Why We No Longer Trust Our Government, Reason #759: North Carolina’s Unethical Tax Stall

Every time Gallup  does a poll to find out who the public thinks is ethical and unethical, one result always comes out the same. Over 95% of those polled will say that most ethical person they know is…themselves. I used to make fun of this result in my seminars as a classic example of self-delusion. The used-car dealer really thinks he is the most ethical person he knows? Tom Delay and Charlie Rangel really think that they are the most ethical people they know? I don’t believe it.

But I recently had an epiphany. People don’t really think they are the most ethical. What we do think is that each of us is the one person  that we most trust. Not our spouses, not our parents, not our employers, not our elected officials…no matter how virtuous they may be, the person whom we know, with absolute certainty, won’t betray us  is our self. That is an especially American attitude, embodying self-reliance, autonomy, and independence, and I was wrong not to misread it. Those who deride us for not trusting the government to solve our problems are wrong not to recognize it too, particularly when the attitude is being reinforced by stories like this one, from North Carolina.

The North Carolina Department of Revenue is reviewing  230,000 unresolved tax returns going back to 1994, including cases in which taxpayers overpaid and are owed money by the state. The state, however, has rigged the rules to make it less likely that the refunds are ever made. Continue reading

Obama, the Bomber, and the Dangers of Deceit

I live in the Washington,D.C. area, and I often say that deceit is the official language here. Deceit is an artful form of lying in which literally truthful statements are made in a manner, tone and context designed to deceive others into believing something that is not true, by playing on their assumptions, hopes or trust. Like any other lie, it allows the liar to gain tangible benefits, but with less risk than with a normal lie.  If a deceitful statement is unmasked after an individual has relied on it, the originator of the deceit  can and often does blame the duped listener, who “misunderstood” or “jumped to conclusions.” That’s the special upside of deceit.

The downside of deceit is that it is the calling card of especially slippery people, the preferred device of the verbally adept and the unconscionably manipulative. Effective deceit takes work and talent; show me someone who can be deceitful easily, and I will show you someone whom neither of us should trust.

That is why this statement by President Obama from last week is so discouraging, and perhaps, a tipping point in his relationship to the American people: Continue reading

Blame Everyone for Infrastructure Ruin: Unethical, Irresponsible Priorities from Reagan to Obama

In the early Eighties, I oversaw an independent study funded by the Highway Users Federation and the National Chamber Foundation called “Transport Tomorrow,” exploring the immediate need for transportation infrastructure repair and expansion in all modes of transportation: roads, railway, waterway, and airports. In the process of learning how dire the need for massive construction and repair was if America’s future commercial needs were to be met, the study commission made a disturbing discovery: urban water and sewer systems were crumbling too. There was literally not enough money to fix all the roads, bridges, tunnels, water mains and sewer pipes that had to be fixed, and the consequences of not doing so would be economic paralysis and worse, disease and even social unrest.

In the face of this looming and undeniably real disaster, the Reagan Administration did—pretty much nothing. Neither did the Bush, Clinton and Bush II administrations, and even the Chamber of Commerce failed to make infrastructure repair one of its key issues. Oh, there were new projects, of course, and when a major bridge started to dump cars into rivers it was repaired. Holes were patched, pipes were replaced here and there. But the full-fledged commitment to the unsexy and incredibly expensive job of keeping the infrastructure sufficient to meet the needs of the nation, and protecting it from the ravages of use and time was deferred, and deferred, and deferred. Something was always more important: wars…tax cuts…the environment…health care. The Obama Administration is following this irresponsible pattern, except it has combined with the profligacy of the Bush Administration to push the Federal deficit into unprecedented dangerous territory. New taxes on just about everybody and everything are going to be needed to stave off financial ruin, and there will be little political will to spend any of the income on something as mundane, but crucial, as sewers.

The problem, however, has become infinitely worse since 1983, when “Transport Tomorrow” was released, and then as now, the attitude of our elected leaders is to let the next guy deal with the problem. Is this responsible? No. Is it cowardly? Yes. Is it a blatant, intentional and knowing distortion of priorities that will threaten American prosperity, jobs, and lives? Absolutely.

Here is a small glimpse of the enormity of the crisis: Continue reading

Obama’s Unethical Gift to the Trial Lawyers

After January 1, 2011, when you begin to process all the new taxes coming your way and all the deductions you can no longer take, think about this:

The nation’s largest trial lawyer trade group, the American Association for Justice, has announced it was informed by Obama Administration officials that the U.S. Department of Treasury will give its members (and all tort lawyers) a tax break on contingency fee lawsuits. The new provision is expected to mirror proposed legislation by Sen. Arlen Specter, himself a lawyer, that was previously rejected by Congress last year. That bill would have allowed attorneys to deduct up-front costs in contingency fee lawsuits. Continue reading

Self-Destruction Ethics Alarms: A Woman’s Unethical Quest For Fat

Yesterday, the world heard about Donna Simpson, a New Jersey woman who weighs in at about 500 pounds. She sasy she wants to be the fattest woman alive, and is managing her diet and exercise to achieve that lofty goal. Of course, all those Twinkies and pork rinds cost a lot of money—her weekly grocery bill averages more than $800—so she earns extra cash by putting herself on Gluttoncam, or whatever she calls it, where freakophiles can watch her gorge herself online for a reasonable fee. Her partner, the news reports say, is completely supportive. “I think he’d like it if I was bigger,” giggles Donna. “He’s a real belly man and completely supports me.”

Okaaaaay….

Obviously this situation is unusual…at least, I hope it is. Still, it raises many difficult ethics questions, some with broad implications:

  • We are told that it is cruel, greedy and heartless for insurance companies to withhold coverage for “pre-existing conditions,” and should be compelled to insure everyone without regard to special risks. Does this apply to Donna Simpson? Continue reading

Pennsylvania’s and Delaware’s Disgrace: Risking the Poor to Balance the Budgets

Delaware and Pennsylvania, facing state budget deficits that would require political courage and citizen sacrifice to address, has taken the craven route of other states (with more sure to follow) by legalizing casino gambling.

In Pennsylvania, State Republicans, the majority party in the state senate, had opposed the expansion of gambling , but capitulated when faced with the reality of having to choose between cutting jobs and services or raising taxes. Instead, the Republicans joined with Democrats, those champions of the weak and powerless,  to victimize the poorest people in the state for profit. Continue reading