It’s deja vu all over again…

Several of the unconstitutional “Dirty Dozen” tax bills previously rammed through the Colorado House (Monday) on a largely party-line vote are now scheduled for hearings before the Colorado Senate.

The following bills are scheduled for hearings and public testimony Wednesday before the Senate Finance Committee at the Colorado Capitol (Old Supreme Court chambers, 2nd Floor north side):

-HB 1189 (Elimination of the state sales and use tax exemption for direct mail advertising materials)
-HB 1191 (Subjecting candy and soft drinks to the state sales and use taxes)
-HB 1194 (Eliminating sales tax exemptions for “nonessential food articles” - the “doggy bag” tax)
-HB 1196 (Elimination of tax credit for alternative fuel vehicles)

Clear The Bench Colorado Director Matt Arnold will testify in opposition to these bills on constitutional grounds - since it is clear that each bill represents “a tax policy change…  resulting in a net revenue gain” and therefore, under the Colorado Constitution, requires prior approval by a vote of the people.

Please join in opposition to these stealth tax increases - being imposed on Colorado citizens without the constitutionally required prior approval by a vote of the people - either by showing up to testify, or by contacting your state Senator to register YOUR opinion.

Defend your right to have a vote before being taxed - and exercise YOUR right to vote “NO” on the four ‘unjust justices’ of the Mullarkey Majority (Michael Bender, Alex Martinez, Nancy Rice, and Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your homes and business from seizure by rapacious governments, and your right to enjoy the benefits of the rule of law, instead of rule by an oligarchy of activist, agenda-driven “justices.”  Help to Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO” vote on retaining these unjust justices!

The Colorado House today rammed through the majority of the “Dirty Dozen” stealth tax increases - by way of eliminating existing tax credits or exemptions that will adversely affect Colorado businesses, as well as Colorado ranchers and farmers, along with current employees, job-seekers, and consumers - on a mostly party-line vote following several hours of debate Monday.

Clear The Bench Colorado Director Matt Arnold testified in opposition to these bills on constitutional grounds - since it is clear that each bill represents “a tax policy change…  resulting in a net revenue gain” and therefore, under the Colorado Constitution, requires prior approval by a vote of the people.

Several legislators offered amendments to these bills, both in committee hearings and on the floor in debate, to refer the tax increases for prior approval by a vote of the people (as required under the clear letter and intent of the Taxpayer’s Bill of Rights)  or, failing that, to at least allow a referendum in opposition to the tax increases.  All were shot down, again on an overwhelmingly party-line vote.

It is increasingly clear that many legislators - supposedly elected as representatives of the people of Colorado - arrogantly deride and ignore the very citizens who are ultimately their employers, in favor of well-organized special interests constantly seeking to expand the power of government.  It is also increasingly clear that constitutional limits on government power are an essential check and balance to this constant hunger for ever more power and control over your life.  Finally, it is now abundantly clear that the supposed guardian of those constitutional limits on government power - the judicial branch, specifically the Colorado Supreme Court - has failed in its duty to uphold the Constitution and protect the citizens of Colorado from legislative abuses.

Refuse to be a victim of government abuse of power - you CAN exercise YOUR right to vote “NO” on the four ‘unjust justices’ of the Mullarkey Majority (Michael Bender, Alex Martinez, Nancy Rice, and Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your homes and business from seizure by rapacious governments, and your right to enjoy the benefits of the rule of law, instead of rule by an oligarchy of activist, agenda-driven “justices.”  Help to Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO” vote on retaining these unjust justices!

After missing out on testifying during the first (and very extended) day of hearings on the “Dirty Dozen” tax increase bills on Wednesday/Thursday and being repeatedly interrupted and ultimately gaveled down when offering opposition testimony earlier in the morning, Clear The Bench Colorado Director Matt Arnold was finally allowed to testify in opposition to one of the final bills under consideration (House Bill 10-1199: Net Operating Loss Deduction (Ferrandino/Heath) - Limits net operating losses to $250,000 for the next three years) at nearly high noon (appropriately?) on Friday.

Following the previous experience of repeated interruptions, Director Arnold spent some time before returning to the witness chair in writing up some prepared remarks, which follow:

I rise again in opposition to yet another unconstitutional stealth tax increase under consideration by this committee.

I will not appeal to your civility - by your conduct and demeanor, it is apparent that you have none.

I will not appeal to your respect for the Colorado Constitution and your oath of office - it is apparent that you have none.

I will not appeal to your sense of shame - again, it is clear that you have none.

I will address the specifics of this particular bill - and the inevitable impacts to business that will result, as well as the clear violations of the Colorado Constitution (Article X, Section 20 - TABOR).

There can be no question but that this bill represents “a tax policy change…  resulting in a net revenue gain” and therefore, under the Colorado Constitution, requires a vote of the people.

I am acutely aware of the anti-constitutional ruling of the Colorado Supreme Court in the “Mill Levy Tax Freeze” case that put these tax credits & exemptions on the chopping block, and the interpretation of that language that some among you feel justifies this stealth attempt at increasing the tax burden on Colorado citizens and businesses.

Subsection (4)(a) [the requirement that tax increases receive prior approval by a vote of the people] must be read in conjunction with the other provisions of article X, section 20; specifically, the subsection (7) revenue limits. When read together, it becomes apparent that a “tax policy change directly causing a net tax revenue gain to any district” only requires advance voter approval when the gain exceeds one of the subsection (7) revenue limits. …

To avoid such a result, we find that a “tax policy change directly causing a net tax revenue gain” only requires voter approval when the revenue gain exceeds the limits dictated by subsection (7).

Even under this dubious interpretation, this particular bill - because it imposes additional tax increases that will fall AFTER suspension of the subsection (7) limits due to Referendum C EXPIRE - is an even more clear violation of the Taxpayer’s Bill of Rights.

39-22-504. Net operating losses. (6) (a) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE MAXIMUM AMOUNT OF NET OPERATING LOSS THAT A CORPORATION MAY SUBTRACT FROM FEDERAL  TAXABLE INCOME PURSUANT TO SECTION 39-22-304 (3) (g) FOR A TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2011, BUT PRIOR TO JANUARY 1, 2014, IS TWO HUNDRED FIFTY THOUSAND DOLLARS.

For that reason, you are failing in your fiduciary duty to the citizens of Colorado by attempting to pass legislation that cannot pass Constitutional muster, and WILL fall to the inevitable legal challenge - even under the expansive definitions adopted by the current Colorado Supreme Court majority.

On the business front - this bill unfairly penalizes those businesses who have toughed out the worst hits just when they might be getting on the path to recovery.  Adding additional tax burdens on businesses struggling to escape bad years will RETARD any incipient recovery, delaying their ability to create jobs and generate revenue (which will have a net negative effect on revenues for the state).

Playing semantic games about “repealing” vs. “deferring” the tax credit is disingenuous - forcing businesses to provide the government an interest-free loan is a tax by any other name - and smells just as rank.

Pretending that not having funds available NOW - opportunity costs - does not impact business is either disingenuous or shockingly ignorant of economic facts.

Businesses also rely on a certain amount of regulatory stability and generally on the rule of law - changing the rules in the middle of the game decreases investment and willingness to take risk.

This bill will not only damage businesses, but also violate the constitutional rights of Colorado citizens to exercise prior approval on tax increases.

Following my testimony, the committee members weighed in with their own statements and comments.  Rep. Cheri Gerou (R-HD35) graciously apologized on behalf of the committee for the chair’s earlier abusive conduct.  Rep. Daniel Kagan (D-HD3 by way of Great Britain) rebuked criticism of the bill on constitutional grounds and continued by lecturing on the Constitution - all while insisting “I will not enter into a debate on the Constitution” (of course not; lecturing from the rostrum is much more his style).  [Interestingly enough, Rep. Kagan - who's income is derived exclusively from overseas business holdings, presumably NOT subject to the tax increases he is proposing - seems to have a unique perspective on public-private sector relations]:

“We are operating as a collective… to provide supports to the private sector.”  ”We cannot provide them without some money - we just need a ’small slice’ of everyone’s money to provide these service. We’re in a joint venture to ensure that industry thrives.”

Rep. Judd, although on greatly improved behavior, could not seem to stop himself from interrupting on several occasions - including one in which he stated that he “would not stand… for interruptions.”  (Seems to be lacking the irony gene).

At least this time, testimony was not “gaveled closed” prior to completion.

Don’t let YOUR voice be “gaveled down” this November - you CAN exercise YOUR right to vote “NO” on the four ‘unjust justices’ of the Mullarkey Majority (Michael Bender, Alex Martinez, Nancy Rice, and Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your homes and business from seizure by rapacious governments, and your right to enjoy the benefits of the rule of law, instead of rule by an oligarchy of activist, agenda-driven “justices.”  Help to Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO” vote on retaining these unjust justices!

From the “any press is good press” files…

Appearing Friday morning to testify against the remaining unconstitutional stealth tax increase bills that had NOT (yet) been rammed through on a party-line vote by the Colorado House Finance Committee over the overwhelming opposition of citizens appearing en masse Wednesday/Thursday (specifically, against House Bill 1195: Suspend Agricultural Sales and Use Tax Exemption (Ferrandino/Heath)), another unconstitutional tax increase on Colorado ranchers and farmers, Clear The Bench Colorado Director Matt Arnold may have crossed a linguistic line in response to abusive conduct by the committee chair, Rep. Joel Judd, in a story that appeared on KMGH-7 nightly news and online:

Witness calls committee chairman an “arrogant SOB”

Responding to repeated interruptions by the chair, who ultimately did not allow the witness to get back to the specifics of the bill being heard before “gaveling down” discussion and closing testimony on the bill (with a malicious, triumphant gleam), it is true that the witness… stated: “You are a rather arrogant SOB, are you not, sir,” as he was leaving the table.

Although the use of the term “arrogant” was, if anything, an understatement (by their conduct and demeanor, Rep. Judd and others clearly do not believe that either element of the term “Civil Servant” should apply to them), the use of the term “SOB” (yes, it was the acronym) was clearly inappropriate.

Clear The Bench Colorado disavows any perceived aspersion on Rep. Judd’s parentage - such was not intended; it’s quite likely that his mother is a sweet little old lady who would be ashamed at his lack of manners and common courtesy.

Clear The Bench Colorado further apologizes to all dogs and dog-lovers throughout the state - particularly the female dogs - for inappropriately associating them with Finance Chairman Rep. Judd.  Clear The Bench Colorado recognizes the foremost qualities of canines as being both loyal & lovable - attributes clearly NOT shared by the House Finance Committee chair.

In all seriousness - it is a sad statement that the media coverage of this ‘linguistic flap’ has focused NOT on the frequently disrespectful, often abusive treatment of citizens (myself least among them) who took time from their jobs, family, and friends to come down to the state Capitol to testify against these dozen distinct assaults on their livelihood, but played up the “if it bleeds, it leads” aspect of the statement by one citizen who dared speak out against the arrogance on display.

Don’t let YOUR voice be “gaveled down” this November - you CAN exercise YOUR right to vote “NO” on the four ‘unjust justices’ of the Mullarkey Majority (Michael Bender, Alex Martinez, Nancy Rice, and Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your homes and business from seizure by rapacious governments, and your right to enjoy the benefits of the rule of law, instead of rule by an oligarchy of activist, agenda-driven “justices.”  Help to Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO” vote on retaining these unjust justices!