Inequality will keep growing as long as big money controls politics

March 24, 2014

The gap between America’s rich and poor has been growing for nearly four decades. Many people worry about what this could mean for our economy, our society — and even the survival of our republic.

This trend is a stark reversal of the four previous decades, and it has sparked a lot of populist anger, from Occupy Wall Street on the left to the Tea Party on the right.

Consider, for example, a recent study that found incomes in Kentucky rose 19.9 percent from 1979-2007, but that 48.8 percent of that money went to the top 1 percent of earners. According to the Economic Policy Institute, that 1 percent saw their incomes rise an average of 105.1 percent, while the average income of the other 99 percent of Kentuckians grew only 11.2 percent.

Democrats have made inequality and economic opportunity their main campaign theme. Republicans are talking about it, too, but offering very different solutions for rebuilding the American middle class.

“Economic and Political Inequality in the United States” is the title of a conference March 27-28 at the University of Kentucky featuring several nationally recognized speakers. The event is free and open to the public. Details at: Debrassocialstimulus.com.

The keynote speaker is Pulitzer Prize-winning columnist Ellen Goodman, whose talk is titled “Inequality: Working Moms, Designated Daughters, and the Risks of Caregiving.” She speaks at 7:30 p.m. March 27 at Memorial Hall.

The next day, beginning at 9:30 a.m. in the Student Center’s Worsham Theater, speakers include longtime UK history professor Ron Eller and economist Dean Baker, co-director of the Center for Economic and Policy research in Washington. Topics include inequality in Appalachia and how the “culture wars” have influenced these trends.

I will be interested to hear what the speakers have to say. I will be especially interested to see if they can go beyond lamenting the problems and offer solutions that could have some chance of success in America’s increasingly toxic political environment.

For most of human history, stark inequality was the rule, contributing to both the rise and fall of countless empires. This began to change in the late 1600s with the Enlightenment, which led to creation of the representative democracies now found in most developed nations.

Representative democracy led to government-regulated capitalism and a flowering of technology and prosperity that, while uneven, was far better than anything that preceded it.

In this country, coming out of the Great Depression and World War II, it led to a dramatic narrowing of the wealth gap and an accompanying rise in economic and social opportunity and mobility that made America the envy of the world.

Wealthy industrialists realized that a prosperous middle class was needed to buy the goods they manufactured. A rising tide really did lift all boats. But research shows that America now lags many other nations in economic opportunity and mobility.

The spread of capitalism has lessened inequality in much of the world, although, as Pope Francis has consistently reminded us since assuming leadership of the Roman Catholic church a year ago, not nearly as much as it should.

While the global economy has been good for some overseas workers, it has cost many American jobs. It also has created a worldwide “race to the bottom” for labor costs, while making financial elites fabulously wealthy.

The collapse of communism seemed to show that, over the long haul, capitalism works best when it goes hand-in-hand with representative democracy. Or does it? China’s economic success since the 1980s under a ruling-class dictatorship raises some troubling questions.

Those questions are even more troubling amid the rising power of big-money influence in American politics, especially since the U.S. Supreme Court’s 2010 Citizens United ruling opened the floodgates. There seems to be a new Golden Rule: those with the gold can make the rules.

While conservatives now worry about oppressive government, liberals worry about oppressive capitalism and corporate-controlled government. The rise of inequality since the 1970s has mirrored the rising clout of big business and high finance and the decline of organized labor.

Until the balance of power shifts back toward what it was a generation ago, it is hard to imagine that the balance of wealth will, either.  


Improving Lexington water quality messy, expensive and worth it.

November 4, 2013
SewerWork

Rob Walker installed a pipe as Tommy Davis ran a track hoe at a pump station under construction on Winchester Road near Hume Drive. Photo by Pablo Alcala

 

I often say that if our state and federal governments worked as well as Lexington’s government does, America would be a lot better off.

Lexington-Fayette Urban County Government is hardly perfect. (Trick-or-treat when?) But the city delivers services efficiently, and our nonpartisan mayor and council members usually seem to care more about the public interest than special interests. Unlike Congress, they’re a pretty responsible bunch.

A good example is the consent decree negotiated in 2008 between the city and the U.S. Environmental Protection Agency, the effects of which will soon be hard to miss.

Construction crews will begin this month digging up streets for the first three of more than 80 sewer-improvement projects. The most noticeable early one will be just south of St. Joseph Hospital on Harrodsburg Road, where underground sewer pipes are being replaced with bigger ones.

The work will take at least 10 years. Citizens may get more information at Lexingtonky.gov about specific projects and disruptions they will cause.

The total cost of this work could be a half-billion dollars or more, which means sewer fees are sure to rise eventually. Lexington has a lot of catching up to do.

“There’s no shortage of stuff to fix out there,” said Charles Martin, who as director of the city’s Division of Water Quality is overseeing what he says is the biggest capital construction project in Lexington history. “It’s a marathon, not a sprint.”

Many politicians like to beat up on the EPA, especially because it won’t allow coal companies to destroy what is left of Eastern Kentucky’s natural landscape for the sake of higher profits and a few short-term jobs.

But when the EPA sued Lexington in 2006, citing decades of chronic water pollution, city officials acted responsibly. Rather than posture and scapegoat, they began working with the EPA to figure out how to fix the problems. They knew that a clean environment was in Lexington’s best long-term interest.

Lexington’s problem is basically that infrastructure hasn’t kept up with growth and development. A lot of rainwater that should have been going into storm sewers is going into sanitary sewers instead. When it rains hard, there are some nasty overflows into basements, streets and streams.

The problems are the result of years of infrastructure neglect, Martin said. The city didn’t always require developers to build adequate sewer systems, and many old sewers weren’t updated when they should have been. Lexington started treating sewage in 1918, but there was no dedicated fee for sewer system maintenance until the 1980s.

The city started addressing these problems in a serious way four years ago, replacing inadequate sewer pump stations around town and adding a new one. Fayette County has seven watersheds but only two sewage treatment plans. So a lot of sewage must be pumped all over town.

In addition to installing new sewers, Lexington is trying some creative solutions, such as storage tanks to handle short-term storm-water volume.

Officials also are exploring natural solutions. Environmental engineering has come a long way since the 1950s, when the creeks like those that flowed through what is now the Zandale neighborhood were rerouted into ugly concrete drainage canals.

These approaches are not without controversy. Julian Campbell, a botanist, and Robert Stauffer, a geochemist and hydrologist, wrote op-ed pieces in the Herald-Leader recently saying that the city’s remediation plan for Cane Run Creek between Interstate 75 and Citation Boulevard could do more environmental damage than good.

Campbell and Stauffer raise some good questions. But this is complicated stuff, and the city has some excellent environmental talent on its team, too. Officials must respond to their critiques thoroughly and publicly so citizens can have confidence that things are being done right.

In addition to fixing old problems, the consent decree will make sure Lexington doesn’t add new development without also adding the sewer infrastructure to handle it. Some people won’t like that, but it makes sense.

This whole process will be complicated, expensive and a lot of hassle. But it’s the right thing to do, and it will leave Lexington in a better position for future growth and prosperity.

To read Tom Martin’s Q&A with project director Charles Martin, director of the city’s Division of Water Quality, click here.

 


Andy Barr votes to take food from poor, then serves up baloney

September 19, 2013

Today’s George Orwell Award goes to U.S. Rep. Andy Barr, R-Lexington, for the press release reproduced below. For a different view of the situation, read this guest column in today’s Herald-Leader by the Rev. Patrick Delahanty, executive director of the Catholic Conference of Kentucky.

 

Barr

 


Town Branch Commons: an idea that has worked in other cities

February 3, 2013

Hardly a week goes by that people don’t tell me how they wish the open block where the Webb Companies hopes to build CentrePointe could become a public park instead.

As the block awaits redevelopment, it is planted in grass and surrounded by a plank fence to resemble a horse pasture. It has become a popular gathering place during downtown festivals. (At other times, it is off-limits, just as horse pastures are.)

CentrePasture’s popularity points to a couple of ironies about Lexington.

One is that we have a lot of open space, but little public space. The other is that we are surrounded by some of the world’s most beautiful rural landscapes — an artful blend of the natural and man-made — but our central business district is a generic jungle of concrete and asphalt. There are only a handful of small parks or plazas downtown, and few trees of any size.

Although recent renovations of Triangle and Cheapside parks have been excellent, the comments I hear make me think Lexington residents still yearn for more public space downtown.

Town Branch Creek resurfaces west of Rupp Arena. Herald-Leader photo

The Downtown Development Authority on Monday will choose the winner of a design competition for Town Branch Commons — some form of linear park on city-owned property along the path of the long-buried stream that gave birth to Lexington.

This project would involve bringing parts of the creek back to the surface, either literally or symbolically, to create attractive public spaces for nature and a variety of activities. A jury of design professionals was to recommend a winner to the DDA board after closed-door presentations Friday by the five finalists.

The competition attracted 23 entries. The finalists are among the world’s best landscape architects and designers: Coen + Partners in Minneapolis; Denver-based Civitas; the Netherlands firm Inside Outside; Scape Landscape Architecture of New York; and Copenhagen-based Julien De Smedt Architects working with Balmori Associates of New York.

All five finalists’ designs will be on display at the Downtown Arts Center from Tuesday until Feb. 22, including during Gallery Hop on Feb. 15.

I can’t wait to see the designs, especially after hearing the finalists make presentations about their previous work Thursday at the Lexington Children’s Theatre. They showed amazing projects from all over the world, including in cities such as Bilbao, Spain, that had far more daunting problems than Lexington has.

(An interesting side note is that three of the six presenters were women: design legends Diana Balmori and Petra Blaisse and one of landscape architecture’s rising stars, Kate Orff.)

(Also worth mentioning: several of the landscape architects showed projects that used wetland parks to effectively solve storm-water problems. Lexington officials should remember that as they decide how to spend millions of dollars on storm water issues under terms of the federal consent decree.)

I can already hear Lexington’s naysayers: This whole idea is impractical, unaffordable and frivolous. It is none of that.

The compelling argument for Town Branch Commons is not esthetic, but economic. This sort of urban public space has been an effective way to attract people and investment dollars to cities of all sizes, from Seoul, South Korea to Yonkers, N.Y.

People who have attended recent Commerce Lexington trips have seen it work in Greenville, S.C., where a long-neglected riverbank became Falls Park; and in San Antonio, where a once-buried stream similar to Town Branch became the Riverwalk, now Texas’ second-largest tourist attraction after the Alamo.

New York’s High Line project turned an abandoned elevated rail line into a linear park that has transformed a once-decaying section of lower Manhattan. Despite huge cost overruns, the Millennium Park that Chicago built over an urban rail yard has more than paid for itself with the private development it has attracted.

The kind of public-private partnership envisioned with Town Branch Commons is under way in Atlanta, which is turning an abandoned rail line around the city into 1,300 acres of parks and 33 miles of trails, and in Louisville, which has raised more than $60 million in private money for the 21st Century Parks project that is creating 4,000 acres of linear parkland and 100 miles of trails around that city.

What excites me about the potential of Town Branch Commons was mentioned frequently by the world-class designers who submitted plans. This isn’t about building Disney World in a swamp; it is an authentic reflection of Lexington’s history, geography and culture.

Pioneers chose Town Branch as the site for their town, laying out Lexington’s grid according to the creek’s path rather than a compass. Its banks were where early Lexingtonians gathered for fun and refreshment before the stream was polluted, built over and eventually buried.

Town Branch Commons will require public money and even more private money. But it could be a great long-term investment, one that uses the authenticity of Lexington’s past to create both an amenity and economic generator for the future.


Habitat works with Lexington to restore foreclosed homes

December 17, 2012

Neema Dominic puts in volunteer hours painting a foreclosed home on Savoy Road that is being renovated by Habitat for Humanity.  Habitat has renovated four foreclosed homes in Lexington this year and will do a fifth next year as part of a city program to keep foreclosed homes from becoming vacant liabilities in their neighborhoods. Photos by Tom Eblen

 

Lexington has a couple of big housing problems: there is too little affordable housing, and there are too many vacant houses in neighborhoods all over the city, especially since the wave of foreclosures that followed the 2008 financial crisis.

A partnership between city government and Habitat for Humanity has offered small help for both problems, but it has left officials optimistic that it could lead to bigger solutions.

On Wednesday, Mayor Jim Gray will help dedicate a renovated house at 224 Savoy Road in a well-kept, middle-class subdivision off Versailles Road. After a foreclosure in 2010, that house and another down the street sat empty for more than two years. That worried neighbors, including Urban County Council member Peggy Henson, who lives around the corner.

“These were sturdy, good, well-built homes,” Henson said. “But they weren’t going to stay that way the longer they sat empty.”

Those two houses were among 10 foreclosed, vacant properties the city was able to acquire with federal stimulus money through the Neighborhood Stabilization Program of the Housing and Economic Recovery Act of 2008.

The city turned the 10 properties over to Habitat for Humanity for $1 each. Five had homes that could be renovated; the others will become building sites for new Habitat homes. Four of the renovations have been completed; the fifth will be done next year, as will the new construction.

Habitat for Humanity, the Georgia-based non-profit organization made famous by former President Jimmy Carter’s volunteer efforts on its behalf, builds affordable homes for low-income people willing to put in hundreds of hours of “sweat equity” to become homeowners.

In Lexington, Habitat has typically built new homes, usually in neighborhoods north of Main Street in the East End, West End and Winburn, where inexpensive lots were available. This venture was Habitat’s first at renovating existing homes in other neighborhoods, and Rachel Smith Childress, the organization’s Lexington executive director, said it turned out to be a winner for everyone.

“Our families like them because they’re in other nice neighborhoods and have amenities that aren’t typically part of our homes,” she said. “Plus, it removes vacant houses from neighborhoods, increases property values for everyone and increases property tax revenues for the city.”

For example, the house at 224 Savoy Road, which was built about 1960, is brick with hardwood floors and vintage knotty pine paneling. The kitchen includes a dishwasher. None of that is in a new Habitat house.

But the house needed work, including bathroom and kitchen remodeling, which was done by Habitat staff, volunteers and future Habitat homeowners. Whirlpool donated other needed kitchen appliances.

Money for the renovation was donated by business sponsors Paul Miller Ford, Ford Motor Co., PNC Bank and the PNC Foundation. Support for the other renovations has come from Ashland Inc., Calvary Baptist Church and Back Construction.

More than 500 hours of work was performed by the new owners of 224 Savoy Road, Emmanuel Katchofa, and his wife, Marceline Ilunga. He was a physician in the Congo before they and their five children fled the war-torn country and were resettled in Lexington by the U.S. State Department and Kentucky Refugee Ministries. Katchofa and Ilunga both now have jobs, although he is unable to practice medicine because his license is not valid in this country.

Legal refugees from the Congo and other troubled African nations now make up about half of the 15 or 20 Lexington families Habitat is able to help become home owners each year. That is because refugees come here without bad credit histories and with strong motivation to succeed, Childress said.

Henson said she and her neighbors are happy to have the vacant house on Savoy Road restored and occupied.

“It was a real blessing to the neighborhood,” she said. “Those properties are looking great now, and it will be really good to have folks living there.”

Although federal stimulus money is no longer available, Henson and Childress hope Habitat’s partnership with the city on rehabilitating vacant houses or building on abandoned lots can find new ways to continue.

“We’re talking with the city about property and buildings and partnerships,” Childress said. “But the need for affordable housing goes beyond home ownership.

“Everyone is not going to be a homeowner. We really have a huge gap in decent rental housing that is affordable in Lexington. It’s a huge need.”

Click on each thumbnail to see complete photo and read caption:


Tax reform group has some good ideas; will they go anywhere?

December 10, 2012

Tax reform in Kentucky has always reminded me of that old quip about the weather: Everybody talks about it, but nobody does anything about it.

After nearly a year of study, the Blue Ribbon Commission on Tax Reform that Gov. Steve Beshear appointed to study Kentucky’s tax code and suggest changes finished its work last Thursday and announced recommendations. A final report is due to the governor by Dec. 15.

Will Beshear embrace his task force’s recommendations and try to sell them to the public and legislators? Will the General Assembly’s leaders exercise the leadership needed to build political consensus and make change happen?

You have to give the task force credit. Rather than proposing safe but inadequate “revenue neutral” tax reform, task force members had the courage to recommend a plan that would add $690 million in revenue during the first year.

That’s still short of what Kentucky needs, but it’s a start. Pension obligations will eat up at least $350 million and the state budget has already been cut a dozen times for a total of more than $1.6 billion.

Among the task force’s good recommendations:

■ Raise the cigarette tax to $1 a pack, up from 60 cents. Given the high public cost of smoking-related diseases in Kentucky, it should be even higher, such as the $1.60 that some task force members proposed. But at least Kentucky’s cigarette tax will no longer be the lowest in the region.

■ Amend the state constitution to allow local-option sales taxes. This is a big issue for Lexington, Louisville and other cities desperate for additional revenue to meet the needs of their urban populations and economies.

■ Make the state income tax more progressive, easing the burden on low-income wage-earners and putting more of it on high-income taxpayers. Much of that would be done by limiting deductions and exemptions.

The task force also recommended creating an earned-income tax credit to give relief to low-wage families. It would be modeled on the federal earned-income tax credit, a Republican idea that has been an effective, low-cost tool for reducing poverty among the working poor.

■ Eliminate two taxes that have always seemed like insults to two of Kentucky’s signature industries, horses and bourbon. The first is the sales tax on horse feed. Cattle feed is not taxed, but horse feed is, which has never seemed fair.

The other is the property tax on barrels of bourbon aging in warehouses. Bourbon has become a worldwide phenomenon, and Kentucky makes more than 90 percent of it. But this tax gives both established and new distillers a reason to look to elsewhere to build production facilities, which could risk Kentucky’s industry dominance.

■ Expand the 6 percent sales tax on goods to include some services. This could broaden Kentucky’s tax base as the economy continues to shift from goods to services. It is essential that Kentucky tax revenues grow with the economy, and this is one way to do it.

The task force also recommended cutting corporate taxes by abut $100 million. It is an article of faith among some business people that corporate taxes need to be as low as possible. But that seems unnecessary, because studies have shown that Kentucky’s corporate taxes already are competitive with peer states.

“What are we going to gain by making them lower?” asked Jason Bailey, a task force member and director of the Kentucky Center for Economic Policy, a Berea-based research group. “The corporate income tax is a very small part of doing business.”

Rather than cutting Kentucky’s already-low corporate taxes, Bailey thinks more jobs could be created by investing that money in education, health and infrastructure. Those are areas that companies look at when choosing a good place to do business, and they are areas where Kentucky is behind many other states.

Overall, though, the task force recommendations are the most positive talk in decades toward real, much-needed tax reform. Whether Kentucky’s political leaders will do anything about it remains to be seen.


When cutting back on welfare, don’t forget corporate welfare

December 8, 2012

When a poor person gets a government handout, it’s called welfare. When a rich corporation gets one, it’s called an economic development incentive.

With local, state and federal government budgets tighter than ever, social programs are getting a hard look. But what about corporate welfare?

The New York Times started a good conversation last week with a three-part investigative series called the United States of Subsidies. Reporter Louise Story spent 10 months analyzing corporate tax breaks, gifts and other incentives in all 50 states, which she figured add up to at least $80 billion in annual taxpayer subsidies to business.

Business subsidies have mushroomed since the 1980s, when automakers started pitting states against one another to host new assembly plants. The strategy worked so well that other industries demanded freebies, too.

A big reason corporate welfare has flourished is that politicians love being able to announce lots of new jobs coming to their area. (They often are out of office when those jobs never materialize or leave for another state offering better incentives.)

From a national perspective, it is a zero-sum game. State and local incentives do little or nothing to grow the national economy; they just determine where in the nation the growth will occur.

But it’s more insidious than that. Incentives redirect billions of tax dollars to corporate bottom lines instead of to improving education, health, safety, infrastructure and making other public investments that will create genuine, long-term economic development.

The Times website (Nytimes.com) has state-by-state breakdowns of incentives and a searchable database of recipients. It shows that the nation’s biggest business incentive Santa is high-growth, low-wage, high-poverty Texas, at $19 billion a year. West Virginia and Oklahoma give up incentives equal to one-third of their budgets.

The Times calculates Kentucky’s annual incentives at $1.41 billion — about 15 percent of the state budget, or $324 per Kentuckian. Those include $264 million in personal income tax credits; $108 million in sales tax refunds, exemptions and discounts; and $69.2 million in corporate income tax reductions, credits or rebates.

The Times reports that most Kentucky incentives, $569 million worth, go to mining, oil and gas industries — no surprise there, given their political clout. That is followed by $341 million for agriculture and $180 million to manufacturers.

As is true nationally, some of the biggest Kentucky incentive recipients in recent years were automakers: $307 million for Ford; $83.8 million for Toyota and $10 million for General Motors. Given their high wages and large supplier networks, those might be good investments.

But the big head-scratcher in the Times’ database was $94.1 million in incentives to Tyson Foods from 1995-2009 for a low-wage chicken-processing plant in Henderson County. Is that the kind of economic development Kentucky taxpayers should be subsidizing?

While the Times’ report is impressive in its national scope, there has long been debate about the value of incentives. The Herald-Leader published an investigative series in 2005 that questioned the value of many Kentucky tax breaks and other giveaways. The report resulted in some improved accountability, but did little to stem the flow of tax money into corporate pockets.

A state-commissioned study issued this summer came up with incentive figures smaller than the Times reported, but still pretty staggering: $1.29 billion between 2001 and 2010. The report said 577 companies took incentives to locate 55,173 jobs in Kentucky at a cost to taxpayers of $23,385 per job.

The incentive system favors large corporations over small businesses — often the employers who are already in a community and aren’t looking to leave. Officials have responded by coming up with some incentives for them, too, which just further drains government coffers.

How do we stop this racket, where cities and states compete to steal jobs from one another? It would be great if Congress could pass a law, but it probably can’t. Still, with about 20 percent of state and local government budgets coming from federal dollars, somebody needs to be looking out for the national interest.

Taxpayers should demand reform of these corporate welfare systems, just as they did social welfare systems in the 1990s. But it won’t be easy. Corporations employ more lobbyists and make more campaign donations than poor people do.


Amid ‘Obamacare’ fight, another vision for health insurance reform

August 6, 2012

Medicare turned 47 years old last Monday. Bill Mahan celebrated by setting up a booth on Main Street to try to convince passersby that America’s health insurance crisis could be eased considerably if everyone had Medicare.

The Lexington retiree collected about 125 signatures for his petition. It asks members of Congress to support proposed legislation that would strengthen Medicare, which now covers more than 47 million seniors and disabled people, and make it the vehicle for providing basic universal health insurance coverage.

But Mahan spent much of his seven hours on Main Street listening to people tell him their horror stories: lack of insurance, inadequate coverage, baffling paperwork, treatment they can’t afford to get and medical bills they can’t afford to pay.

“I’ve heard so many stories, it’s just unbelievable,” said Mahan, 68, who went on Medicare three years ago. “I don’t know what to tell these people.”

What Mahan mostly tells them is that these problems are likely to continue until the United States has a single-payer health insurance system.

Under proposed single-payer systems, private doctors and hospitals would provide health care services, but the government would pay the cost from tax revenue. It is the system used in Canada and most European countries, which the World Heath Organization says offers better care for less cost than the United States does.

President Harry S. Truman proposed a single- payer system after World War II, but business interests fought it. President Lyndon Johnson was able to muster enough political support to create Medicare for seniors, which he signed into law July 30, 1965.

When President Barack Obama and a Democratic-controlled Congress pushed through health care reform legislation in 2010, a single-payer system wasn’t even considered. That was because of opposition from insurance companies, which wouldn’t even allow a “public option” choice.

Instead, we ended up with reform legislation that will cover more people and outlaw the worst insurance industry abuses but still will leave an estimated 23 million people uninsured and do too little to curb rising costs.

Republicans have vowed to repeal “Obamacare” but have proposed no adequate alternatives. Senate Republican Leader Mitch McConnell of Kentucky complains that Obama’s health care law is “Europeanizing” America, but he fails to mention that those European systems provide high-quality, universal care with much less administrative cost and hassle.

The most radical GOP plan, proposed by Rep. Paul Ryan of Wisconsin and endorsed by many Republican leaders, essentially would privatize Medicare. But an independent analysis by the non-partisan Congressional Budget Office found that Ryan’s plan, rather than reducing costs, would increase them dramatically, including almost doubling seniors’ out-of-pocket expenses.

Ironically, Obama’s reform law was based on market concepts developed by the conservative Heritage Foundation. Republican presidential candidate Mitt Romney created a similar — and rather successful — health insurance system for Massachusetts when he was governor.

Single-payer advocates say “Obamacare” is better than what we had, but it just further subsidizes private insurance companies. It reinforces our current system’s fatal flaw: the inherent conflict between businesses trying to make as much money as possible and society’s need to provide basic health care to everyone at an affordable cost.

“Insurance companies don’t improve health care,” Mahan said. “They only add cost and complexity.”

Improving and expanding Medicare would require tax increases, but single-payer advocates think that, on balance, they would amount to far less than we now pay for private insurance that costs more and covers less with each passing year. That has been the experience in countries with single-payer systems.

House Resolution 676, introduced by Rep. John Conyers, D-Mich., to create a single-payer system, has been endorsed by dozens of consumer groups, church denominations and organizations representing thousands of physicians and other health professionals. Advocacy groups include Kentuckians for Single Payer Healthcare (Kyhealthcare.org), Improved Medicare for All (Medicareforall.org) and Physicians for a National Health Program (Pnhp.org).

But without public pressure, the legislation is unlikely to get a fair hearing in the Republican-controlled House of Representatives or the Democratic-controlled Senate. The health insurance industry is just too powerful.

During Romney’s recent overseas campaign trip, the Republican presidential candidate praised Israel for having a healthy population while spending only 8 percent of gross domestic product on health care, compared to 18 percent in the United States.

How does Israel do it? Since 1995, the Jewish state has had a non-profit insurance system heavily controlled by the government that provides basic health care for everyone. Imagine that.

 


Review board likely to nix CentrePointe pedway

March 6, 2012

Lexington's pedways include this one across Main Street. Photo by Tom Eblen

Designs for the stalled CentrePointe development have gone from bad to good for one reason: they must pass muster with the Courthouse Area Design Review Board.

When the hotel-retail- condo project was proposed in 2008, the board appointed by Mayor Jim Newberry to oversee the historic district let developer Dudley Webb do almost anything he wanted. But the board’s expectations have gotten much higher since Jim Gray became mayor 14 months ago.

The board meets March 28 to vote on what is supposed to be Webb’s final design. Based on board members’ comments at a preview Feb. 15 — and further improvements Webb’s architects made in response to that feedback — I expect the designs will be approved, except for one thing: the pedway.

When Webb and his brother, Donald, were remaking Lexington’s skyline with tall towers in the 1980s, they connected them with pedways, enclosed walkways through the sky that keep pedestrians out of the weather and off the street. The pedways provide access to Lexington Center, which includes Rupp Arena and convention facilities, from the Lexington Financial Center, Victorian Square, the Radisson, Triangle Center and the Central Bank building.

About two dozen North American cities built pedway and tunnel systems from the 1950s to the 1980s for people who didn’t want to venture outside on their trips from attached suburban garages to downtown offices and stores. Pedways were seen as safe havens against urban crime and decay, as well as amenities to help downtown retailers compete with suburban malls.

Like most urban planning ideas from the auto-centric second half of the 20th century, about the best thing you can say now about pedways is that they seemed like a good idea at the time.

Pedways might make some sense in harsh-weather cities such as Calgary, Alberta; Minneapolis, and Chicago. But cities below the frost belt have stopped building pedways — and even started tearing them down.

Since 2002, Cincinnati has been in the process of demolishing much of its pedway system. Officials didn’t like the way it limited healthy street life and cluttered the skyline, especially in such places as Fountain Square. They also could see big maintenance costs on the horizon as the pedways aged.

CentrePointe’s first three designs included two pedways, one spanning Upper Street to connect the development to the Lexington Financial Center parking garage. The other would have spanned South Limestone, going to a parking deck beneath Phoenix Park that no longer is planned.

CentrePointe was approved in late 2008 for tax-increment financing, or TIF, which means tax revenue generated by the development could be used to pay for “public” improvements needed to build the project. That included $3 million for the two pedways.

Webb is now proposing only the South Upper Street pedway, which would pass between two historic buildings across the street, the 1846 McAdams & Morford building and the circa 1860 building that houses McCarthy’s Bar and Failte Irish Imports.

When questioned by Courthouse Area Design Review Board member Kevin Atkins, a senior adviser to the mayor, Webb said the pedway was needed for easier access to parking and to provide a sheltered walkway between CentrePointe’s hotel and the convention center.

But Atkins wasn’t buying it, and neither were two others on the five-member board, chairman Mike Meuser and Michael Speaks, the dean of the University of Kentucky’s College of Design.

Speaks seemed especially annoyed by Webb’s suggestion that pedestrians might feel safer in a pedway than on the street. “I live downtown and it’s perfectly safe,” Speaks said. “Probably safer than the suburbs.”

CentrePointe’s redesign process has focused a lot on creating street-level pedestrian activity. The board is loathe to let Webb do anything that would detract from it.

It also seems reluctant to clutter the skyline between two historic buildings on Upper Street. EOP Architects has worked hard to keep that narrow block from becoming a service alley, and a pedway wouldn’t help.

Does the board think a pedway is worth more than $1 million in TIF “public improvements” money? I doubt it. Plus, there is the issue of future maintenance costs. Lexington has recently been hit with big bills for repairing and replacing aging parking garages. The pedways we already have aren’t getting any younger.

For all of those reasons, expect the review board to put its collective foot down and reject the CentrePointe pedway.

 


UPike plan should lead to discussion about raising coal severance tax to improve Kentucky education

January 15, 2012

The political wild card in this year’s General Assembly is a high-powered proposal to make private University of Pikeville a state-supported school.

The idea is being pushed by House Speaker Greg Stumbo and former Gov. Paul Patton, who is now the University of Pikeville’s president. The idea has solid support from southeast Kentucky legislators and community leaders. Gov. Steve Beshear has ordered a thorough study.

Like many ideas that sound good but get complicated as you dig into them, this proposal needs thorough study. But it also provides an excellent opportunity for broader public discussion about how more educational attainment could improve life in Kentucky and how we should go about paying for it.

Having the state assume ownership of a private school is a very Kentucky thing to do. That is how five of the state’s eight public universities came to be: Western and Eastern in 1906, Murray and Morehead in 1922 and the University of Louisville in 1970.

“This sounds like the same thing: We’ve got a campus here and all we have to do is make it a state school,” said Bill Ellis, a history professor at Eastern Kentucky University and author of the new book, A History of Education in Kentucky. “It all comes down to politics and who has the votes.”

Creation of those state universities was generally a good thing for Kentucky, Ellis said. It made education more accessible and brought economic development and culture to communities across the state.

Many people in southeast Kentucky argue that their region — with some of the state’s highest rates of poverty and lowest levels of educational attainment — has been shortchanged.

Southeast Kentucky is part of the service areas of Eastern and Morehead state universities, but both campuses are a long way from many of the region’s towns and hollows. Pikeville and surrounding areas would no doubt benefit economically and culturally by having a state university.

But for years now, the General Assembly has cut state support for higher education. Given that, can Kentucky taxpayers afford another university mouth to feed? Stumbo and Patton say that is not a problem: Rather than using general fund money, state support can come from Eastern Kentucky’s coal severance tax revenues.

At this point, let’s step back and look at the big picture. What do legislators really need to do to help Appalachian Kentucky catch up with the rest of the state — and Kentucky catch up with the rest of the nation?

Let’s begin with the notion that more state support for education is essential. That is because nothing has more power to improve Kentucky’s economy and society than educational attainment.

Regardless of whether Pikeville becomes a state university, lawmakers should find ways to reverse the budget-cutting trends that have contributed to skyrocketing tuition at Kentucky’s state universities and made them less affordable.

The stated goal of the University of Pikeville proposal is to make higher education more affordable and attainable for mountain students. But are there more cost-effective ways to do that?

Rather than taking on another campus, would Kentucky get more bang for the buck by using coal severance tax money to finance scholarships for mountain students at Kentucky’s existing public and private universities, including Pikeville?

Perhaps those scholarships could be supplemented with loans from severance tax money that would be forgiven if students lived and worked in the mountains for a few years after graduation. That could curb the region’s historic “brain drain.”

But let’s not stop there. The Pikeville proposal creates a perfect opportunity for a broader discussion about the severance tax that Kentucky has levied on the coal industry since the 1970s, and how that money should be used.

The severance tax rate of 4.5 percent, which hasn’t changed in decades, is among the lowest of major coal-producing states. It generates more than $200 million a year. But over the years, much of that money has been wasted on building vacant industrial parks and other political pet projects, plowed back into subsidies for the coal industry or gone to benefit parts of Kentucky nowhere near the coalfields.

If the severance tax’s goal is to improve life and create a new economy in the coalfields for when all of the coal is gone, there could be no better use for that money than improving educational attainment.

So regardless of whether the University of Pikeville receives state support, the General Assembly should take this opportunity to raise the coal severance tax to national norms and focus the money on education. That’s right: Turn this political wild card into a trump card for Kentucky’s future.


I wish Kentucky governor had said more of this

January 8, 2012

Gatewood Galbraith, one of Kentucky’s most colorful politicians, died Wednesday, just hours before Gov. Steve Beshear delivered his fifth State of the Commonwealth Address.

Many people didn’t take Galbraith or his politics very seriously, but they liked him anyway. He was a genuinely nice guy who could poke fun at opponents without leaving scars. Most of all, Kentuckians admired his willingness to point out obvious truths despite the political cost.

As I watched Beshear speak, I could not imagine Galbraith standing there before the General Assembly. There were good reasons he lost five races for governor.

Beshear’s speech wasn’t bad. He brought up some tough issues, and he avoided the “get off our backs” nonsense from last year that made him look like a coal-industry puppet.

Having just won re-election, Beshear finally admitted the need for state tax reform. Not that he has proposed any real action before the end of the year, when most legislators stand for re-election. But it was a start. Maybe.

Still, with Galbraith on my mind that day, I longed to hear more honesty, more leadership and more political courage from a governor who will not have to face voters again — and who might want a political legacy beyond “caretaker.”

I longed to hear something more like this:

Ladies and gentlemen of the General Assembly, I don’t need to tell you that Kentucky has big problems. That has long been obvious to you, me and every citizen of the commonwealth. The people sent us to Frankfort to solve these problems, not to keeping ignoring them while we take care of our friends and feather our own nests.

This is the time for bold action. We must be leaders, and leadership sometimes means taking people where they don’t want to go.

For more than a decade, state government has spent more than it takes in. We masked the problem for a while with economic growth and a lot of debt. More recently, we masked it with $3 billion in federal stimulus money.

Most of you claim not to like President Barack Obama. I’ve done my best to avoid him, too. But despite what his critics say, the president’s economic stimulus kept thousands of Kentuckians working and saved our state budget. Now that money is gone, and we must face up to our responsibilities.

We need significant long-term investments to make Kentucky’s citizens more healthy, educated and able to compete in a 21st century economy. That will take money.

Circumstances may force us to keep cutting the budget for a while, but no state or business ever cut its way to prosperity. We must spend the money we have more wisely. As political leaders, we must fight waste, fraud and abuse — and stop being some of the worst perpetrators of it.

Expanded gambling won’t solve Kentucky’s problems any more than the lottery did. We must increase state revenues in other ways. That’s right, folks, we must raise taxes.

Forget those fairy tales about how everything will be fine if we just let business do as it pleases and all but abolish government. I know, some voters love that rhetoric. But as important as the private sector is, it won’t solve all of our problems. That kind of thinking is a big reason why our nation is in this mess — the rich getting richer, the poor getting poorer and the middle class disappearing.

Folks, what Kentucky needs is real tax reform. We need a state tax system that is fair and produces revenue that grows with the economy and Kentucky’s needs. That means wealthier people should pay more. Powerful interests must lose many of their tax breaks.

Sure, our tax system must remain “competitive” where business is concerned. But that can’t mean giving business a free ride at the expense of working people. States that do that hide a lot of poverty and misery beneath their “pro-business” gloss.

You and I know this won’t be easy. It will mean facing up to powerful people and companies that have funded our campaigns. And it will mean angering voters who want something for nothing. But it’s the right thing to do.


Occupy Wall Street strikes a chord with many

October 16, 2011

Businessman Richard Knittel joined pickets Wednesday evening as part of Lexington's Occupy Wall Street on Main Street. Photo by Tom Eblen

The casually dressed Occupy Wall Street protesters in downtown Lexington last Wednesday evening looked curiously at one another when Richard Knittel approached wearing a suit and tie.

He didn’t want to argue with them. He wanted to join them.

Knittel, 69, of Versailles, explained that he isn’t against capitalism — among other things, he is chairman of a Canadian company that uses environmentally friendly technology to mine metals. But he agreed with the protesters that big money has too much influence in America, especially when it comes to profit-driven disregard for the environment.

“I want people to see that even people with suits on are joining this,” Knittel said before picking up a spare protest sign and waving to passing motorists on Main Street.

Since Occupy Wall Street protests began Sept. 17 in New York’s financial district, similar demonstrations have sprung up in more than 1,300 American cities.

The Lexington protest began Sept. 29 on the sidewalk outside Chase Bank Plaza. Protesters — whose numbers have ranged from two to two dozen — said they have tried to be polite and not make a mess. They have appreciated Lexington police for keeping drunks and troublemakers away. Supporters bring them food, and Gene and Natasha Williams let them use restrooms in their restaurant across the street.

Some people have cast Occupy Wall Street as liberals’ answer to the conservative Tea Party. Both movements include average, passionate people waving protest signs and American flags. Both also have their share of crackpots, are fuzzy about their goals and solutions and are easy for critics to lampoon.

Still, both movements have struck chords with the public because, for so many people, the American dream seems to be slipping away. People on the left, right and in the middle think the system has been rigged against them.

I visited Lexington’s Occupy Wall Street protesters several times last week. Most were 20-something students and low-wage workers, although the group included teachers, retirees, a veteran, a local food activist, an unemployed computer programmer and a man who said he is homeless. Some talked idealistically, but most just seemed worried about the future.

The protesters said they are concerned about economic injustice and political corruption. They aren’t against capitalism, just the crony capitalism and greed that they blame for the financial crisis and widening economic disparity.

Among common themes: The rich have gotten exponentially richer while middle-class workers have lost economic ground for three decades. Financial speculators, who largely caused the 2008 crash and were bailed out by taxpayers, haven’t been brought to justice. Politicians of both parties receive so much corporate cash that they are only looking out for business interests.

“This is about shaping the national discourse so it is more people-based than profit-based,” said Robert Wilhelm, 24, a University of Kentucky student. “People who were part of the Tea Party before it got corporate sponsorship have even come by and said they agree the system is broken.”

Janet Tucker, 64, a retired nurse, said she thought it was important to come out and protest. “But I don’t spend the night here; I leave that to the younger folks,” she said.

“We’re spending trillions on wars overseas, and we can’t afford to deal with all the problems we have here,” Tucker said. “It’s not that there isn’t money; it’s where it is. We need to look at our priorities as a nation.”

Protesters said they have been encouraged because, for every obscene gesture or shout of “get a job” they receive from a passerby, they get 10 thumbs-up or honks of support.

“A lot of folks are struggling, and I think they’re making these connections,” said Greg Capillo, 23, a college graduate who works in a coffee shop. “The ultimate issue is corporate involvement in democracy, because it speaks to the structural elements of democracy itself.”

It is hard to predict the future of Occupy Wall Street. The demonstrations will surely wane as winter comes. Protesters say they don’t want to be co-opted by the Democratic Party the way the Tea Party movement has been by the Republican Party.

The significance of protest movements is never the movements themselves, but how they shape public opinion over time. A national poll last week by Time magazine found that 54 percent of respondents viewed Occupy Wall Street favorably. That compared to 27 percent who viewed the Tea Party favorably, down from 41 percent in December 2009.

Comparing Occupy Wall Street to the Tea Party might not be the best analogy. Better ones might be the Bonus Army veterans who occupied Washington during the worst of the Depression, or even the civil rights movement of a generation ago.

Throughout history, this nation has been forced to address obvious injustice and inequity when enough people objected. The protesters on Wall Street — and on Main Streets across America — seem to be hoping that this time will be no different.


Economic slump reflects middle-class decline

September 5, 2011

Happy Labor Day.

Chances are, if you are one of the majority of Americans who labor rather than own for a living, you aren’t feeling very happy.

This hasn’t been a good year for middle-class workers, much less for the poor. In fact, it hasn’t been a good three-plus decades.

Economic and political forces have hammered working people. Real income for the bottom 80 percent of Americans has been stagnant or falling since the late 1970s. Few paid much attention until the 2008 financial crisis, because the trends were masked by rising personal and government debt.

During these years of middle-class decline, it has been fashionable to bash labor unions. Perhaps that is because people take for granted the things unions fought to make part of the American workplace — the eight-hour work day, overtime pay, the minimum wage, unemployment insurance and safe working conditions. Unions led the fight to end child labor and discrimination against minorities and women. They played a big role in creating Social Security and other government safety-net programs.

After World War II, as much as 25 percent of the work force belonged to unions, and their contracts set standards by which many non-union workers benefited. Last year’s census showed union membership at 11.9 percent, down from 20.1 percent in 1983. America now has 14.7 million union members — roughly the same number of people now unemployed.

Unions have plenty of flaws; all institutions do. But they serve an important role in balancing the power of business. Power without balance becomes abusive. We have seen that with business, labor, government and even churches. It is no coincidence that the decline of middle-class income and security over the past three decades has followed the declining influence of organized labor.

Statistics show that all real income growth since 1979 has gone to the wealthiest 10 percent to 20 percent of Americans, with the wealthiest 1 percent gaining the most, by far. Wealth inequality is the highest it has been since the 1920s.

The deep economic hole that politicians are debating how to fill was caused mostly by financial speculation, unfunded wars of choice and irresponsible tax cuts. But you hear little talk in Washington about a crackdown on Wall Street, real tax reform or scaling back military adventurism.

That is because wealthy interests have largely taken over both political parties. Democrats still give lip service to the middle class and poor, but the GOP has become a wholly owned subsidiary of corporate America.

President Barack Obama speaks Thursday to a joint session of Congress. He will propose a plan aimed at creating jobs, reviving the economy and improving his chances for re-election. Republicans will be against whatever he proposes, because they don’t want the economy to improve anytime soon. If the economy improves, they have less chance of taking back the White House.

The Republican prescription for economic recovery is to do more of the things that wrecked the economy in the first place: less business regulation and more tax cuts. The problem with trickle-down economics is that it only makes wealth trickle up, as the past three decades have shown.

Republican leaders also want aggressive debt-cutting austerity, but only for those who can least afford it. As history has repeatedly shown, this strategy only makes a weak economy weaker.

But it all depends on your perspective. The Main Street economy where most of us live and work is stuck in neutral. But Wall Street profits, corporate cash reserves and executive compensation have never been better. Times are good for the people whose campaign contributions and lobbying have all but shut average Americans out of the political debate.

The public is angry, and Tea Party activists are the most visible reflection of that. But their misguided philosophy plays right into the hands of big business. Why else do you think billionaires are funding those Tea Party organizations?

I am usually not a pessimist, but I see little hope for recovery as long as the interests of corporate America are so divergent from those of working Americans. The economy won’t improve until average people have more money to spend. Until the middle class finds political voice to demand that things change — as organized labor did a century ago — things won’t change.


Debt obsession will only make economy worse

August 8, 2011

If your home caught fire, would you put out the flames, or ignore them and focus on fixing a leaky pipe that could eventually flood your basement?

You would call firefighters, of course, and deal with the pipe after the emergency had passed. Unless, that is, you were a member of Congress.

Think of government debt as a pipe that has been springing leaks for a decade. If not fixed, it will eventually ruin the house. The fire in this analogy is America’s stagnant economy and high unemployment rate.

With that in mind, here is the best way to describe what Congress and President Barack Obama did last week: They wrapped tape around a small piece of the leaky pipe and poured gasoline on the fire.

The debt-ceiling fiasco did little to solve America’s real debt problems, although they were a start. But the bipartisan compromise will make our economic slump worse instead of better. Fears of a relapse into recession sent stocks plunging last week in the steepest market slide since October 2008.

The only realistic way to reduce government debt is to cut some spending, increase tax revenues, bring down soaring health care costs and make long-term adjustments to entitlement programs that will put them on sound financial footing. It is not rocket science; more like basic plumbing.

“We don’t have a revenue problem!” Republicans like to say. “We have a spending problem!” They are only partly right.

We do have a spending problem. We have committed what could become $3 trillion fighting wars in Iraq and Afghanistan, and now we’re messing around in Libya and who knows where else on the sly. The military industrial complex spends untold billions on high-tech weapon systems we don’t need. Waste and fraud abound.

The same skyrocketing health care costs that are breaking families and businesses are making the Medicaid and Medicare programs unsustainable. Social Security must cut benefits, raise the dedicated tax or both.

But we also have a revenue problem. Sorry, Tea Partiers: you may think you are “Taxed Enough Already,” but you are taxed less than you have been in decades.

Thanks to huge 2001 tax cuts, plus tax breaks and loopholes for special interests, tax revenue as a share of gross domestic product is at its lowest point since 1950. After reaching a peak of 20.6 percent in 2000, it is now 14.8 percent, according to an analysis by the Center for American Progress.

The United States has lower taxes than most developed countries, especially for wealthy people and corporations. Top marginal tax rates, tax rates on investments and corporate tax revenues as a share of GDP are the lowest they have been since World War II.

Trickle-down economic theory — what President George H.W. Bush famously called “voodoo economics” — won’t revive the economy. It will just continue a 30-year trend of stagnant middle-class wages and huge income growth for the rich.

A big reason America’s economy is stalled is that too many average people don’t have jobs. Many who do have jobs still don’t have much disposable income. Until a lot more people have more money to spend, the economy won’t recover.

Republicans’ obsession with paying down debt — and Democrats’ willingness to cave in to them — will only make the economy worse, at least for the next year or two. Republicans hope to use that for political advantage. Democrats seem scared of their own shadows.

Since banks and corporations have recovered, neither political party seems to care much about the rest of us. I guess we know who they really represent.

This obsession with reducing debt in a weak economy risks a replay of the malaise Japan suffered in the 1990s when it followed that strategy. The same thing happened here in 1937, when debt-obsessed politicians stopped much of the New Deal spending that was getting America back to work from the Great Depression. The result: a double-dip depression that didn’t end until World War II.

Political leaders need to stop admiring their taped-up pipe and notice that America’s house is burning down.


Chamber can have big influence on improving Kentucky

July 18, 2011

I am increasingly impressed with the leadership of the Kentucky Chamber of Commerce. Rather than just taking care of business, it seems to realize that improving life in Kentucky will help create economic prosperity.

That was apparent at last week’s annual meeting in Louisville. The agenda focused on substantive discussions of two of Kentucky’s biggest issues, coal and education.

For example, the keynote speaker on coal was journalist James Fallows, whose Atlantic magazine cover story last December was one of the best things I have read on the subject. “Coal is inevitably going to be a major part of the world’s energy solution for the foreseeable future,” he said. “But that role will be and has to be different.”

While Fallows characterized his remarks as a “good news speech,” it was nothing like the hot air we usually hear from the coal industry and its cheerleaders.

No matter how successful the world is at developing alternative energy, coal will remain a vital fuel for decades, Fallows said. But he stressed that global economic, scientific and political trends will require that coal be mined and burned in more environmentally friendly ways. It is smarter to lead change than be trampled by it.

Solutions built around market incentives — such as the ill-fated “cap and trade” proposal — would be better than regulation because they would encourage business creativity and flexibility, Fallows said. But if business wants market-driven change rather than regulatory change, he said, “high-level industrial leadership is important.”

Fallows was followed by Michael G. Morris, chairman of American Electric Power, whose remarks were titled “Coal Under Attack.” While saying that coal must get “cleaner,” his rambling presentation was filled with the usual clichés about new environmental rules being unfair and unreasonable.

Morris bragged about how much less pollution coal-fired power plants emit now than they used to — as if that were the result of industry leadership rather than government regulations that most utilities fought every step of the way.

Morris repeated an earlier claim that new regulations will have a “devastating effect” on AEP, shutting down 6,000 megawatts of generating capacity. But as another speaker pointed out later, two-thirds of that capacity was going to be retired anyway because of a 2007 pollution settlement with the Bush administration.

I was impressed that so many chamber members seemed wise to Morris, even ignoring most of his attempts at applause and laugh lines.

Morris was followed by Rodney Andrews, director of the University of Kentucky’s Center for Applied Energy Research. He gave an excellent but rushed presentation that echoed many of Fallows’ points and made a persuasive economic and environmental argument for making coal-fired power plants more efficient. I would like to have heard more from him.

The chamber announced some initiatives that could have a big impact. The New Agenda for Kentucky Campaign focuses on action plans in five areas: improving schools, modernizing government, remaining competitive in energy resources, doubling international exports within five years and improving Kentuckians’ health and wellness.

Perhaps the most impressive effort is the Kentucky Leadership Institute for School Principals. AT&T and other companies are giving money to send many Kentucky school principals to the respected (and expensive) Center for Creative Leadership in North Carolina to get the kind of high-level leadership training that business executives receive.

The chamber also unveiled a follow-up to its 2009 “Leaky Bucket” study, which underscored how huge increases in state spending for public employee health care, Medicaid and prisons were contributing to a short-change of education.

That report provided encouragement — and political cover — for landmark legislation earlier this year to rewrite Kentucky’s criminal code. It will reduce the number of non-violent offenders in jails and prisons, send more drug offenders to treatment and save a lot of taxpayer money in the process.

The chamber’s new report, called “Building a Stronger Bucket,” offers more suggested policy changes, including moving new state employees to a 401(k)-style pension plan.

Too often in the past, Kentucky has fallen behind the rest of the nation when narrow economic or political interests wielded too much power. Building a better future will require that many perspectives be considered and many voices be heard.

Still, no single group can do more to make this state a better place to live than a progressive organization that represents a broad spectrum of the business community. The Kentucky Chamber of Commerce seems to be stepping up to the challenge.


Bush tax cuts turn 10; can we still afford them?

June 13, 2011

June 7 marked the 10th anniversary of the huge federal income tax cuts that President Barack Obama and Congress must soon decide whether to cancel or extend.

What a difference a decade makes: President George W. Bush proposed the tax cuts after he inherited a budget surplus. Three months after the cuts became law, the terrorist attacks of Sept. 11 led to the war in Afghanistan, followed in 2003 by the invasion of Iraq. Then the housing bubble burst, and the United States plunged into the worst economic slump since the Great Depression. With record deficits and serious national needs, can we still afford those tax cuts?

To mark the anniversary, Citizens for Tax Justice and Kentucky Youth Advocates released an analysis showing that if the tax cuts are made permanent, the richest 5 percent of Kentuckians will benefit 10 times more than the bottom 60 percent.

“In many ways, these tax cuts are little more than a stimulus package for the wealthiest of Kentuckians,” Terry Brooks, executive director of Kentucky Youth Advocates, said in a news release. “In these tough economic times, we need an approach where Kentucky’s hard-working families are given the same breaks as multimillionaires.”

To read the analysis, click here.