Balanced Budgets And Tax Caps

For years, it has been a GOP article of faith that the United States should pass a balanced budget amendment. Here in Indiana, Republican Governor Mitch Daniels was the driving force behind the “constitutionalization” of tax caps–adding a measure to the state’s constitution limiting state and local government’s taxing power.

Fortunately, wiser heads prevailed in Congress, and the federal government retained authority for the massive deficit spending needed to ease what will certainly be a major recession or a depression in the wake of the Covid-19 pandemic.

Here in Indiana, we weren’t so lucky; Mitch Daniels successfully curried voter favor by decimating the ability of cities to adequately fund services and hobbling the state’s ability to meet unanticipated crises.

The average voter doesn’t recognize the different functions of constitutions and statutes, or understand why specific tax provisions of this sort don’t belong in the former.  Most Hoosiers thought it was a good idea to place tax caps in the state’s charter, making it difficult–if not impossible–to change direction if the need arose. Now, the state of Georgia–which has a similar restriction–is demonstrating just how short-sighted and damaging it is to elect people who are more concerned with politics than good policy.

From Heather Cox Richardson’s daily “Letter,”(no link, but her URL is heathercoxrichardson@substack.com) we learn about an investigation by George Chidi, a Georgia journalist and former staff writer for the Atlanta Journal-Constitution.

Chidi examined Georgia Governor Brian Kemp’s decision to reopen gyms, fitness centers, bowling alleys, tattoo parlors, barbers, nail salons, restaurants, theaters, and massage therapists, among other businesses, next week.

Kemp said the businesses would be required to screen workers for illness, increase sanitation rules, separate workspaces by at least six feet, telework where at all possible, and have staggered shifts. He also said that more restrictive local rules could not override his order.

Kemp told reporters that his concern was to protect small businesses, hurt by the economic shutdown, but Chidi had a different interpretation. “It’s about making sure people can’t file unemployment,” he wrote.

The state’s unemployment fund has about $2.6 billion. The shutdown has made claims skyrocket—Chidi says the fund will empty in about 28 weeks. There is no easy way to replenish the account because Georgia has recently set a limit on income taxes that cannot be overridden without a constitutional amendment. It cannot borrow enough to cover the fund either, because by law Georgia can’t borrow more than 5% of its previous year’s revenue in any year, and any borrowing must be repaid in full before the state can borrow any more.

By ending the business closures, Kemp guarantees that workers can no longer claim they are involuntarily unemployed, and so cannot claim unemployment benefits. Chidi notes that the order did not include banks, software firms, factories, or schools. It covered businesses usually staffed by poorer people that Kemp wants to keep off the unemployment rolls. (Emphasis supplied.)

We already knew that Kemp was despicable; a man for whom the word “ethics” is clearly meaningless–as Secretary of State, he refused to recuse himself and oversaw the Gubernatorial election in which he was a candidate. By throwing out some 50,000+ registrations from African-American voters, he narrowly deprived Stacy Abrams of a victory in that race.

This effort to deprive low-income workers in Georgia of the ability to claim unemployment is equally contemptible, but it is also equally attributable to the restrictive provisions in Georgia’s constitution.

Indiana’s constitution requires a balanced budget. That requirement need not be debilitating–if the state and its subdivisions can raise taxes to meet unanticipated challenges. Thanks to Mitch Daniels, his successors in the Governor’s office are unable to do that. Governor Holcomb thus far seems like a pretty solid guy–a throwback to the kind of Republicans I used to know–so I am hopeful he won’t emulate Georgia’s Kemp.

When rightwing Congress-critters bloviated about a Balanced Budget Amendment, cooler heads pointed to the perils and prevailed. When Republicans in the Indiana statehouse crowed about putting tax caps in the constitution to “protect” taxpayers, warnings by fiscal and tax policy experts were pooh-poohed.

Politics won, sane and informed policy lost.

Isn’t there a song called “Georgia on my mind”?

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Poll Taxes Were So Last-Century…

Tis the season–of voter suppression.

Vote suppression, of course, can’t be disentangled from the racism that was the subject of yesterday’s post. Efforts by the GOP to keep folks from the polls, after all, tend to be focused on black folks, and that has been true ever since poll taxes were instituted to keep former slaves from exercising their franchise.

Today’s Republicans are far more inventive–and far more overt. From Voter ID laws that are aimed at solving the  virtually non-existent problem of in-person “voter fraud,” to the chutzpah of Brian Kemp in Georgia, the GOP is pulling out all the stops to keep people of color from the polls. (And thanks to the Supreme Court’s evisceration of the Voting Rights Act, there are lots of stops to pull out.)

The New Yorker has an article titled “Voter-Suppression Tactics in the Age of Trump” that is well worth reading.It begins with a story.

African-Americans used to tell a joke about a black Harvard professor who moves to the Deep South and tries to register to vote. A white clerk tells him that he will first have to read aloud a paragraph from the Constitution. When he easily does so, the clerk says that he will also have to read and translate a section written in Spanish. Again he complies. The clerk then demands that he read sections in French, German, and Russian, all of which he happens to speak fluently. Finally, the clerk shows him a passage in Arabic. The professor looks at it and says, “My Arabic is rusty, but I believe this translates to ‘Negroes cannot vote in this county.’ ”

As the article notes, this old joke has a new saliency. It’s true that–thanks to litigation–literacy tests, poll taxes, and grandfather clauses meant to disadvantage minority voters have all been declared illegal. But new strategies have replaced them.

One need look no further than the governor’s race in Georgia to see their modern equivalents in action. The race between the Republican, Brian Kemp, Georgia’s secretary of state, and the Democrat, Stacey Abrams, the former minority leader of the state House of Representatives—who, if she wins, will be the first black female governor in the country—is a virtual tie. But Kemp has invoked the so-called exact-match law to suspend fifty-three thousand voter-registration applications, for infractions as minor as a hyphen missing from a surname. African-Americans make up thirty-two per cent of the state’s population, but they represent nearly seventy per cent of the suspended applications.

This isn’t Kemp’s first effort at disenfranchising minority voters. Historian Carol Anderson has written a book titled “One Person, No Vote,” in which Kemp is prominently profiled.

In 2012, after the Asian American Legal Advocacy Center, in Atlanta, discovered that many of its clients who were naturalized citizens were not on the voter rolls, despite having registered, the group raised the issue with Kemp’s office. “In a show of raw intimidation,” Anderson writes, “Kemp ordered an investigation questioning the methods that the organization had used to register new voters.” In 2014, Kemp investigated the New Georgia Project, a voter-registration initiative that Abrams had founded. In a similar vein, officials in Jefferson County last week ordered a group of African-American senior citizens off a bus taking them to an early-voting site, on the ground that the transportation, which had been organized by the nonpartisan group Black Voters Matter, was a “political activity.”

The article characterizes these and similar (if somewhat less blatant) efforts elsewhere as an attempt to place a white thumb on the demographic scale.

Georgia is far from the only state making an effort to curtail–rather than encourage–voting.  The Brennan Center reports that ninety-nine bills designed to diminish voter access were introduced last year in thirty-one state legislatures. And as early voting has started, we are seeing reports of machines that “flip” voters choices from Democratic candidates to their Republican opponents.

If and when Congress is controlled by elected officials willing to put the interests of the country above the partisan interests of their party, reinvigoration of the Voting Rights Act and measures to protect the franchise need to be priority number one.

Meanwhile, massive turnout next Tuesday will be needed in order to overcome gerrymandering and the various voter suppression and misinformation efforts that are being employed by Republican politicians who want to win at all costs–even if one of those costs is the integrity of our democracy.

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