Senate Leadership: Kerry, McCain with Sensible Do-Not-Track

 

April 16, 2011

 

A lost art in leadership has come to the rescue of marketers and consumers, alike.

Long ago, it was a pleasure to watch politically opposite leaders – President Ronald
Reagan and House Speaker Tip O’Neil – work congenially. The focus was on
principles, not personalities. Another example from Congress and the Presidency was Gerald Ford.

Yes, I met all of them. As a young broadcast journalist, I separately interviewed Mr. Reagan before he became president, Mr. O’Neil when he was Speaker of the House, and I broke the story nationwide about Mr. Ford’s plans after leaving the White House.

They were indeed leaders. After meeting them, political compromise was naturally taken for granted. Since then, however, it seems to be a lost art.

However, we experienced a joyful return to yester-year after the bipartisan bill entitled, Commercial Bill of Rights, was introduced by Sen. John F. Kerry (D-Mass.) and Sen. John McCain (R-Ariz.).

By way of explanation, changes in commerce and the Internet have led to debate.

Admittedly, as a consumer, online privacy is a concern. Trust is important. Consumers have a basic right to protect themselves against predators.

Conversely, my marketing side has been concerned by over-reaching of consumer advocacy groups in discussions over do-not-track legislation. Marketers have understandably been worried about the loss of visitors’ data. That is, until now.

(Disclosure: Visitors data is used for data to make this business portal as relevant as possible. It indicates which columns are popular and those that aren’t, and from where visitors come and how long they spend here. Tracking makes it possible for advertising to be inserted adjacent to certain content that interests users. By using key words, readers are able to find helpful information and insights.)

But the Kerry-McCain bill is a cavalry of sorts coming to our rescue. It requires a code of conduct, but do-not-track legislation is excluded. In this digital age, much of the economy depends on it.

“Americans have a right to decide how their information is collected, used, and distributed, and businesses deserve the certainty that comes with clear guidelines,” said Sen. Kerry.

“Our bill makes fair information practices the rules of the road, gives Americans the assurance that their personal information is secure, and allows our information-driven economy to continue to thrive in today’s global market,” he added.

In general, here are the bill’s basic components:

• Accountability and security – marketers must use security
  measures for data.
• Access, consent, correction and notice of information – clear notice must be given to consumers as well as their right to opt-out.
• Constraints on data – Marketers are restricted on the data they collect to enable transactions or to provide services.
• Enforcement will be provided by the Federal Trade Commission (FTC) and the Attorneys General in each state.
• The FTC will be allowed to approve programs by nongovernment organizations to monitor initiatives providing safe harbors or protections.
• The Department of Commerce will help coordinate safe harbor applications for privacy and sharing of information.

Sounds good. Let’s get it done, and encourage more bipartisan leadership!

From the Coach’s Corner, here are two resource links:

Five Attributes of LeadershipAre Needed Now

Here’s the video of the senators’press conference.

 

Change is inevitable, except from a vending machine.

— Robert C. Gallagher

________

For a complementary chat about your situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

 

Washington State Spending, Taxes – ‘Katy Bar the Door’

 

Updated March 7, 2010

Watch out. A desperate situation is at hand. The 19th century phrase, “Kay Bar the Door,” is applicable to the 2010 Washington legislative session. The Legislature is creating tax bills and is spending at a dizzying pace.

You mean it isn’t helping to create a strong, state economy and environment for job-creation while facing a $2.8 billion shortfall? No efficiencies anywhere? What about the reports of mismanagement, poor results revealed in performance audits, and hundreds of thousands of dollars in state-employee bonuses?

Well, let’s consider:

• At least one formal hearing has been scheduled sans a 24-hour notice.
• Sen. Rosa Franklin, D-Tacoma, introduced an income tax bill, SB 6250.
• A ghost tax bill was introduced (that’s right, no text – it was blank).
• The Senate wants to raise $918 million with a sales tax increase of three-tenths of a cent to 6.8 percent.
• Senate Majority Leader Lisa Brown’s income-tax proposal on the fall ballot and would reduce the proposed new sales tax by one cent. It would put an income tax of 4.5 percent on many job-creators – individuals earning $200,000; heads of households making $300,000; married couples would face a new tax if they earn $400,000.
• Imposing a sales tax on out-of-state businesses and consumers who buy Washington products.
• Imposing a surcharge on auto insurance.
• Hitting out-of-state financial institutions with a business and occupation (B&O) tax.

But that’s not all – not by a long shot.

Of course, you know Gov. Gregoire signed into law the bill that “temporarily” repealed The Taxpayer Protection Act, Initiative 960. That’s a clear rejection of voters’ wishes. Three times voters have formally stated their wish for tax protections. But again, the Legislature does not have to pass tax bills by a two-thirds margin. It also removes transparency for voters about taxes they’re forced to pay.

Personally, I don’t mind taxing out-of-state credit card companies with a history predatory interest rates and fees for bogus reasons. They’re domiciled in states permitting predatory behavior that was not retroactively rectified in a credit-card protection bill passed by Congress. The predatory practices are a major reason small businesses have poor credit.

However, it appears an income tax that only hits the wealthy is unconstitutional. It would require approval by voters and a two-thirds majority in the House and Senate. But a Seattle Times report indicates Senate Democratic leaders are hoping to bypass the required two-thirds vote in the Legislature because they know they can’t overcome the Republican opposition. If they’re successful in another end-run around legal checks-and-balances, of course, lawyers will get involved.

The Democrats’ idea is patterned after a 2010 voter-approved measure in Oregon, which hiked income taxes on individuals earning $125,000, households making $250,000, and on businesses.

However, unlike Washington, Oregon does not have a sales tax.

Lawmakers lax on major revenue source

Considering Washington relies heavily on sales taxes from vehicles, the Legislature is incredibly uninformed.

For example, a sales tax on Oregon and Alaska businesses and consumers will discourage commerce in Washington and threaten the livelihood of the state’s businesses and will worsen the state’s already-weak jobs situation.

Secondly, when buyers stop shopping in Washington, state businesses will pay reduced B&O taxes to the state.

A new tax will especially impact the sale of big-ticket items. Ask any Washington commercial-truck dealer if they have out-of-state customers. Their answer will be yes.

They’re already concerned their sales are down. What’s worse, relatively few have the cash flow to advertise now – ask any media advertising salesperson. During good times, the auto sector is the No.1 advertiser on radio and television. Even Honda dealers have had to lay off employees. (Disclosure: I’m very familiar with the auto sector. My firm formerly had auto dealer clients who advertised on radio and television. A regional truck dealer has an ad on this site.)

Out-of-state businesses come to Washington to buy fleets of trucks because the quantity and selection is superior. Privately, one dealer confides that some buyers travel 3,000 miles to Washington to buy commercial trucks. So they patiently wait for the economy to improve.

However, it’s also well-known that Washington state car buyers journey to Idaho for savings and to avoid paying high sales taxes by buying from Dave Smith Motors – a high-volume car dealer who advertises heavily in an in-your-face style on Seattle radio stations.

The dealer’s slogan: “Serving the Pacific Northwest and Beyond Since 1965,” and on its Web site it boldly states: “We cannot sell any NEW vehicle for Export or Resale.” The hint being that Washington car dealers could get a better deal in Idaho, too.

In fact, the dealer is the world’s largest Dodge, Chrysler and Jeep dealer, and is a leader in sales of General Motors cars and trucks.

The sales tax for the metropolitan King and Pierce counties is 9.6 percent.  Idaho only charges a 6 percent sales tax, which is shared with cities’ coffers, and the state affords a lower cost of doing business.

Bad planning

Moreover, the budget ramifications for Washington state:

• No B&O taxes are collected
• Reduced sales taxes because after making a purchase, motorists drive over the state line to Washington where they can register their vehicles in less-populated counties to save 1 to 3 percent on their vehicle’s sales tax.

The Legislature is behaving unproductively in another matter. Adversely affecting dealers and consumers, alike, the Senate wants to halt another major car-buying incentive – the long-time tax deduction for used-car trade-ins. In other words, the Senate wants to tax motorists at both ends – when buying and when selling a vehicle.

Incredibly, lawmakers insist on staying in the liquor business – is liquor a core state service? The state employs 1500 liquor employees and taxpayers are saddled with their costly pensions.

At best, the surcharge on car insurance is disingenuous. “Perhaps if the Legislature hadn’t raided the account the funds would be available for the use intended – preventing auto theft,” says Jason Mercier of Washington Policy Center.

FYI, if it weren’t for the tireless efforts of Mr. Mercier, much of the Legislature’s chicanery would not come to light. It’s a full-time job making sure there’s transparency. Many lawmakers are doing their best to make certain Washington does not have an open government.

The Legislature also wants to heavily tax candy – in the aggregate, a big state employer. Simply consider just one heritage state company, Brown and Haley, an employer of 250 workers but is in the midst of financial woes even without a burdensome sales tax.

Other sin taxes include a 500 percent increase on cigars, but gives favored documented treatment to Tribal smoke shops.

Let’s not forget the stifling new tax on bottled water.

Some lawmakers want to double the death tax.

And others want to triple the tax on gasoline and diesel as hazardous or toxic but they won’t use the revenue for badly needed road repairs or construction. Meantime, Washingtonians will undoubtedly pay even more for fuel.

Meantime, nothing has been done about the state’s bloated payroll and associated costs. Ask any employer if they are able to pay 88 percent of health insurance, or if their retirement plans can compete with the state pension system. The answer will be no. Don’t forget the Legislature is tardy in plans to fund $7.9 billion in retiree health benefits.

That sums up the debacle pretty well – continued spending, boundless chicanery in violating transparency standards, unsatisfactory performance audits, mismanagement and stifling taxes. Nothing has been accomplished that will strengthen the state’s economy or create jobs. In fact, it can be easily concluded that the 2010 legislative session has resulted in a sharp decline of voters’ economic and political freedoms.

From the Coach’s Corner, to stay informed, here are other sites you’ll find helpful:

• Washington Policy Center, www.washingtonpolicy.org
•  Enterprise Washington, www.enterprisewashington.org
• Association of Washington Business, www.awb.org
• Washington State Auditor’s Office, www.sao.wa.gov
• Washington Votes, www.washingtonvotes.org

Washington Legislature Should Smell Some Strong Starbucks

Updated Feb. 10, 2010 3:15 p.m.

With December, 2009 tax-collection revenue up 3.6 percent, the Washington State Legislature is getting some good news as it debates solutions to the anticipated nearly $2.7 billion budget shortfall. But lawmakers are flunking the transparency test during this legislative session.

As the adage goes, they need to wake up and smell the coffee. They need a good, strong venti-size cup of Starbucks. Make it two.

In a recent column, “Government’s Reliance on Huge Tax Increases Reaches Absurdity,” I wrote that a proposed state of Washington sin tax – a 500 percent tax increase – was best described as punitive, full of hypocrisy and discriminatory. That’s because the state operates venues in both gambling and liquor.

But state lawmakers are not done. With seemingly unlimited chicanery, the Legislature is violating the will of voters in a variety of ways in the current session.

Literally, a ghost tax bill, SB 6853, was introduced. It had zero text. Yes, it was blank. It appears it will violate the state principle that requires five days notice of transparency – public notification – before passage.

“This title only bill…subject to a public hearing and received executive action even though there are no details in the bill,” says Jason Mercier who is director of the Center for Government Reform at the Washington Policy Center.

“This means anything related to the bill title can be added on the Senate floor without ever receiving public scrutiny or comment,” he explains. 

Mr. Mercier sheds more light on the disturbing, ongoing chicanery.

“…the Legislature is considering repeal of the state’s Sunshine Committee while failing to act on the committee’s recommendation that the Legislature’s double standard exempting lawmakers from the state’s public records law be repealed,” he says.

You might recall a batch of incriminating legislative/executive branch e-mails as part of a shell game to circumvent spending limits led to a Washington Supreme Court case just a few years ago.

Well now, lawmakers have killed a transparency bill: HB 2872: Establishing a period of public and legislative review of appropriations legislation. “This bipartisan bill would have created a 72-hour public review period before budget bills could be voted on,” says Mr. Mercier. “The bill received a public hearing and was originally scheduled for executive action but was never voted on in committee. The bill is now dead.”

Lawmakers also want to suspend Initiative 960. That’s the voter-passed initiative, the Taxpayer Protection Act. SB 6843: Preserving essential public services by temporarily suspending the two-thirds vote requirement for tax increases.

These unsavory legislative actions undermine the intent of the majority of Washington voters. Further, it’s another violation of the economic freedom and political freedom of Washingtonians.

See the videos of lawmakers in action for yourself.  

Meantime, lawmakers are ignoring all kinds productive ways to streamline. It’s clear they don’t have a revenue problem. They have spending and transparency problems.

Frankly, it will be interesting to see how voters react. In 1993, the Legislature pulled similar stunts and the following year saw a high volume of voter angst at the polls. It was a nationwide trend, too, in the 1994 landslide defeats for countless officeholders.

Following widespread protests over massive business-tax increases in 1993, the Washington State Association of County Assessors decided to take action. I was invited by a client – the-then Kitsap County Assessor and a self-described conservative Democrat – in late 1994 to advise the 60 assessors on media strategies.  As a result, the assessors persuaded state lawmakers to reduce property taxes by 4.7 percent in the ensuing 1995 session.

Perhaps they consumed enough coffee that year.

From the Coach’s Corner, if you agree, voice your opinion to legislators.