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“Disclose” Act Fails: Campaign Finance Regulation Falls Short in the Senate

July 28th, 2010 by Kim Crockett

US Constitution

 

Update as of July 28:The Democratic leadership wanted this passed before fall elections but fell short with just 57 of the 60 votes needed to move forward with a vote. The usual Republican suspects Democrats turn to for votes (Senators Collins, Snowe and Graham) opposed the Act. Senator Scott Brown of Massachusettes, who recently provided the 60th vote for so-called financial reform, also opposed the Act. This time, he stuck with Republicans. There is a good article in the Washington Post by Dan Eggen if you want to read more about it:  http://www.washingtonpost.com/wp-dyn/content/article/2010/07/27/AR2010072704656.html?nav=emailpage

Background from early July: As we approach the 4th of July, Democratic leaders in Congress, in response to the Supreme Court’s decision in Citizens United v. Federal Election Commission, lead the charge to pass the “Disclose” Act on June 24, 2010. The Act, introduced by Senator Chuck Schumer (D-NY) and Representative Chris Van Hollen (D-Md), is designed to blunt the First Amendment ruling in favor of speech rights for corporations and other groups, including labor unions. The Citizens United decision, relying on the First Amendment, ruled that corporate funding of independent political broadcasts in candidate elections cannot be limited. The court reasoned that political speech is indispensable to a democracy, though it upheld the ban on direct contributions to candidates from corporations and unions. We note here that political speech is also fundamental to free enterprise and individual liberty.

Our friends at CATO are on top of this: http://www.cato-at-liberty.org/2010/02/12/congress-goes-after-citizens-united/

Background: Citizens United made a movie about Hillary Clinton (Hillary: The Movie). They were prevented from showing the movie under the “Bipartisan Campaign Reform Act” that regulates political speech. They fought for an injunction against the law, took their case to the Supreme Court and won. Let’s see if Congress succeeds in once again tinkering with the First Amendment.

If passed by the Senate, the Act will require the disclosure of the names of major donors for political ads, require corporate and union executives to appear in political ads that their entities pay for and like a candidate, state that he or she “approves this message.” All of these are designed to discourage political speech. It also bans government contractors from contributing to campaigns, and regulates the recipients of TARP money as well as contributions from foreign nationals and countries. Senate Majority Leader, Harry Reid (D-Nev) wants it passed before the fall elections.

Aside from the obvious constitutional issues, which have been raised by (mostly Republican) critics, liberal Democrats have also criticized the bill because the Act contains  hard to defend “carve outs” that, when applied, exempt certain powerful special interest groups such as the Humane Society, AARP and the Sierra Club–but also the NRA. The exemptions were negotiated by Democrats so they could get the Act passed and on the president’s desk. This is sausage making to be sure. Sadly, it will add to the already absurd quilt-work of bad election/campaign finance laws that thwart the First Amendment right to political speech.

Climategate “Reviewed” (Again)

July 19th, 2010 by Kim Crockett

Last fall, the “Climategate” scandal erupted when emails and documents from the University of East Anglia Climatic Research Unit (CRU) were released (without permission) to the public. The CRU emails, including some with Michael Mann at Penn State, revealed a pattern of conduct that no one– but especially no scientist– would be proud of; requests to delete inconvenient emails, the exclusion of scientitists who are viewed as “skeptics”  from the peer review process and hiding the ball from formal information requests. The terrible fall out–and the lesson to be learned for all of us— is that “science” has been revealed to be quite vulnerable to political pressures especially when combined with generous grants. The old saying “Follow the Money” certainly applies here. That sad point was made last summer at our Climate Change Symposium by Dr. Fred Singer. (And we continue to follow this important issue because the global warming activists, lead by Al Gore et. al., have captured our government at the local, state and federal level. The impact on free enterprise and individual freedom is profound.)

Climategate has now been “reviewed” several times by organizations we should be able to trust; a special committee of the British Parliament, Penn State, an environmental agency of the Netherlands and most recently the University of East Anglia itself.

The Minnesot Free Market Institute (and other members of the No Cap and Trade coalition) approach these “reviews” with great skepticism. The reviews seem less than indepedent in their methodology and conclusions; the self-dealing is just compounded . Moreover, we are impressed with the speed with which they were all done. It seems that the institutions who are committed to the UN’s view of  global warming (which relies on CRU data) were in quite a hurry to do damage control following Climategate.

The Wall Street Journal, which shares our skepticism, covered the latest review here: http://online.wsj.com/article/SB10001424052748703394204575367483847033948.html

You can read more at the Volokh Conspiracy (by Jonathan Adler), including international commentary about the quality of these reviews here:  http://volokh.com/2010/07/11/climategate-revisited/  .

We think there is a better way to insure a clean environment and recommend to you the “free market environmentalism” approach taken by the Property and Environmental Research Center (PERC) in Bozeman, Montana. Please visit them at http://www.perc.org/  .

Celebrate Independence Day: What are the Core Functions of Government?

July 2nd, 2010 by admin

betsy ross and flagBesides brats, beer and fireworks, a great way to celebrate our Independence and the legacy of Freedom is to think about the proper role of government. The Startribune published Kim Crockett’s article on how the desire to fund “good things” can lead to underfunding the core functions of government: constitutional duties and protecting life, liberty and property. Here is the commentary:   http://www.startribune.com/opinion/commentary/97437104.html?elr=KArksc8P:Pc:U0ckkD:aEyKUiacyKUUr

Minnesota’s Budget Impasse Resolved With No New Taxes

May 17th, 2010 by Kim Crockett

Governor Tim PawlentyAfter reaching an agreement with Governor Pawlenty late on Sunday, the legislature went into a brief special session to formalize the terms. The good news is that Pawlenty’s insistence on no new taxes won the day; the legislature had to find the funds within the existing revenues. Moreover, most of the “unallotments” made by Governor Pawlenty in 2009 that were disallowed by the Minnesota Supreme Court have been enacted (but not made permanent). Like many businesses and families, our elected officials had to figure out how to live with less. The state is still left with a projected deficit of about $5.8 billion for FY 2012-13. That number will be higher if the nearly $2 billion shifted from K-12 education in 2011 is not repaid.

Minnesota Budget Solutions Coalition; Balance Minnesota’s Budget Without Raising Taxes

May 11th, 2010 by Kim Crockett

The Minnesota Free Market Institute is a proud member of the the Minnesota Budget Solutions Coalition. The Coalition is an informal alliance of non-profit organizations formed to solicit ideas from the public and members of the coalition on the state budget.

The Minnesota Budget Solutions Coalition released a brief in 2009 demonstrating that the budget can be balanced without raising taxes (for a copy go to http://www.mnbudgetsolutions.com/) . Now more than ever, innovative ideas are needed in St. Paul to balance the budget and get us on the road to recovery and prosperity. Raising taxes during an economic recession will have dire consequences. As our legislators debate in St. Paul, employers all over the state are deciding whether to hire (or fire) a new employee, invest in new equipment, or leave the state for a friendlier business climate. Minnesota already has one of the highest per-capita tax burdens in the nation. Taxing the so-called “rich” will not solve our budget problems. Every time we raise taxes on individuals and business, we are showing people the door. Our policy brief contains creative ideas that both parties can embrace if they are serious about living within our means. It also contains some strong medicine that will be hard for any politician to swallow. Please share these ideas and encourage our leaders to return Minnesota to economic health.

Note: The Coalition is busy updating the policy brief with figures from the current budget. Watch for its release this summer.

Article on “Unallotment” by Peter Nelson and Kim Crockett. Supreme Court Legislates Against Pawlenty.

May 11th, 2010 by Kim Crockett

The St.Paul Pioneer Press at TwinCities.com published an article (see  http://www.twincities.com/opinion/ci_14698526 ) by Peter Nelson, an attorney and policy fellow at the Center of the American Experiment and Kim Crockett, the President and General Counsel of the Minnesota Free Market Institute. Nelson and Crockett argued that Governor Pawlenty’s use of the “Unallotment” statute was proper and that any concerns about the statute giving the executive too much power should be handled at the legislature. Unfortunately, the Minnesota Supreme Court ruled 4-3 against the governor, throwing the current budget and legislative session into chaos. The Chief Justice, writing for the majority, amended the statute more to its liking, rather than applying the statute as written by the legislature. We applaud the dissent written by Justice Lorie Gildea and recommend reading at least the first paragraph. Judges are to say what the law is, not what the law should be. Unfortunately, a majority of the court took up a legislative mantel, forgetting the limited role of the judiciary in these matters. Now the state is in uncharted territory with just a few days left of the legislative session. 

The opinion can be found at  http://www.mncourts.gov/opinions/sc/current/OPA100064-0505.pdf

ObamaCare: Yes We Can!

April 9th, 2010 by Kim Crockett

pic_homie_flat_03-22-10_B Obama and Pelosi For those of us who champion individual liberty and free markets, Obamacare is an abomination on many levels. While we would prefer to talk about what we are in favor of, we must protest. Obamacare is a hostile take-over of healthcare and an intrusion into the private, confidential interactions between a patient and doctor. Never before have the express wishes of so many Americans simply been ignored. President Obama, Nancy Pelosi and Harry Reid have placed a dunce cap on our collective head and sent us to sit in the corner. Trust us! Over time, you’ll like it! We know what is best for you and your family.

The creation of the third party payer and welfare system in the last century lead to a market failure and price distortions in health care. We have grown accustomed to varying levels of bureaucratization of the doctor patient relationship via insurance companies or the government; most of us would probably put up with the hassles and paperwork but for the ever increasing price of health insurance and healthcare. Rather than addressing these market failures with some common sense changes, the Democratically controlled Congress has forced through sweeping legislation with absolutely no bi-partisan support amidst wide-spread opposition from the American people. If they could not get Republican Olympia Snow to cross the aisle, something was amiss.

Attorney General Lori Swanson was asked by Governor Pawlenty and members of the Minnesota Senate and House of Representatives to challenge the constitutionality of Obamacare on behalf of the state. Swanson, as expected, rejected those requests. Instead, our attorney general will file a friend of the court brief in support of ObamaCare and against her client–the state of Minnesota—and the now 13 plus states which have declared an interest in challenging the legislation as an encroachment on the sovereignty of the state and We the People.

Attorney General Swanson and others like her, think that Congress has the authority to pass Obamacare. The bill identifies the Commerce Clause (Article I, Section 8 of the U.S. Constitution) as its source of authority. Ever since Roosevelt successfully cowed the U.S. Supreme Court with the threat to “pack it” unless the Court stopped finding New Deal legislation unconstitutional, the Court has allowed Congress to essentially drive a truck and anything else it wants through the Commerce Clause.

But the Supreme Court has recently recognized limits on the Commerce Clause—and even under the broadest interpretation by the Court, it only authorizes Congress to regulate existing commercial activity that affects interstate commerce. The Commerce Clause has never authorized Congress to regulate inactivity or to create the commercial activity it wants to regulate by forcing Americans to buy something (in this case, health insurance). The Commerce Clause was only intended protect and encourage the free flow of goods and services among the states by giving Congress the power to regulate interstate regulations like tariffs and other barriers to trade.

The mandatory insurance requirement is structured as a tax and as with the Commerce Clause, the Court has paid great deference to Congress in reviewing its power to tax. But is the power to tax absolute? Unlimited?
The debate over the constitutionality of ObamaCare points to a crisis. The Constitution as written is a promise to the American people that our government is one of limited powers. When the Constitution was amended in 1791 by the first ten amendments (we call it the Bill of Rights), critics were concerned that enumerating the rights of citizens (free speech, right to bear arms, right to trial by jury, etc) would severely limit citizens to those rights. As a result, the ninth and tenth amendments were added.

The Ninth: The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people.

The Tenth: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Unfortunately, these amendments have been largely ignored by the Court and left undeveloped despite their plain language. Now that the federal government has grown exponentially with the blessings of our highest court via vaguely drawn powers, citizens from all walks of life and political persuasion are reacquainting themselves with their Constitution and these two amendments in particular.

The Constitution citizens read and the Constitution the courts and “legal scholars” read are not the same. That is the crisis.

“If there is anything good to say about Democrat control of the White House, Senate and House of Representatives, it’s that their extraordinarily brazen, heavy-handed acts have aroused a level of constitutional interest among the American people that has been dormant for far too long.” –economist Walter E. Williams

“As America’s teetering tower of unkeepable promises grows, so does the weight of government, in taxes and mandates that limit investments and discourage job creation. America’s dynamism, and hence upward social mobility, will slow, as the economy becomes what the party of government wants it to be — increasingly dependent on government-created demand.” –columnist George Will

Reconciliation as a Tool to Adopt Health Care Legislation: Two Points of View

March 18th, 2010 by Kim Crockett

The Federalist Society for Law and Public Policy offers two very different points of view on the reconciliation issue. This is worth your time if you are trying to sort out this complicated issue. Here is the link to their  web page and the articles  http://www.fed-soc.org/publications/pubid.1792/pub_detail.asp We have reprinted with the Federalist Society’s permission the introduction below.

March 10, 2010   Reconciliation and Congress   New Federal Initiatives Project

Brought to you by the Federalism & Separation of Powers Practice Group

There is a lot of discussion right now about the use of “reconciliation,” a mechanism for enacting legislation to carry out the budget resolution that cannot be filibustered in the Senate, to enable enactment of health care legislation.  As part of our New Federal Initiatives Project, we asked Martin Gold, a partner at Covington & Burling and one of the country’s leading experts on congressional procedures, for a paper discussing the issues that this raises.  The views set out in this paper are his own, not those of the Federalist Society.  For a competing take on these issues, see “Reconciliation for Health Care Should Not Be an Issue” by Stanley Collener, a contributing writer for Roll Call who for most of his career worked on budgetary issues.

–”Reconciliation and Health Care” by Martin Gold, March 10, 2010
–“Reconciliation for Health Care Should Not Be an Issue” By Stan Collender, April 21, 2009, Capital Gains and Games

“Kill the Bill” Rally at State Capitol

March 16th, 2010 by Kim Crockett

We attended the “Kill the Bill” rally in St. Paul sponsored by the Minnesota Majority. Estimates on turn out range from 2,000 (state police) to 4,000. As always, it was a cold but not too rainy day for citizens to petition their government. Here are some photos from the event.

World War II Vets Reject Socialized Medicine

World War II Vets Reject Socialized Medicine

Thousands Rally at Capitol

Thousands Rally at Capitol

Patriot at Kill the Bill Rally

Patriot at Kill the Bill Rally

Winning Sign at Rally

Winning Sign at Rally

Billion Dollar Bonding Bill: Governor Cuts to $680 Million

March 15th, 2010 by Kim Crockett
Governor Tim PawlentyEditor’s Update 3-15-10: House File 2700 (the Capital Investment Bill totalling nearly $1 billion ) was sent to the governor last week despite clear warnings to keep it around $725 million and focused on priorities such as veterans, military, and public safety.  Over the weekend, Pawlenty did what the DFL apparently could not do and trimmed it down to about $680 million.  A majority of House Republicans, lead by House Minority Leader Kurt Zellers, had asked the governor in a letter to cut spending to $200-250 million  (down to only “critical” construction projects) to bring the DFL to the negotiating table later in the session. The letter said such a move would show the DFL that  ”it is NOT OKAY to whip out the credit card for a sculpture garden, for civic centers, for shade trees and for the rest of their out-of-touch spending.”    The DFL conceded last week that it expected significant cuts, sending it to the governor’s desk after failing to negotiate a compromise last week.  The tone of the governor’s letter is similar to a letter one might find from an exasperated  parent to an out of control college student: he basically says, I told you what I expected and you ignored me (again). He noted that the bill exceeded the budgeted capital investment by about $275 million. “The DFL-controlled legislature seems incapable of prioritizing projects or simply sayng no. So I have done it for you.”  You can read the governor’s letter detailing the cuts at MinnPost : http://www.minnpost.com/client_files/pdfs/BondingLineItemVetoLetter.pdf The Governor noted early in the process that a bonding bill ought to be one of the least difficult items to agree on. Not this year. While we commend the governor for doing his job, we note that the DFL -controlled legislature may have conceded too much of its authority to authorize spending. Not only did the DFL fail to do its job, but it added language to the bill that the governor said “makes it impossible…to exercise line-item veto authority other than in an overly blunt manner.”  Well, we’ll take “blunt” over too much debt at this point, if those are our only choices.

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