(continued)
and D-Bell's home computer and phone so over whelmed, a website was created and email
distribution lists consolidated, www.dbelltax.blogspot.com. D-Bell receives excellent support
from the folks of the Ogden Valley Forum... mysteriously "Val E.". who support the cause.
While the For Sale signs were being distributed by Wingman Sorensen,
D-Bell was busily networking with more than concerned Valley residents numbering
in the hundreds. He began reaching out to other groups like Citizens for Tax Fairness
www.citizensfortaxfairness.org,
a Bountiful citizens group cofounded by Ron Mortensen.
Networking continues from north to south, east to west forming a Statewide
Coalition of citizens for property tax reform.
Bell and Sorensen are both pilots, so it was natural to select the name
"Wing men (and ladies of course) for Property Tax Reform".
Together they delivered petitions with more than one thousand signatures to
the Weber County Assessor and to the Chairs of the Utah State Legislature's
Revenue and Taxation Interim Committee. Bell gave an impassioned speech for
broad and comprehensive property tax reform on 19 Sept., and several from
the tiny Town also contributed with their own testimony. They were joined and
continue to be joined by citizens from all over the State who are livid and disgusted
with the inaction of our elected officials.
Highest taxed County in the State has turned down all efforts
Representative Froerer tries in vain to meet with Weber County Commissioners and
the School District to mimic Davis County Commissioner's rebate program after they
legally held Truth in Taxation meetings. Yet the highest taxed County in the
State has turned down all efforts to gain tax relief at every bend and turn.
Richard Sorensen and D-Bell
Wingmen for Property Tax Reform
Tuesday, October 9, 2007
New "Wingman" from Bountiful proposes Property tax reform sketch (cont)
Comments from D-Bell
This is close to what I have in mind. "Acquisition Value" (AV) taxation system seems very close to this synopsis. We discussed his plan over lunch with several other "Wing men". Bert seemed to agree that a "look back" several years would need to be established as a base assessed property value. Then either a set percentage or a percentage based upon the January announced Cost of Living Adjustment (COLA) would be applied each year to determine the new property value.
The tax rate, we agreed, should be a set standard rate (perhaps at 1% of the newly established property value.
This is a simple and very clear method.
Another discussion centered on commercial property. The initial consensus was to treat commercial identical to residential property.
And finally. "Centrally Assessed Property" was discussed. In case you are unfamiliar, centrally assessed property consists of the big corporations which are found in many counties and cross State lines.
There has been a near total shift of property tax burdens over to us over the past ten years or so. The big boys with their lobbyists are effective in getting the property taxes virtually exempted from any taxation, which of course shifts the property tax burdens to primarily residential property taxation and some commercial property taxes. Small businesses are generally hurting as much as we are (except perhaps in Weber County)...who knows with no "Truth in Taxation" or budget information coming out of the terrible trio.
We have no solutions for - nor ideas to resolve, the Centrally Assessed Property situation yet. But we are working on it with a political consultant with expertise in this area.
This one is, as the Brits say, "a sticky wicket" in that it is a fundamental truth in economics that corporations do not pay taxes, only consumers pay taxes. The corporations just pass them along to consumers in the form of higher prices.
But it would seem to me that a formula could be worked out based upon a corporation's net profit, perhaps taxing over a certain percentage amount. But that seems to cross over from property taxation to income taxation.
We need your ideas on this one. Think in terms of Quest, Kennecott, Union Pacific, Pacificorp, Worldcom, Kern River Gas Transmission, Voicestream Wireless, Delta Airlines, Questar Gas, AT&T Wireless, Verizon Wireless, and IPA the largest Centrally Assessed Corporations in Utah. Consider the services they provide us and how they deliver them. Then think about ways to have them share our personal and business tax burdens which will not be readily just passed along to us consumers.
Perhaps in-State residential and commercial credits to our gas or other utility bills. In-State automatic discounted rail freight charges from Union Pacific enabling more profit to small business users. Or phone bill and Internet service in-State credits for users of Version, AT&T, and Quest users, or airfare tickets price breaks for Utahans who fly, etc. These types of user "reverse fees -if you will", in lieu of local governmental funds being further stuffed with cash. Fees in lieu of taxes in reverse...or is that too obtuse? If there is a taxation burden shift in other words, let the "shift" cross State lines enabling increased personal wealth for Utahans who are already the fourth (4th) highest taxed citizens in the Nation with below the national average earnings. Let's work of increased effective earnings by consumer monthly rebates from these monster corporate leeches on our bank accounts.
Question; where is the old Public Service Commission? Where have they gone? Has anyone even heard of them in the past five years? Are they like the State Tax Commission a "toothless watch dog" now? What has the Governor and/or the legislature done to or with them?
Simply making it easier for those Bert Hulet suggests be put on "Diet Cola", to bring in hundreds of millions more dollars, with no real legal cost benefit analysis measures. Or cost effectiveness public legal hoops to abide by and be accountable to constituents is just more of the same. A bottomless abyss and insatiable appetite to spend without accountability, except at the ballot box four years too late. We could use a recall provision by the way Senators and Representatives out there... to get rid of these scum sucking pigs (excuse me) well meaning public servants much easier...while we are lobbying for property tax reform and ethics reform.
Think out of the box friends and neighbors and let me/us know your ideas by posting them in the "Comments" on this site, so we can all think through them. Simply use the anonymous button if you are worried about what someone else might think of your idea. You don't have to identify yourself if you are shy or tepid.
Minor Machman
This is close to what I have in mind. "Acquisition Value" (AV) taxation system seems very close to this synopsis. We discussed his plan over lunch with several other "Wing men". Bert seemed to agree that a "look back" several years would need to be established as a base assessed property value. Then either a set percentage or a percentage based upon the January announced Cost of Living Adjustment (COLA) would be applied each year to determine the new property value.
The tax rate, we agreed, should be a set standard rate (perhaps at 1% of the newly established property value.
This is a simple and very clear method.
Another discussion centered on commercial property. The initial consensus was to treat commercial identical to residential property.
And finally. "Centrally Assessed Property" was discussed. In case you are unfamiliar, centrally assessed property consists of the big corporations which are found in many counties and cross State lines.
There has been a near total shift of property tax burdens over to us over the past ten years or so. The big boys with their lobbyists are effective in getting the property taxes virtually exempted from any taxation, which of course shifts the property tax burdens to primarily residential property taxation and some commercial property taxes. Small businesses are generally hurting as much as we are (except perhaps in Weber County)...who knows with no "Truth in Taxation" or budget information coming out of the terrible trio.
We have no solutions for - nor ideas to resolve, the Centrally Assessed Property situation yet. But we are working on it with a political consultant with expertise in this area.
This one is, as the Brits say, "a sticky wicket" in that it is a fundamental truth in economics that corporations do not pay taxes, only consumers pay taxes. The corporations just pass them along to consumers in the form of higher prices.
But it would seem to me that a formula could be worked out based upon a corporation's net profit, perhaps taxing over a certain percentage amount. But that seems to cross over from property taxation to income taxation.
We need your ideas on this one. Think in terms of Quest, Kennecott, Union Pacific, Pacificorp, Worldcom, Kern River Gas Transmission, Voicestream Wireless, Delta Airlines, Questar Gas, AT&T Wireless, Verizon Wireless, and IPA the largest Centrally Assessed Corporations in Utah. Consider the services they provide us and how they deliver them. Then think about ways to have them share our personal and business tax burdens which will not be readily just passed along to us consumers.
Perhaps in-State residential and commercial credits to our gas or other utility bills. In-State automatic discounted rail freight charges from Union Pacific enabling more profit to small business users. Or phone bill and Internet service in-State credits for users of Version, AT&T, and Quest users, or airfare tickets price breaks for Utahans who fly, etc. These types of user "reverse fees -if you will", in lieu of local governmental funds being further stuffed with cash. Fees in lieu of taxes in reverse...or is that too obtuse? If there is a taxation burden shift in other words, let the "shift" cross State lines enabling increased personal wealth for Utahans who are already the fourth (4th) highest taxed citizens in the Nation with below the national average earnings. Let's work of increased effective earnings by consumer monthly rebates from these monster corporate leeches on our bank accounts.
Question; where is the old Public Service Commission? Where have they gone? Has anyone even heard of them in the past five years? Are they like the State Tax Commission a "toothless watch dog" now? What has the Governor and/or the legislature done to or with them?
If we take the usual "WHAT?! Tax those suckers. Always tax everyone else but me!", we are being wrong headed about this whole thing. Simply raising tax monies for local governmental spend thrifts (squanderers), which have no apparent accountability to constituents is not a good solution.
Simply making it easier for those Bert Hulet suggests be put on "Diet Cola", to bring in hundreds of millions more dollars, with no real legal cost benefit analysis measures. Or cost effectiveness public legal hoops to abide by and be accountable to constituents is just more of the same. A bottomless abyss and insatiable appetite to spend without accountability, except at the ballot box four years too late. We could use a recall provision by the way Senators and Representatives out there... to get rid of these scum sucking pigs (excuse me) well meaning public servants much easier...while we are lobbying for property tax reform and ethics reform.
Think out of the box friends and neighbors and let me/us know your ideas by posting them in the "Comments" on this site, so we can all think through them. Simply use the anonymous button if you are worried about what someone else might think of your idea. You don't have to identify yourself if you are shy or tepid.
Minor Machman
Monday, October 8, 2007
Stealth Legislator, Commissioner, Assessor, Meeting Report 8 Oct., '07
(Continued)
.....Every property, 100% of all properties taxed at 100%. No more 45% discounts for "primary residences". Got it? No more arguments over whether a house in St. George is a primary or non primary residence. 100% taxed equally. At the same rate...the whole State.
Then I want you to consider this. If you take a ten or twenty year look back, property tax is a little less than one percent (like .997634 or something). If you eliminate all these statistical nonsense of coefficients of variation, and coefficients of dispersions and all the things that have been talked about here today, which are difficulties with assessing properties based on the current system. If you eliminate all the assessors offices statewide and go to a simple "acquisition value" taxation system. A single cheap Dell computer could do the entire State for less than $1,000. What we have here is something too hard to even think about. Even professional assessors (referring to the Utah Co. assessor I think he was) say the sophisticated statistical techniques are so complex to apply and difficult to understand he didn't even want to attempt it. What you have here is a mess or what we used to call a "fur ball" in fighter pilot "dog fight" jargon. And there comes a time when you have to do something completely different in order to break out of the fight and prevail.
And for those of you who are in Real Estate or members of the powerful Realtors Association lobby I want you to consider this. If you don't get on-board with what turns out to be every State in the Union, except five (which are currently considering going to this simple system) you will see your precious 6% commissions cut to shreds anyway. Because we are going to begin to sell our properties to each other for $500. And 6% of $500 is only $30, not $30,000. You need to seriously understand what is happening. People are not stupid and they are seeing through this whole Real Estate based hyped up scheme. And they will revolt just as soon as someone comes along with a better alternative. Ninety percent of this Country has already done just that. Thank you - my minute is up.
Afterward is where any real progress was made. People clustered in small conversational groups.
I lobbied with several, but focused on Senator Wayne Niederhauser, Co Chairman of the Revenue and Taxation Interim Committee. I explained to him the details of the basis for "Acquisition Value" taxation. I included deductions for bogus realtor's commissions and the costs for curb appeal which actually add no value to a property at the sale. Senator Niederhauser asked questions, admitted his CPA professional training and background, as well as his developer current business interests. He said clearly he was not a Realtor association member nor a Realtor. This because of my continued probing into his interests with comments like "You probably already know about this...there are more than 22 Realtors now as legislators. And they have displaced attorneys over the past six years. As many as forty (40) meet regularly to scrutinize any possible legislation being considered. They meet to analyze any possible negative impacts such legislation might have on their "business interests" and their "6%" commissions.
"You passed, for example, a "Minimum Services Real Estate Act" to preserve their 6% commissions and defend against on-line services which offer to list and sell properties for fixed fees of say $500. This Internet service has already spread across the Country and would have promoted more real estate sales and actually - ironically made the claims of Utah Realtors Association members valid instead of propaganda. It would have actually validated their claim to support low property taxes and lower housing costs. Yet you let them bully their way and not in the best interests of your constituents. You were wrong then and apparently often over the past six years as they whittled away any relief from what we are now experiencing.
You need to know that I will personally guarantee that the word gets out. They will be exposed to everyone in this State. The walls of that particular scheme will, like all dishonest "ponzi schemes", come tumbling down. It starts here and now. I do not like to be lied too and neither do my neighbors. There are more of us every day who are kicking the props out from under that particular inappropriate lobby group.
Senator Niederhauser smiled and asked, "How many lawyers do you think are in the legislature?" To which I replied the Realtors have successfully displaced enough of them that over the past six years - they have bent and manipulated laws in favor of their own interests. They literally and almost blatantly brag about it openly in articles to the National Realtor's Association. These people will be likely targets for replacement over the next few years. It will not matter how much money they can spend or tricks they try to pull politically. We are not stupid and the wrath of the voters will far exceed the greed, corruption, and propaganda campaigns these few people, but big money, they can produce. They need to have their attention gotten and they will...this I can pretty much guarantee.
I asked him "How could Utah conceivably hold onto this ludicrous notion of staying a "non-disclosure" State just on ethical and moral grounds? How could we continue this non-sense of trying to hide the truth and facts from an over zealous tax assessor's office and cheat our neighbors? How on cultural grounds if nothing else, could the Utah State legislature persist with the URA line and propaganda rejecting honesty and openness and accountability? (Here readers need to know a previous Davis County Commissioner had explained how if he bought a half million dollar property he would not report it. Instead he like others (implied) would lay low so that his property would be under valued at the $350,000 of his neighbors on both sides. He felt we were not ready to become a full disclosure State...he is a Realtor by the way.)
I explained the analogy of how we used to be taxed on our vehicles. How it turned us all into tax cheats and liars. It even dictated what year vehicle we drove for years. Until someone came along and figured it out. Now we are all reasonably satisfied with the vehicle tax system because it at least makes a little sense to us. This is what we need and want with property taxes.
I iterated my speech asking where anyone was proposing our youth and young family's live? Representative Froerer and friends seem to want a reverse mortgage situation which will fatten the mortgage bankers wallets and ultimately the insatiable demands for more and more tax money by local and state government while attending to Realty interests/commissions. It will make his and their real estate champions ecstatic over turnover and commissions. But it leaves our children out in the cold with no place to call home in Utah. Are we to cram back into our homes with multiple large families like our Southern Immigrant families to make ends meet? The proposals he outlined are somewhere between outrageous and beyond even the AARP support. (1) Deferred taxes (with interest and principle payable upon death). Now there's a cheery prospect. Bad news is your mother died. Worst news is she owes the State or some scum bag legislator's mortgage bank business, the family farm plus interest. Go borrow or sell to pay off the tens or hundreds of thousands of dollars in back taxes and/or loans.) DOA non-sense. (2) Increase Circuit Breaker to the mid 30s (....$35,000ish) DOA Horse hockey which again ducks the "disease" (property reassessments out of control). To qualify for what? Up to $795 off a property tax bill of more than $4,000 that should be less than $800 to begin with?) More DOA non-sense. (3) Expand the one acre discount to more (?) in jurisdictions which require by ordinance a minimum of say three (3) acres. DOA non sense again. It is pandering to a specific constituency. It will be resented by others and create more problems. And it is a "pure" form of Band Aid which does not address any disease at all. A non solution. (4) Do a rolling average of the past five years of property taxes to eliminate the "spikes" caused by irregular County assessments. DOA Snake oil and a statistical search of a problem to "smooth". Figures don't lie. But liars will figure. This is a gadget approach designed to slip it to us all gently. Get the same revenue essentially, but do it on the "QT" ...so it won't cause so much outrage in the future. This is again a non solution - but worse a bad non-solution.
Dear people, if any of these proposals pass, every single Senator and Representative who voted for them needs to be escorted out of the State Capital building complex with his belongings in a card board box within weeks if not months.
We are headed - as the 4th highest taxed (total taxes considered) in the Nation, for all that goes with being a National disgrace. Without some of the more intelligent members of the legislature taking control of some of as many as 40 to 60 "indecent proposals" we will become the laughing stock of the Nation. What is worse, we will have earned that distinction by indifference, apathy, and inaction.
There is hope. Senator Niederhauser explained that they are only meeting to discuss issues and formulate proposals. They are in essence in an exploratory mode right now. The formal session which begins in January is when someone could for example propose my initiative, a "Blue Ribbon Study Group" to come up with comprehensive tax reform recommendations.
The Town of Huntsville is still For Sale and media day will be next Saturday (press release is being drafted). There is much being planned involving forming coalitions with existing groups, networking, lobby efforts of our own, meeting to build our own platform, build a strategy to execute our objectives, replace ethically challenged legislators with honorable people, etc. to work within the system. All this even though the evidence is almost over whelming that "the legislative system" is broken and part of the problem instead of the solution.
Some of us agree with Walt P.'s commentary in the 4 October Standard Examiner Letter to the Editor. Dramatic action involving a ground swell of citizenry from across the State marching on the Governor's Mansion or the Legislature will be required ultimately.
That's a wrap,
Minor Machman
.....Every property, 100% of all properties taxed at 100%. No more 45% discounts for "primary residences". Got it? No more arguments over whether a house in St. George is a primary or non primary residence. 100% taxed equally. At the same rate...the whole State.
Then I want you to consider this. If you take a ten or twenty year look back, property tax is a little less than one percent (like .997634 or something). If you eliminate all these statistical nonsense of coefficients of variation, and coefficients of dispersions and all the things that have been talked about here today, which are difficulties with assessing properties based on the current system. If you eliminate all the assessors offices statewide and go to a simple "acquisition value" taxation system. A single cheap Dell computer could do the entire State for less than $1,000. What we have here is something too hard to even think about. Even professional assessors (referring to the Utah Co. assessor I think he was) say the sophisticated statistical techniques are so complex to apply and difficult to understand he didn't even want to attempt it. What you have here is a mess or what we used to call a "fur ball" in fighter pilot "dog fight" jargon. And there comes a time when you have to do something completely different in order to break out of the fight and prevail.
And for those of you who are in Real Estate or members of the powerful Realtors Association lobby I want you to consider this. If you don't get on-board with what turns out to be every State in the Union, except five (which are currently considering going to this simple system) you will see your precious 6% commissions cut to shreds anyway. Because we are going to begin to sell our properties to each other for $500. And 6% of $500 is only $30, not $30,000. You need to seriously understand what is happening. People are not stupid and they are seeing through this whole Real Estate based hyped up scheme. And they will revolt just as soon as someone comes along with a better alternative. Ninety percent of this Country has already done just that. Thank you - my minute is up.
Afterward is where any real progress was made. People clustered in small conversational groups.
I lobbied with several, but focused on Senator Wayne Niederhauser, Co Chairman of the Revenue and Taxation Interim Committee. I explained to him the details of the basis for "Acquisition Value" taxation. I included deductions for bogus realtor's commissions and the costs for curb appeal which actually add no value to a property at the sale. Senator Niederhauser asked questions, admitted his CPA professional training and background, as well as his developer current business interests. He said clearly he was not a Realtor association member nor a Realtor. This because of my continued probing into his interests with comments like "You probably already know about this...there are more than 22 Realtors now as legislators. And they have displaced attorneys over the past six years. As many as forty (40) meet regularly to scrutinize any possible legislation being considered. They meet to analyze any possible negative impacts such legislation might have on their "business interests" and their "6%" commissions.
"You passed, for example, a "Minimum Services Real Estate Act" to preserve their 6% commissions and defend against on-line services which offer to list and sell properties for fixed fees of say $500. This Internet service has already spread across the Country and would have promoted more real estate sales and actually - ironically made the claims of Utah Realtors Association members valid instead of propaganda. It would have actually validated their claim to support low property taxes and lower housing costs. Yet you let them bully their way and not in the best interests of your constituents. You were wrong then and apparently often over the past six years as they whittled away any relief from what we are now experiencing.
You need to know that I will personally guarantee that the word gets out. They will be exposed to everyone in this State. The walls of that particular scheme will, like all dishonest "ponzi schemes", come tumbling down. It starts here and now. I do not like to be lied too and neither do my neighbors. There are more of us every day who are kicking the props out from under that particular inappropriate lobby group.
Senator Niederhauser smiled and asked, "How many lawyers do you think are in the legislature?" To which I replied the Realtors have successfully displaced enough of them that over the past six years - they have bent and manipulated laws in favor of their own interests. They literally and almost blatantly brag about it openly in articles to the National Realtor's Association. These people will be likely targets for replacement over the next few years. It will not matter how much money they can spend or tricks they try to pull politically. We are not stupid and the wrath of the voters will far exceed the greed, corruption, and propaganda campaigns these few people, but big money, they can produce. They need to have their attention gotten and they will...this I can pretty much guarantee.
I asked him "How could Utah conceivably hold onto this ludicrous notion of staying a "non-disclosure" State just on ethical and moral grounds? How could we continue this non-sense of trying to hide the truth and facts from an over zealous tax assessor's office and cheat our neighbors? How on cultural grounds if nothing else, could the Utah State legislature persist with the URA line and propaganda rejecting honesty and openness and accountability? (Here readers need to know a previous Davis County Commissioner had explained how if he bought a half million dollar property he would not report it. Instead he like others (implied) would lay low so that his property would be under valued at the $350,000 of his neighbors on both sides. He felt we were not ready to become a full disclosure State...he is a Realtor by the way.)
I explained the analogy of how we used to be taxed on our vehicles. How it turned us all into tax cheats and liars. It even dictated what year vehicle we drove for years. Until someone came along and figured it out. Now we are all reasonably satisfied with the vehicle tax system because it at least makes a little sense to us. This is what we need and want with property taxes.
I iterated my speech asking where anyone was proposing our youth and young family's live? Representative Froerer and friends seem to want a reverse mortgage situation which will fatten the mortgage bankers wallets and ultimately the insatiable demands for more and more tax money by local and state government while attending to Realty interests/commissions. It will make his and their real estate champions ecstatic over turnover and commissions. But it leaves our children out in the cold with no place to call home in Utah. Are we to cram back into our homes with multiple large families like our Southern Immigrant families to make ends meet? The proposals he outlined are somewhere between outrageous and beyond even the AARP support. (1) Deferred taxes (with interest and principle payable upon death). Now there's a cheery prospect. Bad news is your mother died. Worst news is she owes the State or some scum bag legislator's mortgage bank business, the family farm plus interest. Go borrow or sell to pay off the tens or hundreds of thousands of dollars in back taxes and/or loans.) DOA non-sense. (2) Increase Circuit Breaker to the mid 30s (....$35,000ish) DOA Horse hockey which again ducks the "disease" (property reassessments out of control). To qualify for what? Up to $795 off a property tax bill of more than $4,000 that should be less than $800 to begin with?) More DOA non-sense. (3) Expand the one acre discount to more (?) in jurisdictions which require by ordinance a minimum of say three (3) acres. DOA non sense again. It is pandering to a specific constituency. It will be resented by others and create more problems. And it is a "pure" form of Band Aid which does not address any disease at all. A non solution. (4) Do a rolling average of the past five years of property taxes to eliminate the "spikes" caused by irregular County assessments. DOA Snake oil and a statistical search of a problem to "smooth". Figures don't lie. But liars will figure. This is a gadget approach designed to slip it to us all gently. Get the same revenue essentially, but do it on the "QT" ...so it won't cause so much outrage in the future. This is again a non solution - but worse a bad non-solution.
Dear people, if any of these proposals pass, every single Senator and Representative who voted for them needs to be escorted out of the State Capital building complex with his belongings in a card board box within weeks if not months.
We are headed - as the 4th highest taxed (total taxes considered) in the Nation, for all that goes with being a National disgrace. Without some of the more intelligent members of the legislature taking control of some of as many as 40 to 60 "indecent proposals" we will become the laughing stock of the Nation. What is worse, we will have earned that distinction by indifference, apathy, and inaction.
There is hope. Senator Niederhauser explained that they are only meeting to discuss issues and formulate proposals. They are in essence in an exploratory mode right now. The formal session which begins in January is when someone could for example propose my initiative, a "Blue Ribbon Study Group" to come up with comprehensive tax reform recommendations.
The Town of Huntsville is still For Sale and media day will be next Saturday (press release is being drafted). There is much being planned involving forming coalitions with existing groups, networking, lobby efforts of our own, meeting to build our own platform, build a strategy to execute our objectives, replace ethically challenged legislators with honorable people, etc. to work within the system. All this even though the evidence is almost over whelming that "the legislative system" is broken and part of the problem instead of the solution.
Some of us agree with Walt P.'s commentary in the 4 October Standard Examiner Letter to the Editor. Dramatic action involving a ground swell of citizenry from across the State marching on the Governor's Mansion or the Legislature will be required ultimately.
That's a wrap,
Minor Machman
Sunday, September 30, 2007
Beholden to special interests? Utah campaign funding 'unhealthy' (cont)
Click here to return to Utah Wingmen For Tax Re-Forum
(Cont.)
says Kirk Jowers, head of the Hinckley Institute of Politics at the University of Utah. "Two previous national studies" on campaign finance "gave Utah an 'F' and a 'D-," said Jowers. "Everyday Utahns are disenfranchised through the special-interest giving" to legislators.
Tony Musci of Utah Common Cause, a government watchdog group, says Utah has some of the "loosest campaign finance laws" in the nation. "We have an open-door policy to giving" in local campaigns — and as the cost of campaigns rise, "there is even more tension" as candidates seek bigger and bigger donations from special-interest groups."
The people of Utah have been wanting some kind of controls over (campaign) giving," said Jena Edvalson, executive director of UPNet, a local public service advocacy group.
But reform efforts have made no headway at the Legislature in recent years.
Big cash
Legislators who won their races raised $3.74 million in their latest elections, up from $2.7 million two years ago. Of that, $3.58 million came from special interests or the candidates' own pockets. That means 95.7 percent of their money came from special interests or their own pockets this year, compared to 81.5 percent two years ago.
For its study, the Morning News defined special interests as corporations and their officers, lobbyists, trade and union groups, political action committees and people living outside a member's district. Political party groups were included as special interests because they in turn receive most of their money from special-interest groups.
Special-interest money is so plentiful that 30 members did not raise any money from regular constituents.
Also, the Morning News found that 87 of the 104 legislators raised more than 90 percent of their money from special interests (see chart). The least raised by any individual was 64.3 percent by Sen. Fred Fife, in a 2004 race.Some legislators significantly increased the amounts they accepted from special interests. For example, while Rep. Roz McGee, D-Salt Lake, had the lowest percentage of special-interest money among House members this year at 71.7 percent, that was vastly higher than the 19.8 percent of her total that had come from special interests two years ago.
McGee was targeted for defeat this election by both Republicans and a pro-school-choice group, and so needed to raise more funds than usual.
The biggest donors some individual donors give much more than others, and a small core of them provided a significant share of the overall campaign money that went to election campaign winners.
The individual group that gave the most to new legislators was the Utah Association of Realtors ($162,500); followed by the Utah Banking Association ($70,400); Reagan Outdoor Advertising ($63,150); Parents for Choice in Education ($55,133); and the Utah Education Association (the teacher's union), $49,818. (See related chart).The Utah Association of Realtors itself provided about 4 percent of all money raised by legislators. The Top 10 groups provided 17 percent of all money raised. The top 50 provided just under half of all money raised (46 percent to be exact).
Chris Kyler, CEO of the Utah Association of Realtors, said a few other groups may have given more to all legislative candidates in 2006, but the Realtors happened to give the most to those who won.
It's a key strategy of the group, he noted, to thoroughly research how legislative candidates either vote on housing issues or, if not in office, which candidates purport to favor issues important to Realtors. "In important races we may give more," he said, "although it scares us how the cost of legislative campaigns is increasing.
"The Morning News also grouped donations by type of industry (see chart). The health-care industry gave the most ($494,655) followed by the financial industry ($385,678); political party committees ($314,468); and real estate ($261,325).
Some industries appearing on the list may be a bit surprising.
In Utah — famous for nonsmoking and nondrinking Mormons — the beer industry came in at No. 20 on the list, providing $38,750, and tobacco came in at No. 23, giving $35,650.
Special friends
Every special-interest group has special friends. But one member of the Legislature was favored by an amazing number of such groups: House Speaker Greg Curtis.
He personally was the No. 1 recipient from such special interests as the health-care industry (receiving $50,410); the finance industry ($47,050); the real estate industry ($20,881); lobbyists/lawyers ($12,400); the beer/alcohol industry ($4,000); and oil ($3,200).
Curtis did spread the wealth that he received, however, as party leaders often do to help their bids for re-election to leadership offices. He gave $48,000 to other candidates and party arms.
When Curtis was asked why he raised so much from special interests — $265,000 — he said, "To keep my options open." That could include running for a higher office in the near future. (Should Utah get a fourth U.S. House seat, Curtis' Sandy district would be in the new, open 4th District.)
So much special-interest money in legislative races "is a concern," said Curtis. But often special interests offset each other. "Both the banks and credit unions gave to me," and they often oppose each other in legislative fights, he noted.
And legislative races are becoming more and more expensive, so lawmakers seek and accept money from wherever they can raise it, Curtis said.
Finally, Curtis said that if a candidate happens to have sufficient campaign funds, why ask neighbors for needed cash simply to avoid 100 percent "special-interest" giving?
Of note, some groups spread their influence by giving to many, many legislators. A total of 14 special-interest groups gave to at least half of winning legislators.
They include: Reagan Outdoor Advertising (89 of 104 legislators); Micron Technology and the Parsons Behle & Latimer law firm (78 each); Kennecott (77); Merit Medical and Qwest (71 each); and the Utah Association of Realtors (70).
Typical receipts
The Morning News also figured how much the typical legislator from each party received from various interest groups, accomplished by totaling donations to members of each party and dividing by the number of members.
A typical member raised about $36,000 in donations from all sources.The typical Republican received from individual donor groups: $1,980 from the Utah Association of Realtors; $703 from Parents for Choice in Education; $797 from the Utah Bankers Association; $595 from Reagan Outdoor advertising; and $534 from Zions Bank.
By overall industry, a typical Republican received $4,896 from the health-care industry; $3,657 from the financial industry; $3,448 from party organizations; $2,946 out of their own pocket; and $2,991 from the real-estate industry.The typical Democrat receipt from individual donor groups included: $1,352 from Bruce Bastian (co-founder of WordPerfect, who is a gay activist); $1,079 from the Utah Education Association labor union; $739 from the Equality Utah gay rights group; $583 from Reagan Outdoor Advertising; and $513 from the Utah Credit Union political activity committee.
By overall industry, the typical Democrat received $4,000 from the health-care industry; $3,786 from labor unions; $3,584 from the financial industry; $3,299 from ideological groups; and $1,848 from lobbyists/lawyers.
Influence bought?
Not surprisingly, some groups that often push legislation (or fight it) are among the largest donors.
Utah's banks and credit unions for years waged war as credit unions sought more banklike privileges. Banks gave current legislators a healthy $147,266 in their last campaigns, and credit unions gave a respectable $51,184.
1-800-Contacts in recent years pushed legislation to help its mail-order business for contact lenses, and it was No. 10 in the individual-donor group, giving $37,450 (spread to 60 legislators).
Some industries appeared to be gearing up for possible fights. For example, the energy industry increased donations by about 25 percent, especially among oil and gas companies (which have upset Gov. Jon Huntsman Jr. and many customers with high prices, and some people have called for more regulation of the industry).
EnergySolutions (formerly Envirocare), known mostly for brushing up its image with TV ads and buying the naming rights from Larry H. Miller for what is now the EnergySolutions Arena, also spread plenty of money for fights it often sees over regulations about the low-level nuclear waste that it imports to its dumps. It was No. 15 among large donors, giving $31,000 to 66 legislators.
Is reform coming?
While good-government groups say such data show the need for reform, few expect it to actually occur any time soon. Legislators, who make campaign finance law, have little interest in changing the way they've raised money for their successful campaigns.
For example, Sen. Greg Bell, R-Fruit Heights, who has run other so-called legislative reform bills in the past, has stayed away from campaign finance changes. "It is a bad system. But I can't think of a better one." Bell warns that limiting campaign contributions to a certain level may lead to only rich people, who can self-fund their campaigns, running for and winning legislative seats.
However, Musci of Utah Common Cause says, "We clearly support a role for public financing of legislative campaigns," where money for campaigns could come from taxpayer check-offs — similar to how presidential campaigns are funded nationally. "A political campaign is a central part of the process of democratic governance," says Musci. "If the public is not funding that part of the process, then that critical part is owned by special interests. And that translates into how decisions are made once those elected officials take office."
Jowers said, "When citizens get involved in a legislative campaign or an issue, they are always more powerful than a special interest." He added, "But that's true only if they are engaged. If not, then special interests are always there to fill the power vacuum."
E-mail: lee@desnews.com;bbjr@desnews.com
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(Cont.)
says Kirk Jowers, head of the Hinckley Institute of Politics at the University of Utah. "Two previous national studies" on campaign finance "gave Utah an 'F' and a 'D-," said Jowers. "Everyday Utahns are disenfranchised through the special-interest giving" to legislators.
Tony Musci of Utah Common Cause, a government watchdog group, says Utah has some of the "loosest campaign finance laws" in the nation. "We have an open-door policy to giving" in local campaigns — and as the cost of campaigns rise, "there is even more tension" as candidates seek bigger and bigger donations from special-interest groups."
The people of Utah have been wanting some kind of controls over (campaign) giving," said Jena Edvalson, executive director of UPNet, a local public service advocacy group.
But reform efforts have made no headway at the Legislature in recent years.
Big cash
Legislators who won their races raised $3.74 million in their latest elections, up from $2.7 million two years ago. Of that, $3.58 million came from special interests or the candidates' own pockets. That means 95.7 percent of their money came from special interests or their own pockets this year, compared to 81.5 percent two years ago.
For its study, the Morning News defined special interests as corporations and their officers, lobbyists, trade and union groups, political action committees and people living outside a member's district. Political party groups were included as special interests because they in turn receive most of their money from special-interest groups.
Special-interest money is so plentiful that 30 members did not raise any money from regular constituents.
Also, the Morning News found that 87 of the 104 legislators raised more than 90 percent of their money from special interests (see chart). The least raised by any individual was 64.3 percent by Sen. Fred Fife, in a 2004 race.Some legislators significantly increased the amounts they accepted from special interests. For example, while Rep. Roz McGee, D-Salt Lake, had the lowest percentage of special-interest money among House members this year at 71.7 percent, that was vastly higher than the 19.8 percent of her total that had come from special interests two years ago.
McGee was targeted for defeat this election by both Republicans and a pro-school-choice group, and so needed to raise more funds than usual.
The biggest donors some individual donors give much more than others, and a small core of them provided a significant share of the overall campaign money that went to election campaign winners.
The individual group that gave the most to new legislators was the Utah Association of Realtors ($162,500); followed by the Utah Banking Association ($70,400); Reagan Outdoor Advertising ($63,150); Parents for Choice in Education ($55,133); and the Utah Education Association (the teacher's union), $49,818. (See related chart).The Utah Association of Realtors itself provided about 4 percent of all money raised by legislators. The Top 10 groups provided 17 percent of all money raised. The top 50 provided just under half of all money raised (46 percent to be exact).
Chris Kyler, CEO of the Utah Association of Realtors, said a few other groups may have given more to all legislative candidates in 2006, but the Realtors happened to give the most to those who won.
It's a key strategy of the group, he noted, to thoroughly research how legislative candidates either vote on housing issues or, if not in office, which candidates purport to favor issues important to Realtors. "In important races we may give more," he said, "although it scares us how the cost of legislative campaigns is increasing.
"The Morning News also grouped donations by type of industry (see chart). The health-care industry gave the most ($494,655) followed by the financial industry ($385,678); political party committees ($314,468); and real estate ($261,325).
Some industries appearing on the list may be a bit surprising.
In Utah — famous for nonsmoking and nondrinking Mormons — the beer industry came in at No. 20 on the list, providing $38,750, and tobacco came in at No. 23, giving $35,650.
Special friends
Every special-interest group has special friends. But one member of the Legislature was favored by an amazing number of such groups: House Speaker Greg Curtis.
He personally was the No. 1 recipient from such special interests as the health-care industry (receiving $50,410); the finance industry ($47,050); the real estate industry ($20,881); lobbyists/lawyers ($12,400); the beer/alcohol industry ($4,000); and oil ($3,200).
Curtis did spread the wealth that he received, however, as party leaders often do to help their bids for re-election to leadership offices. He gave $48,000 to other candidates and party arms.
When Curtis was asked why he raised so much from special interests — $265,000 — he said, "To keep my options open." That could include running for a higher office in the near future. (Should Utah get a fourth U.S. House seat, Curtis' Sandy district would be in the new, open 4th District.)
So much special-interest money in legislative races "is a concern," said Curtis. But often special interests offset each other. "Both the banks and credit unions gave to me," and they often oppose each other in legislative fights, he noted.
And legislative races are becoming more and more expensive, so lawmakers seek and accept money from wherever they can raise it, Curtis said.
Finally, Curtis said that if a candidate happens to have sufficient campaign funds, why ask neighbors for needed cash simply to avoid 100 percent "special-interest" giving?
Of note, some groups spread their influence by giving to many, many legislators. A total of 14 special-interest groups gave to at least half of winning legislators.
They include: Reagan Outdoor Advertising (89 of 104 legislators); Micron Technology and the Parsons Behle & Latimer law firm (78 each); Kennecott (77); Merit Medical and Qwest (71 each); and the Utah Association of Realtors (70).
Typical receipts
The Morning News also figured how much the typical legislator from each party received from various interest groups, accomplished by totaling donations to members of each party and dividing by the number of members.
A typical member raised about $36,000 in donations from all sources.The typical Republican received from individual donor groups: $1,980 from the Utah Association of Realtors; $703 from Parents for Choice in Education; $797 from the Utah Bankers Association; $595 from Reagan Outdoor advertising; and $534 from Zions Bank.
By overall industry, a typical Republican received $4,896 from the health-care industry; $3,657 from the financial industry; $3,448 from party organizations; $2,946 out of their own pocket; and $2,991 from the real-estate industry.The typical Democrat receipt from individual donor groups included: $1,352 from Bruce Bastian (co-founder of WordPerfect, who is a gay activist); $1,079 from the Utah Education Association labor union; $739 from the Equality Utah gay rights group; $583 from Reagan Outdoor Advertising; and $513 from the Utah Credit Union political activity committee.
By overall industry, the typical Democrat received $4,000 from the health-care industry; $3,786 from labor unions; $3,584 from the financial industry; $3,299 from ideological groups; and $1,848 from lobbyists/lawyers.
Influence bought?
Not surprisingly, some groups that often push legislation (or fight it) are among the largest donors.
Utah's banks and credit unions for years waged war as credit unions sought more banklike privileges. Banks gave current legislators a healthy $147,266 in their last campaigns, and credit unions gave a respectable $51,184.
1-800-Contacts in recent years pushed legislation to help its mail-order business for contact lenses, and it was No. 10 in the individual-donor group, giving $37,450 (spread to 60 legislators).
Some industries appeared to be gearing up for possible fights. For example, the energy industry increased donations by about 25 percent, especially among oil and gas companies (which have upset Gov. Jon Huntsman Jr. and many customers with high prices, and some people have called for more regulation of the industry).
EnergySolutions (formerly Envirocare), known mostly for brushing up its image with TV ads and buying the naming rights from Larry H. Miller for what is now the EnergySolutions Arena, also spread plenty of money for fights it often sees over regulations about the low-level nuclear waste that it imports to its dumps. It was No. 15 among large donors, giving $31,000 to 66 legislators.
Is reform coming?
While good-government groups say such data show the need for reform, few expect it to actually occur any time soon. Legislators, who make campaign finance law, have little interest in changing the way they've raised money for their successful campaigns.
For example, Sen. Greg Bell, R-Fruit Heights, who has run other so-called legislative reform bills in the past, has stayed away from campaign finance changes. "It is a bad system. But I can't think of a better one." Bell warns that limiting campaign contributions to a certain level may lead to only rich people, who can self-fund their campaigns, running for and winning legislative seats.
However, Musci of Utah Common Cause says, "We clearly support a role for public financing of legislative campaigns," where money for campaigns could come from taxpayer check-offs — similar to how presidential campaigns are funded nationally. "A political campaign is a central part of the process of democratic governance," says Musci. "If the public is not funding that part of the process, then that critical part is owned by special interests. And that translates into how decisions are made once those elected officials take office."
Jowers said, "When citizens get involved in a legislative campaign or an issue, they are always more powerful than a special interest." He added, "But that's true only if they are engaged. If not, then special interests are always there to fill the power vacuum."
E-mail: lee@desnews.com;bbjr@desnews.com
Click here to return to Utah Wingmen for Tax Re-Forum
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