman Chris Dodd (the largest beneficiary of political funds from Fannie & Freddie) will dream up as he joins hands and sings Tra La La La La with Reid and Pelosi.  I’m not sure how it ends, but I’m pretty sure the working title is Nightmare on Wall Street and that we are barely ten minutes in.

Setting the typically wrong-headed Paulson aside for a moment, how is it that Bush and Congress care so little about protecting the American taxpayer?

And why all the insistence on a quick solution?  This mess was not created in a week, yet Paulson and our illustrious Congressional geniuses think they can solve it by this Thursday?  Does it not occur to anyone that we need to take a deep breath, wade in, and calmly and pragmatically work our way through our many economic and financial problems in a careful and measured manner?

As Newt blogged today (thank God for Mr. Gingrich), between the crisis of liquidity on Wall Street, the crisis of bad energy policy that transfers $700 billion a year to foreign nations, the crisis of Sarbanes-Oxley that cripples entrepreneurs/start ups and drives banks and businesses from New York to London, and the crisis of a high corporate tax rate…we are in some very deep Doo Doo.

Newt proposes a ”non-bureaucratic solution that would stop the liquidity crisis almost overnight and do it using private capital rather than taxpayer money.”  He suggests four reforms that would do the trick without the bureaucracy and additional tax burden.  I suggest you read his blog post as it is well worth the time, but in summation they are:

#1  Stop the mark-to-market rule which is forcing companies into unnecessary bankruptcy. If short selling can be suspended on 799 stocks, the mark-to-market rule can be suspended for six months and then replaced with a more accurate three year rolling average mark-to-market. 

#2  Repeal Sarbanes-Oxley. It failed with Freddy, Fannie, Bear Stearns, Lehman Brothers, and AIG. It is crippling our entrepreneurial economy. One San Jose firm told Newt they would bring more than 20 companies public in the next year if the law was repealed. It’s Sarbanes-Oxley’s $3 million per startup annual accounting fee that is keeping these companies private.

#3  Go to a zero capital gains tax like China and Singapore.  Private capital will flood into Wall Street (at no cost to Joe Taxpayer) and lead to an increase in federal revenue through a larger, more prosperous economy.

#4  Pass an “all of the above” energy plan designed to bring home $500 billion of the $700 billion a year we are sending overseas. With that much energy income, our economy would boom.

E!! endorses these proposals (a fact I’m sure Newt is happy to hear) and strongly advises against implementation of the Paulson plan which by all reasoned accounts is going to be a total Mess.

In closing, I’ll be waiting to see what McCain says and does about all this.  If he doesn’t reject the Paulson/Bush/Congressional plan and closely align himself with much of what Newt said here, I may not be able to vote for him after all.

(Note:  To those who have heard me joke that I am going to “get drunk and vote for McCain,” consider this my semi-official back-peddle…pending the outcome of this mess and McCain’s stand on things.  Let’s see how Maverick-y the self-proclaimed maverick is when it really counts.) 

With the takeover of AIG, the federal government has wangled its fourth major bailout and taken control of its very first insurance company.  

Both McCain and Obama have called the bailouts of AIG, Fannie Mae, Freddie Mac, and Bear Stearns “necessary measures.” McCain blames greedy Wall Street tycoons while Obama blames failed GOP policies.
 
Most sensible folks agree that the government’s implicit guarantee to Fannie Mae and Freddie Mac were a license to lenders to run rampant.  Fannie and Freddie were able to buy bundles of home mortgages and/or mortgage-backed securities in massive quantities without contemplation of the financial risks.

  
Some economists blame the regulators/regulations.  I disagree.  The financial industry is heavily regulated.  It was the government’s guarantee of Fannie and Freddie that emboldened lenders to put together dicey loans and encouraged undisciplined financial endeavors.

Government policy laid the foundation of the mortgage crisis more than three decades ago when Congress passed the Community Reinvestment Act of 1977. The law forced banks to loan money to low-income borrowers in order to meet the “needs” of the local community.

No worries, though.  The banks knew they could sell off those loans to Fannie or Freddie, and F & F knew they could buy those loans with little regard for the risk.

I’m reminded of the past weekend here in Las Vegas when a few enthusiastic friends (first time visitors) went out and hit the blackjack tables. 

A young man playing two hands was dealt four sevens.  A friend advised him to split and play four hands.  Pondering the risks, he hesitated – but the helpful friend offered to cover his losses and let him keep all the chips if he won. 

What do you suppose that young man did?

He behaved as anyone would:  he played all four sevens.  And, unfortunately, lost on all.

So it goes on the tables of Sin City.  So too, in Congressional corridors and bank board rooms. 

If there’s one thing I’ve learned from blogging and receiving tons of email, we all have our “pet” electoral issues and hot buttons – and they vary widely from person to person.  For me, it’s national security first; the economy (and tax policy) second; and energy policy (a closely related) third.

On the subject of the economy, Jack Kemp has a good op-ed on the presidential candidates and their proposed tax plans (thanks to Mike Davis at the NV RLC for bringing it to my attention).  I strongly encourage voters to read the whole thing, but here are some key points (summarized in my own words):

Barack Obama says he supports a tax cut in the form of a $500 refundable income tax credit for all workers (except those in the top 5 percent of income earners, who will pay more taxes) “unless the economy remains weak.”  So…Obama does recognize that tax increases on the rich have a negative effect on the overall economy.  (But why does he think that matters only in “weak” economic times?)

Obama’s tax credit does not reduce marginal tax rates, so it won’t benefit the general economy because it provides no long term (additional) incentives for work, savings, investment or business expansion.  (People will get their $500 refund check, spend it, and that will be That.)

On the other hand, McCain wants to double the personal exemption for dependents from $3,500 to $7,000 for families regardless of income.  (For middle-class workers in the 25% tax bracket, the $3,500 exemption increase would reduce their tax liability by $875 for each child.  Families with three children are thus looking at $2,600+ in tax savings.)

And McCain proposes marginal tax rate reductions – which is great news in country that pays the second highest corporate tax rates in the entire industrialized world.  McCain wants to reduce the federal corporate tax rate from 35 percent to 25 percent – a boon for middle class workers in the form of new jobs, better pay, and a stronger dollar.

And all this will most likely raise rather than reduce tax revenues.  (Why?  Kemp cites a 2007 study by the Treasury Department which showed that Ireland — with a 12.5% corporate tax rate — raises just shy of 50 percent more revenue on a comparative basis than the U.S. does with a 35 percent rate!)

McCain would also keep the top capital gains tax rate and dividend tax at 15% which is needed in the stock world (stocks are now held by more than 2/3rds of all Americans).  McCain further wants to phase out the Alternative Minimum Tax (AMT) which burdens 25 million middle-class families with another $2,700 in taxes each year (on average).

Obama, by contrast, has proposed to raise marginal tax rates for almost every federal tax — the individual income tax, the capital gains tax, the dividends tax, the payroll tax, the death tax, etc. and he would increase corporate taxes where and when he could.

McCain’s plan is a good start, but I agree with Kemp:  we need to promote additional middle-class tax cuts through fundamental reform of our “confusing, contradictory and confiscatory tax code.”

Kemp outlines a proposal by Rep. Paul Ryan, R-Wis. to allow workers to choose a flatter tax system (which is also worth reading about, at the end of his op-ed). 

Whoa, I almost missed this part of the story!  Check it out:

Bob Loux, Grand Propaganda Poobah for Nevada’s Nuclear Waste Policy Office, didn’t just redistribute funds in the form of unauthorized 2008 raises.  Apparently he’s been over-paying himself and his staff for years.

According to figures released by the governor’s office yesterday, Loux over-paid himself and his staff (i.e. exceeded his budgeted salary amount) for fiscal year 2007 by 6.69 percent.  This year, he exceeded his budget by 12.06 percent. And for next year, he was planning to exceed by 18.99 percent.

As for his personal salary, Loux was budgeted to be paid $114,088 this year but jacked up his salary more than 27 percent to $145,718.  He was budgeted to be paid $114,088 again next year (due to the statewide salary freeze) but set himself up to rake in $151,542 instead. 

Here’s the kicker:  These raises look to be about more than just the immediate extra cash.  Turns out Loux is eligible to retire on October 8, 2008.  And his already generous retirement package will/would reported be based on his ending salaries for his final three years of service. So it sure appears as if Loux was jacking up his salary in an effort to rip off taxpayers for higher retirement benefit over the next twenty or thirty years.

Assemblyman Morse Arberry was right on Tuesday.  Bob Loux shouldn’t just be fired; he ought to be prosecuted and thrown in jail.  AND stripped of his inflated retirement benefit.

(Hat Tip to Chuck Muth’s News and Views.)

Chuck Muth of Citizen Outreach has filed a complaint with the District Court of Carson City asking for the removal of Bob Loux – executive director for the Nuclear Waste Project Office of the Agency for Nuclear Projects for the State of Nevada – from office for malfeasance as provided for in NRS 283.440.

According to NRS 283.440, “Any person now holding…any office in this State…who is guilty of any malpractice or malfeasance in office, may be removed therefrom as hereinafter prescribed in this section.” 

According to a September 9, 2008, story by Cy Ryan of the Las Vegas Sun, Mr. Loux gave “himself and his staff an unauthorized 16 percent pay raise,” well above levels set by the Legislature for his office. 

On September 10, 2008, Brendan Riley of the Associated Press reported that Mr. Loux “apologized to the lawmakers’ Interim Finance Committee” (IFC) at the hearing on September 9, 2008, “for giving himself and other agency staffers unauthorized pay increases of up to 16 percent.” 

According to the AP report, Mr. Loux’s agency falls under the governor’s office, but Mr. Loux ”didn’t report the pay increases to the governor and instead signed the paperwork needed to authorize the higher pay.”

The raises came to light at the IFC meeting because Mr. Loux had overspent his budget – which in itself is malfeasance in office per NRS 353.260 (copy attached).

According to the statute, “It is unlawful for any state officer, commissioner, head of any state department or other employee, whether elected or appointed, to expend more money than the sum specifically appropriated by law for any such office, commission or department.”

Mr. Loux admitted to the IFC that he both overspent his budget and personally approved the unauthorized pay increases. “I take full responsibility for all of these errors,” Mr. Loux said.  “They were done by me.”

In an official letter to Mr. Bob Loux calling for his resignation, Nevada Gov. Jim Gibbons noted that a review by the Budget Office discovered that “there has been a history of salaries in (Mr. Loux’s) office paid well over the amounts budgeted” and that “increases have been made without my approval and in violation of NRS 223.085.”

According to a report by Ed Vogel in the September 11, 2008, edition of the Las Vegas Review-Journal, Mr. Loux’s “salary manipulation” resulted in Mr. Loux receiving a salary of $151,542 per year – well in excess of his authorized, approved and budgeted salary of $114,088.

In addition, the Budget Office review referenced by Gov. Gibbons shows that Mr. Loux’s willful and unauthorized actions resulted in salary increases for every member of his staff in excess of 27 percent higher than budgeted for Fiscal Year 2008, and in excess of 32 percent higher than budgeted for Fiscal Year 2009.  In one case, one employee was scheduled by Mr. Loux to receive a salary increase next year which would have been more than 50 percent higher than budgeted.

According to Mr. Vogel’s story today, Mr. Loux has rejected Gov. Gibbons’ request for his resignation, saying “I am not going away.”

We’ll soon see!!

 (NOTE:  The word count for this post is greater than usual, but I strongly encourage you to read the whole thing, forward the link to people you know, and contact your assemblymen, senators, and congressmen – both state and federal – in order to make your voice heard.)

Most Nevadans probably don’t even know the NWPO exists (see my post below on Bob Loux), let alone how it came about or what it does.  For a little tutorial, here are some excerpts from a history written over ten years ago by author/researcher Stuart D. Waymire (emphasis mine; non-italicized sarcastic comments also mine):

“Nevada’s Nuclear Waste Project Office was created using money set aside from the Nuclear Waste Fund. Under its director, Bob Loux, NWPO has consumed nearly fifty million dollars over the last decade, much of it employed in opposition to nuclear energy…”

So, the Waste Project Office wasted Money from the Waste Fund.  Seems logical to me.

“…Robert Loux…has become as notorious in Nevada as a one-man anti-nuclear wrecking ball. A high school teacher with a major in history and minor in psychology from the University of Nevada, Reno, Loux had been involved in state energy and nuclear waste programming since 1976. In fact, except for a few years of teaching high school, this appears to have been the only career he has ever pursued.”

A high school history teacher was obviously the best choice to head up an agency overseeing the largest proposed nuclear project in our nation’s history.  “Duh”

“Since becoming executive director of NWPO, Loux’s lack of scientific expertise and technical credentials has become a raw wound in the Nevada technical community which sees him as a political manipulator and engineering dilettante. This hasn’t stopped Loux from gaining carte blanche over what has now grown to more than $5 million dollars per year in funds, in large part distributed to foes of the nuclear industry.”

I think $13,698.63 per day is a very reasonable rate for all the non-expert misinformation we’ve gotten from Loux and his staff.  

“As a result of action by the 1985 Nevada Legislature, NWPO became, officially, the Agency for Nuclear Projects – a statutorily established entity responsible for monitoring and overseeing U.S. Department of Energy activities related to the Yucca Mountain nuclear waste site. In the hands of then-Governor Richard Bryan, it also became part of a political strategy designed to bludgeon political opposition into submission – notably former Senator Chic Hecht in the 1988 senatorial campaign eventually won by Bryan.

 “Under the troika of Senator Bryan, director Robert Loux and former governor Grant Sawyer (who was enlisted to head the Nevada Commission on Nuclear Projects), the Nuclear Waste Project Office became an anti-nuclear propaganda machine.

“Oversight by the Sawyer Commission transformed into show trials masquerading as fact finding. Science conducted by NWPO’s technical and planning division was corrupted by political considerations. The social scientists of the planning division, given lucrative contracts worth $15 million, used their expertise to generate anti-nuclear hysteria in Nevada. Less abusive but no less disturbing was that some of the technical studies were designed to support the party line rather than investigate real technical questions at Yucca Mountain.”

Kudos to ex- Nevada Governors Richard Bryan and Grant Sawyer for administrative efficiency:  they ordered skewed technical studies, effectively smeared the Yucca project, and defeated their political opponents using the same agency.

 “Nevada’s politicians, notably Senator Bryan and ex-governor Sawyer, looked the other way as Bob Loux awarded millions of dollars of contracts without Requests For Proposals and without competitive bids.

We don’t need no stinking bids.

“Even more problematic was that the Department of Energy, which was supposed to oversee the spending of NWPO, caved in to the political pressure and allowed the state to violate federal laws rather than risk making political waves…

Given a choice between upholding federal law and being called a bunch of Big Meanies, the DOE made the obvious choice.

“For example, NWPO openly violated the Federal Acquisition Regulations (FAR) against using funds to run public relations and lobbying campaigns. Whenever questioned about the legality of these public relations activities, Bob Loux simply claimed the regulations didn’t apply, or that his agency was in compliance because its activities were strictly ‘informational’. The pertinent regulation regarding limits on public relations and lobbying by agencies accepting Federal grants is FAR 31.205-22.”

Loux’ activites were actually MIS-informational, but let’s not split hairs – or atoms, as the case may be.

Twenty-three years later, Loux, Richard Bryan, the NWPO, most of Nevada’s elected officials, and many of Nevada’s citizens are still rabidly anti-Yucca Mountain.  And, unfortunately, many well-intentioned people remain completely uninformed about the facts and benefits.

What a shame.

(I’ll collect and post assorted contact info for the appropriate persons and agencies later today, so please stand by.)

According to the AP, Bob Loux – head of Nevada’s Nuclear Waste Projects Office (NWPO) – took an ex-employee’s salary and gave it to himself and the rest of his staff in the form of double-digit pay increases. In doing so, Loux exceeded his approved budget and raised his own six-figure salary to over $132,000 a year – significantly more than the earnings of many state department heads.

Assemblyman Morse Arberry said Loux could be thrown in jail because “it’s unlawful for any state officer to do what he’s done.” Speaker Barbara Buckley noted that other state employees have received raises of just 2 percent while pulling double and even triple-duty because of a hiring freeze.

With this attempted swindle by Loux, the NWPO’s days of unsupervised slush-funding may finally be coming to an end. A full agency audit is now to take place.

It has been suggested by some that Loux should “pay back” the money. I agree – but first, he should do the other honorable thing and resign.

You can help by contacting the NWPO directly and urging Mr. Loux to quit, or by demanding that the seven members of the Nevada Commission on Nuclear Projects (Dick Bryan, Susan Brager, Larry Brown, Joan Lambert, Steve Molasky, William Roberts and Paul Workman) give him his walking papers.

Here’s the contact information: nwpo@nuc.state.nv.us or call toll-free: (800) 366-0990.

Last night in his interview with Bill O’Reilly, Obama said:

“If I am sitting pretty, and you’ve got a waitress who is making minimum wage plus tips, and I can afford it and she can’t — what’s the big deal for me to say, ‘I’m going to pay a little bit more.’ That is neighborliness.”

Well, Senator Obama, it WOULD BE neighborliness if you were doing it VOLUNTARILY, i.e. if free will were involved.

However, if the amount you pay is decided by the federal government, collected by the federal government, and distributed where and whence the federal government sees fit, and if you resent the hell out of it (as I do), then the act is NOT neighborliness but state-mandated SOCIALISM, otherwise known as the forcible redistribution of wealth, otherwise known as highway robbery by the Nanny State bandits of the world.

(I was pleased when O’Reilly called him “Robin Hood Obama.”)

This Eric O’Keefe blog/op-ed is for my Michigan readers (of whom there are a few).  It’s also worthy of note for anyone concerned with combatting massive tax hikes, the freedom of citizens in recall processes/petitions, and blatant media bias. 

The Free Press’s position is passing strange considering it’s been 25 years since the last legislative recall in Michigan.  And I agree with O’Keefe’s closing:

The Free Press is good at covering the Tigers and Red Wings. It should stick to covering sports, the weather, and the continuing decline of Michigan’s over-taxed economy.

One of my NV business owner pals just forwarded me her recent email exchange with Nevada State Senator Dennis Nolan.  It’s worth sharing especially since Nolan’s advice to her (and anyone who agrees with her) was to leave the state.  Way to persuade your critics and strengthen Nevada, Senator Nolan!

P:  The reason people don’t get Nevada plates is that they are the highest in the country. Hey, Earth to Nolan! You can CHOOSE your state of residency. You can set up an LLC or company in another state. All of these are perfectly legal ways to have plates from other states. Want people to register here? Cut the fees down and they will register!!! DUH!

Senator Nolan:  If they like paying to register in another state and let the rest of us pay for roads and highways, then they should live in the other state! DUH!

P:  Because people can have more than one house or an RV which is deductible as a house! DUH! Last time I looked half of it went to the overbloated worthless school system stuffed with illegals that you refuse to do anything about! DUH! WHAT DOES THAT HAVE TO DO WITH THE ROADS? WITH THE WAY THIS STATE IS GETTING CALIFORNICATED THERE WILL BE LOTS OF PEOPLE LEAVING!  READ IT AND WEEP! http://wyomingcompany.com/ 

$500 to set up a Wyoming LLC, cheap plates, no business tax and no Nevada stigma! and no Rhinos! That single move alone would save me $3,800 a year in plates for a 1999 car ($500), a 2001 car ($650), and a 2003 motor home ($1,800) which is never there! And when it is, it’s parked!!!! Tell me, why should I keep paying license plate fees in Nevada?????? It’s a NO BRAINER!

Senator Nolan:  Your Right! and in your case I think the move would be a prudent and in the State’s best interest!

(E!! Note:  The word “your” is not the same as the contraction “you’re” meaning you are.  Dare I speculate that Nolan attended public school in Nevada?)

P:  I’m sure there are plenty more people that would rather see you go. Shall we make a list???

Senator Nolan:  You’re probably right! No, don’t worry,  I’ve already started a list.  Hey, I really do appreciate your concern and  involvement despite our differences.  Have a good week.

(Having calmed down, Nolan realizes that shouting “DUH!” and advising unhappy citizens to leave the state is probably not a good strategy…or very Senatorial, either.)

P:  Truce, for now. If you really want to do something to help the economy, support cutting the school fees out of the budget and allowing for licensing your cars based on what they are actually worth, not some inflated retail price.  We pay $1,800 a year for license plates for a 5 year old motorhome. We RV outside of Nevada 10 months a year. When it’s in Las Vegas it’s parked. Now tell me why I should pay that kind of money to the state?

I can license in Wyoming or Montana (no sales tax either) by purchasing an LLC. I haven’t yet, but I’m going to. You can be a citizen of anywhere now by buying an LLC or Corp. Why is Nevada driving business and fees out of Nevada? Wyoming is actively seeking what would be Nevada businesses. I would love to see some numbers on how much the LLC business has dropped in Nevada since 2003, and the big tax and fee hikes.

The threat of a business tax being espoused by Rogers and Buckley are forcing people to look elsewhere. It is perfectly legal and smart to lower your taxes legally. It would be in Nevada’s best interest to change these 2 anti-business, anti-consumer things that are patently unfair. It would cut the cost of plates in half, and I bet alot more people would buy their plates here.

By the way, I am also a small business owner, Internet. It would be very easy for me to move my business to Wyoming. In fact I’m setting up a second LLC in Wyoming this next week as a precaution against a potential business tax. How many other businesses are doing or will do the same thing?

It’s a world economy now. State governments should realize that. Make it attractive for small businesses to be here or they will stop coming. Have a nice evening.

Remember the movie Pay It Forward in which random acts of kindness are not paid back but instead are bestowed upon someone Else?   

Here in Nevada, we’re gearing up to shoot the sequel.  It’s called Tax it Backward and its about Nevadans imposing taxes on folks who don’t live here:  the hapless tourists standing behind us in whatever line for whatever show at whatever mega-resort.

The would-be producers of this very bad idea are the usual suspects:  the head honchos in the teachers union and many of the Dems in Carson City.  The extras are the voters in favor of fleecing Nevada’s tourists rather than pay for a tax increase on themselves.  Those against funding education spending increases with a room tax increase can be found on both the left and the right. 

CityLife editor Steve Sebelius thinks we need to raise taxes.  Me and the Muthster, we say no.  Where we three agree is thinking its wrong to fund the education department by taxing people who don’t live in Nevada (tourists) via higher lodging taxes.  Yesterday, Sebelius wrote…

“The Review-Journal published a poll in today’s editions, revealing that 60 percent favor increasing the room tax to pay for education, a move that will raise about $150 million to $185 million per year. ‘People will vote for tax increases that don’t affect them. I would be surprised if it did not pass given the numbers that are showing right now,’ said Brad Coker, managing partner of Mason-Dixon, the company that did the poll.

“Exactly. People don’t mind soaking others for things they ought to be paying for themselves. In this case it’s two easy targets: Casinos, and tourists. 

“How many of those people would walk into a 7-Eleven, fill up a Big Gulp, grab some Doritos and then tell the clerk to charge the guy who’s next in line? Sure they might want to do that, but how many would actually have the cojones to do it in person?

“Not very many. But they’ll do it at the ballot box.

“The point is, education benefits everybody in Nevada, and therefore, everybody in Nevada has an obligation to pay.”

Correct-a-mundo.  To raise taxes on tourists is not only taxation without representation – a no-no per the Founders of this great nation - it’s also bad for Tourism which, might I remind everyone, is a major source of revenue here in Nevada.  

If we’re going to raise taxes for education in Nevada - which I strongly oppose because I don’t think more money is the answer to our education problems – then Nevadans ought to be the ones to put their money where their ballot button is. 

And that’s a Wrap.

“Our schools deserve parents’ support” was the scintillating headline of Nevada System of Higher Education chancellor Jim Rogers’ op-ed in the Las Vegas Sun on Tuesday.  Rogers kicks his column off by equating Nevada’s per-pupil funding levels to child abuse and neglect.  (Read it to believe it!)

Rogers then goes on to criticize Nevadans for not paying enough taxes to adequately fund education in Nevada. 

FACT ONE:  Based on U.S. Census data on K-12 spending and doing a little quick math, Nevada spent $8,926 per student in 2006 which, at an average classroom size of, say, 30, works out to $267,780 per classroom year.

FACT TWO:  43% of Nevada’s fourth graders are functionally illiterate, according to the National Assessment in Education Progress reading test.

Even allowing for the 3 to 18% of Nevada’s students who are ELLs (English Language Learners, meaning those who speak only or primarily Spanish) and who naturally cannot be expected to test as fully literate in English, that 43% is a pretty dismal number.

How is it that over a quarter of a million dollars of spending PER CLASSROOM is not enough money to ensure that by fourth grade our students have learned to read with basic competency?

And Rogers wants to lecture the taxpayers about ABUSE and NEGLECT…?

You can reach Rogers by email at chancellor@unlv.edu or call his office at (702) 889-8426.

“When examined as a whole, I find it impossible to believe that there is simply no way to reduce spending within the system of higher education. . . . The system of higher education currently employs 1,328 people who are paid $100,000 or more annually.”

- Nevada Gov. Jim Gibbons, 8/20/08

“The top 452 (university system employees)…all make more than the governor, who receives $140,000 a year.  The highest paid university system employee is [Dr. William Zamboni, head of the School of Medicine's surgery department] who receives $1.4 million a year in compensation not counting health and retirement benefits.”

- Nevada Appeal, 8/21/08

The Muthster tells me that Assembly Speaker Barbara Buckley did an interview last week in which she threatened to target any Republican candidate who signs the Taxpayer Protection Pledge. 

On the other side is Muth and Citizen Outreach, not-so-gently reminding candidates that there will be a barrage of pre-election phone calls and mail-outs into their districts if they don’t sign the Pledge.

What’s a Republican candidate to do?  Buckle when the leader of the opposition party points her canons his way, or stand up for fiscal conservatism and fight the Good Fight?

Here’s a third alternative for Nevada’s candidates:  if you’re billing yourself as a Republican but support raising taxes on an already over-taxed citizenry, do us all a favor and leave the party.  Buckley will be glad to have you, and we’ll be glad to see you go.

If you’re a voter who opposes new taxes, or are running for election and want to see and/or sign the Pledge, go here.  Candidates can fax it to Citizen Outreach at (775) 522-3925.

Well, I don’t relish raining on conservatives’ celebratory parade after Tuesday’s primary victories here in Nevada, but a commitment to fair analysis requires that I do just that.

Dontgomovement.com has a “Caption It” graphic challenge up today.  Check it out and give it your best shot!

“Wow.”  Sometimes that’s all you can think to say when you read something like this.  I recommend combing through the whole story so you can speak about it intelligently at your next cocktail party, but here’s the sum-up (excerpted and edited from the linked story by William Collier): 

Apparently, in May of 2007, Nancy Pelosi invested in T. Boone Pickens‘ clean energy fuels corp., CLNE, which is the sole sponsor of a California proposal to funnel $5 billion in state funds and $5 billion in Federal funds to this corporation which will help CLNE create a giant wind farm in the Texas panhandle.

Notably, Pickens’ plan also involves the private control of water resources which Pickens wants to sell to big cities via giant pipelines built on land he seized under eminent domain.  Pickens set up that deal by pushing through an 8 acre “water district” and then applying eminent domain to expand the district and grab more land from local ranchers.

The director of the Texas Sierra Club had this to say:  “We have real concerns about private control of water…  Water is a resource, yet in some respects it is a commodity. It’s as essential to human life as air. That puts water in a different class.” 

Thank you, Kenneth Kramer, for that brilliant explanation of the importance of water.

Anyhoo, Pickens’ water district and distribution plan is opposed by water policy planners because extraction would affect natural spring flows in the rural Texas Panhandle communities that depend on that water. It would also adversely affect family farming and sustainable development from Texas to South Dakota.

Here’s the crux as it stands now:  Pickens has not been able to find enough investors to pay for a $110 Billion bond he wants his new “water authority” to issue, SO he is now trying to piggy-back the windmill farm plan on to the water infrastructure development plan…so he can use the money obtained from the wind farms (some of which will be state and federal funds, i.e. taxpayer dollars) to pay for the water system infrastructure. 

Clear as mud?  He’s using his water district scheme to seize land and his windmill scheme to fund his water scheme.  And you as a taxpayer are going to help pay for it!  Aren’t you excited?!

And again, Pickens also has the financial and moral support of Nancy “I’m Trying to Save the World” Pelosi who purchased a large chunk of stock in CLNE on May 25, 2007 in the initial IPO.  Be sure to  contact Pelosi’s office to let her know how thrilled you are!

NOTE:  Rob Neppell pointed out the following:  the actual financial disclosure form