FREE FALL

So speakith Vermont’s Economist Thomas Kavet at the Emergency Board meeting on July 15, 2003. Kavet said, "Vermont’s manufacturing sector is in a free fall and has not bottomed out yet." His report included a graph. Beginning in January, 2001 with 47,250 Vermonters employed in manufacturing, the graph shows a free fall with virtually no upticks through February 2003 when manufacturing employment is at 38,500. There is no recent evidence to suggest that this trend has changed. "Our recent economy and therefore our tax base is dependent on non-resident spending."

Cheerily he went on, "Our report is gloomier than it was in January. The whole recovery is pushed back. The biggest risk is a deflation-liquidity trap. We are stuck in a quagmire in spite of huge federal fiscal and monetary stimulus. Federal spending has gone from a $350 billion surplus to a $450 billion deficit with nothing to show for it." 

SPENT UP DEMAND

Our other State Economist was no more optimistic. Jeff Carr said, "The real threat is the lack of growth in the manufacturing sector. The sectors of job growth are government, education, health services, professional services and retail trade. None of these sectors has significant exports from Vermont to other states or countries like manufacturing does.

"Further, there is spent up demand instead of pent up demand. By that I mean, for example, car dealers have promoted so hard that they have taken demand from the future and brought it into the recent past. Our vehicle fleet is now only 2-3 years old instead of eight years old." 

TAKE MY BRIBE, PLEASE 

No thank you says both the Wright Doll Company and the Evergreen Paper Company. Wright Doll of Cambridge, NY was issued $283,614 in tax credits under the Vermont Economic Progress Council. Then they announced that they were moving back to Bennington where the owners live, but they didn't. Instead they announced, no thank you... we are staying put in Cambridge, NY. The company was started in Brattleboro. 

The Evergreen Paper Company bought the Kimberly Clark mill for $100 from the town of Ryegate. VEPC gave them $592,452 of tax credits but alas, they are going to build a mill in Arizona instead. Ronald Morgan, president of Evergreen, had complained about his property taxes. Upon inspection, the town raised their appraisal from $500,000 to $609,000. Ah gee, no thank you said Evergreen.

Waterbury Companies of Randolph announced that it was closing its doors laying off seventy employees after operating for over forty years in its plant. "Our competitors have cut prices. Two of our major customers demanded price reductions over the long term. The only way to keep customers is by shifting production off-shore and we made the decision to do that."

An employee was quoted as saying, "You might as well kiss the United States goodbye because everything is leaving." Another added, "There is nothing else unless you want to go to McDonalds or Cumberland Farms. You might as well go on welfare and say the hell with it." 

HOME TEAM LOOSES

VEPC is unpopular with the locals. Why? Because unless they are great liars, they for the most part do not qualify for VEPC’s tax credits. VEPC had a "but for" clause inserted into the legislation at the insistence of our liberal friends in the Auditor’s office and the legislature; one would not invest in Vermont "but for" receiving these credits.

If you are already invested here and need a new addition to your business creating a hundred new jobs, hard cheese. You could concoct a device that New Hampshire is madly in love with your company and that you will leave "but for" the credits, though it might not be the whole truth and nothing but the truth.

Same with the low priced energy incentive. A new company can be offered subsidized electrical costs but once again there is a "but for" clause. Governor Douglas says that he has heard many complaints about the "but for" clause from Vermonters and that perhaps in the next legislative session, we can look forward to a change. The state says that its best strategy is to grow local businesses. However its words and deeds are not one. 

GENEROUS CVPS

The headline shouted: GMP, CVPS agree to hold rates. So, only the far off islands of Hawaii and the inept Gray Davis’s California surpass our rates. Holding rates is not enough. Executives have received huge pay increases; Mr. Young of CVPS is hitting almost a million a year in wages and bonuses. Meanwhile, manufacturers are in a free fall and need cheaper electricity. IBM and Ethan Allen have complained long and loud about the non-competitive electrical rates in Vermont. Holding rates doesn't work.

Contrary to Mr. Young’s double or triple digit wage increase, the Conference Board says that worker raises are the lowest in a decade, averaging 3.5 percent. The Economist writes, "Just the market at work, as new jobs replace old. But there is a catch. The men have been earning about $16.50. Incoming manufacturers pay about half that. The old assembly lines are dying, but there is a new proletariat." 

OFFSHORING

An IBM conference call a few months back was recently leaked. In it, they discussed offshoring, not just manufacturing jobs but design, engineering, and research and development jobs, all activities of the Essex IBM plant. State Economist Jeffery Carr said, "The IT and telecommunications sector have been hard hit. This is the worst downturn IT has ever experienced." A veteran observer told DPR, "They are going and they are never coming back. It is just a matter of time, and not that much time either." 

THE BRAVE NEW WORLD

In Vermont’s socialist paradise, the City Market of Burlington was recently unionized. A contract and higher wages they got. And then twenty-two jobs were cut, thirteen percent of the workforce. City market forces at work. 

THE MONEY MACHINE

Howard Dean is the money machine, the leader in fundraising in spite of what the media says. Ranked third by most, look again. Recall that Congressman Gebhardt transferred $2,400,000 from his congressional campaign account and Senator Kerry transferred $2,600,000 from his senator campaign account to their presidential accounts. 

MIX AND MATCH

As you tally any balance sheet, Dean has a huge accounts receivable which is lots more than any of his competition. The Federal Election Commission allows a presidential candidate who qualifies himself/herself by raising many small donations in multiple states to receive matching funds for contributions up to $250. In that most of Dean’s contributions are small and he has zillions more contributors than anyone else, he has a receivable on his books of at least an additional $7,000,000, perhaps twice is closest competitor. Add it up and Dean is the money machine.

Campaigns in the past have borrowed against their matching funds receivable in order to have the cash ready when the big dollar media campaigns begin in earnest January 2nd. If Dean keeps up this small donor drumbeat and files his matching information with the FEC on a timely basis, he will be the money king. Who would have believed it? Now Dean has a fundraising list that he can return to time and again.

All the other major candidates have a constituent and special interest financial base as they are current office holders. Dean is not. All the other major candidates have federally funded staff and offices who "assist" the presidential efforts. They must assist quietly as direct assistance is prohibited. Or they must take "vacations." Dean has no such help. 

CHEAPSKATES

Sam Hemingway reported in the Burlington Free Press that Howard’s local political friends have not stood by their man. Former fellow governor Kunin "cheaped" in $100 out of a $2,000 allowable contribution. She did not even reach the maximum matching amount of $250. Former fellow Lieutenant Governor Douglas Racine chipped in nada, nothing, zero. "Tapped out," he says. Guess those Jeeps just are not selling anymore. 

VOTING LISTS

Voting lists are basic to all campaigns. Basic also to your exercising your rights; not on the list, you can't vote. Vermont’s lists have been in terrible shape for years, so terrible that you could vote early and often, even from the grave. Furthermore, our voting statistics may be way off as our voting lists may include many non-eligible voters.

Because of the fiasco in Florida following the 2000 election, Congress passed a new voting act, HAVA. Among other things, it calls for every state to have a statewide voter list by January 1, 2004. Vermont will not make that deadline and will be asking for an extension until January 1, 2006 according to Kathy DeWolfe, head of Campaigns and Elections Division of the Secretary of State’s office.

Vermont’s voting lists are maintained town by town. Some town clerks and Board of Civil Authority do better jobs than others. Campaigns though have told DPR that they have found the same person on three or more town checklists. When you move and register to vote in a new town, some town clerks do not remove your name from your old town checklist. The procedure is for the town to send a post card to folks who have missed elections for four years. Some towns do not actively remove those who have died. In short, our voting lists are a mess.

Ms. DeWofle said, "We plan to begin the database this summer starting with ten towns to first debug our system. Then we will begin to import data via the New England Municipal Resource Management system. Then we will enter data lists from towns who only keep them on paper. It will still be up to the local town clerk to add and remove names of deceased, etc."

One of the reasons the Democrats maintained their grip on Vermont politics was that they or Pat Leahy maintain an exceptional up to date voter list. Almost all voter contact begins with accurate voter list. 

A NEW ELECTION YEAR

In California, election year is soon, only seventy-five days away (October 7th). Last fall Governor Gray Davis used new negative campaign tactics to win reelection. He ran ads in the Republican primary against the stronger of the two candidates, leading to that candidate's defeat. Claiming no deficit last fall just before election, by Christmas from out of nowhere Davis "learned" about a $38,000,000,000 deficit. Deceit is never popular. What goes round comes round. Congressman car alarm king Darrell Issa funded the recall drive.

Political consultant Allan Hoffenblum told the National Journal, "I have been in politics for a long time. Never have I seen card tables with people sanding in line to sign petitions. They were sanding in line!" 

GOVERNOR CLINTON

There may be a big field for the race in a few short weeks. The weightlifter from Vienna may be up against the adulterer from Hope. National Journal speculated that Bill Clinton may soon throw his hat into the ring. To establish residency, he needs to move to California and register to vote only fifteen days before the election. 

CULTURE WARS REDUX

It has been awhile since we donned out culture war getup. Can’t say that we missed it much, but we have been called.

Wayne Nadeau, formerly a long time teacher at Lamoille Union High School, had his educator’s license suspended from February 10th till March 18, 2003 for "engaging in consensual sexual activity with a colleague, a female paraprofessional, in Mr. Nadeau’s classroom. Although the door to Mr. Nadeau’s classroom was closed, the aforementioned sexual activity occurred at times when students were, and might have been, present in the building." His suspension was "reported to the National Clearinghouse." This according to the license suspension agreement Wayne signed with the State Department of Education. 

NO BIG DEAL

Subsequently, Wayne was elected to the Executive Board of the National Education Aassociation. An NEA spokeswoman told the AP, "It is a personal matter. Having an affair is not a disqualification. The matter is closed." Vermont NEA President Angelo Dorta said, "There's no legal basis to exclude him from a leadership position."

Well, maybe there is something about the sexual harassment rules in sleeping with a subordinate. Then there is the adultery charge as Wayne is married. Then there is the matter of having sex where students might walk in. Seems that there may be a disqualifying event in there somewhere. 

More here: http://www.stowereporter.com/community/2903-nadeau.shtml 

THE NEIGHBORHOOD BUTCHER

New Hampshire’s House minority Leader Peter Burling, D-Cornish, said, "If we pass parental notification, we are going to have kids going back to butchers." That is not very neighborly! Why wouldn't Mr. Burling’s constituents just cross that long beautiful covered bridge to Vermont and have their secret abortion here? What is it about life that so threatens folks?

In spite of such rhetoric, the New Hampshire House and Senate passed parental notification and Governor Craig Benson, not to be confused with TIP’s Director Reverend Craig Benson, signed it into law.

Campaigning in New Hampshire, our own dear Howard Dean once again threw into the mix his thoroughly discredited story about his young patient whom he suspected had been impregnated by the father. Read Dean’s answers from the Mark Johnson Show of February 5, 2001. A stroll down memory lane.

Mark: Under current law would you have to report that (the father impregnating the daughter) to the authorities?

Howard: Hum, I don't know, I mean I don't know if I do or not, I am not even sure if a doctor is covered.

Mark: Really?

Howard: I don't really know. I mean I don't know the law.

Mark: The school nurse has to, a teacher has to...

Howard: Well maybe I did, maybe I broke the law, I don't have any idea.

Mark: Then why not support the (parental notification) bill?

Howard: Because there are lots of other... the doctor is not going suspect all the time... I had no evidence... I had no evidence to prove that... there probably has to be a standard of evidence... but I ahhh, you know all that I think that parental notification is a good thing but I don't think that the legislature ought to mandate it... 

HAVING IT BOTH WAYS

A Hanover, New Hampshire couple is divorcing. The cuckold is suing for divorce based on his wife’s adultery. The Lebanon Family Court agreed. The case was appealed to the New Hampshire Supreme Court who are reported by the Valley News to favor narrowing the definition of adultery to the traditional including only sexual intercourse or coitus, the physical union of male and female sexual organs. You see in this instance the adultery was with another woman and therefore adultery/coitus could not have taken place. 

WEDDING PHOTO

For those of you who expressed an interest, here is a photo of your editor and his daughter on her special day: http://www.dwinellpoliticalreport.com/James_and_Ashley.jpg  

THE UNBIASED UNWASHED

We all know that our dearly beloved media are unbiased, truth serving, fact finding poets of the highest order. Every now and then, our belief is quietly shaken.

Tracy Schmaler left this month to serve Senator Pat Leahy, abandoning her readers in the Rutland Herald/Times Argus. Two years ago it was Tracy’s predecessor Diane Derby who left the Vermont Press Bureau and later joined Senator Jim Jeffords staff. A few years earlier, Susan Allen left the Free Press to work as Dean’s press secretary. Peter Freyne left writing to serve Madeline Kunin; Joe Jamelle left the Vermont Press Bureau to work for Leahy.

Anyone find a pattern here? 

PARTY ON, WAYNE 

The Valley News bold lead full across their front page went, "Students Lose Social Lives, Gain Experience on Campaigns."

Not only did they not come close to proving this theory within the article; experience suggests that campaigns are very social, lots of pizza and beer, many social liaisons are made, some for keeps, most till the campaign moves on. Your editor has friendships from campaigns in every decade beginning in the 1960’s. 

WHY LEAVE CHILDREN BEHIND?

»» Kelly Bartlett: I just read your latest report. I am alarmed to hear that the NEA passed a resolution stating that homeschoolers should not be allowed to participate in extracurricular activities. How will this improve education? What is their goal? What is their reasoning? No wonder they don't like the No Child Left Behind Act. It sounds as if they actually WANT to leave children behind.

After using the public schools for three years, we homeschooled for the past seven. For the first 5 years, we barely utilized the public schools--a talent show one year, a math book once. But two years ago, my oldest started sports at MMU in ninth grade; she joined the basketball and the track and field team. She absolutely loves sports and now does field hockey as well. I am hoping my three other daughters will participate in MMU's sports or music and drama programs when they reach high school. How would excluding them benefit MMU in any way? How would this improve the public schools test scores or their sportsmanship or their musicals?

Our tax bill this last year was roughly $9,000.00. Why should my children be excluded?

Do you have any advice for me? Should I contact Mr. Dorta and ask him if the VT NEA agrees with NEA's position on this? Were any Vermont representatives at that meeting? And how did they vote?

Thank you so much for keeping me informed. I didn't hear this news anywhere else. Keep up the good work. 

WHAT A DIFFERENCE A RIVER MAKES

»» Robert Maynard, Williston: It seems that our neighbor New Hampshire is once again setting an example for us when it comes to reigning in runaway government spending. The newly elected Governor over there recently vetoed a bill passed by the legislature because it contained too much spending, though it called for no additional taxes. 

The first bill he signed into law after taking office established an Efficiency in Government Committee to find ways to streamline state government. New Hampshire already has the most streamlined state government of any state in the nation, yet there is always room for improvement. To demonstrate his seriousness when it comes to reigning in run away spending, Governor Craig Benson appointed his Libertarian challenger in the Governor's race to the committee. John Babiarz was not only the 2002 LP candidate for Governor, but is the current Chairman of the Libertarian Party of New Hampshire.

While GOP leaders here in Vermont join forces with Progressives and Democrats to preserve the status quo of big government and run away spending, the GOP leaders in New Hampshire are willing to work with Libertarians to limit the size of government and the growth of spending. With the Vermont Libertarian Party too small to be effective and the Vermont GOP presenting itself as "Progressive Lite", WHERE IS THE PARTY OF SMALL AND EFFECTIVE GOVERNMENT HERE IN VERMONT!!!!!!

For those interested in the first report from the newly formed committee, check out http://www.state.nh.us/governor/docs/ecir_6_24_03.doc 

Does one have to move to New Hampshire to find any sanity in politics? 

JOB SEEKERS ABOUND

»» Paul Chandler, Newport: I recently advertised for a part-time position at my office here in Newport. I had more than 20 responses, and many were from well-qualified applicants. I am faced with a pleasant decision because it appears that I have plenty to choose from. But, if I look deeper, it is troublesome because many of these well-qualified applicants are PRESENTLY NOT WORKING. Some have relocated from other areas. I wish I had 3 full-time positions to fill. There just are not enough jobs for qualified people to fill--at least up here in the Kingdom.

Of course, there are other pockets in Vermont with this problem, too. Because Vermont's image as portrayed by Chester Arthur, err, Howard Dean that Vermont is business-friendly is just not true.

Kudos for Governor Douglas for standing up to those enviro-terrorists calling themselves the CLF. Build the Circ, continue to streamline the permit process so organizations like CLF, VNRC & VPRIG are relegated to the scrap heap of Vermont history where they truly belong. Because more jobs is really the key to our future and wasting valuable resources on those aforementioned guys' permit appeals is counter-productive. 

TIME FOR TAXPAYERS TO NAME THAT TUNE

»» G. Lester Corwin II, South Royalton: Here's one who supports Governor Douglas' efforts to bring the educational funding process under control by those who pay the bill, meaning the taxpayers. I am one. And I plan on registering more voters. 

DOUGLAS COURT APPOINTEES 

»» Robert Towle, Rutland City: It is comical that the Vermont Press has attacked the Governor for simply stating that he would like to see all of the possible nominees to the process instead of the few that have been politically and ideologically filtered for him. I find it refreshing that the Governor is interested in naming Judges based upon the nominee's willingness to adjudicate the law instead of re-writing it (i.e. Brigham et al...). This same press does not mention Leahy and his filibuster-happy crew's blocking Estrada and other nominee's that will Judge based upon the Laws, not write new ones (Roe v. Wade et al...). If we put the paper on angle up to the light and use our de-coder rings, will the truth come out???? 

COMMENTS ON "DOING BETTER"

»» Bernier Mayo, St. Johnsbury: To Joe Flynn's rebuttal of your "We could have done better," commentary on the pond scum that killed Sergeant Johnson, I say "AMEN!!"

Editor’s Note: On July 5th,a sheriff’s deputy was killed in Florida after laying spikes. Days later two police officers were killed in Tennessee after laying spikes.

»» Bill Brueckner, Waterbury Center: Sgt. Johnson's death is simply one element of mismanagement and training at the Vermont police agencies. "Hot pursuit" procedures obviously must be clarified to save lives (criminal and/or police) in the future. Included in mismanaged, improperly trained police is the rising number of shoot first and ask questions later approach to answering complaints. Vermont does not have a state police personnel problem, we have a problem with the acts they are trained to perform. 

Two recent deaths are among a rising number of similar incidents state wide; Woody's death in a church in Brattleboro and the death of a Vergennes man last week. This is not a state police problem, it is a failure by those who govern the police and those governing the police are not the members of the General Assembly who are required to do so by constitutional law. 

I personally know that procedures have changed because many years ago I watched a lone state policeman talk a young man holding a loaded weapon which he had just fired in anger, talk this person into putting down the weapon and take him into custody. Persons becoming police need to be trained up front that this is a very dangerous job that includes responsibility that goes beyond shoot first and ask questions later. People on the other side of the police weapon have rights and many have not even been convicted of a crime and may indeed be innocent. Police have the responsibility to bring the offender to justice not to be trained as police, judge, jury, and executioner. Not even our supreme court can sentence a person to death, how can a police person do so after six weeks of training. 

We need to return responsibility for how police will be trained to the legislature not some unknown bureaucrats not accountable to anyone. Again government has failed its citizens. 

EX-PAT ON BURLINGTON CITY MARKET

»» Russell Spreeman, LaPorte, IN: I happened across your Political Report website today almost by accident, and what a refreshing find it is.

I was born in Chicago. I lived in the Chicago area until 1985 when I took a job transfer to Vermont and bought a house in Colchester. I lived in Vermont for twelve-plus years. In 1997, with Act 60 looming, I sold my house and moved back to the Midwest, this time to Indiana, and got the overwhelming feeling that I had returned to America.

(Numerous factors contributed to my decision to leave, but the straw that broke the camel's back was the portrayal of Act 60 as something that would provide more money for education while reducing most people's property taxes. I closed on the sale of my house within a day of Dean signing Act 60 into law.)

Since returning here to the Midwest I keep tabs with what happens in Vermont, since I did live there for a dozen years. Unfortunately, all this time I have been getting my information from the Burlington Free Press and WCAX News websites. I wasn't aware of your site, and it always seemed to me there was little conservative presence in Vermont. Certainly there must be more than makes the news there.

My main reason for writing is to comment on the Burlington City Market. I haven't found the article but I recall Pat Leahy appearing at the recently-opened Market, giving a speech, in which he praised the fact that they could have this successful market in place of a privately owned business. One could only suppose he was opposed to free enterprise as some sort of evil. I wonder where Mr. Leahy is today? I would love to ask him:

1. What is the evil of a privately-owned business, if it must pay fair wages and taxes, and yet manages to meet its customers' needs and turn a profit?

2. How successful is a business that got breaks and subsidies and other public assistance and despite it all, is losing a nickel for every dollar in sales?

3. How much would Shaw's or Price Chopper or another regular grocer have paid in taxes by this point? How much public money would they have used to open their store? How likely would they be to be running massively into the red?

My wife works here in Indiana at a locally-owned grocery store (part of a chain of half a dozen stores) and they pay a fair wage, offer benefits, carry a wide variety of groceries at very competitive prices, and they pay taxes to help support the local communities and the state. Why would such a business for downtown Burlington have apparently been seen as less desirable than the co-op, which is evidently not succeeding at any of these things?

I will continue to read your website and find your common-sense attitudes to be a stark contrast to the loonies who seem to have too much say and too much influence in Vermont. Thanks for a great website; keep it up! 

THE SKY IS FALLING

»» Alexey Voinov, Colchester: Pretty impressing and depressing. I wonder how big a part of the DPR readership would appreciate it: http://costofwar.com/

Thought if you want to keep this issue discussed in DPR, a link to this could be pretty useful. The numbers are quite shocking: http://www.washingtonpost.com/ac2/wp-dyn/A56224-2003Jul14?language=printer 

IT JUST GOES ON AND ON...

»» Alexey Voinov, Colchester: Perhaps Mr. McClaughry should spend some more time and pay more attention reading the DPR before he starts pointing fingers and blaming others for not doing the homework and not knowing the actual data.

Quote: "Alexey Voinov apparently believes that thanks to the 1981 Reagan supply side tax rate cuts, 'the wealthy got all the gravy'".

This is a misinterpretation. What I did say was that the tax cut was the so-called supply-side one by which the wealthy got all the gravy. This was about the tax cut itself, not the outcomes. I would appreciate it, if Mr. McClaughry could lead me to any references that would show that the poor have benefited from that tax cut more than the wealthy.

As for the income gap, here's a quote from Adam Smith, 1776: "No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable." Indeed the liberals would agree, but Mr. McClaughry probably does not.

As for the data, here are the numbers (http://www.taxfoundation.org/prtopincometable.html): Average Tax Rate (percentage of AGI paid in income taxes)

        Total  Top 1% Top 5%  Top 10% Top 25% Top 50%
1983    13.79% 30.18% 23.64%  20.91%  17.62%  15.52%
1989    13.12% 23.34% 20.71%  18.77%  16.27%  14.53%

Quite a drop, but technically speaking it's not right to compare these lines, because the Tax Reform Act of 1986 changed the definition of Adjusted Gross Income. Maybe Mr. McClaughry was talking about something different: Total Income Tax Shares (percentage of federal income tax collections paid by each group)

1983 100.00% 20.32% 37.26% 49.71% 73.10% 92.83%
1989 100.00% 25.24% 43.94% 55.78% 77.22% 94.17%

This is what was called "a dramatically higher percentage of income taxes in 1989 compared to 1983". I'm not sure about the drama, but it's higher indeed. But what has happened to the income distribution over these years, which alarms only the liberals? Guess what - it changed and the income gap widened. Unfortunately the numbers I have are hard to compare, since the quintiles are different, but the trend is obvious: Household Shares of Aggregate Income by Fifths of the Income Distribution:

Year Lowest Second Middle Fourth Highest Top5%
1981  4.2   10.2   16.8   25.0   43.8    15.6
1989   3.8   9.5   15.8   24.0   46.8    18.9

The Gini coefficient increased about 4% during these years. So why is Mr. McClaughry so excited that "the higher income bracket paid a higher percentage of income taxes"? Sure, their income grew "dramatically" enough to be reflected in the percentage of taxes. Don't worry, they are still better off.

Mr. Towle is no longer writing about faith. He wants REAL incentive to produce. The only real incentive that he sees is a higher pay. I wonder: if there many out there who could work twice as productively if their salaries were doubled? Four times more productive - if quadrupled? Sorry, not me. If my salary were doubled, I would probably work a little more, well maybe even 25% more, though I doubt it. But that will probably max it out. After all there is still only 24 hours in a day.

Exuberant salaries are not to create incentives to work better or more. Their only purpose is to attract talent from one place to another. It's like at an auction. One corporation offers more than the other one to get the "right" man. They want to pay him more assuming that he will make them all richer. And then you get the Enron and Worldcom stories.

By the way, I've just experienced "the mental anguish of a working man". My son got his paycheck from his summer job and he is furious about the $370 that was deducted for Social Security, Medicaid and taxes. For some reason he is confident that he himself will never reap any fruit from these programs, because by the time we will retire they will be all bankrupt and gone. So he wants his money NOW. Hmmm, makes sense. Especially if we keep doing it the way we do it now. 

JOHN MCCLAUGHRY, KIRBY, RESPONDS

As I have pointed out in print: as a result of the 1981 Reagan tax rate cuts, every income quintile showed real income growth over the period 1983-89. The top quintile income grew faster than the bottom quintile, so the "income gap" widened. But people in every quintile ended the period better off.

Contrary to Mr. Voinov's explicit assertion, the wealthy did NOT get all the gravy. Everybody got to keep more of what they earned, and as result they earned more and kept more. The working poor were less poor after six years of Reagan tax rate cuts.

Further, the share of income taxes paid by the upper bracket - wherever one draws the dividing line - increased over that period. Oridnarily liberals would applaud the government pocketing higher tax receipts from the rich, but they are restrained by the unpleasant fact that the rich ended up with more even after paying the higher taxes.

Nowhere did I claim that the Reagan tax rate cuts benefited the poor more than the wealthy. They did not. But I challenge anyone to define an income tax rate policy that will make the poor richer without making the rich richer. My contention: there is no such policy.

Liberals hate this. They dearly wish for a magic policy that will make the poor richer and the rich poorer, and thus shrink the hated income gap. There is no such policy.

Of course, the government could just seize the incomes and assets of everybody it deems rich, and distribute the money (after the usual handling fee, paying the army, running the prisons etc.) to everybody deemed poor. This would momentarily end the annoying income gap. It would also have certain other effects which I leave to the reader's imagination.

As for Adam Smith, Mr. Voinov is apparently oblivious of his shrewd observation that "high taxes, sometimes by diminishing the consumption of taxed commodities, and sometimes by encouraging smuggling, frequently afford a smaller revenue to government than what might be drawn from more moderate taxes." This is one of the earliest versions of supply side tax policy.

I confess that I laughed out loud at Mr. Voinov's desperate statement that "this was about the tax cut itself, not the outcomes". Here in the real world, Mr. Voinov, we have to deal with outcomes. 

SOURED ON HOWARD

»» Laura Brueckner, Waterbury Center: Thank you for a more realistic view of ex-governor Dean's campaign. Thank you for your too, too mild criticism of Vermont's media. Today's Burlington Free Press actually did a huge article titled "'Blonde' Director Documents Dean," in their Living section of the paper, highlighted with pictures of Reese Witherspoon and Luke Wilson. Give me a BREAK! If there is no real news they will dig to the bottom of the barrel to find something, anything to put Dean in the paper. This article deserves about a blip. 

While Dean was governor of this state we had NO realistic coverage of Dean's lack of actual participation in government. He just issued Executive Orders. As a Vermonter I saw Dean as such an abrasive person no one dared to challenge him - not Legislators, not individuals, and not the press - on anything. Dean saved his very winning ways for corporate hierarchy and wealthy influential persons. Dean missed the chance to be a fantastic governor using leadership skills instead he was most ruthless governor ever (Act 60, Act 71, loss of health care insurance, loss of heath care competition, FAHC scandal, loss of property rights, Civil Unions, job creation for out-of-staters, tax shifting programs, Current Use, tax forgiveness etc., etc.,). The press repeatedly told Vermonters how fiscally conservative Dean was with little or no mention that the budget was actually balanced by raising taxes or the death of the wealthy! 

SELF-PROCLAIMED EXTREMIST

»» Annette Smith, Vermonters for a Clean Environment, Danby: Emerson Lynn (on VPT's "Vermont This Week" and editorials in the St. Albans Messenger and Addison Independent) and Governor Jim Douglas have concocted a neat package alleging that environmentalists are extremists because they are questioning IBM's discharge permit that allows the company to put more toxic chemicals into the Winooski River than the company needs.

CLF is asking the state to write the permit for what IBM is doing. That is a reasonable request, and would require IBM to make very few changes in its production processes to comply with a more stringent permit. If IBM does not discharge cadmium, why is the state writing it in the permit? CLF's argument is with the state of Vermont, not IBM.

IBM is apparently a sacred cow that should be beyond criticism or even examination. Mr. Lynn writes that IBM is "at the low, low end of corporate polluters." Mr. Lynn is wrong.

In 2000, IBM topped the list of Toxic Releases in Vermont at 203,834 pounds. The second most polluting industry released 25,058 pounds -- not even close to IBM. In total, IBM's production-related waste consisted of 1,006,975 pounds, making it the largest polluted waste producer of any individual business in Vermont. [data from Right-to-Know Network].

In 2001, IBM released 31,906 pounds of Toxic Chemicals into the air and 74,940 pounds of Toxic Chemicals into the water for a total of 106,846 pounds of Toxic Chemicals into Vermont's air and water. [data from EPA]

Specifically, IBM's air releases contained ammonia, hydrogen fluoride, nitric acid, and ozone. Chemical releases into surface water (the Winnoski River) contained ammonia, ethylene glycol, lead, n-methyl-2-pyrrolidone, and nitrate compounds. [data from EPA]

The health effects of the chemicals released by IBM include suspected cardiovascular or blood toxicants, suspected gastrointestinal or liver toxicants, suspected respiratory toxicants, suspected skin or sense organ toxicants, suspected neurotoxicants, suspected musculoskeletal toxicants, suspected reproductive toxicants, suspected developmental toxicants, suspected kidney toxicants, suspected endocrine toxicants, suspected immunotoxicants, recognized developmental toxicants, recognized reproductive toxicants, and recognized carcinogens. [source: Environmental Defense]

IBM is not wearing the white hat in Endicott, New York, where the company's "spill" of Volatile Organic Compounds has contaminated about 350 acres of the downtown area. Since the June 25 hearing on IBM's Vermont discharge permit, 18 newspaper articles have run in the Binghamton, NY newspaper about the chemical contamination in Endicott.

An article from July 11 says, "Sen. Thomas W. Libous, R-Binghamton, came out Thursday blasting IBM Corp., calling the computer giant's lack of openness regarding a decades-old chemical spill in Endicott "totally unacceptable." "They're not being a good corporate citizen, and that needs to change immediately," Libous said. "IBM's silence is unacceptable."" A similar story is unfolding in East Fishkill, New York. Residents of both communities have joined forces and Erin Brockovich's law firm is getting involved. Also on July 11 it was reported that IBM is being sued by employees in Raleigh, NC over mold in the workplace. The lawsuit "will allege that the company willfully neglected to protect the women from a hazardous work environment." [The News Observer]

Vermont's news media is failing to report the real story that unfolded at the public hearing on IBM's discharge permit. The third person to speak said that new microchip technology has been developed that cuts the quantity of water by 95% (IBM discharges 3 to 4 million gallons of water a day while their permit allows 8 million gallons to be discharged) and reduces the quantity of pollutants by 95%. This new technology, which was developed in part by IBM, is now the state-of-the-art for microchip production and will make the current process obsolete within a few years.

Based solely on economic concerns and ignoring the environmental issues, we should be asking why IBM is using this new technology in Fishkill, New York, but is not proposing to use it in Essex Junction. If IBM does not adopt state-of-the-art microchip production in Vermont, does that mean the company is not committed to Vermont?

There is only one thing that is extreme in this whole discussion, and that is the venom that the Douglas administration and its supporters are spitting at people who care about minimizing our exposure to pollutants in the name of public health and environmental protection. While I drive a high-mileage car, do not have air conditioning in my home, hang out my laundry to dry, grow most of my own food and live with solar panels, I also care about the larger issues such as how all the chemicals we are using are making people sick. Until we stop poisoning ourselves, we will continue to see increasing health care costs and unnecessary human suffering. If caring about people makes me an extremist, then count me in.

P.S. The editorial you referenced in the last issue [on IBM] was not in the Burlington Free Press, but in the Rutland Herald (unless there was also one in the BFP that I missed): The Rutland Herald Online - Green vs. Big Blue Jun 28, 2003. 

THEY LIKE US

»» Herb Hillman: Good issue! Sorry you fell off the horse. You and Imus have a lot in common.

»» Dennis McMahon, Burlington: I must have referred back and forth to your report about 5 or 6 times this morning alone on some work I was doing. it is a priceless resource on so many issues and news

»» Laurie Morrow, Montpelier: Thank you so much for promoting the Coulter show in last week's DPR. Your write-up is, as always, clever and provocative. We very much appreciate this.

»» Brendan Kinney, Chair, Vermont Libertarian Party: Thanks so much for speaking at our meeting in Randolph. Everyone was impressed and found the discussion invigorating. I read with interest your last report including a tribute to Professor Naramore. I am a Saint Michael's graduate and now work as a fundraising professional at the College. My grandfather, a graduate and professor, taught at the College for 30 years and many family members and friends have also passed through the halls here. Anyway, thanks for mentioning Professor Naramore in your last issue...he was a true original and a beloved member of our community here.

...and thanks again for all that you do!!  

ATTEMPTS TO TARNISH WAR'S SUCCESS 

"The WMD-hyping charge is nothing more than the Iraqi museum story Part II: A way for opponents of the war -- deeply embarrassed by the mass graves, torture chambers and grotesque palaces discovered after the war -- to change the subject and relieve themselves of the shame of having opposed the liberation of 25 million people." --Charles Krauthammer 

http://www.philly.com/mld/inquirer/news/editorial/6085291.htm 

NEVER MADE THE PAPERS 

"And one interesting fact I think people don't generally know, in case people should think that the whole idea of a link between Iraq and Niger was some invention, in the 1980s we know for sure that Iraq purchased round about 270 tons of uranium from Niger. So I think we should just factor that into our thinking there." --British Prime Minister Tony Blair

http://www.whitehouse.gov/news/releases/2003/07/20030717-9.html 

MORE LIVING HISTORY 

It was not fierce partisanship. "Like any fishing expedition, which indeed it was, it could be sustained only if there were a lot of fishy things below the surface, which indeed there were." --Walter Isaacson, New Yorker, July 21, 2003 

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