LB377 will allow higher taxes

All readers should be aware of LB 377 introduced by Senator Pankonin (2).  This bill will allow any government entity including airport authorities, schools, cities, villages, counties, etc to get in a contractual relationship with the federal government. The federal government could possibly guarantee bonds issued by the government entity. The second questionable activity is the language that would allow bonds to be paid back by any tax (with no limits). This would also allow a way to go around other tax laws on the books.

This to me is a very dangerous bill. First because we would allow each entity to contract with the government.  What if the entity defaults on the bond. Would the fed take over the running of the locality? This probably would not happen. The language in the bill states that the bond will be paid back and that the local government entity can come up with what ever taxing mechanism they want to do it all while going around other tax laws such as the sales tax, and property tax.

This bill would allow a school who is already belt tightening to take on a massive capital project knowing that they will not have the funds in the future to pay for it through traditional taxing. The school under this bill could impose a sales tax or increase property taxes ABOVE the legal lid to pay the bond. This one bill could and will allow taxes to run up quickly.

The statement of intent of this bill says that this would allow government entities the ability to obtain lower rates and overall a better deal on the bonds, however they have to be in contract with the federal government. While the statement of intent says the bill is for housing and it’s intent would be for a guarantee of loans on housing, the bill is written in such a vague way that it will be misused.

Other language in the bill states that this bill is an emergency bill which I believe means it would take effect the day after the Governor passes it. This bill is scheduled for hearing on Feb 2, 2009 and is assigned to the banking committee.

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5 Comments

Filed under Appropriations Committee, Banking Committee, Commerce & Insurance Committee, General Affairs Committee, Governement, Military and Veterans Affairs Committee, Revenue Committee

5 responses to “LB377 will allow higher taxes

  1. Candance

    I agree with you to a point. But when it comes to liberties..that is a different ballpark. That is not a special interest.
    We have inalienable rights under the constitution and our elected officials take an oath to uphold the constitution. They would do well to remember their oath when submitting bills that limit liberties.

  2. nebraskaliberty

    I think that we’re all special interests. The liberty movement is a “special interest”–and the question is whether there are enough of us to organize and convince them to listen to us. Legislators listen to those who are “talking” to them, and those who talk the loudest (in various ways) are the ones who get heard the most. It’s about more than just “selling out to money”–it’s also about them being convinced that your interest has adequate political power–either financially, or in the number of votes that you control–to make them want to listen to you. You can bet that here in Nebraska that our legislators would listen if each of them got 100 or 150 phone calls and/or e-mails–from different people–on a particular issue. Because if that many will contact them, they don’t know how many might be out there thinking the same thing, but not contacting them. And those unknown (but potentially large) numbers of people represent constituents that will either help (or hurt) them in their re-election bid (or make the end of their term a living hell by continuously harassing them).

    Unfortunately, the term “special interest” has taken on a negative connotation–because some of them play dirty. But “interests” in and of themselves aren’t bad things, I don’t think–they’re a way for voices to be heard, and banding together with others who have the same interests that you do is a critical part of the political game.

  3. candance

    The question is weather there are enough senators that will actually represent the people instead of special interests. We of course have that same problem in DC. So then it becomes a matter of electing people that will not sell out to special interests. The $50 dollar question as you alluded to above is getting enough people organized and raise enough funds to actually get people elected that will stand for liberty and the citizens of this country. Maybe a down turned econemy will be what it takes to get people motivated enough to get involved so we can make a difference.
    I can only hope…

  4. nebraskaliberty

    Some of the bills that show up are “tossed in the hopper” by senators on behalf of assorted interests. I was at a meeting the other day, and the lobbyists for the organization bragged of having written a bill and having “Senator X” introduce the bill for them.

    Of course that’s not unusual, and could work to the benefit of liberty and freedom lovers–if they get aggressive (and organized) and find themselves some senators who will introduce bills for THEM.

  5. Candance

    Thank you for keeping us posted.
    As I read through some of these bills I wonder where some of these senators come up with this stuff ?
    Do they sit at home thinking of ways to take more of our money and strip us of more liberties or are some of these people that are elected to represent us instead representing some other faction ?

    It really makes you wonder.
    Then it is even more distressing when you realize how hard it is for just anyone to run for office and actually stand a chance because of special funding some individuals receive.
    Do not these people have a conscience, is everything for sale at the expense of our liberties and freedoms ?

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