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We’re Backing The TCI Gas Tax Proponents Into a Corner

It is not by accident that the proposed Transportation & Climate Initiative (TCI) is losing support among many of the states it has targeted… to the point where some proponents are considering a Plan-B.

Last week, I traveled to Boston to meet with other organizations from east coast states who oppose TCI, a regional compact targeting 12 states and Washington DC that seeks to impose a 5 to 17 cent per gallon tax on gasoline and diesel fuel, with the intent of forcing Rhode Island to drive less often and into more costly and less convenient electric vehicles and public transportation options.

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Trying to Keep Perspective on Local Politics

In President Trump’s economic speech in Davos, he attributes the recent economic strength of the United States to policies that put “the American worker” at their center.  Agree or disagree with the president (from any of the angles at which it would be possible to do so), he raises an important point.  We tend to get caught up in our preferred solutions or our own interests, to the detriment of our causes and our communities.

Listening to episode 10 of the Tiverton on Track podcast from the Tiverton Taxpayers Association, titled “Living in (And Budgeting for) a Community,” one hears that theme sneak in repeatedly.

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Political Monday with John DePetro: Budgets and Politics

My weekly call-in on John DePetro’s WNRI 1380 AM/95.1 FM show, for January 20, included talk about:

  • The governor’s budget (and popularity)
  • The speaker’s interest in the Convention Center
  • The women’s march
  • Big money state jobs, especially corrections

I’ll be on again Monday, January 27, at 12:00 p.m. on WNRI 1380 AM and I-95.1 FM.

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A State That Doesn’t Need to Raise Gas Taxes

With the advocates for the Transportation & Climate Initiative (TCI) now revving up for their cause, and with Democrat Governor Gina Raimondo remaining intrepid in her desire to push Rhode Islanders out of their cars for the good of the planet, Ocean Staters might wonder where we stand already on the gas tax.  Fortunately, the American Petroleum Institute has compiled information on all states’ gas taxes, and the Tax Foundation provides this useful map:

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Taking note that none of these numbers includes $18.40 added per gallon by the federal government, we can say that Rhode Island is most definitely not in need of new taxes on this basic fuel.  If the TCI tax were to be implemented at the 17-cent high that has been cited, the Ocean State would rocket to 4th highest.

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The Political Class Plans To Harm Rhode Island In 2020

The more freedoms we have, the more prosperity we will enjoy. The constitutional government of our great nation was formed to preserve our freedoms. But in the Ocean State, we reduce freedoms … and we suffer the consequences.

As the 2020 General Assembly Session begins, and we are once again looking at even more of status quo (or worse) based on the policy agenda from the political class, when will Rhode Islanders say enough is enough?

Instead of focusing on the real issues harming the business climate of our state… the insiders are looking to restrict the rights of citizens by stopping the use of plastic straws and bags. Give me a break.

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The Hidden Message of the Music Box

Back before many people trusted the Internet as a medium through which to conduct consumer transactions — or even thought to use it for that purpose — I would periodically travel over the bridge from the University of Rhode Island to Newport to hit the Music Box, a record store on Thames Street.  When searching for recordings of the (sometimes relatively obscure) music I was studying for performance or theory, a trip of that distance was often unavoidable.

Now we’ve reached the point that almost any recording you might want to hear is available instantly on a portable device for a relatively inexpensive annual subscription.  It isn’t difficult to understand why the business model of stores like the Music Box has hollowed out.

As Scott Barrett reports, however, Rhode Island’s pitiless government didn’t make it any easier for the store — which just closed after extending its life by changing its product mix — to survive:

Jay added that operating a business in Rhode Island, and Newport specifically, is getting more and more difficult because of the mounting taxes.

Express, a clothing store located directly next to the Helly Hansen store, also had signs in the window Thursday announcing a going-out-of-business sale. An associate at Express told The Daily News the store will close at the end of the month. Across the street, a pair of stores — The Tourist Trap and Nautical & Nice — had signs on the door that read “Sorry, closed.”

Defenders of Rhode Island’s insider status quo sometimes assert things like, “Businesses don’t go under because the tax rate is a couple percentage points higher,” or, “People move south for the weather, not the tax savings.”  Such arguments, while they may be untrue because too simplistic, make valid points, but they miss the critical point.  Our government shouldn’t be laying sticks on the camel; it should be striving to accomplish what it needs to accomplish with the least amount of disruption possible.

Politicians are terrible at predicting and adequately considering the consequences of their policies.  Rhode Island officials frequently prove they can manage to provide targeted incentives so new businesses can overcome the artificial barriers, but they should be making business easier across the board so legacy businesses like the Music Box can better survive the changing landscape.

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TCI Gas Tax Unnecessary; RI Already Won the War on Carbon

As you probably know, Governor Gina Raimondo is proposing that Rhode Island sign on to TCI (Transportation and Climate Initiative), a regional carbon cap-and-tax program on transportation that would involve, among other things, Rhode Islanders paying an additional tax on gas and diesel of seventeen – twenty four cents+ per gallon. A couple of Justin Katz’ excellent posts about TCI are here and here

Let’s discuss the stated purpose of TCI. According to the governor, it is to save the planet by getting Rhode Islanders to give up their cars. This is not an exaggeration; below is what the governor says about TCI in this December interview with WPRI’s Kim Kalunian (starting at minute 03:15).

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Political Monday with John DePetro: Bad Positions for Political Actors

My weekly call-in on John DePetro’s WNRI 1380 AM/95.1 FM show, for January 6, included talk about:

  • RI Congressmen’s bad alignment with the enemy
  • Projo points to key issues for the legislature
  • Linc finds another party to run with
  • RI pols try to get out of the way of the Census

Open post for full audio.

By capitulating to progressive-union pressure, and despite disingenuous claims that no broad-based taxes were imposed, Ocean Staters will once again bear increased burdens to pay for new taxes and regulations, more spending, and more union giveaways. Lawmakers chose to appease, rather than resist, the progressives’ job-killing, big-spending agenda.

Tightening Screws on Freelancers

If you follow national economic or political news, you’ve probably caught wind of California’s new law — which takes effect this Wednesday — making it more likely that companies will have to treat freelancers as employees for the purposes of employment regulations like the minimum wage and benefits.

One reason this California law has generated so much conversation is that it affects freelance writers.  In this regard, the left-wing website Vox has provided the perfect lesson on progressive rhetoric.  A September 11, 2019, essay on that site by Alexia Fernandez Campbell places the issue as a win for labor unions and proclaims the headline, “Gig workers’ win in California is a victory for workers everywhere.”  Fast-forward a few months, to December 17, and an article in the Los Angeles Times informs readers, “Vox Media cuts hundreds of freelance journalists as AB 5 changes loom.”  Those 200 people will be replaced by “20 new part-time and full-time staffers.”

A CNBC article puts things a bit more broadly with the headline, “California’s new employment law has boomeranged and is starting to crush freelancers”:

“I don’t believe legislators realized the impact this had,” says Gene Zaino, founder and executive chairman of MBO Partners, which studies the freelance economy and provides back-office services to freelancers. “This was really designed to create a safety net for people that needed it. Legislators didn’t realize at the same time, they impacted millions of people in thousands of businesses that are using freelancers, even though that was not their intent. A lot of businesses are paralyzed, in terms of ‘everyone needs to be on payroll.'”

Oh, the legislators realized it.  They just don’t care.  They’ve got their eyes on other prizes than the likes of Mr. Zaino — powerful labor unions and constituencies who think progressive legislators are going to give them more handouts.  And progressives realized it, too, but those gig jobs don’t fit their vision and therefore shouldn’t exist because they are institutionalized oppression (or something).

Even those of us who don’t rely on the gig economy should take notice… in a “first they came for the freelancers” sort of way.  Progressives are intent on remaking the world according to their erroneous understanding of how the economy ought to work.  That will mean you have a decreasing ability to decide what works for you in your life and just have to settle for the deal that government provides for you.

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Political Monday with John DePetro: RI’s Avoidance of Real Problems

My weekly call-in on John DePetro’s WNRI 1380 AM/95.1 FM show, for December 30, included talk about:

  • Elorza’s interest in being governor
  • Causes and effects of Providence Mall brawls
  • Disappointment in Raimondo’s failure to succeed
  • Stephen Skoly’s warning about opioid nannyism

Open post for full audio.

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Political Monday with John DePetro: Progressive Pressure

My weekly call-in on John DePetro’s WNRI 1380 AM/95.1 FM show, for December 16, included talk about:

  • The governor’s Projo interview
  • Where’s all the money go… in Providence and RI?
  • Progressives’ state-killing tax proposal
  • Women’s caucus: another progressive organization

Open post for full audio.

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New Gas Tax: The Governor’s Unwelcome Holiday “Gift” to be Announced This Week

If the Raimondo administration gets its way and bypasses the General Assembly to sign on to a new regional carbon-tax scheme, called the Transportation and Climate Initiative (TCI), Rhode Island motorists will find a plan to increase gasoline taxes in their stockings this year.

The TCI gas tax is a cap-and-trade tax on gasoline proposed by environmental extremists who purposely want gasoline to become so expensive — estimated at an extra 24 cents per gallon — that you will be financially forced to walk or bike to work and around town. We’re expecting an important announcement this week on the new tax…stay tuned.

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A Far-Reaching Conversation on State of the State

State of the State co-host Richard August invited me on for a full hour of the show to cover a broad range of topics, from Tiverton’s recall election to broad political philosophy.

12-9-19 A Different View of Matters from John Carlevale on Vimeo.

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Rhode Island motorists could find new gasoline taxes in their stockings

This Christmas season, Gov. Gina Raimondo could be the Grinch who stole affordable gasoline. If the Raimondo administration gets its way and bypasses the General Assembly to sign on to a new regional carbon-tax scheme, called the Transportation and Climate Initiative (TCI), Rhode Island motorists will find a plan to increase gasoline taxes in their stockings this year.

TCI is a cap-and-trade tax on gasoline proposed by environmental extremists who purposely want gasoline to become so expensive — estimated at an extra 24 cents per gallon — that you will be financially forced to walk or bike to work and around town.

Like all far-left contrivances to reduce carbon emissions, TCI, a green-new-deal-type gas tax, will harm economic growth and will take money out of your pocket. Rhode Island already suffers from an Ocean State Exodus, where far too many of our children and loved ones, business investors, and neighbors are leaving for lower-cost living in other states. The TCI tax would be one more piece of coal that will drive people out of state (pun intended).

Most Rhode Islanders want a balanced approach, where there are multiple choices for abundant and affordable energy. But green-Grinches in government want to limit your options, and will force you to pay expensive new taxes if you make the wrong choice.

Only the General Assembly can raise taxes. Fortunately, the governor cannot unilaterally impose a new tax on gasoline without legislative approval. But the governor has purposely tried to keep this TCI tax under the radar. Her team has been working stealthily with unelected bureaucrats at TCI to advance the imposition of gas taxes among 12 Northeast states.

Did you know that the really high electricity prices we pay, among the highest in the country, are partly because of a different regional cap-and-trade program, the Regional Greenhouse Gas Initiative (RGGI)? RGGI imposes tax-like fees on electricity power plants, which, of course, get passed on to you. Unfortunately, RGGI has been a complete failure; it has significantly increased the cost of electricity but has resulted in no added emissions reductions!

And now they want to try the same failed idea on gasoline with a TCI gas tax. Like RGGI, TCI is designed to increase the cost of fossil-based fuel so much, that families like yours — and businesses where you work — will be forced to use less of it.

Part of the RGGI and TCI schemes is that the extra money you pay at the gas pumps and on your electric bill is supposed to be spent by participating states on energy projects that are favored by greenie Grinches. Rhode Islanders understand that it is patently unfair for government subsidies to be handed-out to benefit a specific industry or company … at the expense of everyone else.

History has proven that too many government regulations and taxes on energy mean that the beneficial use of America’s rich natural resources might be put out of reach for many. Worse, such government imposed taxes as the RGGI tax and the TCI tax are regressive; they disproportionately harm low-income families who already struggle to pay heating bills and gasoline costs.

Also, many businesses, similarly burdened with higher energy costs, will be forced to reduce employee work hours, cut jobs, or even shut down and move to another state.

The secrecy must end now. The governor should have been more transparent about an issue that will cause economic hardship for many. I call on Ms. Raimondo to reject the TCI tax plan, expected out on Dec. 17; and I call on Senate and House leadership to ensure there is a robust public debate about whether you and I should pay higher gasoline taxes.

RGGI has failed miserably … and TCI is also doomed for failure. Why should any Grinch force any of us to pay unnecessarily higher gasoline taxes if it will not result in any environmental benefit?

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Governor’s Back Door TCI Tax Would Cost You At The Pump

The prices for gasoline could soon rise dramatically for your family if the Raimondo administration undercuts the authority of the General Assembly, and moves forward with its plan to sign-on to a new stealth carbon-tax scheme – the TCI Tax… a move that would necessarily increase costs on families and business at the pump, and that also could lead to Constitutional legal challenges.

This tax – a green-new-deal type government mandate – is also a regressive fuel tax that will disproportionately harm low-income families, who will struggle much more than the wealthy to pay the higher gasoline prices.

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The Tragedy of a Halted Development in Providence

There may be no better illustration of Rhode Island’s central problem than the foolish people celebrating the halt of a redevelopment project in Providence:

[Jim] Abdo’s request for a tax stabilization agreement, or TSA, was met with opposition from labor unions and progressive groups. Members of the groups applauded when the plan was tabled Tuesday night.

“I know Mr. Abdo is going to make out tremendously from his investment, with or without the TSA,” Nancy Iadeluca, the Rhode Island director for UniteHERE Local 26, said at a hearing about the TSA earlier this month. “What are we getting back?”

Mr. Abdo is looking to develop the former Providence Journal building and another next door, but he says he can’t secure financing for the project, pegged at $39 million, unless there’s a $2.7 million tax break.  According to the developer (who has reason to present his case in the best light, of course), property taxes resulting from the project would have been $5.7 million, anyway, in addition to more than $20 million in various state taxes.  All that comes with jobs and economic activity.

The article does not say, but one wonders, given labor’s involvement, if Mr. Abdo declined to promise to use union shops for his project.  Be that as it may, he says he’s going to hold on to the asset, undeveloped, whether or not it takes 20 years for him to do something with it.

Many Rhode Islanders oppose these special deals that make an inhospitable economic climate tolerable for hand-picked investors, but even we might see this outcome as tragic — if only as an indicator of things we don’t see.  Imagine how many deals are not being done in the Ocean State because of the environment progressive policies have created!

This is more than just tragic, though; it’s frightening, because under the progressives’ glee is the expectation that this is a step toward their “progress,” not an obstacle.  Note this comment from the Providence Preservation Society’s director, who supported the deal:  “These two buildings are eyesores in the core of downtown. They drive down the sense of positivity.”

Abdo says he’s patient, but his patience might be misplaced.  What the progressives may understand is that an “eyesore” is “blight,” and our society has given the government authority to confiscate properties on which they can pin that tag.  As Providence’s economy gets worse and worse, it may be that progressives are counting on being able to take Abdo’s property away from him, using public dollars to redevelop it into some delusional hipster dream (with expensive union labor), and taking the money to do it from the rest of us suckers who haven’t fled the state.

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Out-Progressiving Raimondo’s Progressives

The Providence Journal has an op-ed from me today, about progressive Democrat state Senator Samuel Bell’s freedom to use irresponsible rhetoric as leverage against the progressives in the administration of progressive Democrat Governor Gina Raimondo:

At the end of the day, Bell is just objecting to Raimondo’s efforts to buy off companies so that they’ll tolerate our horrible business climate, which he is free to do because his economic ideas are fantasy.

Gina Raimondo, Stefan Pryor and Bruce Katz are progressives who are responsible for implementing the central planning policies that progressives demand. Samuel Bell is a progressive with no real responsibility who is therefore free to be more irresponsible in his demands.

If it weren’t so harmful to our state, this would all be a laugh riot.

By capitulating to progressive-union pressure, and despite disingenuous claims that no broad-based taxes were imposed, Ocean Staters will once again bear increased burdens to pay for new taxes and regulations, more spending, and more union giveaways. Lawmakers chose to appease, rather than resist, the progressives’ job-killing, big-spending agenda.

Expanding Big-Government Programs Increases Taxes

Well, this news isn’t exactly surprising:

On New Year’s Day, the state Temporary Disability Insurance tax rate will rise from 1.1% to 1.3% of pay, according to the state Department of Labor and Training. That means someone making $50,000 per year should expect to pay $650 in TDI tax next year compared with $550 this year.

The biggest reason is that Rhode Islanders are beginning to take advantage of a 2013 change in the law that allows them to use the disability program to take time off in order to take care of other people who are injured or sick, or to “bond with a new child.” The sponsor of that legislation insists it’s a small price to pay, and she works diligently every year to make it a little less small:

Sen. Gayle Goldin, sponsor of the 2013 bill that created caregiver insurance, said Tuesday that more people taking advantage of the program is a sign that it’s working and that taxpayers are getting good value.

“It’s a very small [tax] increase to pay for a benefit that helps people when they need it the most,” said Goldin, a Providence Democrat.

Going from 1.1% of pay to 1.3% is actually an 18% increase.  What should families forgo in order to cover a benefit that people in 46 other states somehow manage to live without?

Naturally, the state’s army of spokespeople spins it as a positive:

“It is not surprising that improved income conditions would increase claims; more employed workers result in more individuals eligible, therefore, more potential users,” Angelika Pellegrino, spokeswoman for the Department of Labor and Training, wrote in an email.

That comment has two layers of deceit.  First, the program is funded by a percentage of total payroll.  More people working means more people paying into the system, which shouldn’t have to be adjusted if it’s designed well.  Of course, if Rhode Island is only creating low-paying jobs, then new tax contributions would be less likely to cover the cost of coverage.

Second, the increase in employed Rhode Islanders cannot possibly account for an 18% increase in the rate.  The number of people employed has barely budged year over year, and the number of jobs based in the state is up only 1.5%.

We should also remember that these policies pile up, including, for example, more-recently-mandated paid leave for employees.  That policy arguably froze and reverse employment increases in the state.

This 18% increase in the TDI tax is a visible warning sign for what we can’t see.  We can’t know all the jobs that would have been created or the raises that would have been given in the absence of these progressive policies. And we can’t forget that employers (and potential employers) can’t only adjust for the policies that have been passed; they have to plan for all of the new burdens their betters in the General Assembly are likely to impose every year.

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The Way to Address Workplace Injustice

Here’s a great story out of Rhode Island, oddly first spotted, at least that I’ve seen, by a news station in Minnesota:

A new business in North Smithfield, Rhode Island is spreading awareness of hiring people with disabilities.

Michael Coyne opened his coffee shop, Red, White & Brew, after struggling to find a job, which he believed was due to his disability.

He has autism, and when he couldn’t find anyone who would hire him, he decided to take matters into his own hands.

When a business underpays its staff or discriminates, that is an opportunity for others to compete and take advantage of those destructive decisions.  Yet, every time the state of Rhode Island imposes new taxes, licenses, and regulations, it makes it more difficult for people like Mr. Coyne to rise up and do so.

We shouldn’t have the attitude that there are workers and there are owners, or that businesses have a paternalistic duty to take care of their employees.  Instead, we should understand that we’re all human beings, equal in the eyes of God, who make agreements to work together.  When individuals are taken advantage of, we ought to help them, but not with blanket pronouncements that assume everybody in one class (the evil business owners) is always trying to take advantage of everybody else (the vulnerable employees).

If the proponents of “diversity” and “inclusion” really believed that they helped businesses, they wouldn’t try to regulate them as mandates, because they would expect the marketplace to reward businesses who followed those principles.  Instead, they try to be exclusive of people who hold different views, not only within a single business but across the entire economy.

Congratulations to Mr. Coyne for living an important principle that too many of his fellow Rhode Islanders seem unwilling to learn.

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Rhode Island’s Very Own Green New Deal

How much more money can Rhode Island’s political class take from your pocket using green energy as an excuse?

The Ocean State has already signed on to the Transport and Climate Initiative, a cabal of Northeastern and Mid-Atlantic states designed to foster a radical change (for the worse) to our economic well-being through costly green energy policies.

Indeed, this very well could be Rhode Island own version of the “Green New Deal,” driving costs higher and higher.