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February
3, 2006
Vol. 2, No.
2
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Also in
this issue:
States vie to be part
of NCLB change
Las Vegas feels
industrial squeeze
The
tax code boogie
Tax numbers up 10 percent
Pres takes dual tack
on immigration
The Sandy Springs Effect
Commentary:
Make 150,000% Today!
Addicted to polls
Bury Greenspan,
don't praise him
Lower rate =
higher revenue |
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Recently
from NPRI:
The private sector would
do better
Nevada's big school districts don't make the
grade in business terms, either
Evidence
just keeps stacking up: Nevada’s two
metropolitan school districts are too large and
bureaucratically ingrown to do their jobs.
[continued]
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Corruption
Make 150,000% Today!
By Matt Miller
Fortune Magazine
Yes, the
Jack Abramoff scandal is a cancer
eating away at the heart of Washington, fresh
proof of the Beltway's culture of corruption,
etc., etc. But for business, this tawdry episode
is a reminder of something that gets too little
notice: A company's return on lobbying and
campaign contributions--let's call it return on
political investment, or ROPI--is astronomically
higher than any real investment it can make.
These remarkable returns, not any inherent
venality, explain why the pseudo-reforms likely
to come in Abramoff's wake will do nothing to
stop the meltdowns from recurring.
[continued]
Exhaustion
Addicted
to polls
Editorial
Wall Street Journal
President Bush has seen the energy future, and he has two
words of advice: wood chips. Somewhere in his
cardigan sweater next to a fireplace, Jimmy
Carter is smiling.
That gets to the uncomfortable heart of Mr.
Bush's startling turn on energy policy Tuesday
night. An Administration that once promoted
drilling in Alaska and other ways to expand
domestic oil and gas supplies is now lecturing
the nation that it's "addicted to oil" and
extolling the merits of cellulosic biomass, a k
a wood chips. This may not be as bad as
1970s-style price controls, but it's also a long
way from a sensible energy policy.
[continued]
This article will be available to non-subscribers of the
Online Journal for up to seven days after it is
e-mailed.
Turnover
Bury Greenspan, don't
praise him
By
Peter Schiff
Euro
Pacific Capital
This week
Alan Greenspan bids a long overdue farewell to
the Federal Reserve that he chaired for 18
years. Praise from his Washington and Wall
Street beneficiaries has naturally arrived by
the boatload. His monetary policies enabled
reckless and seemingly consequence-free deficit
spending, helping incumbent politicians
repeatedly win re-election; and his expansion of
money supply and credit facilitated
non-productive financial transactions, all to
the benefit of the bankers who arranged them. It
should be surprising to no one that he is so
popular among these groups. The fact that
Greenspan is so highly regarded by politicians
and investment bankers is not a sign of how well
he did his job however, but of how poorly.
[continued]
Economics
Lower rate = higher revenue
By Philip G. Kerpen
The New York Sun
Capital gains tax revenues have increased
in the three years since President Bush cut the
capital gains tax rate, proving free-market
economists right, and bureaucrats wrong. As
Nobel laureate Milton Friedman often says, when
you tax something you get less of it, and when
you tax something less you get more of it. The
"it" in this case is capital gains, which are
the amount of money you make when you sell
something for more than you paid for it.
[continued]
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WHY
BusinessNevada
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Government
They never steal
all your chickens
It's time Nevada business
faces up to its situation
By Steven Miller
BusinessNevada
Some vocal
elements in Nevada's business community often seem to
think the way to deal with human predators is to imitate
the most timid peasants in The Magnificent Seven.
At the start of that western film classic, some of the
Mexican peasants, who— for the nth time—have just been
robbed of their chickens and other property by a bandit
gang, still reflexively shy away from any kind of
action.
Instead, they start finding excuses for the leader of
the gang.
"He never steals all our food," observes one. "He leaves
us enough to go on with."
"That's something," nods another.
"We could beg him to leave us more," suggests the first.
[continued]
Education
States vie to be part of NCLB change
Nevada to seek new
leeway in
gauging adequate yearly progress
By Lynn Olson
Education Week
At least one-fifth of the states say they plan to apply for a pilot program that would
let them use a measure of student growth over time to
help determine whether schools and districts have met
their annual achievement targets under the federal No
Child Left Behind Act.
Many other states, moreover, appear eager—judging from their
participation in recent conference calls and meetings on
the topic—at least to explore the possibility of
applying for the “growth models” pilot. U.S. Secretary
of Education Margaret Spellings announced the program in
November, following pressure from states and education
groups.
[continued]
Federal land constraints
Las Vegas feels
industrial squeeze
Plunging vacancy rates signal
supply-constrained market
By Jennifer Shubinksi
InBusiness Las Vegas
The amount of
available
inventory in the industrial market is rapidly
diminishing and future supply could be constrained
because of land and construction prices, industry
experts said. Vacancy rates for the industrial market
continued to drop in the fourth quarter, indicating a
high-demand, supply-constrained market and a market that
could face challenges going forward, local brokers said.
The
valley-wide industrial vacancy rate settled near 4
percent at the end of 2005, although numbers vary
between firms because of the research methods used.
Researchers at Grubb & Ellis went so far as to say that
industrial development in Las Vegas is on the brink of
extinction as future projects continue to deplete an
already shrinking industrial land supply.
[continued]
Hidden costs
The tax
code boogie
Institute for Policy Innovation
It’s begun
— the
3-month countdown to income tax filing day. People are
getting their W-2 forms and are beginning to twitch and
grimace at the thought of doing their taxes. Call it the
tax code boogie. Judging from data developed annually by
the Tax Foundation, the tax code boogie is a long and
winding song, that takes days to complete. In all, the
foundation says that taxpayers will spend more than 6
billion hours in filling out their income taxes. With
about 150 million workers, that comes out to an average
of 40 hours per worker to comply with the tax code.
Looked at another way, a worker has to spend, on
average, of a full workweek just to comply with tax law.
This does
not come cheap. The Tax Foundation estimates that, in
2005, the cost of complying with the tax code came to
$265.1 billion, or more than $17,000 per worker.
A single
tax rate, whether on income or consumption, would
clearly cut way, way back on the time and money spent on
complying with the tax code.
[continued]
State revenues
Tax numbers
up 10 percent
By Geoff Dornan
Appeal Capitol Bureau
Taxable sales increased nearly 10 percent
statewide in November.
The only exception was Douglas County which,
reported a 3.2 percent drop in taxable sales. Total
taxable sales there were $58.6 million.
[continued]
Employees
Pres takes
dual tack
on immigration
Seeks tougher enforcement, pushes guest-worker program By June Kronholz
The Wall Street Journal
WASHINGTON
-- President Bush drew big applause during his State of
the Union address with a renewed call for "a rational,
humane guest-worker program" to keep the economy
humming.
But that
appeal came only after Mr. Bush issued a much sterner
one first -- for tougher enforcement of immigration
laws, more vigilance on the border and an immigration
policy that "reflects our values."
[continued]
This article will be available to non-subscribers of the
Online Journal for up to seven days after it is
e-mailed.
Innovation
The Sandy Springs Effect
Government based on results,
accountability could be model for others
By Geoffrey Segal
Reason Foundation
At 12:01 am on December 1st, a vision took reality for a large group of
citizens in Sandy Springs, Georgia. After fighting
Fulton County for over 30 years, their dream became a
reality and Sandy Springs was officially an incorporated
city—the first new city in Georgia in 50 years.
What makes Sandy Springs relatively unique is
what the new city looks like today. Rather than create
an entire new bureaucracy, they privatized virtually
every city function. Moments after taking the oath of
office for the first time Mayor Eva Galambos said, "We
have harnessed the energy of the private sector to
organize the major functions of city government instead
of assembling our own bureaucracy. This we have done
because we are convinced that the competitive model is
what has made America so successful. And we are here to
demonstrate that this same competitive model will lead
to an efficient and effective local government."
[continued]
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