Arthur Schaper: Shout Out to the RI General Assembly

Friday, November 22, 2013

Arthur Christopher Schaper, GoLocalProv MINDSETTER™

 

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Arthur Schaper asks: When will the GA legislators bring on economic recovery?

Earlier this year, Rhode Island Republican Party Chairman Mark Smiley issued a press release calling out the state General Assembly’s general state of inertia on economic reforms:

The Rhode Island economy is still on life support as evidenced by the unemployment rate which actually rose in July to 8.9%, all the while Gordon Fox and Teresa Paiva-Weed were bragging about their so-called accomplishments in this area.

For propaganda purposes, House Speaker Gordon Fox had christened the year 2013 as “The Year of Economic Development” for Rhode Island, but instead of improvements, Rhode Islanders are getting impatient, wondering why their General Assembly has maintained, no. . .expanded the general disaster for their state, the business climate, and any fiscal future unfettered from fears and frustrations. A better banner from the GA to describe their legislative agenda should have read: “F--- You, Rhode Island!”

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In their mid-year legislative Op-Ed, Fox and Weed released the following chest-thumping:

We have been proud to work together to create a vibrant economic environment in Rhode Island and to encourage job creation by business. Changes we have made in recent years included overhauling the income tax, establishing the new Office of Regulatory Reform, and addressing workforce development.

As of September, Rhode Island unemployment bottomed at 9.1%, with only Illinois and Nevada scraping any lower.

Where’s the Tax Relief?

What happened to the income tax in Rhode Island? In this legislative summary, The Rhode Island Division of Taxation announced that investors can claim a tax credit in order to renovate and showcase historical buildings in Rhode Island. I imagine that there is plenty of infrastructure to use, since more people are leaving the state, with empty homes as left-behind relics. The Domestic Production Activities Reduction was also rescinded (in other words, you pay more for making more!)

With a flair for the creative, the GA has redefined the state of Rhode Island as an arts district, which will extend the tax credit for all artwork bought and sold within the state. Starving sculptors, line up and get your credit!

The GA will charge residents more to get drunk, farmers will only pay a tax on the “use value” on their property (there are farmers in Rhode Island?), and tax preparers will pay dearly for defrauding the state with misinformation (can Fox and Weed go to jail over 38 Studios, too?)

This is tax relief? While RINO-INNO-DINO Governor Lincoln Chafee shovels the shinola with both hands, Paiva Weed and Fox use a bull-dozer to bury the state in their political bulls--t. Pee-ew!

Talks about scrapping the sales tax have set sail, never to return.

Any discussion of assessing the car tax on the current value, as opposed to the current impost based on the vehicle’s original mint condition, has been driven off the lot.

Landmark pension reforms are in danger (a teacher sent me a letter, detailing that he would have to pay a special tax on his reduced pension).

Regulatory Burdens

Now, let’s talk about this new Office of Regulatory Reform (ORR). . .

Governor Chafee assures his constituents that this bureaucracy will cut down from four years to one year the agency review process on how the state’s regulatory burden hurts businesses. A couple of questions. Why are most businesses leaving in the first place? The regulations. What regulations does the ORR plan on reviewing, since there are so many of them? Through this circular line of question, we discover the answer to question number one. . .

Of the 6,000 firms contacted for their input, 709 small businesses reported their frustrations with Rhode Island regulations, from which the state published a forty-five-page summation. Health care costs were the most costly, followed by state regulations. Here’s the summary: There are too many, and the cost too much. Never wasting a crisis, the Governor will set up reviews to deal with these regulations. How much this will cost, and how much time it will take, is anyone’s guess.

What did the GA do about health care costs? Establish HealthSourceRI in compliance with Obamacare. The results? The listed costs, including the subsidy for poor recipients, start at $150 a month, with a $5000 deductible. What?! Every Obamacare plan will fund abortions. GoLocalProv anticipated 100,000 would sign up, but only 3,000 actually signed on, with only one out of four buying private insurance. The majority of enrollees have tapped into the depleting Medicare funds. Not looking to good.

As for the regulations, a recent Small Business Association summit produced the same litany of complaints from business owners. Just this week Steven Frias opined in ProJo about a minimum charge fee for public motor vehicles, ending low-cost fares for city riders. While the GA squawks, profits walk to other states.

Speaker Fox has been eating up the General Assembly, with nothing, not even the bones, to show for his pilfering (and no bones about it). State Senate President Paiva Weed has lived up (or rather down) to her namesake, uprooting any hopes of growth and development in her state. Forget calamari and gay marriage. When will the GA legislators bring on economic recovery?

Arthur Christopher Schaper is a teacher-turned-writer on topics both timeless and timely; political, cultural, and eternal. A life-long Southern California resident, Arthur currently lives in Torrance. Follow him on Twitter @ArthurCSchaper, reach him at [email protected], and read more at Schaper's Corner and As He Is, So Are We Ministries.

 

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