This week, TPA president David Williams is in the “Land Down Under,” hanging out with sharks and promoting our work to hold International Governmental Organizations (IGOs) accountable. TPA has no fear, whether it be of swimming with one of nature's deadliest predators or tackling bad policy head-on!
And sadly, there’s no shortage of bad policy in our nation’s capital. Benefits to U.S. households and businesses from the 2017 tax cuts are in jeopardy as President Trump increases tariffs (import taxes) on consumers and manufacturers under the guise of his "trade war" with China. New tariffs will cost U.S. families $1,000 a year, and increase the chances of a recession (just in time for 2020 elections). President Trump seems eager to “negotiate” with China, but things are unlikely to improve substantially until the administration realizes just how destructive tariffs are to consumers and taxpayers. We’ll do our best to help President Trump see the light but stay tuned and feel free to let us know how the trade war has impacted you and your family.
Summer Reading: C-Band by the Seaside
Like many lawmakers, you’re probably at the beach trying to put the troubles of politics and policy behind you. But no trip to the beach is complete without some selfies to prove to everyone from your high-school acquaintance to third-cousin that, yes, you leave the house from time to time. Taking the pictures is one thing but uploading the pictures to Facebook is quite another matter. Internet access at the beach leaves little to be desired, and you may have to wait for that (very long) drive home to try your luck again. We feel your pain, and this week, TPA policy director Ross Marchand has a new Summer Reading that will help lawmakers bolster the speed/reliability of the internet. If they listen to our recommendations, that selfie “IRL” (in real life) may just be possible. Here’s an excerpt from the latest Summer Reading:
“Broadband providers need to be sure that they’ll have enough bandwidth to get new internet connectivity standards up-and-running. Economic benefits – particularly for the internet of things and healthcare sector – will be immense if the federal government can free up enough spectrum to accommodate 5G (which promises to be at least ten times faster than 4G). Mid-band (or ‘c-band’) spectrum is the Goldilocks zone for 5G since mid-band radio waves can transmit internet data over long distances while still carrying large amounts of information. Normally, spectrum is auctioned by the government and bidding reveals the underlying market value of each sliver of radio waves.
…
Yet a small consortium of satellite companies called the C-Band Alliance (CBA) wants to undermine this robust system by taking c-band spectrum from the FCC without any real commitment to pay for it. This government-granted monopoly would then sell the spectrum on their own terms and pocket the proceeds while barring other spectrum holders from benefiting. CBA executive vice president Peter Pitsch claimed to Congress on July 16 that the consortium would make a ‘significant voluntary contribution to the U.S. Treasury.’ This, of course, is a significant departure from ordinary market transactions, where companies agree to a binding price before a sale proceeds. But Pitsch’s ‘pitch’ seemed at odds with prevailing opinion among CBA’s members.
In August, Eutelsat CEO Rodolphe Belmer stated that, in regards to the ‘voluntary contribution,’ ‘There is no real agreement and alignment on that question within the CBA, contrary to what has been said in some instances recently…What I can tell you is that this voluntary contribution to the U.S. Treasury is not part of the scope of the CBA. It needs to be discussed and aligned within all the members of the CBA, meaning the four of us, and for the moment there is no alignment on that.’”
Clearly, the “private sale” approach to c-band spectrum is deeply flawed and betrays a deep misunderstanding of how spectrum markets work. As the fight over spectrum heats up in September, TPA will continue to urge lawmakers and the FCC to pursue sound internet/spectrum policies, so those beach selfies can finally get the likes (or lack thereof) that they deserve.
Sorry State of Property Rights in Venezuela
With the possible exception of spectrum (see previous section, nerds), property rights are usually well-defined and assure owners that they’ll be able to keep and expand upon what they earn. The government might be able to buy your land if you want to sell it (although it looks like our taxes won't be paying for a new Trump Tower in Greenland anytime soon!) but it can't simply take it away.
This concept of property rights, whether they be physical or intellectual, are at the very core of what makes the United States such a prosperous nation. After all, why invest if the government can one day take away said investments from you on a whim? As economist Hernando de Soto has conclusively proven, it is property rights that make the difference between a country that is successful, and one filled with desperate poverty.
Nowhere is this more evident than in Venezuela right now. Years of socialist rule and stripping away all vestiges of property have led to an inflation rate north of ten million percent (In the United States inflation is just two percent). Wheelbarrows of money are needed just to buy everyday household items, and citizens are unable to purchase necessities like toilet paper.
As part of their campaign of theft from businesses, the Chavez dictatorship took over mines owned by the Canadian company Crystallex in 2008. Bear in mind this was after the company had invested hundreds of millions of dollars in equipment, community development and operations. Naturally, the company sued and in 2016 the World Bank ruled the company was owed $1.4 billion USD in compensation. Rather unsurprisingly, however, the Venezuelan regime has been unwilling to return these stolen funds.
Fortunately, international law has a solution for these cases: companies are permitted to pursue state-owned assets located abroad. And this is what has happened here. A $10 billion Venezuelan government-owned business, CITGO, is operating in the U.S. and naturally Crystallex was awarded a lien against its shares by the US court system. All is as its should be.
Unfortunately. there is an extensive lobbying effort (sadly abetted by the legitimate President of Venezuela, Juan Guaidó) for the Trump administration to intervene and somehow prevent the restoration of Crystallex’s stolen assets. So far, the executive branch has wisely ignored this pressure, but the fight is far from over. Let’s hope that sanity prevails, and we don’t import a Venezuelan-style disregard for property rights!
Blogs:
Monday: It’s Time to Celebrate Markets in Wireless Spectrum, Not Undermine Them
Tuesday: Yes, It’s Possible to Protect the Planet Without Gouging Consumers
Thursday: Rising Red Ink Is a Good Sign… Except When Government is Doing the Spending
Friday: Summer Reading: C-Band by the Seaside
Media:
August 20, 2019: TPA Executive Director Tim Andrews appeared on WFXT (Boston, MA), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WSB (Atlanta, GA), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on KIRO (Seattle, WA), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WFTV/WRDQ (Orlando, FL), (Seattle, WA), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WPXI/PCNC (Pittsburgh, PA), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WSOC/WAXN (Charlotte, NC), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WJAX/WFOX (Jacksonville, FL), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WHBQ (Memphis, TN), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on KOKO/KMYT (Tulsa, OK), to discuss Department of Defense travel spending.
August 20, 2019: TPA Executive Director Tim Andrews appeared on WHIO (Dayton, OH), to discuss Department of Defense travel spending.
August 20, 2019: TPA policy director Ross Marchand appeared on “Ringside Politics” (WGSO 990 AM; New Orleans, La.) to discuss surprise billing and healthcare reform.
August 20, 2019: The American Banker ran TPA’s op-ed, “Postal banking won’t deliver for USPS.”
August 20, 2019: The Credit Union Journal ran TPA’s op-ed, “Postal banking won’t deliver for USPS.”
August 20, 2019: Townhall ran TPA’s op-ed, “FDA Should Support Harm Reduction Products, Not Big, Scary Warning Labels.”
August 22, 2019: The Consumer Postal Council published TPA’s op-ed, “Postal banking won’t deliver for USPS.”
August 22, 2019: Catalyst ran TPA’s op-ed, “With the Right Reforms, Gene Therapy Can Cure Millions.”
August 22, 2019: The Tennessean (Nashville, Tenn.) ran TPA’s op-ed, “Tired of Titans blackouts? This Congressional fix could end TV contract disputes.”
August 23, 2019: Townhall ran TPA’s op-ed, “Payday Loan 'Protections' Would Harm Millions of Struggling Americans.”
Have a great weekend, and as always, thanks for your continued support.
Best,
Tim Andrews
Executive Director
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
