Wednesday, October 10, 2012
Claire Woos Moderates
Senator Claire McCaskill with a large cash advantage continues to churn out the commercials. Her latest continues to focus her aim on moderate and swing voters. This one highlights her experience as a former prosecutor while contrasting her policy position with Congressman Todd Akin on emergency contraception in cases of rape or incest. See it here.
And
Republicans dinged McCaskill on stimulus funds which went to her husband’s many LLCs. Read it here.
Rex: My Tsunami Is Coming for You!
Rex Sinquefield, in a recent interview with Show Me Institute Communications Director Rick Edlund, outlined his view of the recent tax code changes in Kansas and the impact that they will have in Missouri. Hear it here.
I’ve written about this previously. Kansas cut their income tax rate to 4.9% (below Missouri’s 6% rate). But potentially much more transformative is the zilching out of taxes on LLCs.
Rex on the Scope of the Change
“I think this is a massive tsunami that is going to hit Missouri. Now I also want to fully disclose that I gave money to promoters of this in Kansas. And I’m giving money to promoters of this same kind of thing in Oklahoma as a way to get something going here in Missouri. Our general assembly has been possessed with inertia.
“The big part of this tax cut is on businesses… I believe about 80% of all corporations in America are S-Corps or LLCs… And Kansas and Brownback just came up with a stoke of genius. This thing is so brilliant. They basically said all of those distributions, all those profit distributions will be taxed at 0%.
“Now it’s not just small companies. There are some very large sub S Corporations. My previous company Dimension Fund Advisors – you know we manage now $250 billion dollars, one of the largest investment companies in the world – we’re an S-Corp… So we’re talking about most corporations...”
“Anybody who’s the owner or part owner of an S-Corp, a pass-through entity is going to have to seriously think about moving (to Kansas from Missouri)…
“Let’s keep in mind that in Kansas City proper, we’re not talking about a 6% differential, we’re talking about a 7% differential. Because the city of Kansas City, like St. Louis, has an earnings tax. So if you’re a small business and let’s say your profits are $2 or 3 million a year, and you’ve got just two or three owners. You know just do the math, 7% differential on $3 million? It doesn’t cost you that much to more.”
The Other Side
As one of my readers has previously mentioned there are at least two big concerns. First, the enormous budget hole these sorts of cuts will leave.
And second, fairness. “My LLC income would not be taxed, but someone with a W-2 income is taxed. Really bad tax policy.”
Republicans Against Missouri Right to Life
The Springfield News-Leader has an article about the backlash among the Republican House caucus against Missouri Right to Life.
Pull Quote: State Rep. Kevin Elmer, R-Nixa, said he doesn’t want people from Missouri Right to Life in his office. “They’re a bunch of bullies is what they are,” Elmer said. “They use this rating system to act like if you don’t agree with them they’ll get people to vote against you and throw you out of office.” Read it here.
Bonenberger to Voters: “And Another Thing…”
In a letter that reads like an uncle at a family gathering who’s had a few beers, SLPOA President David Bonenberger explains why they’re now against Prop A which would return local control to St. Louis City…
Missouri Voters,
The officers of the St. Louis Police Officer's Association (SLPOA) want you to vote "NO" on Proposition-A.
My name is David Bonenberger and I'm President of the SLPOA. I'm in my nineteenth year of service and hold the rank of Sergeant… As you have probably heard, earlier this year there was a petition circulated by a "A Safer Missouri" to give local control of the St. Louis Metropolitan Police Department to the Mayor of the city of St. Louis . "A Safer Missouri" is solely financially supported by billionaire Rex Sinquefield. He is the only contributor but their website portrays “grass roots efforts" to effect change, which is simply a distraction.
The SLPOA has been fighting against local control for our 44-year history. Why you may ask. Quite simply because state control through the 5-member Board of Police Commissioners works just fine. The Governor appoints 4-members and the Mayor of St. Louis is the 5th member by virtue of his position as Mayor. This is the oversight committee of the Police Department that oversees the daily operations.
Last year Mayor Francis Slay formed a very unique and unorthodox relationship with billionaire Rex Sinquefield. Sinquefield decided to dedicate 8-million dollars to distribute a ballot initiative petition at the Constitutional Level that would have completely eliminated the police department as we know it. With that it would have eliminated our pay, benefits, and our pension. We would have been left with nothing…
When I took office on November 1, 2011, the SLPOA was presented with an option. The Slay/Sinquefield partnership offered us the option to "endorse" a statutory ballot petition or else they would proceed with the Constitutional effort that would strip us of everything. We had no choice and were backed into a corner. We don't pay into Social Security so we don't have that benefit when we retire. We pay 7% of our salary into our pension system. That is all we have upon retirement and we simply cannot lose that. In any case the petition drive for the statutory initiative was successful as they secured the amount of signatures necessary to get it on the November 6 ballot…
What does the billionaire want? Rex wants the earnings tax repealed. Politics as usual. I give you the police department on a silver platter you give me what I want. Does this sound too convenient to you? They are trying to pull the wool over your eyes. Are you going to allow it? It is our belief that Mayor Slay’s ultimate goal is to get his hands on our pension. This local control initiative is just step one. Gain exclusive control of the police department then take control of the police pension. Control the police pension and increase the City's Bond rating. Once the bond rating is better take out loans using the police pension as collateral. Build the stuff you want in the city, giving tax abatements and tax increment finanincing to influential people. Default on the loans and the police lose their pension!...
The City has a long history of corruption and controlling the police department in its entirety will just make it worse. Look no further than the city schools, the Treasurer’s Office, and the Dog Pound. The city already controls the Police Department's budget and the Mayor sits on the board of police commissioners…
The political officials will go to the upper ranks of the department who will then force the lower ranks, under the guise of an order, to do what the city politicians want. That is how easy it is to circumvent their built-in safeguards.
We had hoped this farce of a petition initiative might be thrown out. The Secretary of State's office however upheld the petition and it will go to ballot as Proposition-A in November. Rex Sinquefield doesn't want to have to deal with any more problems out of the Secretary of State’s Office so Shane Schoeller, candidate for Secretary of State, recently received $250,000 from Rex. Can you say bought and paid for?
Rex isn't doing what is best for the people. He is doing what is best for his billions. Tell Rex what you think about a billionaire trying to buy local control of the St. Louis Police Department for Mayor Slay by voting "NO" on Proposition-A.
Respectfully,
David Bonenberger
President—SLPOA
FOP Lodge 68
Lobbyist Registrations
From the Pelopidas website:
Roy C Hengerson deleted Sierra Club.
$5K+ Contributions
Blue Cross and Blue Shield of Kansas City Political Action Committee for Missouri - $30,000 from Blue Cross and Blue Shield of Kansas City.
Missouri Senate Campaign Committee - $15,000 from William Holekamp.
Missouri Senate Campaign Committee - $10,000 from Dempsey for Senate.
Local 41 Political Action Fund - $15,000 from DRIVE Committee.
Romine for Senate - $50,000 from Missouri Senate Campaign Committee.
Missourians for Fair and Impartial Courts Committee - $10,000 from Thompson Coburn LLP.
Teamsters Local 838 Political Action Fund - $25,000 from DRIVE Committee.
Teamsters 245 PAF - $20,000 from DRIVE Committee.
MO State Council of Fire Fighters PAC - $9,584 from Citizens for a Safer Community.
MO Republican Party - $40,000 from Lembke for Senate.
MO Republican Party - $35,000 from Romine for Senate.
MO Republican Party - $25,000 from Emerson Electric Co.
Heavy Constructors Association Local PAC - $24,410 from Heavy Constructors Association of Greater Kansas City.
Supporters of Community Fire Protection District - $8,000 from community fire fighters.
Teamsters Local 955 Political Action Fund - $15,000 from DRIVE Committee.
SEIU Missouri State Council PAC - $104,450 from SEIU COPE.
Spence for Governor - $10,000 from Hunter Engineering Company.
Spence for Governor - $7,500 from David Hogan.
Schoeller for Missouri - $25,000 from Herzog Contracting Corp.
Missouri Senate Campaign Committee - $10,000 from Friends for Munzlinger.
Missouri Senate Campaign Committee - $10,000 from Parson for State Senate.
Friends to Elect Cole McNary - $10,000 from Lewis & Clark Council Ozarks Mountain Forum.
Dempsey for Senate - $50,000 from Rex Sinquefield.
Kander for Missouri - $12,500 from Supporters of Health Research & Treatments.
Cash Commentary
A day after Speaker Tim Jones reports a $100K check from Rex Sinquefield, presumptive Senate Pro Tem Tom Dempsey records a $50K check.
The Lembke and Romine checks to the Missouri Republican Party are likely for mailings done for their senate campaigns. MRP is a non-profit and enjoys a lower mail rate than their campaign.
Birthdays
Happy birthdays to Rep. Denny Hoskins and Jack Coatar.