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Breaking News: Effort to Oust McLaughlin Fizzles

Breaking News: Effort to Oust McLaughlin Fizzles

What had promised to be an explosive evening at the Polk County central committee meeting Tuesday night never really materialized.

Throughout the past two days buzz had been growing that an organized effort to unseat McLaughlin as Chairman would take place, and rumors were flying that the person spearheading this undertaking was Rep. Kim Pearson (R-Pleasant Hill).  What is clear following the meeting is that she was never involved at any level, and that the leader of the group aiming to replace the Chairman was in fact precinct 85 resident Craig Bergman.

The only fireworks transpired at the beginning of the meeting when a motion was made to suspend the rules and normal proceedings of the meeting and instead have a vote on removing the Chairman.  What played out was that, by a near three to one margin (91-39), the central committee voted to proceed with the meeting’s business as usual and have the showdown afterward.  Presumably based on the large majority who stood in support of putting off the vote, the contingent on hand to oppose the Chairman realized that they did not have the numbers and chose to stand down on this night.

Perhaps the most memorable and foretelling moment of the night came when Chairman McLaughlin, on mic and standing at the podium, was explaining to a confused group of members that he was not avoiding a vote on his fate.  He summed it up by saying, “if anyone wants to try to ‘send me to the showers’ they are welcome to do that”, which he followed a few seconds later with, “That said, I don’t intend to go to the showers I intend to finish my job.”

Clearly Kevin McLaughlin is not backing away anytime soon, and neither is the sizable sect passionate that his performance as Chairman has not been up to par.  Based on the numbers it is hard to see how this group, in its current size and form, will be able to successfully remove the leadership in the middle of their term.  It is fair to note, however, that while this effort was denied tonight, there has been widespread discontent and rumblings regarding what has been perceived as several organizational shortcomings.

My sense moving forward is that McLaughlin and his team will survive any future attempts to remove him.  The final decider here will ultimately be what it always is–results.  If their performance in November demonstrates success in electing Republicans, particularly Tom Latham, then their style and methods will be vindicated and they will be lauded.  Should they not meet expectations, and should they fail to deliver a number of victories similar to their very successful predecessors–they will be quickly voted out in January.

Conservatives are often fond of saying that results, not good intentions, are what matters.  What we have here is a perfect embodiment of this…as it should be.

Senator Joe Bolkcom’s Political Theater Reveals Utter Disregard For Iowa Taxpayers

Senator Joe Bolkcom’s Political Theater Reveals Utter Disregard For Iowa Taxpayers

Perhaps no issue better illustrates the philosophical divide between left-wing Democrats and right-wing Republicans than the Earned Income Tax Credit.  Here in Iowa a theatrical stunt a few weeks back by ultra-Liberal Iowa City Democrat Senator Joe Bolkcom put the issue front and center.  In the hopes of pressuring Governor Branstad to support a huge increase in the Iowa Earned Income Tax Credit, Pleasantville resident Julie Heck was brought in to symbolize the need for this action by taking part in a press conference before then testifying in front of the Ways and Means Committee.  Ms. Heck is a single mother of three who is currently receiving the Iowa Earned Income Tax credit, and on this day set about making the case that while she is glad to have it—it sure would be nice to get more of our money.

While Democrats were no doubt tickled by both the media exposure and the perceived effectiveness of this spectacle, the realities surrounding her specific situation, including her own stunning words, expose the utter disregard that liberal Democrats have for all Iowa taxpayers.

The Press Conference

In the press conference Ms. Heck says that she is a single mother of three who works full time and attends college full time at Simpson.  She made $33,000 in income last year.  Beyond not paying a penny in Federal income tax, she instead received a $5,279 check from the Federal government which combined $2,279 from the Federal E.I.T.C and another $3,000 from the Federal Child Tax Credit.  Receiving the Federal E.I.T.C  in turn qualified her to receive an additional $160 from the Iowa E.I.T.C.  Without getting into all the numbers, after using a portion of her Federal refund to pay the $410 she owed to the state of Iowa, she ended up not only with a zero dollar income tax burden, but instead was actually paid $4,869 by the government.

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While so much is wrong with this picture, two things are particularly disturbing.  Firstly, instead of being grateful to live in a system that allows her to receive a net profit of $4,869 from the income tax code, she actually had the audacity to sit in front of a microphone and decry the fact that she had to pay any Iowa income taxes at all.  And, remarkably unsatisfied with what she has already received, she wants even more money—it is just unbelievable.

Perhaps the biggest slap in the face here is what she admits to spending some of this refund money on.  At the 3 minute mark of the video posted above, she plainly states that she is using her Federal “refund” money to help pay for her college tuition, and then proceeds to say that some of this money also goes to match the funds her children manage to save throughout the year.

As a taxpayer who over the last two years alone has sent tens of thousands of dollars to the Federal government and several thousand more to the state of Iowa, I find these details outrageous.  Let me be clear, I have no problem paying taxes to help those who are destitute, starving, or un-sheltered.  However, paying for a mother of three who decides that she now wants to attend college full time is a far different matter.

Once any American citizen makes the decision to bring three human lives into the world it is solely their own responsibility to provide for those children by any means necessary.   In this case it clearly means working a second job to provide for her family instead of spending our tax dollars to attend college.  I ask you this, how many hundreds of thousands of Iowans, especially small business owners, send their money into the government each year and afterwards do not have enough left over to afford schooling, or to match their children’s savings?

The Politics and Implications

Finally we have Sen. Bolkcom, the Iowa personification of this entitlement mentality, and the political and financial implications of this situation.  After Ms. Heck’s statement  Sen. Bolkcom threatens (at the 7:20 mark) that until the “earned” income tax credit is brought up from its current 7% to either 13% or 20%, that in his mind all tax relief for Iowans is off the table.  Realize here what this man is actually saying.  That before he entertains any legislation to cut the taxes of Iowans who have been throttled by actually paying high taxes for years—Ms. Heck must first receive an even larger refund.

This attitude and approach are stunning.  Putting on display a woman who makes $33,000 a year, who attends college fulltime, and already receives nearly $5,000 in government money through the tax code to justify almost tripling the Iowa E.I.T.C is beyond insulting.  This clearly shows all taxpayers in Iowa what little respect some have for the contributions we are making to government coffers every year.

Republicans agreed multiple times last year to increase the percentage of the Iowa E.I.T.C, largely as part of a legislative give and take they hoped would result in other tax proposals gaining passage, but the governor twice vetoed the section raising the credit.  In explanation he cited his desire to instead include it in a much larger tax reform bill, though the Senate again last month passed it as a stand alone measure (SF 2161).  The price tag of raising the credit to 20% would cost Iowa taxpayers $49.9 million every year after it fully phased-in in 2016.  This is no doubt a number that seems tiny to Democrats, but is a big deal when you consider that Chief Justice Cady is likely to again be denied an additional $10 million in funding for our judicial system, which has been underfunded for decades.

Once again I stress that the root of my problem here is not so much the issue itself or the price tag of passing the increase.  Above all else, this specific example exposes how we are losing the spirit of defiant self-sufficiency that we once had—and how quickly it is getting replaced with an attitude that instead asks ‘what more can you do for me?’  What is so galling about this is not that the government would offer assistance to people in serious need (they certainly should), but rather how that need is now defined.

While this entire production was likely staged with the sole purpose of raising the guilt level and putting public pressure on Governor Branstad to accept the increase, in reality what it raises is a much larger question:

Has the mentality throughout our state become so collectivist in nature that hard working Iowans are going to be viewed as “heartless” for not wanting to pay adults to go to college and be able to match their children’s piggy bank contributions?

If the answer is yes than Conservatives and Libertarians have a lot more work to do…and Iowans will have a lot more taxes to pay in the future.

Iowa’s Expensive Wind Addiction

Iowa’s Expensive Wind Addiction

I recently heard a radio commercial urging me to contact various members of Congress to voice my support for tax credits connected to the wind energy industry. On a lark, I went to the Iowa Legislature website and searched active bills for the word “wind,” and received several dozen hits, many of which seemed to be focused on state tax credits for manufacturing and installing wind turbines. Both state and federal politicians seem to be tripping over themselves to get into the wind energy craze.

Back in 2010 Alliant Energy was petitioning to be allowed to increase the rates they charged for electricity, and one of the supporting reasons they put forward was the $150 million project called the Whispering Willow-East wind farm in Franklin county. This was big news in Newton, where I was living at the time, as Newton is both the location of some wind turbine manufacturers, and within the area that would be affected by the rate increase.

This serves as perhaps a perfect litmus test for how people think about economics. If you are a progressive or a neo-Keynesian, then your reaction is likely to be that this is entirely appropriate; these wind farms are being built for our benefit, so of course we must pay. If you are an environmentalist or a socialist, then, of course electricity should cost more in your mind. As you are increasing your standard of living, at the unfair expense of the environment or the proletariat, it would be akin to questioning whether people should be locked up for committing assault, wouldn’t it?

If you believe in Austrian economics, or just in free-market pricing in general, then this situation would seem a bit odd. The supply of electricity is presumably increasing because of new wind farms. Increases in supply tend to reduce pressure on prices, not cause them to increase. Yet here, the new wind projects are being cited as a reason to increase the rates per kilowatt hour to the end users. They have built a wind farm, and now demand to pay for it by charging more for electricity still produced mainly by coal which could have been provided for the old price if they hadn‘t bothered to build the wind farm.

That is how capital investment works; if you couldn’t make money by building houses in the current market, but you build a bunch of houses anyway, it doesn’t cause the price of houses to go up. Wind energy doesn’t seem to follow the script of wealth creation.

The rule of thumb seems to be that a wind turbine costs about $1 million per nameplate megawatt of capacity, so if a turbine has 3 megawatts of stated capacity then it would cost about $3 million. Then you have to factor in what the industry refers to as the “capacity factor,” which is the percentage of the nameplate capacity that the turbine actually produces, and in Iowa the capacity factor is said to be about thirty percent. In plain terms, that means that if you want one megawatt of electricity, you need a three-megawatt wind turbine. However, it isn’t as simple as that. Although Iowa might be the “Saudi Arabia of Wind” – proclaimed as such by people who have likely never been to Saudi Arabia, nor had difficulty paying their electric bills – our winds are not constant.

When the wind doesn’t blow, the turbines don’t turn. The same is true for when the wind is too strong – wind turbines are equipped with a braking mechanism to stop them during high winds. If that brake fails, the turbine blades can rattle the entire tower to pieces, if the generator doesn’t catch on fire first – which you should look up on the internet because it is an interesting sight.

As a result of all the shortcomings of wind turbines, wind power costs about $90 per megawatt hour, compared to about $60 per megawatt hour for coal and even less than that for natural gas-generated electricity, yet we are told we need to fill our skylines with expensive wind turbines which spend most of their lives perfectly still and producing nothing – and then charge us for the cost of the electricity these intensely ugly things don’t produce. The Iowa Wind Energy Association has a goal to increase Iowa’s wind capacity from 4,500 megawatts to 20,000 megawatts by 2030 – so we can enjoy 6,000 megawatts of electricity doled out in intermittent intervals.

Germany announced its intent to decommission all of its nuclear power stations after the Fukushima incident, and the German government has been very supportive of wind energy, but not a single coal plant has been shut down. In fact, Germany is replacing its nuclear capacity with new coal power plants – as many as 26 new coal power plants are planned. The wind, like the sea, is a fickle lover as it would seem.

According to wind energy supporters, expanding wind energy creates jobs, and therefore none of the shortcomings in the technology or the economics are considered to matter. This attitude seems to be the source of the consensus among political leaders – or at least the appearance of consensus – as politicians go along with the wind energy movement lest they be accused of being “against jobs.” There are even pictures of wind turbines on Iowa’s new driver’s license design.

The wind energy addiction will end up being much the same as the other fads. State and federal tax credits, grants, and green energy targets are directing capital towards these wind energy projects. The jobs created in the short term are visible to politicians seeking reelection, but the damage is diffused across the entire economy and the effects won’t be felt until later. They can see the turbine blades going down the interstate, but not the higher utility bills of their constituents – including employers – nor the layoffs when the negative financial effects become impossible to ignore. Americans are too broke to pay for expensive wind-generated electricity, governments are too broke to continue subsidizing these projects, and the economy is too broke to carry an industrial sector which generates no profits, no useable increases in electricity, and no discernable tax revenue.

Wind turbines don’t increase the standard of living; in fact they seem to make energy more expensive. They only work intermittently, wear out rather quickly without expensive maintenance, and are heavily dependent on government credits and grants for their manufacture and installation. They have also been known to kill eagles, which is reason enough to hate anything.

The future might be filled with wind turbines, but that won’t be a positive thing. They are too expensive and too underproductive to provide electricity in quantities and at prices that are necessary to make them profitable. Elected officials at all levels need to move past the rhetoric of the wind energy craze and do their own research into this matter.

Unless they do so, they have no business voting to appropriate public funds to support the construction of more public relations kitsch at $1 million per nameplate megawatt. Even now attention is turning towards natural gas as the real driver of future energy production while a combination of better exploration techniques and hydraulic fracturing makes natural gas properly cheap.

Alliant itself is looking at building a new natural gas power plant – in Iowa.

84th General Assembly: Preview of Coverage

84th General Assembly: Preview of Coverage

The gaveling in of the Iowa Legislature’s 84th General Assembly last week signaled an end to the 2012 Presidential Caucus season and the return of a more local political focus for Iowans.

There is no doubt that much of the session’s oxygen will be sucked up by the major issues that failed to produce any legislation following last year’s battles. These issues include reforming the tax code, mental health services, and education, as well as another round of sparring over Iowa setting up a health insurance exchange to work in conjunction with Obama Care.

While these will grab a majority of the headlines, and a good share of our attention here at The Conservative Reader: Iowa, there have already been a number of very interesting bills introduced that we will also be following.

As of now the bills and issues outside “the big 4” that we have flagged to watch closely are as follows: Term limits, random drug testing for recipients 84th of certain state benefits, banning red light and speed cameras, and the fate of nuclear power in Iowa.

After being deluged for so many months with candidates and their ever changing poll numbers, it is easy to forget that in many ways the caucus season is an imperfect method for measuring Iowa’s current ideological perspective. Removing the factors attached to individual candidates such as “likeability” and “electability”, and instead gauging the debate and the public reaction of Iowans to more hyper-local issues is a far more telling indicator of where we stand. Ironically these debates and their results likely will tip our hand as to which Presidential candidate will be awarded our 6 electoral votes in November.

In the following weeks stay tuned for investigations, updates, analysis, and opinions on the major issues being debated at the State House. As mentioned earlier, while we will not ignore the most publicized topics of debate this session, a number of bills that will exist in the shadows of the major priorities are just as important.

Though we will be closely watching with an appropriate level of skepticism, we wish all those involved with the 84th General Assembly well in their efforts to make improvements for all Iowans. When we feel they have achieved improvement—we will trumpet it. When we feel they have caused damage to our way of life—they will be called to account.

On with Democracy…

Iowa Caucus Results Available Tonight At TCR

Iowa Caucus Results Available Tonight At TCR

We will have results of tonight’s caucus available here at The Conservative Reader as soon as the information is available from the Republican Party of Iowa.  We will have a Google map setup showing the results in near-real time as results are tabulated starting at 6:00 PM.  Be sure to attend your caucus, then check in with TCR for caucus results tonight and analysis on Wednesday.


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