U.S. tax cuts don't pay for themselves -Republican-appointed official says - Yahoo News

 

By David Lawder

WASHINGTON (Reuters) - The new Republican-appointed director of the Congressional Budget Office delivered some bad news on Tuesday to the party's "Reaganomics" devotees: Tax cuts don't pay for themselves through turbocharged economic growth.

Keith Hall, who served as an economic adviser to former President George W. Bush, made the pronouncement at his first news conference after the CBO reduced its 2015 budget deficit forecast by $60 billion.

"No, the evidence is that tax cuts do not pay for themselves," Hall said in response to a reporter's question. "And our models that we're doing, our macroeconomic effects, show that."

His comment is at odds with lingering economic theory from the 1980s that some Republicans still hold dear: Stronger economic growth generated by tax cuts would boost revenues so much that there is less need to find offsetting savings.

Even though major tax cuts in the early 1980s and early 2000s ended up boosting deficits while also propping up short-term growth, many Republicans cite the growth argument as a major motivation to cut tax rates as part of a tax reform effort.

In a move partly aimed at making the numbers work better, Republicans who control both the House and the Senate appointed Hall to run CBO. He replaced Democratic appointee Doug Elmendorf. Hall was given a mandate to incorporate macroeconomic effects more fully in the agency's cost estimates, a process known as "dynamic scoring."

Thus far, this has had some effect in reducing the estimated costs for some legislation, but the difference has been small.

Under the CBO's traditional "static" scoring method, a bill to extend a package of expired business tax breaks for two years would boost deficits by $97 billion over 10 years. Under dynamic scoring, the increase would be less at only $87 billion, but still a substantial cost to the Treasury.

Hall said the $87 billion figure is likely to be more accurate because it captures macroeconomic feedback, but he noted that this could make the estimate more uncertain because "there's a lot of unknowns there."

The new CBO director, who previously headed the Bureau of Labor Statistics and was the Commerce Department's chief economist, did issue a standard CBO warning that was sure to please Republican fiscal hawks: The ever-rising federal debt is on an unsustainable path.

(Reporting by David Lawder; Editing by Dan Grebler

U.S. tax cuts don't pay for themselves -Republican-appointed official says - Yahoo News

Miller: Override vote has Gov. Rauner fuming | Northwest Herald

I think a new and brief window of opportunity opened Wednesday that finally could help wrap up this long and drawn out state legislative overtime session.

But that window only will be open for 15 calendar days – the time the state constitution gives each legislative chamber to vote on a veto override.

Allow me to explain.

I spoke with some Gov. Bruce Rauner folks last week and, man, are they ever on the warpath about the Senate’s override Wednesday of the governor’s veto of the AFSCME bill – which would prevent a strike by or lockout of state workers and would instead require binding arbitration after an impasse is reached. The House has 15 days from Wednesday to take its own action.

Even though AFSCME never has invoked its binding arbitration power with state corrections’ officers (who cannot strike by law), the governor and his people clearly see this bill as an outrageous intrusion on executive branch powers.

The governor has called the legislation the “worst bill in Illinois history.” He said it would remove the only popularly elected official from labor negotiations (himself) and replace him with an unelected, pro-union arbitrator (although the unions have numbers that show employers have won a slightly higher percentage of arbitration cases in this state than employees).

Rauner has ginned up editorials all over the state, privately warned all Republicans a vote to override guarantees a primary opponent next year and made it clear to Democrats the best way to ensure a 2016 GOP opponent would be to vote “yes” on this motion.

One Senate Democratic operative only half jokingly said last week the governor was “flipping out” about the bill.

The governor also was quite blunt the day of the Senate vote when he said this override was a “test” of Senate President John Cullerton.

“Is he controlled by Speaker [Michael] Madigan or does he make his own decisions for the benefit of the people of his district in the Senate?” Rauner asked rhetorically.

The clear implication was if Cullerton went ahead with the override, the days of referring to him positively in public were over. Rauner often has said he could work with Cullerton and Chicago Mayor Rahm Emanuel if it wasn’t for that bad ol’ House Speaker Michael J. Madigan. Rauner’s people also have made a point of mentioning they left Cullerton out of Rauner’s TV and direct mail attack ads, referring only to Madigan. But those days are over, too.

After the Senate’s override, the Rauner folks were vowing revenge. Cullerton “walked his members out on a plank,” said one. If Madigan doesn’t call the bill for a vote, Cullerton will have put his members, particularly his suburbanites, in fatally harm’s way, said another. Madigan should not expect a single House Republican vote to replace any of his own conservative “no” votes, said another, even though one Senate Republican, Sam McCann, voted with the Democrats to override last week.

It was clear to me they were declaring all-out war.

So, why is any of this positive news? Well, it’s pretty elementary.

The governor obviously has established his top immediate priority, which is preventing the first and clearly most important veto override of his brief career.

There are, of course, two ways out of a corner. You either can negotiate, or bull through it and fight.

Right now, the Rauner folks are itching for a fight. They want to stop this override dead in its tracks in the House and then start their revenge war in the precincts. It’s understandable. They’re angry as all get-out.

Rauner, however, has a way to stop the override if he can see beyond his anger and realize he’s in a trap of his own making: Cut a deal on his “Turnaround Agenda,” fix the budget, declare victory and bring the overtime session to a conclusion.

Tellingly, House Democrats made some discreet behind-the-scenes inquiries last week about possibly setting up negotiations on the governor’s agenda, which he says must be completed before he’ll talk about the budget.

The point is that on Aug. 19, we arrived at what could be the single most important moment in this overtime session.

After the 15-day clock runs out, we very well could look back on this as either the beginning of a negotiated truce or the start of the harshest, meanest political war we’ve ever seen.

Whatever happens, everybody has a choice here.

 

• Rich Miller publishes Capitol Fax, a daily political newsletter, and CapitolFax.com.

Miller: Override vote has Gov. Rauner fuming | Northwest Herald

Governor’s Edgar County patronage hire claims tax exemptions in two states. | Illinois Leaks

 

Edgar Co. (ECWd) –

One of Governor Rauner’s campaign promises was to tackle patronage hiring.  According to the Chicago Sun Times, Rauner spokeswoman Catherine Kelly said, the administration is actively working on legislation that will “allow us to immediately terminate those employees that were wrongfully hired, but are now protected by improper union contract provisions.”

I wonder if that bill will address patronage hires in the current administration?

An Edgar County local was Rauner’s East Central Campaign Director, Kay Holloway.  She is not new to politics as she previously worked for Congressman Shimkus.

On numerous occasions before Rauner won his bid for governor she stated if he wins she is getting a state job.  After Rauner’s victorious election, Ms. Holloway made it very clear that she was going to get a job with the sate.  In fact, when it didn’t happen right away she might have needed a new cell phone plan as the word was she was calling everyone and their brother about getting a job as she earned it.

An interesting twist however is this person claims residency tax exemptions in two states.  Edgar County Illinois and Charlevoix, Michigan.  According to Michigan tax records she receives “principal residence” exemption and according to Edgar County tax records she receives the “owner occupied” exemption.

• Michigan property tax record
• Edgar County property tax Record

It has been stated after this was first exposed by the Disclosure News that she claimed Michigan as her residency in order to get cheaper tuition for one of her kids going to college there.

How can a person claim “owner occupied” for a tax exemption in Edgar County and “principal residency” exemption in Michigan and not be breaking the law?

Well it turns out she got her state job, and from what we understand she now works for the Illinois Department of Transportation filling a job that reportedly sat empty for at least the past 10 years. Ask yourself this:  If a job is vacant for more than 10 years, is even needed?

Now if her hiring is not a patronage hiring what is it? Does the Governor’s office know his former campaign director on this side of the state ended up getting a state job just like she told everyone she was going to get? Is he aware this state employee claimed and received residency tax exemptions in two states?

If one of her kids is in fact attending a Michigan college and getting instate tuition rates because of her claimed Michigan residence is that not fraud on the College?

We would hope that Governor Rauner sticks to his promise and puts a stop to patronage hires like this, but by all indications some things never change in Illinois, no matter how much they get shaken up.

Governor’s Edgar County patronage hire claims tax exemptions in two states. | Illinois Leaks

Obama calls out Koch brothers for opposing solar power - UPI.com

 

VEGAS, Aug. 25 (UPI) -- President Obama lashed out against critics of his energy policies and high-power conservatives, specifically the Koch brothers, for pushing back against regulations that would enable growth in the renewable energy sector.

The president, speaking at a green energy conference in Las Vegas Monday night, said the explosive growth of renewable energy, particularly solar, "has some big fossil fuel interests pretty nervous," specifically singling out billionaire brothers Charles G. and David H. Koch of Koch Industries. Koch backers have battled against clean energy mandates in several states, likening them to healthcare mandates under Obamacare.

"When you start seeing massive lobbying efforts backed by fossil fuel interests, or conservative think tanks, or the Koch brothers pushing for new laws to roll back renewable energy standards, or to prevent new clean energy businesses from succeeding, that's a problem," he said. "That's not the American way. That's not progress. That's not innovation. That's rent seeking. That's standing in the way of progress," Obama said.

Obama's speech to about 1,000 people at the National Clean Energy Summit came after his administration announced several measures to encourage solar power construction, including the Clean Power Plan, which requires states to cut carbon emissions by about 32 percent. The president has focused on climate change in his second term.

Obama will fly to New Orleans on Thursday, on the 10th anniversary of Hurricane Katrina, to speak about global warming and next week to Alaska.

Above available at:  http://www.upi.com/Top_News/US/2015/08/25/Obama-calls-for-clean-energy-push-calls-out-Koch-brothers-for-opposing-solar-power/7551440493916/

BCJ: New Judge Named To Hear Plote Case

 

Above is from Boone County Journal, August 21, 2015 edition,  which is available free of cost at merchants across the county and on line at:  http://www.boonecountyjournal.com/news/2015/Boone-County-News-%2008-21-15.pdf

Boone County refinances bonds to save nearly $400,000 - News - Rockford Register Star - Rockford, IL

 

By Ben Stanley
Rockford Register Star

Posted Aug. 24, 2015 at 11:48 AM
Updated Aug 24, 2015 at 3:11 PM

BELVIDERE — Recently refinanced bonds could save Boone County taxpayers nearly $400,000 over the next 12 years.

The Boone County Board voted this month to refinance 2008 bonds used for the Boone County Courthouse and Logan Avenue building projects. Bond interest rates will drop from 4.55 percent to 2.57 percent, reducing the county's debt burden.

"It's like a mortgage on your home," said Boone County Administrator Ken Terrinoni. "You get rid of your old mortgage and you take on a new one, but your interest rate is lower."

Terrinoni said the county's strong Moody's bond rating of Aa2, the credit rating organization's third-highest score, helped lower the rates.

According to a summary of the county's credit rating posted on Moody's website, Boone has "healthy reserves," a "strong and conservative" management team, and "manageable exposure" to unfunded pension liabilities. If the county's tax base continues to erode, however, the rating will likely fall.

Ben Stanley: 815-987-1369; bstanley@rrstar.com; @ben_j_stanley

Boone County refinances bonds to save nearly $400,000 - News - Rockford Register Star - Rockford, IL