Representative Jo Bonner, newly appointed to the Committee on Appropriations, joined bloggers last Tuesday to discuss earmarks and other fiscal issues. He has taken up the issue of earmarks and endeavors to reduce them and make them more transparent. Not only does he describe on his web site the qualifications for earmarks in order for him to consider requesting them, he also lists each request he has made. For Fiscal Year 2009, he submitted less than 20% of the earmarks he received requests for (however, those particular requests represented over 50% of the dollar values requested). Representative Bonner explained why earmarks are not necessarily always an evil and pointed to the secretive process as the real enemy. Transparency improvements are definitely a step in the right direction as Representative Bonner seeks to reform the system from within. The question remains as to whether this reform will be enough?

Despite the recent calls for earmark reform, Representative Bonner indicated that we are a long way from agreement about the issue in Congress and even within the Republican party, saying there is a “disagreement within the family.” This lack of a clear, united stance on earmarks is concerning – especially in light of the larger fiscal issues (Social Security, etc.) that America faces in the near future. If members of Congress cannot make substantial progress on a relatively small fiscal issue like earmarks, it is difficult to believe they will make headway on the bigger issues.

In terms of earmarks, what would give you the greatest confidence in Congress’ fiscal responsibility? An earmark moratorium, transparent earmarks, no earmarks? Please, share your thoughts below.

Click here for other thoughts on the meeting with Representative Bonner.

Thanks to the efforts of two Land of Lincoln Congressmen, the penny might stop breaking the bank. Currently, America's least useful form of currency (seriously we leave it in little jars next to the cash register for the next customer to take, it's probably time to say goodbye) costs 1.7 cents to produce. That means for every penny produced you can add about a penny to the national debt.

But by changing the metal content of the penny, taxpayers will save about $1 billion over the next ten years. For those of you keeping track, that's the equivalent of 100,000,000,000 pennies -- which would fill quite a few "take a penny, leave a penny" jars.

Representative Tom Tancredo (CO-6) has been a friend of taxpayers ever since he became a member of the U.S. House. In fact, Representative Tancredo has won a Taxpayers’ Friend Award every year since he was elected! To win his 9th award the Representative earned a 93% in the 2007 NTU Rates Congress, which ranked him at #4. Presenting Representative Tancredo his award is NTU President Duane Parde (right) and Director of Government Affairs Kristina Rasmussen (left). Click here to view the NTU Rates Congress page.

If you’ve ever wanted a “one-stop shop” for information on state and local ballot measures, past and present, I’d recommend you head over to Ballotpedia.org.

The young wiki-style site is already brimming with information; for one good example, check out this page on all the ballots, tax hikes, and bond issues up for consideration by California voters this June 3.

Ballotpedia.org is a website to bookmark!

Check out Alan Viard's over at AEI about one of my least favorite taxes: the corporate income tax. According to Viard:

Rather than trying to prop up the corporate income tax against competitive pressures, countries around the world should celebrate its decline and work for its demise. The celebration should be joined even by those who support highly progressive taxation and extensive redistribution to the less fortunate. They should realize that the corporate tax is not a sensible way to achieve their goals.

Today's Google Tip (available via a Google gadget that you can add to your personalized Google page) was about taxes:

Taxes may be inevitable, but they don't have to be a surprise. There are lots of public tax calendars available for Google Calendar that can remind you when your due is due or your refund should be refunded.

Search public calendars for tax calendars, find the one that's right for you, and click "Add to Calendar". You can also set up a notification to automatically remind you when the tax season starts.

Drew’s Top Ten

1. Nevada - Law would raise state gas tax if federal tax is cut.
2. South Carolina - Cigarette tax gains Senate approval.
3. New Jersey - Senator pushes water tax for open space purchases.
4. Missouri - Gubernatorial candidate unveils $200 million tax relief package.
5. Wisconsin - County leaders urge state beer tax hike.

6. Alabama - State legislature kills natural gas tax.
7. Virginia - Influential business organizations backing tax boost for transportation.
8. Massachusetts - Senate debates $500 million tax package.
9. Texas - Oil prices help state rake in $10.7 billion surplus, some say.
10. New York - Senate expected to approve gas tax holiday.

Find out how your fellow taxpayers spent their stimulus. My favorite: carnival worker "Johnny" who spent the stimulus on his third "tat."

H/T: Club for Growth

Japan's Agency for Cultural Affairs is considering an "iPod" tax.

This series highlights taxpayer groups around the country that are making a difference through their innovative techniques and persistent efforts. Today’s post outlines two groups in the state of New Hampshire that work together to make an impact: Granite State Taxpayers and Bedford Taxpayers Association.

Granite State Taxpayers (GST) is a statewide group handling legislative issues, while Bedford Taxpayers Association (BTA) is a local group dealing primarily with the town council and school board. Both groups have similar goals working for economic growth, less regulation and stable/lower taxes while opposing wasteful spending, increases in or new taxes and fees and Federal intervention. Their affiliation combined with their specialization in certain areas enables them to focus their energies and make an impact on multiple levels. The groups are both coming up on their 20th anniversaries having been in existence for 18 and 19 years respectively.

One of Granite State Taxpayers’ important achievements was getting legislation passed that enabled local voters to vote by official ballot rather than in-person at meetings. This made a huge difference in the number of people able to participate in political decisions. Victory did not come easily or swiftly as GST pushed this issue for over three years. Efforts came in the form of personal contacts, attending legislative committee hearings, various forms of printed material and rallies. GST demonstrates the importance of determination, but also of being physically present at meetings. There is no substitute for face to face meetings with legislators in terms of making an impact. GST also provides resources for local taxpayer groups by connecting them with others, providing sample bylaws and walking them through the state/local paperwork to get established. When legislation comes up that affects certain local areas, GST encourages members of local groups to attend hearings and participate on the state level. These actions have sparked the interest of many individuals, so much so that some go on to run for office!

Bedford Taxpayers Association has met with success in getting their agenda passed in local elections. Before each election, BTA sends out a newsletter that indicates which candidates and proposals the Association favors. Another clever addition that is included is a sample ballot appropriately filled in that voters can take with them to the polls. Again, attending town council and school board meetings is an important aspect of their efforts. They provide taxpayer insight and because of their influence in elections, council members are “inclined to ‘listen’” to their opinions.

GST and BTA are wonderful examples of groups working together to monitor and participate in the issues that affect taxpayers. They remind us that being a taxpayer is not a spectator sport, but requires presence at meetings with decision makers, personal involvement and action.

If you know of a state or local taxpayer group that is making an impact and would like to be featured in this blog series, please email bcardiff@ntu.org.

Why can't your favorite fry stand become your favorite fuel pump? I certainly don't get it. The infrastructure's in place. We've got the nontoxic chemicals distributed successfully. What gives?

And yet when an entrepreneur makes this happen:

"He can also get in trouble for carting kitchen grease away from eateries without a license from the state Meat and Poultry Inspection Branch.

Or for not having at least $1 million in liability insurance, in case he spills some of the stuff. Or for not getting permission from the state Air Resources Board to burn fat in the first place."

"Vegetable oil fuels cars -- and tax bills," by Evan Halper, LA Times, 5/06/2008

Even governor Schwarzenegger's staff was caught off guard. I don't get it. Why the bureaucracy?

I could just see this scenario being narrated by Reason.tv's Drew Carey.


Author's Note: The governator's last name was originally incorrectly spelled in the title of this blog post and this error was corrected. 9:17AM 5/7/2008

Legislation that aims to restore the San Joaquin River in California and restock it with salmon is catching quite a bit of heat from pro-taxpayer groups. The National Taxpayers Union, along with the Council for Citizens Against Government Waste, has written a letter to the United States Senate opposing the wasteful bill.

Click here to watch CAGW President Tom Schatz discuss the legislation on CNBC.

Freshman Representative Michele Bachmann (MN-6) has received her first Taxpayers’ Friend Award. In her rookie session of Congress, Representative Bachmann earned an 86%, which ranked her #1 in Minnesota’s Congressional Delegation! Presenting Representative Bachmann her award is NTU President Duane Parde (right) and Director of Government Affairs Kristina Rasmussen (left). Click here to view Representative Bachmann’s release on winning her first Taxpayers Friend Award.
Click here to view the NTU Rates Congress page.

Yesterday, Senator Jon Kyl (AZ) received his 12th Taxpayers’ Friend Award as a member of the U.S. Senate. Between the 2006 and 2007 Ratings, The Senator moved up 5 spots to #3 in the chamber. Presenting Senator Kyl his plaque is NTU President Duane Parde (far left) and Director of Government Affairs Kristina Rasmussen (center).Click here to view the NTU Rates Congress page.

The Government Accountability Office released a report yesterday about Value Added Taxes (VAT). Many people are attracted to VAT as the United States looks for new ways to raise revenue for the government. However, the report states that VAT “[generate] administrative costs and compliance burden.” Many other countries have VAT and we can learn a lot about what to do and what not to do by examining the success of tax policies in other countries. Considering the fact that United States tax policy is already complex and sucks resources from businesses and individuals, we should be skeptical about adding a new complication. The report describes some of the resources invested to get the new system off the ground in other countries.

The United States can also learn from the corporate tax rates of other countries. Of OECD countries, the United States has the second highest corporate tax rate. This is not a good way to remain competitive in a global economy.

We do not have to trust the explanations of politicians when it comes to tax policy. There are many examples of policies working (or not working as the case may be) in countries with real people that we should learn from.