Repeal Obamacare But Do NOT Replace It

Republicans in Congress are painting Americans into a corner they will never be able to get out of with Obamacare.  The paint will never be dry, and we will always be stuck with a horrific piece of legislation.

Why are Republicans playing this game with our future?  Do they truly believe that they can, via government, provide a better social program than the Democrats?  What happened to Free Market principles.

First, repeal Obamacare completely. Continue reading

Picking Winners and Losers: How Our State Government Functions (Georgia Musical Investment Act)

Georgia’s State government is pretty much like every other government.  They love the idea of picking winners and losers.    Whether or not your business or sector is a winner or a loser is going to depend on a lot of things, but it will not depend on being equal under the law.


 

HB 155
Georgia Musical Investment Act

A BILL to be entitled an Act to amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of and exemptions from state income taxes, so as to create an income tax credit for certain expenditures by a production company related to certain state certified musical or theatrical productions or recorded musical performances; to provide for rules and regulations and an application process related to such income tax credit; to provide for certain conditions and limitations; to provide for definitions; to provide a short title; to provide for related matters; to repeal conflicting laws; and for other purposes.

We apparently need to offer tax credits to production companies to the tune of 15% for Production Companies to come to the State of Georgia.  And if they locate into one of the 100 poorest counties, they could get an additional 10% credit.

And while the tax credit is limited to $5 million the first year, it will expand to $15 million by year three.

If Georgia politicians want a better business environment, then why do they not lower taxes for ALL Georgia businesses?  What game are we playing here?

Is the music industry in crisis?  Is there a reason that they need additional support from the State of Georgia?  Frankly, it doesn’t matter.

When government picks winners, they also pick losers.  Government should not be in that job.

Supply and demand should pic winners and losers.  And under the law, it should not matter if you have started a Music business or a Automotive Repair Shop.  Each should be treated equally.

It’s no wonder the American Public looks at government with disdain.  So much time and energy is spent attempting to engineer outcomes when they should only be administering the framework, and not determining outcomes.

By the way, it passed 157-11 in the Georgia House.  Now it goes before the Senate.  Let’s hope they have a little more common sense.

 

It’s a Privilege to Do Business in Georgia(and So You Must Pay)

Yes, indeed, it is a privilege to do business in Georgia.  I am not speaking from the eyes of the business owner who is grateful of where he has chosen to open his business.  Instead I am speaking of how government views you and your business enterprise.

And as it is such a privilege, the State of Georgia taxes you for that privilege.

Senate Bill 133 brought that to my attention as they are attempting to remove this tax for businesses of a certain size.  It will still be a privilege to have a business, for that language will not be removed, but some businesses will be exempt.

http://www.legis.ga.gov/Legislation/en-US/display/20172018/SB/133?utm_source=Copy+of+Eyes+and+Ears+-+GaPundit+for+Feb+27%2C+2017&utm_campaign=GaPundit+Todd+Rehm+Georgia+Politics+04202015&utm_medium=email

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The Naked Truth About (Subsidized) Wages

If you have read my work over the years, then you know that I am not a proponent of Minimum Wage.  An adult should be able to work for anyone at an agreed price.

However, a new issue has come into my view I did not realize existed until recently.

Apparently there are groups out there (think Chamber of Commerce) that works with your local governments to hold wages down by:

A)  Making sure that there is Affordable Housing in your area so their workers can live nearby

B) Making sure there is mass transit options so that low cost workers can get to the businesses that want to hirer low cost employees(A Chamber Objective for sure) Continue reading

Johns Creek Traffic Volumes: Not As Advertised

The City of Johns Creek has created a myth about our traffic volumes.  Either that or the GDOT Web Server, which stores thousands of data points for traffic across the state and which is used for traffic planning is entirely worthless and wrong.

The City of Johns Creek tells us we have an ever growing body of traffic from Forsyth County.  I have challenged that idea over the last two years only to be summarily dismissed by City Officials.

Once again here is the most updated data from GDOT which clearly shows no major increases on 141 over the last decade EXCEPT for two locations.


 

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The Federal Reserve Bank: Pumping Fuel onto the Bonfire of Inflation

We are in very uncertain times.  And they are becoming more uncertain.  The Federal Reserve Bank(FRB) just raised interest rates .25% and has stated it is their objective to raise rates perhaps 3 times in 2017, in an effort to effectively curb inflation.

And while that may seem to make sense based on the way both the FRB has worked in the past, and what we have been told about inflation and how it works, these actions, perversely, are going to have the opposite effect this time around.  Should I be correct, then the raising rates will actually fuel inflation, which will force more rate hikes, and then even more inflation. Continue reading

The Great Billboard Controversy of Johns Creek

For several years now the interests of the Johns Creek residents have been growing in their desire to  both understand and participate in how their closest level of government-their city government- functions.

And, what many of have seen has not been exactly what we had hoped for.  Voter apathy has been mentioned often in City Council Meetings.  Lack of citizens showing up at City Hall for Council Meetings was evident.  City Council members tired of the same citizens making public comments.

Yet over the last three years there have been several events that have awakened the public, and coupled with more ways to have conversations (such as the Johns Creek Post and NextDoor) the genie is out of the bottle.  Public scrutiny is going to only grow. Continue reading

Johns Creek: It’s In Your Best Interest to Stop TSPLOST

The vote Johns Creek residents will take on the TSPLOST 0.75% tax is critical to understand.

Voters are being presented with the opportunity to raise the taxes on themselves, which will effectively increase the spending and size of the Johns Creek City government by 29.7%.  That is not insignificant. Continue reading

What’s Undermining Residential Real Estate Values in the City of Johns Creek?

Johns Creek receives many accolades throughout the year, and 2016 has not been an exception to that trend.

For many residents, concern over ever higher densities of residential real estate developments such as apartments and town homes has been a major concern.  But the City of Johns Creek pushes ahead with ever more high density development with seemingly arbitrary lines drawn as to where the higher densities are permissible and where they are not.

Residents did not directly vote on these issues.  They only have cast votes for those that decide on these issues.  And as history has shown, there are not a plethora of voters that even bother to make their voices heard.  That, however is changing.

There is a cost to current residents as more and more of these high density developments are approved and put into place.

Let’s ask the residents of Johns Creek who were here in 2007.  Taking the data from the 2015 CAFR report (you can find it here:  http://www.johnscreekga.gov/JCGA/Media/PDF-Finance/2015-cafr.pdf ) on page 61 shows Johns Creek had a population of 70,050 and a residential tax digest (page 79) of $3,215,735,140.

A simple calculation reveals that in 2007 we had $48,727 of residential real estate per resident.

How have the residents of 2007 fared over the course of the last 8 years?  Well, not so well.  Using the population counts and the residential tax digest from the same pages mentioned above, we can see that residents of Johns Creek  have seen that number drop to $40,117 per resident, a decline of 17.67%.

Residential Property Value Per Capita
Year Residential Property Population
2007 $3,215,735,140.00 65994 $48,727.69
2015 $3,333,836,970.00 83102 $40,117.41
-17.67%
Source: Johns Creek CAFR 2015

Why are residents from years past seeing such a drop in values for their community at large over time? The drop in housing prices from the recession is behind most communities in our area and should certainly be behind us in Johns Creek.

I’ll blame that in large part to the additional higher density housing which has been added over the years and continues to be added even as we speak.

Those that move into higher density developments are those that are not buying the current real estate stock we have in Johns Creek.  Fewer buyers for that real estate naturally lowers the selling prices of the real estate.  Yes indeed, the supply and demand curve you had to learn about in high school and college is actually meaningful.

Additionally, all of this “new” higher density living is coming in at average price points below what the average homes in Johns Creek are worth.

So we have less demand lowering selling points and lower prices units pulling down the averages as well.

Also interestingly enough the amount of commercial real estate per resident is rising.

Commercial Property Value Per Capita
Year Commercial Property Value Population
2007 $691,897,960.00 65994 $10,484.26
2015 $879,818,130.00 83102 $10,587.21
0.98%
Source: Johns Creek CAFR 2015

So as residential property values fall per resident, commercial property values are rising per resident.

I doubt that has been the objective of many of the residents within our community.  Those that reside on Findley Road at City Hall are undoubtedly happy about this outcome, however.

After all, they are the ones who continue to vote and push us along this path of more commercial development and higher density housing.

 

 

 

 

 

Worsening Economic Conditions: Where’s the Growth?

Today’s GDP report paints a bleak picture.  GDP for the first quarter was revised down to 0.8%.  The second quarter of 2016 came out at 1.2%, and will likely be revised lower.

Here is what they also released, but are not talking about:

Corporate profits before and after taxes have also been revised back to the first quarter of 2013.  And it is bleak.

Remember that businesses do not go into business just to sell you goods and services.  They do so to sell you goods and services to generate profits.

Would you trudge off to work every day to earn less than you did last year? And less than you did two years ago?  Or would you make some changes? Continue reading