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SAM
T. HARPER Keep an Eye on Tennessee's War on Tax and Spend Liberalism June 15, 2002 |
There is a revolution brewing in Tennessee. Tennessee has a
budget problem; like many other states, but much less than those
states. Tax-and-spend liberals, who dominate the state Assembly
and Senate and are mostly long time incumbents, are working
furiously to install an income tax and to raise the sales tax -
simultaneously. Unbelievably, they are selling the idea that
Tennessee can tax its way to state fiscal success without beating
down the state economy. If they would show me one government that
has ever done that successfully, I would consider supporting them.
But they cannot. So I do not.
The problem in Tennessee is that revenues have grown slightly
higher (this year's revenues will be greater than revenues from 2
years ago and, in this recession year, will be close to revenues
received LAST year) but spending has grown two to three times
faster.
One reason is that about eight years ago, the incumbent
Democratic liberals installed the only HillaryCare (aka TennCare)
medical welfare system (for the "uninsurable") in the
country. One fourth (!!!!!!!!!!!!!!!!) of all Tennesseans are now
enrolled in TennCare. This is double the percentage covered by
Medicaid in the average state. No rational person believes that
one fourth of ALL Tennesseans are uninsurable. It has become a
scam. The largest commercial provider of health insurance,
Tennessee Blue Cross Blue Shield says government health insurance
(aka TennCare) is its biggest competitor. Now - Surprise! -
TennCare is bankrupting the state.
When you and I and businesses are faced with a slow down in
revenues, then spending has to be frozen or cut. The Tennessee
legislature majority leaders will do neither. They only use the
emotional solutions: close state parks, cut secondary and
elementary school funding, cut state college funding, etc. The
fact is that the deficit is due largely to increased spending.
Stick with last year's spending and the deficit would disappear.
OK, I have made the traditional rational reasons for why the tax
and spend liberals are wrong. They, in turn, are making the
traditional emotional reasons for why they need to reach into our
pockets.
So how do conservatives get emotional? Well, Nashville
conservative radio talk show hosts, Steve Gill and Phil
Valentine, are using a great American tradition - the public
protest. Every time the legislature meets to attempt a floor vote
for the income tax and increased sales tax, these two guys set up
their radio shows on the sidewalks outside the capitol. They then
invite those Tennesseans opposed to the liberal tax solutions to
meet with them on the sidewalk or drive by and honk their horns.
Though this sounds elementary, it has been very effective. The
turn out is amazing. The resulting honking and crowd noise
clearly seeps into the legislative chambers.
So far, the legislative leaders cannot find enough votes to move
the tax legislation. If this does not inspire you, pick up a book
on the Revolutionary War. This is exactly what those folks did.
A longer term solution is also found in our Founding Fathers
actions: elect people that will stop this nonsense in the future.
That is where I am putting my energies. I recently volunteered to
be the campaign manager for a local GOP candidate for the state
Assembly - Judd Matheny. Judd is a veteran of the volunteer Army,
a successful small business owner, and a successful husband and
father. He is one of the sharpest conservative candidates I have
ever met. He faces an uphill battle against a liberal, good ol'
boy Democratic with nearly $90,000 of lobbyist money in his
campaign account. I will report our progress over the next
several months.
Sam T. Harper graduated cum laude from Vanderbilt University. Following a tour in the US Navy and a stint as Operations Manager at Roadway Express, he earned his MBA from Stanford University Graduate School of Business. He was a contributor to In Search of Excellence, the best selling business book of all time. Sam was also Manager, Economic Planning & Analysis at Sohio Petroleum, Partner and Chief Financial Officer at investment-banking firm Bridgemere Capital, and Chief Operating Officer of the Institute for Contemporary Studies, a San Francisco Bay Area-based think tank and international publishing firm that specializes in self-governing and entrepreneurial public policy. Sam was a chairman of the San Francisco Republican party and the GOP co-host of California Political Review on KALW-FM in San Francisco. Sam is currently the co-owner of the Tennessee based Institute for Local Effectiveness Training, LLC a management consulting, training, and coaching firm.