Primary Elections - Both sides

It looks like both sides are going to go reasonably long. As I have stated before, I am less for a candidate on either side and more for a protracted and substantive debate. Both the Democrats and the Republicans have started to have to address the difficult issues and leave their sound byte cocoons. Some things to hope for:

Democrats

With the word out that Edwards is gone, it is a two person race. So far, the debate between Hillary and Obama has been loaded with sniping and indirect shots back and forth about race and gender. Given the longstanding development of political correctness and race and gender baiting directed at those outside the Democratic party, it has been fun to see those issues talked about openly. It is long overdue but the fun is over. Now it's time to speak about real issues and real governance and real leadership. Hillary needs to answer hard questions without cackling and Obama needs to prove that his message of hope isn't a fairytale.

Republicans

With Rudy now out of the Republican mix (maybe he was never in it) and throwing his support behind McCain, it is time for Mike Huckabee to exit gracefully. So far, McCain has had the benefit of competing for the Republican nomination by carrying only RINO's and Independents. The rest of the Republican voters have been split between everyone else. For John McCain's good, he needs to win clean among Republicans. Huckabee doesn't have a real chance any longer as 80% of the country will never vote for him. Let's see a real debate between McCain and Romney and let the best man win. McCain can't win the general without real Republicans supporting him. And if it is perceived he only won because Huckabee stayed and split the vote, he will never get that support. And Romney needs to prove he can stand in the ring and go toe to toe without sounding lame.

Here's hoping that both parties go the distance. The voter will be the real winner.

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Other People's Money - Paid Family Leave

The New Jersey Senate has decided that trying to act like California and Minnesota is a good thing to do in the midst of the state's most serious fiscal crisis. I don't know much about Minnesota but California is a case study in fiscal incompetence combined with insatiable appetite for spending that has bankrupted the state (despite the fact that the official declaration hasn't yet been made).

The tax situation in New Jersey is already completely unfriendly to business. The sales tax issue (not 1 cent which would have been in excess of a 16% increase but a massive new tax infusion to a whole new range of products and services). So when business are already looking for opportunities over the rivers and past the bay, what does our Senate do? They decide to insist that business provide paid time off for family leave thereby enhance already solid national policies which allow families to have their children and get back to work in a timely fashion.

There is a reason that only two states have enacted this legislation. It is because they do not want to lose the businesses that make up the backbone of their budgets. NJ Senators don't care because this is other people's money anyway. They can stand and pontificate over how they are helping people while those same citizen's employer's say....goodbye. Need evidence? Does anyone remember when we actually were the telecommunications capital of the US? Guess not.

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A Little Perspective Makes A Big Difference

Your House As Seen By:

Yourself...


Your Buyer...


Your Lender...


Your Appraiser...


Your New Jersey Tax Assessor...

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If NJ can fix auto insurance, we can fix the tax problem!

In 2003, New Jersey finally shook off the vice grip of all those who at the time reaped the benefits of bad public policy which caused the highest insurance rates in the country. The Philadelphia Inquirer reported today:

New Jersey has fixed its auto insurance problem.

Five years after the state deregulated the industry, the results are in, and by almost every measure the reform has been a resounding success.

Premiums are down. Competition is up. The number of insured is up. Complaints to the state are down by more than half.

"I'm happy," said John Porreca, 22, a Cherry Hill resident who switched companies and saw his insurance bill drop $1,000.

For decades, auto insurance was the Mideast of New Jersey politics - an intractable mess. Fraud was too pervasive, the experts agreed. There were too many motorists banging into each other on too-crowded roads. The doctors or the lawyers or the insurers, take your pick, were too powerful.

This situation used to represent a hopeless nightmare for all New Jersey residents with no hope for improvement. That has changed. The last line of this excellent article says it all.

One such driver is Jack Warr, 63, who drives to his job at the Cherry Hill Mall from his home in Manahawkin. He said AIG had cut his bill by "a decent buck" since the new law passed, reducing the charge to cover the Hyundais that he and his wife drive.

Warr said he liked the idea of deregulation. Then he mused: "If they could do something like that with the property tax . . . ."

From your lips to the Governor and the legislatures ears Mr Warr.

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Sorry for the interruption-Go Flyers!

While this has nothing to do with taxes or spending either Federal or State, but tonight there was a great hockey game amidst the two excellent football games. The Flyers managed to work their way into first place against the best team in the division in a big way (6-1). The best part of this game actually occurred last night when the Flyers got down 3-1. Coach Stevens (who I was actually advocating earlier should get the hook) ripped into the team for the poor approach during a timeout and it paid off both last night and tonight.

Congrats Coach Stevens and the Flyers!!! I was wrong about Stevens and I am proud to admit it.

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Now Corzine's Storm Troopers Crack Down on Toll Opponents

You knew it had to happen. The Governor read the tea leaves and determined he would not be able to ram his toll plan through the legislature. He planned his listening tour to start in places where he hoped only his syncophants would be so that even if they didn't agree, they would be extra polite about it. Even though people did drive from far away to comment, they were not out in numbers.

The story headline in the Trentonian today is "Freedom of speech stunted at guv's talk". A police office decided to stop former mayor of Bogota Steve Lonegan from distributing literature at the event. How did he do it? He arrested the outspoken former mayor. We shouldn't be surprised. This is the same administration that we commented on in this post a couple of months ago. The referenced post was an attempt by the Governor's office to get the Asbury Park Press to stop making fun of the toll plan.

This entire thing disgusts me. We have an ineffective governor who has absolutely nothing to show for his time in office aside from a massive increase and expansion of the sales tax, higher property and business taxes, an apology for slavery, repeal of the death penalty (which NJ never administered properly anyway) and a half billion increase in school spending. And now he stoops to arresting opponents at his listening tour.

Pathetic.

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Monmouth U Toll Poll and what the media ignored

Many people in the state read stories of a Monmouth University poll on January 17. Much was made of the fact that 70% of the public was leaning or outright opposed to the plan with only 24% inclined to support it. The other most often cited statistic was that 57% of respondent were aware of the Toll Plan. This amounts to serious lack of support for Corzine's plan. But there is more to this poll that is quite interesting.

Opposition to the plan is widespread among both Republicans (68%) and independents (57%), but the governor cannot even count on his fellow partisans for support. More Democrats oppose (48%) than favor (19%) this plan.

Oops. That means the Governor cannot rely on his party's majority in the legislature to ram this thing through like he did the school spending plan.

About two-thirds (65%) of New Jersey residents part ways with the governor on this point, saying they do believe it is possible to find a further $1 billion in spending cuts and waste reduction. Majorities of Republicans (77%), independents (69%) and Democrats (55%) alike believe that it is possible to find enough spending cuts to balance the budget without the toll plan.

Despite Corzine’s assertion that “pigs will fly over the Statehouse before there’s a realistic level of new taxes or spending cuts that can fix this mess,” only 22% of the public agree that further spending cuts should be off the table “One take-away message for the governor from this poll is that state government’s performance over the past few years has done little to convince the typical New Jersey taxpayer that Trenton is not rampant with pork, flying or otherwise,” Murray said.

The net here is that a significant number of people in this state think the Governor has no credibility when it comes to fiscal discipline. This is the penalty for two Governors (Corzine and McGreevey) who believe that the first answer to any problem is more taxes.

The poll report is good reading. You can read it here.

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Governor - I am sorry, you don't get it.

On the way back from Newark Airport tonight I heard a rehash of a press conference with Governor Corzine which occurred earlier today. He stated the New Jersey is having so many financial problems because the state borrowed too much money. I am amazed that:

1. He is able to say something like that with a straight face.
2. The media doesn't call him on it.

He also listed pension obligations as a key part of the problem. Of course, the same Governor just blessed raises for judges for the second year in a row do he obviously isn't worried about pensions. He is more interested in scaring people right now.

New Jersey isn't in trouble because of borrowing. It is in trouble because of SPENDING!!!!! Cut the spending and the borrowing isn't needed. The big problem here is that our politicians do not have the courage to do attempt to fix the real problem.

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Romney's win means a real race!

You can't help but be pleased if you are a Republican by Mitt Romney's win tonight in Michigan by a significant margin. McCain's surge was just a little too easy. My hope all along was a long drawn out primary process and we may just get it. This year of all year has exposed the stupidity of every state, including New Jersey who moved up their primaries. We could have had the candidates have to work through the process over the long haul and really have to campaign in many states instead of a select few. I can only continue to hope that we pass Super Tuesday with no clear winner and let the fun begin!

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Finally - Someone suggests a spending based budget cure!

At this site we have repeated many times the need to look at both side of the ledger when trying to fix the 3 plus billion dollar budget deficit. For some reason, Governor Corzine either doesn't have the brains, the guts or the disposition to look at cost based solutions. From Corzine's budget address on February 22, 2007:

I must say, it’s frustrating to have so few financial resources to invest in our future. I didn’t run for public office to be a number cruncher, or to play scrooge.

Like so many of you, I sought to serve because I care passionately about making New Jersey a better place for our families and communities.

I bet if you would poll New Jersey residents why they voted for Corzine, it was precisely because of his business experience which included being a number cruncher and alleged keen financial mind. As we have found out since, we were all sold a bill of goods.

Enter Mayor Steve Lonegan:

GOVERNOR CORZINE declared in his State of the State address that if anyone had a better idea than his asset monetization plan, which will raise a 35-cent Parkway toll to nearly $2, he wanted to hear it.

Here's the plan.

New Jersey's state spending has increased from $21 billion to $33 billion under Govs. James McGreevey, Richard Codey and Corzine. That's a 57 percent increase in just six years – far above inflation.

Lonegan then proceeds to describe a series of potential budget improving spending cuts and restructuring plans. As I read through them, they mostly involve mature decisions that may have some downside for some who work for the State, but would dramatically improve the life of the rest of the citizens of New Jersey. Isn't it time someone worried about the other 7.8 million people in New
Jersey that are not employed by the state? When do you take care of us Mr Corzine?

Read this excellent article here.

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Welcome to the People's Republic of New Jersey

Just when I think that our Governor and legislature have reached their pinacle of silliness they come up with something completely sobering and as far against the founding fathers that anything to date. The founding fathers with great consideration designed a system that avoided mob rule and gave representation to every region of the country. So these experts decide that even if the electorate of NJ per the current rules vote against a candidate, they can overturn the election.

Unfortunately, New Jersey's current politicians love mob rule and think that they will always be in power. But mark my words, as the wind changes so will they. The biggest weakness of the current NJ politician is that they all believe they are not vulnerable including the Governor. Don't be so sure. Ask Jim Florio.

In case you missed it, read all about it here.

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New advocacy group lines up against Corzine

A new group called the Save Our Assets Coalition has sprung up in response to Governor Corzine's toll tax plan. These folks have put a lot of time and effort into their website and research so it is clear they are well funded. Given the steamrolling nature of the legislature's recents votes against the public interest, it is nice to see someone making an effort to put speedbumps heading into Trenton.

I could post the link or just let you follow one of their banners.

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New Jersey to become ENRON!!!

While driving to my daughters basketball practice this morning I happened to catch part of Steve Cordasco's Big Money show on 1210-WPHT. The topic of the segment was an analysis of Governor Corzine's asset monetization plan. I was immediately interested because this show typically has only experienced investment counselors explaining current trends, companies and various investment vehicles.

The most intriguing part of the discussing was the fact that they were laughing about the plan. Yes, laughing. Their assessment was the the Governor has no idea what to do about NJ's financial situation so he is going back to what he does know-finance. But remember that Corzine is a veteran of the types of company fluffing techniques that produced Enron.

They then walked through the program. Corzine has a problem with too much debt service in NJ. So Corzine sets up a corporate entity owned by the state. This 'corporate' entity buys the state's debt and then issues debt of its own theoretically at a lower interest rate-or not. Now New Jersey gets a better debt rating to have more financial flexibility. But the net is a complete shell game.

There has been no discussion of reducing spending. As a matter of fact, just last week the legislature added 500 million in new spending for schools. This is like restructuring credit card debt. If you consolidate your credit cards to a single lower rate loan, you only improve your financial situation by stopping the spending practices that caused the debt and then make sure you consistently pay down the restructured loan.

The governor suggests a spending freeze. But that concept is deceptive. What he is really suggesting is a spending GROWTH freeze. So he has no intention of cutting back-if he sells off the toll roads to pay debt, he fully intends to start spending again putting off the bill to another administration. It is very interesting that the first big toll hike will come AFTER his next election campaign in 2010.

When experienced financial people laugh at this plan I have to wonder who the joke is on. Now I know-the New Jersey taxpayer.

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McCain - Vote Early Vote Often

Please tell me the clip I just saw did not have John McCain quoting Chicago's senior Daley saying to vote early and vote often...please tell me that didn't happen...

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Taxes and the Republican Debate

The interesting thing in tonight's debate is the mention and well considered responses related to taxes. Whether or not you like a Huckabee (and his "Fair Tax" that doesn't add up even with new math), Rudy (and his mother of all tax cuts planned) or nuanced responses by McCain or Thompson, or even Ron Paul's ideas, you have to like the fact that they are discussing taxes and spending at all.

When I watch both sides, I am shocked over the fact that there is never a question in a Democratic primary debate over spending or taxes. Well, that's not fair. Every question related to how much spending you intend to increase for health care, education, childcare and illegal immigration health and welfare coverage is discussed. In time, these questions will come.

That is why this Presidential process needs to go all the way. My main goal is to see both parties go down to the last primary. I am sick of the conventional media declaring a winner after a few caucuses and small state primaries. Let's go the distance.

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Windmills - Are you kidding me?

NEW YORK (Reuters) - New Jersey could erect "mini" windmills along the state's Turnpike as a way to generate electricity and cut pollution as part of a plan to create a new agency to raise funds to improve roads and bridges, a state lawmaker said on Monday

So says Senator Raymond Lesniak (D-Union). Just when you thought our legislature could not get more dysfunctional, the Democratic Party TREASURER has this gem of an idea. I can't determine if this man if serious or has some kind of mental disorder. Either way, I am not buying.

Read this unbelievable article here.

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Republican Primary Roundup

It is often said that one can get a good view of a person in both victory and defeat. I watched two concession speeches and one victory speech tonight. In victory, McCain has one good moment when he referred to his life serving this country. In defeat, Romney showed class and dignity and fight. I don't want to comment on what Huckabee reminded me of but it didn't include either dignity or service.

Top points to McCain and honorable mention to Romney. More to come from a tax perspective on this crew later.

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School Spending Plan and the Toll Tax

Last night the legislature passed Corzine's school spending plan. As I have said here all along, I have no issue with the plan itself. I do have an issue with 532.8 million dollars of new spending in year one without Corzine describing where he will get the money. The second issue I had is that this is being passed by lame duck legislators who will not be around to be held accountable.

Then the Governor comes up with his new toll tax plan accompanied by a spending freeze. Well, we all know that if an NJ politician predicts a decrease, we will get flat or slightly higher spending in the end. So, a prediction of a freeze will result in "moderate" spending increases.

So, if the Governor is true to his word, he should tomorrow announce a decrease in the his final budget proposal of 532.8 million dollars. Why? Because that is the only way his State of the State speech was not a flat out lie today. You see, when you propose a freeze 12 hours after the legislature increases spending a half a billion dollars, your freeze is a spending cut.

Let's hear it Governor? By the way, did anyone in the press ask this very question of Mr Corzine today?

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Iowa and Reality

While listening to the rhetoric on Iowa I was reminded of many local NJ races last year. I would like for the record to remind everyone of a few real facts:

1. Facts about your record are not mudslinging
2. Your voting record is your record-be proud of it or something is wrong
3. We all make mistakes. If you made one, let us know.

Simple rules.

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NJ Slavery Apology: Gestures and Politics

I was reminded today of a famous Animal House quote "This situation absolutely requires a really futile and stupid gesture, be done on somebody's part!" when reading the news story of our legislature considering an official apology for slavery by the State of New Jersey.

The issue here is:
1. Most of the citizens of this state or our ancestors were not even in this country when slavery was in play. My ancestors were surviving potato famines and British oppression during the operative years.
2. There are very few if any former slaves to apologize to so I am not sure who our legislators want to appease.
3. New Jersey was frankly one of the best states in speaking out against slavery when it mattered. Read your history.
4. Don't our politicians have something more important to do than fake gestures against fake victims with fake sincerity.

I think so.

Here are some reminders in case our legislature is bored and not paying attention:
1. Fix the highest property tax in the nation status
2. Fix the outward migration problem
3. Fix the 3 billion dollar deficit in 2008

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Because TV is an Essential Right to be Safeguarded for All Americans...

...we have this:

Millions of $40 government coupons become available Tuesday to help low-tech television owners buy special converter boxes for older TVs that might not work after the switch to digital broadcasting.

The networks are switching their over-the-air broadcasts from analog to digital signals, which will make some older TVs into very bulky paperweights.

The good news: You can get a brand-new digital TV at Best Buy for $139.

More good news: If that's too rich for your blood, you can continue using your old TV by buying a converter for fifty to seventy dollars.

The bad news: the federal government wants to help pay for the converters. Or, less euphemistically, it wants to force people who
(a) have already upgraded or
(b) don't watch TV
to pay for people to keep their old TV sets.

Yes, Congress has set aside $1.5 billion for 33.5 million of these $40 coupons. That's $1.34 billion in coupons and another $160 million for "other expenses" -- i.e., to establish the bureaucracy that will administer the coupons.

That's the equivalent of 10,791,367 of those TVs from Best Buy -- and 1,151,079 of those TVs are just for the administration costs.

The National Telecommunications and Information Administration will allow two coupons per household, so this could -- in theory -- affect over 16 million households.*

Let's do a little math: 1.5 billion dollars divided among 16 million households = $93.75 per household. This government program will actually cost more than if we just gave each of the affected households one converter box -- but forces that cost onto the other 93% of the population that has already upgraded or doesn't watch TV.

I want to know what part of managing the radio frequency spectrum requires the US government to pay for a private citizen's choice to not upgrade his equipment.

What else could we do with that $1.5 billion? I say we should let citizens spend it for themselves. They'll often spend extra money on luxury goods like TV sets. And when they invest in new TVs, they'll be investing in the production of the latest-and-greatest technology instead of dead-on-arrival converters for old technology.

This is a clear case in which limited government would result in less-limited technology.

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* That's 7% of the total US households in 2005, and 14% of the "total television households" in the nation (112.8 million per the Nielsen Co.).

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Are you listening Governor? It's the spending stupid!

I was reminded today of Bill Clinton's famous line directed at George H W Bush during the run up to his election upset. It came to mind when reading through some information related to the Governor and his complete lack of financial seriousness. Paul Mulshine on NJ.com today wrote regarding the Governor's intention to increase spending while facing a 3 billion dollar budget deficit.

The school funding plan has its good points. For one thing, Corzine plans to finally start giving some state aid to many middle-income suburban school districts that have been shortchanged for years.

But where's the $530 million per year in new state school aid going to come from? When Education Commissioner Lucille Davy was asked that question, she responded, "The governor has indicated that he has calculated this as part of the deficit."

Yes, you heard it right. Governor Corzine intends to address the budget deficit by budgeting in additional debt for new giveaway programs. I used to think that our politicians in New Jersey just don't get it. Apparently, the voters need to tell them "It the spending stupid!".

Read the opinion piece here.

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