Coyote Blog

Cafe Hayek points out that Rep. Earl Blumenauer wants to make sure that New Orleans is rebuilt with a strong urban planning vision.  Since Mr. Blumenauer represents Portland, Oregon, the city beloved of planners that has been planned into having some of the highest priced housing and worst traffic of any city of its size in America, I presume he wants something similar for New Orleans (Portland was also the city that thought it had solved global warming).

Here is my urban plan for New Orleans:  Every person who owns property can build whatever the hell they want on it.  If other people want something else built on that property, and value this outcome enough, they can buy the property from its owner.  This novel concept is called "private property rights" and falls under the broader category of what are called "constitutionally protected individual rights" or even more broadly, "freedom".  It is a concept that used to be taken for granted in this country and but now is seldom even taught in schools. 

For the property owned by the government, well, they are going to build whatever dumbshit thing they want to on it anyway, so I'll just root for their choice to be fairly inexpensive.  We here in Phoenix built a half-billion dollar stadium for the for-god-sakes Arizona Cardinals that is used for its core purpose 3 hours a day for 8 days a year.  It couldn't be worse, could it?

Technorati Tags:  Katrina, Economics

President Bush's call for Katrina spending to be offset by budget cuts has spurred a blogosphere effort to identify local pork urge Congress to cut the pork.  I am 98% behind this effort (the missing 2% being that the effort is spurred by a desire to spend the money somewhere else, rather than sending it back to taxpayers where it belongs).  Glenn Reynolds post that got the ball rolling is here.  His followup posts are here and here.  I will note the irony that I recently compared Don Young (of Alaska bridge to nowhere fame) to Huey Long (of multiple bridges to nowhere fame), given that we are looking to cut Don Young's pork to help Huey Long's old stomping ground.

Edward at Zonitics has already identified one of the most visible chunks of AZ pork, that is our earmarks in the recent highway bill.  These include nearly five million for a couple of pedestrian bridges, plus hundreds of millions for a rail system to run empty trains to compete with our empty buses.  Why does the rest of the country need to pay for Phoenix's growth?  Heck, we just took the money the feds saved us on this junk and spent it subsidizing a stadium for the Cardinals, for god's sakes.   I will note that of the mere 8 people who voted against the highway bill, 2 were from Arizona, including my 3rd district Congressman John Shadegg and libertarian Jeff Flake.  Flake, consistent with his libertarian principles (or in retribution for them?) represents the only district in the country without an earmark in the highway bill.

So, to push the ball forward, I will add another bit of Arizona pork.  I wanted to include some items form the energy bill, but I can't find a state by state impact.  But I can find, thanks to the environmental working group, a nice summary of farm subsidies to Arizona.  Here is a summary for the most recent year they have data:

And here is the same data but cut by recipient, with just the top 20 included:

I don't know all these folks, but I can say that all of the first three have extremely profitable casinos they operate.

I am writing my letter now to the my Congressman and Senators, and will post a copy as an update when I am done.  The ubiquitous NZ Bear has a data base he is building of pork identified.

Technorati tag:  porkbusters.

I enjoy many professional sports casually, attending an event or two every year, but the NFL is by far my favorite.  In the pre-season, there was a lot of hype that maybe the long-time hapless Cardinals would be decent this year.  I knew better, even from the pre-season.   Heck, my 8-year-old daughter knew better.

We went to see the last pre-season game against Denver.  In that game, the Arizona starters played for quite a while against the Denver 2nd team, and got beaten up.  Specifically, they could not run the ball and in turn their defense could not stop the run.  So it was no surprise to see them get blasted in their first regular season game against the Giants. 

The problem with the Cards is this:  They have spent the last several years drafting high-profile position players, including spending a jillion 1st round picks on receivers.  Great teams got that way because they invested in their lines - both O and D, even when such picks might be less popular with the fans on draft day.  The Cards have instead focused on drafting "names" who might help sell season tickets in the new stadium.  This neglect is very apparent today.  It doesn't matter how good your position players are if there are no holes for the backs and the QB is getting plowed to the turf on every play.  This is a 5-11 team that is fortunately playing in the NFL's worst division, so they may eek out 7 wins.  You heard it here first.

By the way, if you are an avid football fan, I recommend two sites to you.  The first is Football Outsiders, who have taken a Bill-James-like approach to football stats, rethinking metrics to provide a better insight into what teams really are good.  Make sure to check out their DVOA rankings - basically they compare every teams performance on every play against other teams in the same situation (e.g. 3rd and 8 on their own 45).  The other site is Greg Easterbrook's always entertaining Tuesday Morning Quarterback column, providing large doses of football clear thinking and haiku.

This morning, as I drove to work and stopped to get gas, I noticed that they were sold out of two of their three grades (only premium was left).  The manager told me that several folks had come in today saying that this was the fourth or fifth place they looked for gas, though I will say the next two stations down the street seemed to have gas and I did not see lines anywhere.

Phoenix is one of those funny gas markets, where due to government regulations, we have a unique gas blend that can only be made in one place by left handed Eskimos, or whatever.  Several companies have tried for years to get a refinery permitted to serve this market, but the Arizona state government has consistently blocked it.  As a result, we get some strange ups and downs here, including gas lines last year when the only pipeline into town from the only refinery that makes gas that can be sold here broke.

Its a bit too early for Katrina to be actually affecting wholesale gasoline supplies (update:  or maybe not), but it is not too early for Katrina-led expectations to be draining gasoline inventories.  I explained previously about how an expectation among consumers that gas will be short can become a self-fulfilling prophecy:

Take
the example of 1972, and we will use typical numbers of that era.  Lets
say there were 100 million cars each with an average 20 gallon tank.
Lets say normally, people refill their tank when it is ¼ full, so on
average their tank is 5/8 full.  Doing the math, there are 5/8 times 20
times 100 million gallons actually in cars or about 1,250 million
gallons.  That's right - one of the largest single inventories of gas
in this country is in people's tanks.

Now,
lets say due to supply panic, everyone suddenly refills at ¾ full. No
one wants to be caught short (I remember in the 1970's, people would
wait in line to put a gallon or two in their tanks -- it was nuts).  In
this case, on average they are 7/8 full or there are a total of 1750
Million gallons in cars' tanks.  So, in the space of what might be two
or three days, people suddenly demand 500 million gallons above and
beyond their normal usage to increase their tank's inventory.  Boom,
stations are out of gas, which causes people to feel even less secure
without a full tank, so they inventory more (many in spare gas cans)
and the problem gets worse.

Here is my previous post on why I am hoping for gas price gouging.

Katrina News at Technorati

I get email and comments from time to time that my language deriding government's intervention into every aspect of our lives is overblown and exaggerated.  My answer:  Oh yeah, well how about this:

Mike Huckabee, the Governor of Arkansas, now
requires annual fat reports. These are sent to the parents of every
single child aged between 5 and 17; a response, he says, to "an
absolutely epidemic issue that we could not ignore" in the 1,139
schools for which he is responsible.

I just cannot craft any reasonable theory of government where this is the state's job.   The "obesity" crisis in this country just amazes me.  "Experts" every few years broaden the definition of who is overweight or obese, and suddenly (surprise!) there are more people defined as overweight.  Even presuming it is the state's job to optimize our body weights, is it really the right approach to tell everyone they are too fat?  Having known several people who were anorexic, including at least one young woman who died of its complications, is it really a net benefit to get young people more obsessed with looks and body style?  And what about the kids that are genetically programmed to be overweight?  Does this mean that years of taunting and bullying by their peers is not enough, that the state's governor wants to pile on now?

It is interesting to note that governor Huckabee apparently started this initiative after his own personal battle with weight loss:

[Huckabee] lost 110lb after being warned that his
weight, more than 280lb after a life of southern fried food, was a
death sentence. A chair even collapsed under him as he was about to
preside over a meeting of state officials in Little Rock.

We all have friends who have lost weight or gotten into homeopathy or became a vegan and simply cannot stop trying to convert their friends now that they see the light.  Now we have the spectacle of elected officials doing the same thing, but on a broader scale and with the force of law, rather than  just mere irritation, on their side.  One can only imagine what report cards kids would be carrying home if Huckabee had instead had a successful experience with penis enlargement.  What's next, negative reports for kids with bad acne?  For women whose breasts are too small?  For kids who are unattractive?

As I have argued many times in the past, a large part of the blame for these initiatives is public funding of health care.  Beyond the efficiency and choice arguments, I have tried to point out that publicly funded health care is a Trojan horse for a number of truly intrusive nanny-state government controls of our lives.

It isn't such a stretch to imagine the effect
when people realise "” as residents of Arizona have been told already "”
that about 40 per cent of their healthcare charges are spent treating
the consequences of avoidable obesity.

When health care is paid for by public funds, politicians only need to argue that some behavior affects health, and therefore increases the state's health care costs, to justify regulating the crap out of that behavior.  Already, states have essentially nationalized the cigarette industry based on this argument.

By the way, I am willing to make a bet with anyone that no where near 40% of our healthcare charges in Arizona are due to obesity.  I am positive some advocate made up this number, or created it using some ridiculously broad assumptions, and it has now been swallowed by the credulous and scientifically-illiterate press.

Update: Wow, the solution to obesity!  Government funded shrubbery:

City dwellers living in areas with little greenery and high levels of
graffiti and litter are more likely to be obese than those living in
pleasant areas with lots of greenery, say researchers in a study
published on bmj.com today.

Reason number 6,345 not to ever take "facts" from a "study" reported in the media at face value.

Update #2: More about the health care as a trojan horse for statism  (emphasis added)

BangkokThe World Health
Organization (WHO) has always had a rather expansive notion of what it
means to be healthy. If one looks at the official definition it defines
health as a "state of complete physical, mental and social well-being
and not merely the absence of disease or infirmity." According to that
understanding there isn't much that is not in some way connected with
health.  And for the health promoters at WHO's recently completed Bangkok conference that means that health is the supremely important value that trumps everything else.

After
all, the health promoters argue, it is surely obvious that health is a
necessary condition for any sort of life, so it must follow that for
any truly rational person health must outweigh any other value that
might conflict with it. But the "obvious" -- especially the obvious of
the health promoter -- is often likely to be untrue. While it may be
true that being alive is in some not very interesting sense necessary
for having a life, it is not at all true that being "healthy,"
especially as defined by WHO, is a necessary condition for having a
good life.

 

All
of us make trade-offs between optimal health and other values all of
the time. We travel by car for instance, for reasons of economy or
convenience, even though we might recognize that statistically planes
are safer. We smile at Alan Dershowitz's cardiac calculus where a
patient chooses between ten years of inactive life and the risk of
sudden death:

 

"My
doctor has made a prognosis/That intercourse fosters thrombosis/But I'd
rather expire/Fulfilling desire/Then abstain, and develop neurosis."

I trash the Congress a lot, but a brief thanks to our local Congressman John Shadegg who was one of only 8 folks who managed a "no" vote against the pork-laden highway bill.  Arizona Congressman Jeff Flake was also one of the eight.

Update:  Flake also wins an award as the only Congressman who did not slip a special appropriation for his own district into the bill.

Congress is probably going to extend Daylight Savings Time, despite complaints from airlines that their rescheduling and reprogramming costs will be exorbitant. Virginia Postrel points out that while a boon for the Northeast, southerners are not amused:

The source of this bright idea is, not surprisingly, the ever-meddlesome Ed Markey, who calls the bill
"a huge victory for sunshine lovers." As a certified sunshine lover, I'd say it
looks more like Massachusetts's revenge on Texas (and the rest of the Sunbelt)
for George Bush's victory over John Kerry. There are some places--and Dallas is
definitely one of them--that need just the opposite: shorter sunny evening
hours. Once the sun goes down and the temperature falls to the high 80s, you can
actually enjoy sitting outside.

The ostensible goal of the bill is energy saving, but the evidence
is weak.... 

Oddly missed even in fairly
thorough accounts is
any consideration of the extension's most obvious cost: More demand for
energy-eating air conditioning in the fast-growing, very hot Sunbelt. A lot more
people live down here than did back during the Nixon administration.

Southerners, come join Arizona on the "dark" side of this issue.  Arizona decided long ago that it had plenty of daylight, did not need to save it, and therefore was not going to play with the other kids.  We sometimes catch some grief for being out of step, but you don't see any of us scrambling around the house twice a year looking for our VCR manual to figure out how to change the clock.

A while back, I lamented all the work it takes in some states to get a liquor license.  Most liquor license laws stem back to the emergence from prohibition, when states wanted to purge organized crime from the liquor business.  What the heck, then, are they trying to do today, other than limit competition for incumbents, which is the typical role of licensing?  Before I go on, I can't help quoting Milton Friedman again about liscencing of all sorts:

The justification offered is always the same: to protect the consumer. However, the reason
is demonstrated by observing who lobbies at the state legislature for
the imposition or strengthening of licensure. The lobbyists are
invariably representatives of the occupation in question rather than of
the customers. True enough, plumbers presumably know better than anyone
else what their customers need to be protected against. However, it is
hard to regard altruistic concern for their customers as the primary
motive behind their determined efforts to get legal power to decide who
may be a plumber.

Anyway, here in Arizona, it takes a load of paperwork even to change the manager of a licensed facility (even regulation-happy California does not require this).  For each manager, a multi-page application, personal history, proof of training, and fingerprint cards (yes, really) have to be submitted, and an FBI background check has to be completed (to make sure they never worked for Al Capone, I guess).

Today, I got my new managers application back from the license bureaucracy a second time for corrections.  This time, here are the two errors they found:

• For the year when the manager was full time RVing (that means living the nomadic life with no permanent home, roaming the country in his RV) he didn't show a permanent address.  Yes, we explained his lifestyle then, but the form requires a permanent address for the last five years and can't be processed without it
• For a period of time when the manager was unemployed, he did not fill in his own home address where it asked for his employer's address

That's it - after sitting in their hands for weeks. After already returning the application to me before with another flaw, and never mentioning these flaws.  No phone call to get the information, just rejected out of hand, requiring the whole process start over again. 

After dealing with these folks for years, it is absolutely clear to me that they have totally lost sight of what the original mission of their organization might have been, and have substituted the mission "uncompromisingly ensure the rigorous compliance with all forms and processes adopted by this organization in the past".

Well, it worked for Johnny Carson, why not for me?  Instead of
leaving you with dead air (photons?) while I am knocking the rust off
my beer pong skills back at Princeton, I will share with you a few of
my favorite posts from my early days of blogging.  Since most of these
posts were viewed by about 5 people, there is a certain temptation to
just recycle them without attribution, given the unlikelihood of
getting caught.  Instead, though, I will share them as my best of
Coyote...

This post was from early December, and commemorated the 60th anniversary of a facinating event in Arizona history.  Many people are familiar with the movie the Great Escape or the TV series Hogans Heroes.  Few know, though, that there was really a great escape ... by German POW's in Arizona!  Here is my post "WWII Great POW Escape -- In Phoenix?"

Many people have seen the Steve McQueen movie "the Great Escape",
about a group of 60 or so prisoners who cleverly dug a tunnel out of a
German POW camp and escaped in various directions across Europe, many
of whom where eventually recaptured.

I don't know if such an event occurred in Europe, but an almost
identical real-life POW escape (tunnel and all) occurred right here in
Phoenix, Arizona almost exactly 60 years ago.

Like many isolated western towns in WWII, Phoenix played host to a
number of German POW's, in our case about 1700 in Papago Park.
Phoenix, and in particular Papago Park, with its arid climate and red rocks, must have been quite a culture shock to the Germans.

Anyway, I won't tell the whole story, but it is fascinating and you can read it all here.  A short excerpt:

The
German prisoners asked their guards for permission to create a
volleyball courtyard. Innocently obliging, the guards provided them
with digging tools. From that point on, two men were digging at all
times during night hours. A cart was rigged up to travel along tracks
to take the dirt out. The men stuffed the dirt in their pants pockets
which had holes in the bottoms, and they shuffled the dirt out along
the ground as they walked around. In addition, they flushed a huge
amount of dirt down the toilets. They labeled their escape route Der Faustball Tunnel (The Volleyball Tunnel).

They
dug a 178 foot tunnel with a diameter of 3 feet. The tunnel went 8 to
14 feet beneath the surface, under the two prison camp fences, a
drainage ditch and a road. The exit was near a power pole in a clump of
brush about 15 feet from the Cross Cut Canal. To disguise their plans,
the men built a square box, filled it with dirt and planted native
weeds in it for the lid to cover the exit. When the lid was on the
tunnel exit, the area looked like undisturbed desert.

There
is some dispute about how many people actually escaped -- official
records say 25.  Others argue that as many as 60 escaped, but since
only 25 were recaptured, 25 was used as the official number to cover up
the fact that German POW's might be roaming about Arizona.

The prisoners who led this escape were clearly daring and inventive,
but unfortunately in Arizona lore they are better known for their one
mistake.  Coming from wet Northern European climes, the prisoners
assumed that the "rivers" marked on their map would actually have
flowing water in them.  Their map showed what looked like the very
substantial Salt River flowing down to the Colorado River and eventual
escape in Mexico.  Unfortunately, the Salt River most of the year (at
least in the Phoenix area) is pretty much a really wide flat body of dirt.  The German expressions as they carried their stolen canoes up to its banks must have been priceless.

It
never occurred to the Germans that in dry Arizona a blue line marked
"river" on a map might be filled with water only occasionally. The
three men with the canoe were disappointed to find the Salt River bed
merely a mud bog from recent rains. Not to be discouraged, they carried
their canoe pieces twenty miles to the confluence with the Gila river,
only to find a series of large puddles. They sat on the river bank, put
their heads in their hands and cried out their frustration.

I
know how they feel every summer when we go to Lake Powell and find the
water lower than the previous year.  Anyway, we shouldn't just make
light of the escapees.  Apparently the prison guards made Sargent Schultz look like Sherlock Holmes:

Although
the men left in the wee hours of Christmas Eve, the camp officials were
blissfully unaware of anything amiss until the escapees began to show
up that evening. The first to return was an enlisted man, Herbert
Fuchs, who decided he had been cold, wet and hungry long enough by
Christmas Eve evening. Thinking about his dry, warm bed and hot meal
that the men in the prison camp were enjoying, he decided his attempt
at freedom had come to an end. The 22-year old U-boat crewman hitched a
ride on East Van Buren Street and asked the driver to take him to the
sheriff's office where he surrendered. Much to the surprise of the
officers at the camp, the sheriff called and told them he had a
prisoner who wanted to return to camp.

One
of the last to be re-captured was U-boat Commander Jürgen Wattenberg,
the leader of the breakout.  Interestingly, Captain Wattenberg hid out
in the hills just a few hundred yards from my current home.

Yesterday, Flagstaff, AZ became the latest community to vote on limits to "big box" stores.  When Wal-mart wanted to create a larger store that offered groceries, a group of local citizens didn't like the idea.  Not satisfied with exercising their individual right not to shop there, they got their city government to craft an ordinance to stop Wal-mart from expanding.  Wal-mart supporters gathered signatures and forced the ordinance to clear the voters as Proposition 100.   Via Arizona Watch, the ordinance would:

1. Prevent retail establishments larger than 125,000 square feet
2. Require retail establishments larger than 75,000 square feet to restrict the
   sale of non-taxable grocery items to less than 8% of their floor space
3. Require retail establishments larger than 75,000 square feet to be subject
   to economic impact studies
4. Require a conditional use permit (and the associated community input and
   hearings) for establishments larger than 75,000 square feet

Like all zoning, the ordinance was an attempt of citizens to control the use of someone else's property without having to actually buy the property.  Fortunately, the measure failed, though narrowly.  I will say that to some extent, I have trouble defending Wal-mart.  Wal-mart often takes advantage of statist actions to grow, including accepting loads of local government incentives and even eminent domain to grow.   To some extent, getting nailed by a local government is just getting hoist on its own petard, but I will defend them anyway because I could be next.

Supporters of the ban rallied under the "new urbanism" concept:

Meanwhile, the New
Urbanism concept -- a community design that mixes residential and
businesses districts to decrease the need to drive to outlying areas --
may face some challenges.

"What this
means is we're going to have to make some alternatives to the New
Urbanism vision," said Councilmember Kara Kelty. "We understand that we
have to maximize land usage. We need to continue that effort, but we
can't do that without the public."

Basically New Urbanism supporters would rather have a bunch of expensive and limited choice (but cute!) boutiques for you to shop at rather than whatever store you would prefer to shop at.  Rather than leaving this decision up to consumers, we-know-better-than-you planners in government take this upon themselves.  Reason had a nice article on New Urbanism.  Cato critiqued the smart growth folks here.

But, don't be fooled that this is just about land use.  This reaction article from the Arizona Daily Sun has some priceless quotes (note that these are from people the reporter found shopping in Wal-mart!):

"I voted 'Yes.' I'm really
disappointed because this town has enough Wal-Marts, and I don't know
where they're going to find land space for huge stores, with that kind
of square feet. We're running out of room for people to live here. I
wonder how happy they'll be if the Super Wal-Mart was built on McMillan
Mesa, that's private land. I don't know where they're going to put one."

First, if they can't find the land, then there won't be a problem, will there?  And god forbid someone builds a Wal-mart on private land. Should we use eminent domain instead?  I must admit that to some extent I sympathize with the residents of Flagstaff.  Like Boulder or Vail, it is a small town in a beautiful mountain setting.  And, like Boulder and Vail, the wealthy of nearby large cities (Phoenix) have descended on it, buying second homes like crazy.  The result has been increased traffic and prices, offset by a white-hot economy, increases in wealth for long-time residents via existing home prices, and huge boost to the tax base that is much larger than the cost of serving the new part-year residents.  The locals are trying to figure out how to keep the capital gains in their homes, keep the extra jobs, and keep the extra taxes without actually having any new people in town, and its not really working for them.

"My first reaction was
'Boo' when they announced it. They announced it over the loudspeaker. I
heard some cheers, and I heard some claps. The one thing I hate is the
thought of creating minimum-wage, part-time jobs that do not pay their
employees' benefits. They're just going to exploit more college
students, like they do here. I do shop here for lack of a better place
to shop."

Whoa, this doesn't sound much like land use, but it sure is heard as a rationale a lot for anti-Walmart zoning.  Look, if Wal-mart is paying too little, then no one will take the jobs.  Since these are net new jobs, they likely will go to people not now currently working.  How does that hurt anyone?  By the way, you gotta love the "exploit more college students" swipe.  Since when are college students owed more than minimum wage?  I worked for minimum wage in college, and I seem to be OK.  Also, how can many college students want anything other than part-time work?  And, most hilariously, I don't know any [mostly young, healthy] college student that gives a rip about benefits (by which I presume they mean medical).  Very few college students have or need health coverage separate from their parents or school programs anyway. I wrote a lot more about Wal-mart and wages here.

By the way, this man's commitment to principals is hilarious.  When quoted, he was shopping at Wal-mart.  This person can't even be bothered with the one strong individual free-will non-coercion option open to him:  Don't shop there.  When quoted, he was at that very moment benefiting in the form of lower prices for whatever was in his cart from these supposedly horrible labor practices.  Jeez, talk about knee-jerk statism.  If half of the shoppers in that store voted for this limit Wal-mart ordinance, then get them together and boycott the damn place and you'll probably shut it down, and you could leave the government and property rights violations out of it.

Now, let us all get out our violins for this guy who voted for the limits:

"I feel like a hypocrite
because I do shop at Wal-Mart. If we let them build a Super Wal-Mart,
what happens to this current store? Are we going to have a big empty
space there? If they move it to the other side of town, I won't go over
there. This is convenient for me.

OK, so this man voted to use government force and coercion to wipe out the property rights of other private individuals because... he was afraid new stores might be less convenient?  Look folks, this is why we have a Constitution and Bill of Rights, and why the founders did not create an unlimited democracy.  51% of the people are not supposed to vote away the rights of the other 49%.  We protect rights like speech against such tyranny of the majority.  At some point, unfortunately, we stopped protecting property rights.  This is the result - your property rights effectively subsumed to people who are worried about driving too far to the store.

I will end on this one:

"I think it stinks. I
voted 'Yes' for the proposition. I definitely didn't like the tactics
(Wal-Mart) used. I wish people didn't go and shop there. I really
thought it was going to get beat. We voted down fluoride, so why not
vote down Super Wal-Mart? That's the kind of town we are. This town has
that kind of progressive attitude. I'm just disgusted with the whole
corporation -- Wal-Mart. I think it's wrong."

I have written a number of times:  Do not be fooled by the term "progressive".  Progressives, despite the name, hate bottom-up, non-controlled-from-the-top change.  More than that, they hate the decisions you make with your own property.  They believe that they can make much better decisions for your property than you can.  The next time you support the "progressives" in stripping some third party of their property rights, remember that you might be next.  Remember the progressive slogan:  "All Your Base Are Belong to Us".

The original purpose of this blog was to pass on my experiences and lessons-learned running a small business.  Over time, though, since I have the attention span of an 8-year-old boy mainlining Hershey bars, I have gone many different places with this blog, well beyond day-to-day experience of a small business.

However, today I will return to this original goal, at least for one post, by asking the question "what's on my desk this morning?"  I tackle this question for two reasons.  First, it is interesting to compare how different the issues I struggle with day-to-day are as compared to my previous life as an executive at several Fortune 50 companies.  I am sure I did more, but all I can remember from my daily activities at large companies seems to involve either working on PowerPoint presentations or traveling to give them to somebody.  The second reason for visiting the contents of my desk is to reinforce my usual libertarian political points, which I think will be made sufficiently obvious just in the description of my to-do list that I won't need to editorialize further.

So here is what's got to get done today [ed note -- while published on Sunday, this is based on my worklist on Friday morning, May 13.]

• Sales tax returns have to be completed, which I usually do myself.  We file monthly returns in six states, but one of those is Florida, where we have to file multiple returns county by county.  This month I also must complete a lodging tax return for two counties.  If it was the end of the quarter, an additional three state returns and two county returns would be due.

• We are nearly completed with a sales tax audit from Washington state.  I have written before how complicated the WA sales tax return is, but the funny part was seeing a trained tax accountant from the state of Washington sit in my office for nearly 6 hours and still not be able to figure out how much tax I owed.  She kept encountering crazy exceptions like "such-and-such county requires 2% lodging tax unless the facility has more than 63 rooms or campsites and then it owes 50 cents per room-night except if it is in the Seattle convention district where it owes an additional .25% or if it is on a metro bus line where ... etc."  When tax law is too complicated for the paid employees of the tax department to figure out, it is too complicated.  Wonder of wonders, though, we may get a refund!

• Also sitting on my desk from Washington is a notice that I did not pay my leasehold excise tax last year.  For those who don't know what that is, it is a way that states like WA and CA effectively charge property tax on the US government, evading the federal rules against such (basically, I have to pay the tax for the Feds, and then I take it out of the rent I bid to the Feds).  Actually, though, I did pay it.  Well in advance of the due date.  The state has spent the last 2 weeks trying to decipher their own records, and so I need to call them back today to see if they have figured everything out yet.

• The department of Health in one California county is holding up my building approval because the condensate line from a refrigerator condenser coil runs out and drips fresh water on the ground (about a gallon a day).  If you have an air-conditioning system at your home, it is very very likely your air conditioning condenser does the same thing.  Unfortunately, the county wants this to run into the sewage system.  Why the county wants extra load on the sewer system, I don't know, but fortunately my builder caught this early so the change won't cost us much money.

• Speaking of inspections, the ADA inspector at another California facility ruled yesterday that our sales counter was an inch too high and our ramp a half-degree too steep to the front door, so I spent part of this morning already getting the original contractor out there to tear these improvements out and redo them.  Interestingly, we previously had the bathroom that was originally in this modular building ripped out, because it could not be made ADA compliant.  This was not a big headache for our employees, because there is a public bathroom building next door.  However, the local health inspector is now reluctant to approve the building because... it has no bathroom and hand-wash sink.  The only food we sell is packaged (think Twinkies) but some health inspectors still want you to follow the same requirements as if you were a restaurant.  I am not sure how we are going to resolve this.

• I just got a call from a customer who was mad that the county Sheriff would not respond to several complaints about drunk and disorderly conduct in the early morning hours at one of our campgrounds.  A few of our campgrounds, like this one, are too small to justify a live-on-site staff, and the rowdies seem to get the word out which campgrounds do not have on-site security.  I promised the customer a refund, and made a note to myself to talk to our manager about having one of our employees come by a few times in the night on a security sweep.

• I have a meeting at 3:00 to meet with my accountant to finish up our income taxes.  Since we have to file a federal, 9 state, and a number of county tax returns, our total company return fills two 3-inch binders.   Today we are trying to sort out the depreciation schedule, which in and of itself is hundreds of pages long given that we have so many small assets.

• We are still trying to get a liquor license approved for our store on Lake Havasu.  The whole liquor license process is one of those funny holdovers.  Coming out of prohibition, most states wrote tough procedures to make sure that the organized crime figures who control liquor during prohibition did not receive licenses.  As a result, to get a license, my wife and I and my managers have to be finger-printed and have FBI background checks.  The applications tend to be long and tedious and small errors cause the application to be returned for corrections. Worse, though, I have found that many towns use the licensing process as an anti-competitive protection for incumbents.  In California, if a County is "over its limit" (set fairly arbitrarily) in terms of licenses, it requires the county board of supervisors to meet and approve the new license.  In one California county I was told that this was really for my protection - they are protecting me from getting my business in a situation where I might fail due to too much competition.  Anyway, I suspect that the strong powers-that-be in Lake Havasu City may be holding up our license, and I need to try to figure out what is going on,though I am not sure how to go about it.

• While I have been writing this, I got a call from a county DA in Arizona.  Most states have bad check programs where, if you have a bounced check and can't collect, you turn it over to the courts and they seek collection.  In extreme cases, they will arrest and try the offender.  I have never been entirely comfortable with this situation.  Sure, bounced checks irritate the heck out of me, but arresting people for a $20 bounced check feels like sending someone to a Victorian debtors prison.  This morning, I spent about 30 minutes trying to talk the DA out of prosecuting the heck out of some guy who claims that he paid us and we lost his check.  I give his story about a 30% possibility, but whatever is the case I have no desire to prosecute the guy.  The DA's blood is up, so it takes me a while to talk him out of it.  I am adding to my worklist something I have put off for a while, which is to investigate 3rd party NSF check collection. 

• My bank just called and still needs yet more paperwork before they can complete an equipment financial loan.  AAARRRRGGGG. 

• I just finished my annual rant with Arizona Game and Fish about fishing licenses.  We sell fishing licenses at a number of locations.  We only sell fishing licenses, we don't sell hunting licenses or duck stamps or all kinds of other special licenses that the state seems to sell.  Unfortunately, if you are a Game and Fish registered license seller, you can't get just fishing license inventory from them.  You have to take their full range of licenses, which they send you piles of in January.  We take all this stuff we don't want to sell and put it in the safe, and hope that we can keep track of it for the next 12 months.  If we somehow misplace anything and don't return it the following year, we pay for it (and some of those stamps and licenses cost hundreds of dollars).  Many of you  will recognize that this practice of the state government would in many situations be illegal for a private company.  There are many laws out there that limit a manufacturers ability to force a retailer to carry their full line of inventory, or worse, their ability to send the stores a bunch of inventory they did not order.

• I have been putting off registering our 15+ trucks in Washington, but I am going to have to get to it today or this weekend.  Last year Washington passed a law that vehicles had to be registered with an in-state physical address (no PO Box).  I am not sure if this is a tax or terrorism thing, but it is obviously awkward for an out of state corporation, so they have finally relented a bit and said that you can still have to have an in-state physical address but they will mail paperwork to an out of state address.  I or my assistant will need to spend a couple of hours soon typing in two addresses each on all these vehicles before we can register them.

There are a million other things going on, but that is what is burning me up today.  In fact, since I have been spending the last hour writing this post, these tasks will probably also be occupying me this weekend.  An alien from another planet in reading this post might question whether I am really working for myself or this "government" entity.

Arizona Watch has a great post today about our state government's foray into amusement park regulation after several folks were stuck on a local ride for a couple of hours. 

There are no major amusement parks in Arizona, although two large
ventures are apparently planned. Currently, inspections are handled by
insurance companies, who have a serious financial stake in maintaining
the safety of the rides. Insurers can't afford to have unsafe rides at
their client's amusement park. Compare that to the state, that has
exactly what at stake?

As an aside, Phoenix is an awful place for a roller-coaster and amusement park fan like myself to live.  Basically, we have no real amusement parks  (though there are some great ones about a 6-hour drive away in LA).  I have sat and pondered this a lot - why does a city this large with such a strong tourist economy not have a Six Flags type attraction?

The answer I guess is  that our season is wrong.  Our season is November-April, when the weather is nice.  Unfortunately, the kiddies are in school then.  During summer vacation months, Phoenix is a bit, uh, toasty (but its dry heat, as we tell our Thanksgiving turkey each year).  This answer is not totally satisfying, as uncomfortable summer cities like San Antonio and Houston have major theme parks.  Also, Phoenix has no real world class water parks (just a couple of places with 2 slides and a pool).  Maybe its because all the developpers here have golf courses on the brain.

Where do Phoenix people go for fun in the summer?  Well, if you are ever in San Diego or LA during the summer, check the license plates.  Then you will know where we are.

Happy Cinco de Mayo, because it is always good to celebrate independence from the French.  As you might imagine, this is a fairly big celebration down here in Arizona.

A bit of history, from the source above (I have added emphasis to a couple of lines I really liked)

The French had landed in Mexico (along with
Spanish and English troops) five months earlier on the pretext of collecting
Mexican debts from the newly elected government of democratic President (and
Indian) Benito Juarez.  The English and Spanish quickly made deals and
left.  The French, however, had different ideas.

Under Emperor Napoleon III, who detested the
United States, the French came to stay.  They brought a Hapsburg prince
with them to rule the new Mexican empire.  His name was Maximilian; his
wife, Carolota.  Napoleon's French Army had not been defeated in 50 years,
and it invaded Mexico with the finest modern equipment and with a newly
reconstituted Foreign Legion.  The French were not afraid of anyone,
especially since the United States was embroiled in its own Civil War.

The French Army left the port of Vera Cruz to
attack Mexico City to the west, as the French assumed that the Mexicans would
give up should their capital fall to the enemy -- as European countries
traditionally did. [ed.-- and as the French inexplicably did as recently as 1940] 

Under the command of Texas-born General
Zaragosa, (and the cavalry under the command of Colonel Porfirio Diaz, later to
be Mexico's president and dictator), the Mexicans awaited.  Brightly
dressed French Dragoons led the enemy columns.  The Mexican Army was less
stylish.

General Zaragosa ordered Colonel Diaz to take
his cavalry, the best in the world, out to the French flanks.  In response,
the French did a most stupid thing; they sent their cavalry off to chase Diaz
and his men, who proceeded to butcher them.  The remaining French
infantrymen charged the Mexican defenders through sloppy mud from a thunderstorm
and through hundreds of head of stampeding cattle stirred up by Indians armed
only with machetes.

When the battle was over, many French were
killed or wounded and their cavalry was being chased by Diaz' superb horsemen
miles away.  The Mexicans had won a great victory that kept Napoleon III
from supplying the confederate rebels for another year, allowing the United
States to build the greatest army the world had ever seen.  This grand army
smashed the Confederates at Gettysburg just 14 months after the battle of Puebla,
essentially ending the Civil War.

Union forces were then rushed to the
Texas/Mexican border under General Phil Sheridan, who made sure that the
Mexicans got all the weapons and ammunition they needed to expel the
French.  American soldiers were discharged with their uniforms and rifles
if they promised to join the Mexican Army to fight the French.  The
American Legion of Honor marched in the Victory Parade in Mexico, City.

Sticking with the Cinco de Mayo theme, immigration has been a big issue of late down here in the Southwest.  Last election cycle Arizona passed a law limiting benefits to illegal immigrants.  This last few months have seen the "minuteman project", ostensibly to have private citizens help "defend the borders" and which got surprising support from America's most famous immigrant Arnold Schwarzenegger.

I have a number of friends who passionately support these efforts.  I am forced to say that not only do I disagree with them, I am actually embarrassed by the Minuteman project.  Michelle Malkin makes the argument that these are good people and not crazed racist KKK crazies.  OK, I am willing to accept this (for most of them) but this just makes it worse, wasting the patriotism and labor and time of people to such a wrong-headed end. (Matt Welch is less willing to believe they are just happy misguided soles).

At the end of the day, the vast, vast majority of people crossing the border are looking for a job.  That's it.  They are not terrorists or foreign spies or criminals -- they are ordinary people looking for a job, often to support their family.  This is why I find it an incredible waste that we have Arizona's private citizens, many of whom probably lament the slacker mentality of recent American generations of kids, standing around along the border making sure that people who are looking for a job in this country don't find one.

Of course, these Minuteman folks won't say that is what they are doing.  They are saying that they are:

• Defending the borders.   A Government's job is NOT (repeat NOT) "defending its border".  A government's job is to defend its citizens.
  In 1939, if a country was next door to Nazi Germany, defending its
  citizens probably meant defending the borders.  Today, though, next to
  Canada and the Mexico with whom we have been at peace for 150 years and
  with whom we share a common market, its harder to argue that defending
  our citizens requires having a Maginot Line at the border.

I am sure that our southern border is vulnerable to terrorists crossing, but I am equally sure that the minutemen did not find a single one.  Here is the real problem:  Because we force Mexican immigration to cross illegally across the open borders, terrorists trying to use the same approach are masked by thousands of others crossing the border.  By making free passage of Mexicans across the border illegal, we shift them out of monitored border crossings and onto the frontier, where they mask true criminals and terrorists.  Think of it this way - would you rather try to find a single terrorist who is alone in an empty stadium or one of 60,000 people at a football game?

• Enforcing the rule of law.  Maybe, but why not start with sitting beside the highway and writing down license plates of speeders too?  At the end of the day, enforcing current immigration law is as hopeless as was prohibition, the war on drugs, and enforcing the 55 mile-an-hour speed limit.

• Protecting American jobs.  I would not be at all surprised to find a high degree of overlap between the Minuteman supporters and the anti-NAFTA crowd.  The fear that "immigrants might be willing to do your job for less than you are willing to do your job for" has always been a strong part of anti-immigration movements.  The fact of the matter, though, is that this takes a very static view of the world.  The economy is not a zero sum game with competition for a fixed number of jobs.  New sources of labor can spur economic growth that creates new jobs.  The best example of this was in the last three decades, where a totally new, sometimes unskilled, work force of 40 million people showed up at industry's door suddenly looking for work:  women.  I told the story here (towards the bottom of the post), but the bottom line is that these new workers made the economy stronger, and now, with a generation or two behind them in the work force, women are really the backbone of entrepreneurship today in this country.  Besides, if we don't allow companies to legally hire immigrant workers, businesses in this global economy will just pick up and move to Mexico.

• Reducing cost of government services.  As a libertarian, I am very sympathetic to the argument that you don't want immigrants coming in and being able to immediately live off our safety net at taxpayers expense.  In my mind, though, this has historically been a problem of poorly crafted law rather than immigration per se.  It certainly would be possible to craft an intelligent immigration policy that allowed access to social services in steps.  By the way, shifting illegals into legal guest worker programs would likely increase tax revenues by bringing these folks into the system.

• Preventing Hispanics from becoming the dominant ethnic group in the Southwest.  Yes, I am positive this is a concern of many of these folks, just as the Italians in Boston at one time were worried about being overrun by the Irish.  It barely dignifies a response, except to say that if you are really concerned with the number of permanent Hispanic residents, then a guest worker program might actually reduce the number.  The reason is that many Mexicans still love their country but want work.  If they were allowed to freely move back and forth, they would do so.  But, since the border is the riskiest point for them, once they get in the US, they are reluctant to ever leave again.

We have got to have an intelligent immigration policy that

• Allows for free movement of guest workers across the border, with few limits on total numbers allowed. 
• A clear and fair system for guest workers to move up over time towards full citizenship
• A clear and fair system of tiered access to social services as immigrants progress from worker to citizen (e.g. emergency services access to all, but welfare/social security require full citizenship).
• Includes a taxation system on guest worker labor that causes these workers to help pay for the services they use.

Kudos to Professor Bainbridge for breaking with the conservative ranks to support an intelligent guest worker program.  More here from Steven Taylor.

Postscript:  I want to propose a thought experiment.  Most everyone considered the Berlin Wall a travesty.  Now, keeping all the facts about East and West the same, make one change:  suppose the wall was built instead by the West to stem the flood of immigrants from the oppressive east.  Would the wall suddenly become OK?  Even if the reality on the ground for an East Berliner (ie they can't escape) remained unchanged?

Border walls in Nogales, AZ and Berlin, Germany:

Oh, and from this site, here is the Montana-Canada border "wall" and a "checkpoint"

 
But its not about race.

Politicians seem to love the movie business, or so I infer from the rash of proposals of late to subsidize the movie business. 

New York City seems to have been first out of the blocks, with this program to provide tax rebates and free advertising for shooting movies in NYC.  The article tells us this is the only industry being so targeted at this point by NY.  Why?  Why are movie jobs and movie makers somehow better than every other kind?  Maybe its because they think the movies provide good advertising for NYC, like the great light they cast on the city in movies like this and this.

Anyway, the trend got my attention when our own Arizona governor lamented that Arizona is no longer home to as many movie shoots as it once was decades ago.  Far be it for me to suggest that this is probably more of an issue of westerns going in and out of style (since about a majority of movies shot in Arizona were westerns).  Nevertheless, Napolitano is pushing ahead with her plan to improve the net income line of Hollywood studios by subsidizing production in Arizona.

Finally, via Reason, we see that Hollywood is worried that it is being left out of the subsidy competition, by actually paying companies to film in LA:

Mayor James K. Hahn on Thursday announced a plan he hopes will keep Hollywood in
Hollywood "” by paying film production companies to shoot in Los Angeles.

Hahn's proposal, which was inspired by a program that New York City
adopted in December, would use as much as $15 million in public funds to
reimburse companies that make a movie in Los Angeles, paying them 5% of their
production costs or up to $625,000.

OK, so one would think that all these locations have struggling media and production industries.  But in fact, just the opposite is true.  In New York:

But Wylde thinks film is just the tip of the iceberg. The city's entire media sector is growing explosively, she notes. From Time Warner to Hearst to Bloomberg LLP, media firms account for $13 billion in city wages, 50% more than tourism.

And, in LA:

Last year, however, film, video and television production in Los Angeles
actually reached record highs. Entertainment Industry Development Corp. issued
permits for 52,707 location production days "” one day representing a single day
of work on a single project "” a 19% increase over 2003.

Doesn't sound like they are in much trouble.  Their film and media businesses are already growing explosively to record highs.  So why do they need a subsidy?  Doesn't exactly sound like the New England textile business.

Look, at the end of the day, this is about politicians handing taxpayer money to powerful media people, people who have the ability to disproportionately influence public opinions and things like ... elections!  This is a barely disguised campaign expenditure, except for the fact that taxpayers pay the bill.

I wrote more about the idiocy of subsidizing corporate relocations to one's state or city here.

Update:  Match Welch has more

Its never surprising to see Arizona Congressman Jeff Flake or Texas Congressman Ron Paul voting against pork, they are pretty consistent libertarians in their vote.  However, I have only just begun to follow my own Phoenix-area Congressman John Shadegg.  I was pleased to see that he stood up to considerable pressure and opposed the recent pork-filled Highway bill.

Of late, I have felt used by the Republican party, who put on small-government clothes to entice libertarians like me but who have generally abandoned all spending restraint now that they are in the majority.

The Arizona legislature has passed a school voucher bill, though the Democratic governor is likely to veto it.  The MSM generally hates vouchers - just check out this Google news search on the bill.  I have not even linked to a cached version - I just have complete confidence that any time you click on the link the preponderance of headlines will be negative.

I think that the legislature did make a tactical mistake in crafting this bill.  While over time, everyone should be eligible, it is much more intelligent politically to phase the law in with a means test.  Otherwise what happens is the initial beneficiaries in the first year of the plan, before new private schools begin to develop, are the rich who are already sending their kids to private school who will get back some of their tax money that went to public schools they did not use.  The optics of this are terrible, as seen in arguments like this that play on this effect, even if I find the class warfare elements of this extremely tedious.

If the bill were crafted to squelch this argument, the rest are easy to fight.  For example, the same article complains about:

the very different mandates and requirements public schools must comply with and private schools do not

Duh.  If private schools had to follow all the same stupid rules as public schools they would be bloated celebrants of mediocrity as well.

Another argument is that kids leaving public schools will drain the schools of money.  This is a huge scare headline by opponents of choice.  It also makes no sense.  In 2004, the average pending per pupil in Arizona (according to the teachers union, opponent #1 of choice) was $5,347.  Per the proposed law, the average voucher size per pupil is $4000.  So, for every student that leaves, the state will spend $4000 but save $5347, meaning that every student that leaves actually increases the money per pupil that can be spent on those left behind.  (by the way, more on the absurdity of NEA positions here and here).

The other argument that gets made is that private schools are all very expensive.  Again, duh.  Today, the only market
for public schools is to people who can afford to pay for their kids to
go to public school and then pay again for private school.  However,
private schools at the $3500 to $4500 level will appear if people have
a voucher in their hand and are looking for alternatives.  My kids
private school is awesome, and does not charge in the five figures - in
fact it is just a bit over $5000 a year.  Here is more on why more private schools don't exist today.

I would love to find a way to get the left, who in other circumstances seem to be all for choice, onto the school choice bandwagon.  This post had an invitation to the left to reconsider school choice:

After the last election, the Left is increasingly worried that red
state religious beliefs may creep back into public school, as evidenced
in part by this Kevin Drum post on creationism.
My sense is that you can find strange things going on in schools of
every political stripe, from Bible-based creationism to inappropriate environmental advocacy.
I personally would not send my kids to a school that taught creationism
nor would I send them to a school that had 7-year-olds protesting
outside of a Manhattan bank.

At the end of the day, one-size-fits-all public schools are never
going to be able to satisfy everyone on this type thing, as it is
impossible to educate kids in a values-neutral way.  Statist parents
object to too much positive material on the founding fathers and the
Constitution.  Secular parents object to mentions of God and
overly-positive descriptions of religion in history.  Religious parents
object to secularized science and sex education.  Free market parents
object to enforced environmental activism and statist economics.   Some
parents want no grades and an emphasis on feeling good and self-esteem,
while others want tough grading and tough feedback when kids aren't
learning what they are supposed to.

I have always thought that these "softer" issues, rather than just
test scores and class sizes, were the real "killer-app" that might one
day drive acceptance of school choice in this country.  Certainly
increases in home-schooling rates have been driven as much by these
softer values-related issues (mainly to date from the Right) than by
just the three R's.

So here is my invitation to the Left: come over to the dark side.
Reconsider your historic opposition to school choice.  I'm not talking
about rolling back government spending or government commitment to
funding education for all.  I am talking about allowing parents to use
that money that government spends on their behalf at the school of
their choice.  Parents want their kids to learn creationism - fine,
they can find a school for that.  Parents want a strict, secular focus
on basic skills - fine, another school for that.  Parents want their
kids to spend time learning the three R's while also learning to love
nature and protect the environment - fine, do it.

The Arizona Republic noted today:

In a historic move, the Citizens Clean Elections Commission voted
Thursday to oust state Rep. David Burnell Smith from office for
overspending his public campaign limits by more than $6,000.

The 5-0 vote marks the first time in the United States that a
legislator has been ordered to forfeit his office for violating a
publicly financed election system.

I don't know anything about Mr. Smith, so I don't know if I would agree with any of his politics or not -- I suspect though that he and I would not see eye to eye on a number of issues.  This case nevertheless leaves me with mixed feelings.

On one side, Mr. Smith signed on to the clean elections program (he doesn't have to) and accepted public funding, and thereby accepted spending limits.  He was obviously sloppy (as a minimum) in his accounting, or at worst flaunted the restrictions.

However, on the opposite side, I hate this type of campaign law. I don't like any restrictions on spending, which equate to limitations on first amendment speech rights.  I don't even like voluntary programs like this, because they use public money - read that as MY money - to finance candidates and viewpoints that I don't necessarily agree with.  In these voluntary programs, candidates are effectively being offered a publicly funded bribe to waive their first amendment rights, as argued in this suit.  I don't like seeing this next step in the arms race to limit political speech.  The ability of an unelected commision of busybodies and nitpickers to actually invalidate free elections and toss out elected officials merely because they used $6000 too much free speech is scary.  Would anyone in their right mind wish to grant this power to the FEC?

By the way, the language in the Republic article is funny, and shows their bias in this.  Note this line, emphasis added:

The commission's vote comes after three months of scrutiny in what has
been billed as the biggest test for Arizona's popular but controversial
system of taxpayer-funded political campaigns.

Here is a hint: whenever a reporter calls a program "popular", it means that it is a program that the reporter or the paper's editorial staff supports.  It does not mean that they have polling data backing up this claim.  Don't believe me?  Then note this line from the same article:

Some commissioners admitted they were reluctant to attempt to overturn
the wishes of voters in a legislative district but said it was more
important to uphold the wishes of the state's voters, who narrowly
approved the Clean Elections initiative in 1998.

Ahh, so this "popular" program was only "narrowly approved".  In fact, I looked it up.  Smith won his election by a far larger margin of victory than did the Clean Elections initiative.  Should the AZ Republic be calling him the "popular" legislator? 

Its been a frustrating day dealing with the Arizona Republic.  The day began pretty exciting as they had a beautiful article in the style section today featuring the handbags my wife creates.

Our first disappointment was the fact that the paper forgot to include my wife's web site in the article, giving readers no contact information in the article if they are interested in the purses.  Then we found that the link to her article in the style section of the Republic online was wrong, and only produced an error.  Now, mistakes like this happen - I actually messed up a link to my wife's web site in this article, but I quickly fixed it when an alert reader noticed.  So I emailed the webmaster at the Republic, and, several hours later, I got an email saying something like "here is the correct link".  But the link online is still broken!  In the time they sent me the email with the correct link, they could have just fixed the link online.  Six hours later, it still is not fixed.  This strikes me as classic dead-tree journalism, thinking in terms of making corrections days or weeks later rather than in real time.

UPDATE:  Yea!  Link fixed.  Wonder if my sending them this blog post helped or if they were doing it anyway.

Hey, this may be a first -- audit blogging.  I have an auditor from the Washington Department of Revenue in my office right now auditing my last two years sales tax returns.  She's a nice lady and so far the interaction has been pleasant.

Here is the funny thing - she has spent about 3 hours now trying to figure out what tax rates should apply at my various locations, and she is still at it.  I have written several times about the complexity of WA state sales tax variations for lodging, and how they vary by geography (here and here).  OK, if your experienced auditor has to spend hours in frustration trying to figure out what tax applies, the system is too complicated.

Update:  At halftime I am ahead, with WA owing me $800.  Stay tuned.

UPDATE #2:  Small potential setback in the 3rd quarter.  Several years ago I shifted assets (vehicles) I had bought in Arizona and used for years in Arizona to Washington for operations there.  The auditor suggested I may owe use tax on the vehicles in WA.  Huh?  Use tax drives me up a tree in general, but this seems really crazy.  WA is hyper sensitive to this issue because they have high sales taxes and very high vehicle registration fees and neighboring Oregon has not sales tax and lower registration fees.

Arizona has a history of producing some fairly libertarian politicians, and our Congressman Jeff Flake fits that mold.  Via the Club for Growth, Flake points out some more egregious pork:

Washington, D.C. - Arizona Congressman Jeff Flake, who represents the state's Sixth District, today highlighted another pork project contained in the massive omnibus spending bill that Congress passed late last year.  This week's egregious earmark: $1.5 million for a demonstration project to transport naturally chilled water from Lake Ontario to Lake Onondaga.

Perhaps, as reported here at Arizona Watch.  Symington would certainly make politics more interesting around here for a while.

Before you read any further, look at the houses here.  Here is an example:

They look like normal, everyday Midwestern houses, right?  I mean, some are kind of small but several look pretty nice and all of them are in good shape with well-kept lawns, etc.

So what do these houses have in common?  They have all been condemned as "blighted" by Norwood, Ohio.  They have been seized by the city government and will be torn down.

OK, what's the real reason?  The real reason is that Norwood, Ohio wants a Crate & Barrel store where these houses are.  They think the Crate & Barrel is a better use of the land, and they are pretty sure that C&B will pay them more taxes than these homeowners, so they are taking people's homes and giving the land to the developer.  More here and here on this story, and Cato has a whole bunch of articles on abuse of the Constitution's takings clause here.  We have had our own local ongoing takings debate in nearby Mesa, Arizona.

This kind of garbage happens far, far too often.  If the developer wants the land, he can buy it.  If people won't sell, he can go somewhere else.  Simple.

Update:  Here is a pretty bizare intrusion of local government on your home here, too.  Hope they don't find out house.

I am spending the day filing all our sales tax returns (10 states, 4 counties) and have noticed something about state and county tax collectors and treasurers.  They put their name all over everything.  Take Lake County, Florida.  The sales tax form says "BOB MCKEE" and in little letters underneath that it says "Lake County Tax Collector".  The pre-addressed envelope is to BOB MCKEE.  I have to make my sales tax check to, you guessed it, BOB MCKEE.

Why is BOB MCKEE's name all over this?  What happens when BOB MCKEE retires or fails to get reelected?  Isn't the county stuck with a huge printing bill to replace all the forms and send out new ones?  And, assuming this is an elective office, don't BOB MCKEE's political opponents object to tens of thousands of dollars of free advertising paid for by the county.  Heck, I can't always name all my Congressman here in Arizona but I sure as hell know that BOB MCKEE is the tax collector for Lake County, Florida.  Conversely, I don't know who the head of the IRS is and I certainly don't address my checks to him or her on April 15.

By the way, this is just one example.  I get sales and property tax forms and such from many many counties in 10 states and it is much more the rule than the exception that the person, rather than the office, dominates the letterhead.  Stupid.  And, given the taxpayer subsidy implied for the incumbent, mildly corrupt.

This week, an odd substance has been spotted in Arizona rivers.  Courtesy of a commenter badassredskin on Fark.com, some good Sedona flood before and after pictures:

Slide Rock Park, near Sedona before (note bathroom building for reference)

Same park, more recently:

This has made a real mess of the Oak Creek Canyon near Sedona, which by the way I consider one of the most beautiful spots on earth.  Slide Rock Park is a great park, though I am a bit biased since my company runs the concession store at Slide Rock Park.  Our building at this park is fine, but we have had several of our campgrounds in this canyon flooded.

Too bad the weather was not like this for these guys!