FreedomTalks

Jan 2nd the WSJ had an interesting piece suggesting that a Dem majority might keep card check at bay.  While that might seem like an oxymoron of sorts, the op-ed did raise some thought-provoking points and suggested that the specter of card check actually passing might keep some former supporters at bay.

Responsibility has a way of focusing the mind.

Take Mark Pryor, Democratic senator from Arkansas. In 2007, Mr. Pryor voted to move card check, Big Labor’s No. 1 priority. And why not? Mr. Pryor knew the GOP would block the bill, which gets rid of secret ballots in union elections. Besides, his support helped guarantee labor wouldn’t field a challenger to him in the primary.

Postelection, Mr. Pryor isn’t so committed. He’s indicated he wouldn’t co-sponsor the legislation again. He says he’d like to find common ground between labor and business. He is telling people the bill isn’t on a Senate fast-track, anyway. His business community, which has nimbly whipped up anti-card-check sentiment across his right-to-work state, is getting a more polite hearing.

The piece also noted the significant grassroots force that has been excellent about getting out in front of card check, educating the public about the issues at stake and even worse, the ultimate injustice of taking away the right to secret ballot.

“In the past, unions would show up in force on the ground while the business community would send someone in a suit up to Capitol Hill. This time, we pushed hard at the grass-roots level and lit a fire under this issue.” Those grass roots have targeted senators like Mr. Pryor and Mrs. Lincoln. Business also spent millions airing ads about card check during the presidential campaign, a prime time to educate voters.

It’s way too early to break out the party pants, LaborPains.org has House Majority Leader Steny Hoyer (D-MD) on Fox News yesterday saying the bill would come up in early spring, but it’s nice to see a few cracks in the glass house.

With unions bleeding members and union-dominated sectors going down the tubes, it is increasingly more important for Sen. Obama to deliver this post-election thank you gift to his labor overlords.  Because members aren’t the only thing unions are bleeding - they’re losing money hand over fist on resorts, bad investments, and perks for top brass.  Michelle Malkin outlines the waste here in “The UAW’s Money-Squandering Corruptocracy.”

In May and November 2007, the UAW forked over nearly $53,000 for union staff meetings at the Thousand Hills Golf Resort in Branson, Mo. In September 2007, the UAW dropped another $5,000 at the Lakes of Taylor Golf Club in Taylor, Mich., and another $9,000 at the Thunderbird Hills Golf Club in Huron, Ohio. Another bill for $5,772 showed up for the Branson, Mo., golf resort. On Oct. 26, 2007, the union spent $5,000 on another “golf outing” in Detroit. In May and June 2007, UAW bosses spent nearly $11,000 on a golf tournament and related expenses at the Hawthorne Hill Country Club in Lima, Ohio. And in April 2007, the UAW spent $12,000 for a charity golf sponsorship in Dearborn, Mich. In August 2007, the UAW paid nearly $10,000 to its for-profit Black Lake golf course operator, UBG, for something itemized as “Golf 2007 Summer School.” UBG had nearly $4.4 million worth of outstanding loans from the union. Another for-profit entity that runs the education center, UBE, had nearly $20 million in outstanding loans from the union.

The UAW needs a way to fast track some more members to get their hands on those dues - or get a bailout.

As I’ve written before, the Washington DC Metro is not my favorite form of transportation.   Indeed, I dream of the day when I have a job with a driver who will daily pick me up at my apartment and deposit me at work.  Often I have to take a second to collect myself outside our building to suppress the anger that wells up during the course of my ride each day.  The ride for which I pay ever increasing fares in an ever more cramped car where actual air temperatures have no bearing on the use of heat or AC.  Suffice it to say, we have a swell system.

And, as I wrote earlier, the Metro had been looking for a bailout.  It is easy to see many examples of waste during the course of an average ride, but now the Examiner is reporting on some of the behind-the-scenes costs at Metro. The entire article details how, even as service is being cut, and rates are being raised, Metro employees are enjoying nice pay raises in the current economic slump.

Metro’s Approved Fiscal 2009 Annual Budget includes large pay hikes for salaried management employees, as well as hourly workers such as bus drivers, rail operators and maintenance workers. But the numbers take on added significance when compared to previous years.

For example, in the section entitled “Multi-Year Operating Cost Comparison,” we see that salaries for Metro managers in the Bus Services section have more than doubled since 2006. Next year, Metro’s top bus executives expect to be paid twice what they made just three years ago, and this when almost every economic indicator is steadily heading south.

…

In 2007, an exclusive Examiner series highlighted the excessive overtime payments that pushed more than a hundred bus and rail operators into six-figure territory – almost double the median income of the Washington, D.C. area.

Too many generous pay hikes over the past three years have pushed the base pay of Metro managers and unionized bus drivers, supervisors, train operators, and other employees significantly higher than it would otherwise be had the raises been tied to some rational measure such as the rate of inflation.

And the higher pay levels also push up the cost of Metro employees’ future pension benefits. Any way you look at it, it’s a sweet deal for Metro employees.

Meanwhile, Metro’s “customers” have to contend with broken escalators, defective subway cars, increasing crime and decreasing system reliability even as they continue to pay the higher fares and parking fees imposed on them last year when most Metro employees were getting yet another raise.

In other news, apart from the whole “Bailouts are a Bad Idea” principle, this recent Reuters article brings up the fact that letting the government bailout newspapers and other media outlets might kind of influence their objectivity.  A little.

Relying on government help raises ethical questions for the press, whose traditional role has been to operate free from government influence as it tries to hold politicians accountable to the people who elected them. Even some publishers desperate for help are wary of this route.

Providing government support can muddy that mission, said Paul Janensch, a journalism professor at Quinnipiac University in Connecticut, and a former reporter and editor.

“You can’t expect a watchdog to bite the hand that feeds it,” he said.

But ethical problems haven’t stopped any bailouts before, so I don’t see why anyone should lose any sleep over a problem like that.

It seems that the quasi-constitutional TARP that has given money to institutions outside its legislative bounds, has exceeded it’s Congressional authorized limit.  This comes as a surprise to just about no one.

This morning it was reported that Pres. Bush decided to throw a little more on top of the $17.4 billion hand out he’s giving to GM and Chrysler.  This will be an additional $6 billion for a total of $23.7 billion.  A majority of these funds will be going to GMAC - a financing arm of GM under the guise of “helping people buy more cars.”   The Washington Post has a confusing story about the deal describing how GM will be both investing $1 billion more in the institution whilst simultaneously cutting ties with GMAC, and how GMAC may or may not become a bank (thereby skirting some of the already murky legal waters surrounding TARP?).

According to CQ this means that Treasury Sec. Paulson will definitely need the other $350 billion from the bailout fund.  Heritage points out that this additional $6 billion means that the Treasury has surpassed the $350 billion it was originally authorized to distribute.

To recap, the Bush Administration’s latest $6 billion bailout of GMAC, bringing the first round of the GM bailout total to $23.4 billion, pushes the total money committed by the Troubled Asset Relief Program past the initial $350 billion authorized by Congress. In other words, TARP now has now made specific promises to spend more money than it actually has the authority to spend. The bailout is now in need of a bailout.

Paulson better hurry up and get his money because more people are lining up for their government handout one way or another via TARP or any other economic “rescue” package.  Rails to Trails wants in on any future funds.   And AmTrak would certainly never say no to more money.   At this rate, the news isn’t who wants a bailout but who doesn’t.

Although Paulson has requested that the other $350 billion in TARP funds be authorized, it is unclear whether the White House has formally requested them yet. It seems inevitable, each week has been rumored to be the week, but apparently it hasn’t gone through yet.

Which is awesome.

Because as soon as the formal request comes, Rep. Virginia Foxx’s House Resolution 101 springs into effect.  The original TARP legislation included language that allows Congress to “disapprove” the allocation of the second $350 billion.  In a Congress that allowed this to happen in the first place, It’s probably wishful thinking that this payout could be stopped, but maybe after Paulson’s muddling and game-plan changing Congress might see the light.  At any rate, it’s nice to see some legislators aren’t going to let taxpayer funds be thrown away without a fight.

Unless you want to get very, very angry.

It’s hardly news now that even though the Detroit 3 autobailout failed in the Senate, and even though conservative lawmakers urged the President not to spend TARP funds the failing manufacturers, President Bush handed over a Christmas gift to the tune of  $17.4 billion.  What is news is what those taxpayer dollars go toward.

Last week Chrysler took out a $100,000 full page ad in USA Today thanking Americans for our largess.

And if you saw Drudge this morning, you saw this.  A story about the UAW’s $33 million posh resort and $6 milion golf course.  When you see an organization with assets like this demanding a bailout to sustain their lifestyle on our dime - it’s rather nauseating.  None of that could go toward say, all the legacy costs that are dragging down their industry or toward the modernizations Chrysler et al say they  need to compete.  Or even, say, back into the pockets of the very workers the union is feeding off of.

To see a disgusting example of union greed and abuse, head over to RedState where they highlighted an expose on some union bosses who are ripping off their employers (and hence, other workers, and their new employers - the taxpayers) with fake time cards and undeserved overtime compensation.

One of the bosses, Ron Seroka, a union job security officer, takes off half a day nearly everyday to go home to lounge around the house while he is on the clock. Seroka punches in at the plant at 6AM every single day and is home by 11:30 AM for some nice leisure time at home. Yet he gets a steady 10 hours pay every single day despite the fact that he is rarely at work.

Seroka’s union boss is even worse. Union chairman Jim Modzelewski buys beer on a daily basis while on the clock and clocks himself in for overtime pay hours before he even wakes up to go into the plant. TV 4 found that after he punches in, he typically leaves for a beer run mere hours later. Again, all this is on a daily basis. He is also paid overtime pay on a daily basis as he sits home drinking his daily beer. With over 2,500 hours of overtime, Modzelewski made a six-figure salary last year. TV 4 also discovered that Modzelewski even played in a bowling tournament while on the clock — as at overtime pay, too!

The whole video is well worth watching.

At The Daily Beast, John Avalon points out that just like the albatrosses around the necks of the Big 3, unreasonable union contracts are weighing down states like California and New  York that are on the brink of bankruptcy.  And the solution, of course, isn’t going down the legal road to get out from under those arrangements, it’s more taxes and more government.

If you read this entire post, and followed all the links to all the infuriating stories, you’re probably pretty angry.  As you should be, though you can’t say that you weren’t warned.  Hopefully, you’re angry enough to want to do something about it.  If so, then join up or donate and bring your friends along.  Because next year the battle for more freedom isn’t going to get any easier.

You better not pout….’cause Card Check’s coming to town.

The big news last night was President-Elect Obama’s pick of Rep. Hilda Solis to head the Labor Department.  Politico has a good write-up here.   Her dyed in the wool Labor credentials and past voting history leave no doubt that she’ll be behind Obama’s Card Check agenda in a big way, paying off their union supporters.

Rep. Solis has earned an “F” every year since 2001 on the National Taxpayer’s Union’s scorecard.  And a dismal “5″ on our Economic Freedom Scorecard last year.

But on the bright side, the Rev. Al Sharpton has come out boldly against Card Check legislation.  He clearly understands the risk of coercion both on the part of the union and the employers, and the need to protect workers’ privacy.

The other big story, today, is that Pres. Bush is going to go ahead and tap TARP funds for Chrysler and GM (regardless of the fact that strictly speaking these aren’t financial institutions as intended by the original legislation…but at this point, who’s counting?).  So regardless of the fact that the grassroots have spoken, and effectively stopped the Detroit bailout last week, Bush knows better and is going to go for it anyway.  My favorite phrase I’ve seen over and over defending this is the fact that these “bridge loans” are to be used to facilitate an “organized bankruptcy.”  As opposed to a disorganized one.  As opposed to Chapter 11, which is, in essence, organized bankruptcy and the entire point of Chapt. 11.

And, over at Cato, Chris Edwards addresses the state stimulus plan with a well-written Top Ten Reasons to Oppose a Stimulus Package for the States. Number One?  The Federal Government is Broke.

Up on the Hill, they’re looking for a few good economists who oppose “stimulus spending.”  If you happen to know or be one, please offer your thoughts.

As Brendan noted a post or two ago, more and more states are looking to nanny-state style “sin-taxes” to fill budget holes.  I want to point readers to an excellent WSJ article from the wayback machine in August.  The article takes a quick look at the repercussions of cigarette taxes in states like Maryland and New Jersey - rampant black markets, hurt businesses, and none of the promised revenue:

Maryland is only the latest state to prove the folly of trying to finance government with a tax on a shrinking pool of smokers. In New York City and State, tobacco taxes have been raised so many times that the retail cost can exceed $9 a pack — about double the national average. Few budget-savvy smokers in the Big Apple pay that tax. Patrick Fleenor, an expert on tobacco taxes at the Tax Foundation, estimates that there is “now a 75% gap between cigarette sales in the city and cigarette consumption.” In other words, three out of four cigarettes are bought elsewhere or are contraband. Out-of-state purchases, tax-free Internet sales and a cigarette black market are booming.

And in addition to mounting state campaigns against all these new taxes - taxes that will hurt businesses and families and that are a gateway drug to much “harder” taxes on more and more of the population - the auto bailout drama still hasn’t gone away.   The Detroit Big 3 are still determined to get their payout one way or another and won’t consider the inevitable, better path of bankruptcy.

In another WSJ hit, Todd Zywicki explains “Why Bankruptcy Is the Perfect Remedy for Detroit.”  The end sums things up well:

Those Washington politicians who repeat the mantra that “bankruptcy is not an option” probably do so because they want to use free taxpayer money to bribe Detroit into manufacturing the green cars favored by Nancy Pelosi and Harry Reid, rather than those cars American consumers want to buy. A Chapter 11 filing would remove these politicians’ leverage, thus explaining their desperation to avoid a bankruptcy.

In short, Detroit and the public have little to fear from a bankruptcy filing, but much to fear from the corrupt bargain that is emerging among incumbent management, the UAW and Capitol Hill to spend our money to avoid their reality check.

And while GM fiddles, waiting to be bailed out in a bad economy that is hurting other car manufacturers as well, Toyota is already shifting their business plan to adapt.

New York Governor David Paterson is proposing a huge tax scheme for New Yorkers. His budget, announced yesterday, would institute 88 new taxes, on everything from iTunes, to shoes, cigars and even massages. The New York Daily News quoted him as saying, “”We’re going to have to take some extreme measures.” Indeed. The budget plan also calls for an 18% tax rate on “sugared drinks” and new taxes on driver’s licenses, car registrations and license plates. Gov. Paterson also plans to raise taxes on movies, sporting events, cable TV, taxi cabs, limos and even haircuts!

In the current tough economic climate, state governments are learning the hard way that they shouldn’t have been taxing, spending and regulating during good economic times. Now, the bloated bureaucracies and wasteful government programs are going to have to be cut to deal with the budget shortfalls. While we at FreedomWorks applaud the Governor’s effort to make some major spending cuts, raising taxes is not the way to go, especially in a recession. He should consider drastic reductions in taxes in order to spur economic growth, which would in turn give him the revenue he needs to run the state government.

Who does the Governor blame for the budget shortfall? Actually, he gets it right and blames the state government itself.

“Unfortunately, we have lived beyond our means,” the Democratic governor said. “We have to recognize that we’ve made too many promises and unfortunately asked for too few sacrifices. We are going to have to change our culture as we know it.

Talk about an understatement.

It seems that many state governments are freaking out about the current economic climate, and are trying to find ways to deal with their impending budget problems. This week alone FreedomWorks has issued calls to action to our members in New York, Virginia, Georgia and Arkansas about upcoming tax battles in their states. Last week we alerted our members in Utah and Kentucky about tax proposals in their states.

The preferred target for all these tax schemes? Why, anyone that participates in activities that the government doesn’t like. This group includes smokers, soda drinkers and even consumers of bottled water! You see, it’s easy to scapegoat people that enjoy a cigarette or a Coca Cola, or even a bottle of Evian water because these people are clearly doing something harmful to themselves or the environment. The politicians and bureaucrats don’t want to stop spending our money, so instead they are going to try and take more of it to pay for unnecessary and wasteful government programs.

FreedomWorks volunteers will be writing, calling and faxing their elected officials in these states, letting them know that the governments need to tighten their belts just like the taxpayers do. We will be taking on these battles in as many states as we can, and hopefully will be able to stop many of them. But we will need your help!

Check out our homepage every week to see which states have decided to jump on the “sin tax” bandwagon. Our personal freedom and our own tax money is at stake. Now let’s roll up our sleeves and get to work.

President-elect Barack Obama has some big plans for boosting the economy in early 2009. He is an acolyte of the Keynesian school of economics, which argues that the federal government can and should spend like crazy to revive economic activity. But as Cato Institute scholar Dan Mitchell points out, this kind of stuff never works. Watch the video to find out why.

Want to know how the states are going to react to the economic troubles of 2009? Just take a look at what New York governor David Paterson plans to tax in the Empire State.

The plan will come with a host of revenue raisers — increased taxes on hospitals and insurance policies, for instance — and at least one new assessment, a so-called obesity tax on non-diet soda to raise $404 million. The governor also is contemplating requiring new license plates to raise cash, reviving sales tax on clothing purchases, removing the tax cap on gasoline and threatening to require Indian retailers to collect taxes on sales to non-Indians by signing into law a bill passed earlier this year by the Legislature.

Although the governor is cutting some programs, raising taxes in a recession is bad public policy. We’d like to see him find more waste to cut, and to learn the lesson that states can’t spend so much during good times, because it always ends up coming back to haunt them in not-so-good times.