The government is headed toward a shutdown this weekend (12:00 am on Sunday to be precise). A 2019 report ([link removed]) showed that the last three shutdowns cost taxpayers $4 billion. Government shutdowns are 100 percent avoidable and Congress needs to find a way to keep government open while still looking for ways to cut spending. If they need help with spending cuts, we have some ideas.
Profile in Courage – Governor Jared Polis
In today’s politically polarized age, it seems that the letter next to an elected official’s name says it all. If a member of their own political tribe does something wrong (often involving large sums of taxpayer dollars), the official will reflexively rally to their defense and accuse the other party of even greater offenses. Fortunately, some public servants have risen above endless whataboutism and partisan bickering. Colorado Governor Jared Polis (D) has stayed above the fray as he attempts to shield his constituents from overzealous federal tax agents and nonsensical state restrictions. And, for leading based on conviction rather than partisan friction, Governor Polis is most certainly a Profile in Courage. From an early age, Polis dreamt big and strove to change the world. He was admitted to Princeton University at just 16, and his older colleagues marveled at his smarts and dedication. According to classmate Derek Kilmer, “The average class load was four classes, and Jared was the
guy who was taking seven or eight classes in a semester. He was just super smart and really hard working.” After graduating from Princeton, he went on a company-founding binge and amassed a small fortune. He co-founded American Information Systems (his first successful internet company) at just 22 and promptly sold it to a California company for a cool $23 million. That same year (1998), Polis founded a floral e-commerce company called ProFlowers, which would eventually become part of a larger, multi-billion-dollar juggernaut called Florists' Transworld Delivery.
After campaigning for several Colorado ballot measures, Polis put his hat in the ring for Colorado's 2nd congressional district and won the seat in 2008 with an impressive 63 percent of the vote. In his ten years in the House, Polis found comradery in the House Liberty Caucus, which championed a limited government approach to public policy issues. While Polis was a Democrat and generally campaigned with appeals to liberal values, he was also concerned about the burgeoning federal debt, rising tax burden, and endless thicket of red tape coming from Washington, D.C. But, it can be difficult to get things done when most lawmakers care more about posturing and engineering shutdowns than governing responsibly. By 2018, Polis was convinced that his talents were best suited toward more local governance. He entered an uphill race to become governor of Colorado, and used extensive grassroots campaigning to convince voters he was the right choice. His message of freedom and limited government
apparently resonated, and he defeated Republican Walker Stapleton by more than ten percentage points. And, true to his word, Polis has done his best to shrink government in his four years as governor. During the coronavirus pandemic, the Taxpayers Protection Alliance (TPA) praised Governor Polis for embracing sensible reopening policies and getting his state moving again.
More recently, Governor Polis took on the Internal Revenue Service (IRS), pushing back against brazen anti-taxpayer policies. Under the Taxpayer Bill of Rights (TABOR), the Colorado state government is limited in how much it can take from its residents and must refund amounts taken in excess. That’s all well and good, until the IRS decides it wants a piece of the pie. In August, the IRS said it was reevaluating the tax-free status of these refunds and might claim a share of TABOR checks. Polis rightly responded, “It doesn’t make sense. We’re going to fight it. We’re working with Sen. (Michael) Bennet and others to try and provide comment during this period to say, wait a minute: If it’s a stimulus, that’s one thing. That’s not what this is. This is a constitutional TABOR refund. Should not be taxed.” Now that Governor Polis and his federal allies are mobilized against TABOR taxes, it’s less likely that IRS agents will come after Coloradans’ hard-earned cash. The fight isn’t over yet,
but TPA (and presumably the Polis administration) will be closely monitoring any future IRS rulings. Governor Polis deserves recognition and respect for bucking partisanship and focusing on doing the right thing for his constituents. And, for providing a masterclass on leadership and responsibility, Governor Polis is a Profile in Courage.
The FTC’s Prime Mistake
On Tuesday, the Federal Trade Commission and 17 states announced that they are suing Amazon in a landmark monopoly case reflecting years of allegations that the e-commerce giant abused its economic dominance and harmed fair competition. The current FTC (an explicitly partisan three to zero Democratic majority) is headed by Chair Lina Khan, who rose to prominence with her extensive criticism of Amazon. Prior to her tenure at the FTC, Khan was legal director at the Open Markets Institute. As recently as 2013, the Open Markets Institute’s Executive Director, Barry Lynn, called for the government to break up Walmart. The pattern of crying ‘monopoly’ by antitrust activists ought to be clear. There is nothing behind this FTC’s repeated frivolous cases, from unsuccessful suits against Meta and Microsoft to this most recent case against Amazon other than ideology. The FTC and its allies want to micromanage the economy by handicapping its most successful competitors.
For the last half century courts have recognized antitrust law should protect consumers and competition, not punish or reward specific competitors. This has allowed American firms to outclass global counterparts in countless industries, particularly in the tech sector. The explicit goal of this FTC and its allies elsewhere in government is to turn this successful model on its head. They are pursuing a participation trophy model for the economy, where no firm is allowed to ever be the most competitive for any appreciable amount of time. Under their vision, success is to be rewarded with handcuffs and flagrant violations of companies’ property rights, regardless of the consumer experience. This antitrust agenda will only breed stagnation and harm consumers. Amazon became the company it is today because it saw an opportunity to challenge Walmart. This was an opportunity that obviously wasn’t visible to the exact same people who now think they know what’s better for consumers than consumers
themselves. If all that entrepreneurs and investors see going forward is a finish-line made of red tape, innovation and competition will suffer and so too will the American consumer. Amazon is a small fraction of the overall retail market at around ten percent, still behind Walmart. Walmart and other retailers’ online platforms are growing faster than Amazon’s despite any action by the FTC. Undoubtedly, Amazon has a successful business model, but like Walmart before it, Amazon is not an invincible monopoly nor is it illegal to temporarily be the most successful firm.
BLOGS:
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Monday: No “Epidemic,” But CDC Delivers New Dose of Youth-Vaping Alarmism ([link removed])
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** Tuesday: Consumer Group Slams Frivolous, Ideological FTC Suit Against Amazon ([link removed])
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** Wednesday: State Bill of the Month: Wisconsin Act Relating to Lowering Individual Income Tax Rates ([link removed])
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** Thursday: Bill of the Month: No Budget, No Pay Act ([link removed])
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Friday: Profile in Courage: Colorado Governor Jared Polis (D) ([link removed])
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MEDIA:
September 25, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about the economic impact of car thefts in Baltimore City.
September 28, 2023: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the presidential debate and tax reform.
September 28, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about a potential government shutdown.
September 28, 2023: Real Clear Markets ran TPA’s op-ed, “The Market Is Changing, But It Is Working.”
September 28, 2023: Townhall.com ([link removed]) ran TPA’s op-ed, “The DOJ’s Case Against Google Is Weak Sauce.”
September 28, 2023: Broadband Breakfast ran TPA’s op-ed, “FCC Push To Eliminate Data Caps Could Increase Broadband Rates For Many Users.”
Have a great weekend!
Best,
David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 1120
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])
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