Tag Archive: Static Scoring

“It is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise the revenues in the long run is to cut the tax rates.” – President John F. Kennedy, Economic Club of New York, December 1962.

“Let’s tell the truth. Mr. Reagan will raise taxes, and so will I. He won’t tell you. I just did.” — Former Vice President Walter Mondale’s July 19, 1984 Democratic National Convention acceptance speech

Mondale won his home state of Minnesota. He lost 49 states.

The titular heads of the Democratic Party (e.g., JFK) didn’t always side with increasing taxes.

And yet today raising taxes is always the solution looking for a problem. There real question that Almost DailyBrett must ask: Does it take any brains to hike a tax?

How come every remedy proposed by Democratic Party office holder or candidate for whatever ails the nation, states, cities and communities inevitably revolves around raising taxes, taking even more money out of people’s pockets, and making governments bigger than ever?

There doesn’t seem to be any consideration given to reducing expenditures, save slashing national defense and defunding local law enforcement.

Where are the ideas on how to stimulate growth and with it, generate tax revenues under existing rates?

How about creating new taxpayers with the best anti-poverty program known to humankind: A career-path private sector position with full benefits, and maybe even with publicly traded companies stock options and the Employee Stock Purchase Program (ESPP)?

The brain-dead calculus is raising tax rates by x percent, regardless of punitive intent, the result will be x-more revenues (static scoring). Simple, way too simple.

What the tax raisers seem to miss is taxation targets (e.g., raising the corporate rate) are increasingly nimble and quick. They will not elect to ‘receive’ in a javelin throwing contest. They will respond. The tax-ers need to consider dynamic scoring, namely the responses by the tax-ees (e.g., move to a no income tax state).

Your author sees this redistributive process as taxation cat and mouse. The feline never catches all the playing mice. The revenue targets are mysteriously unfulfilled, growth is discouraged by an expanding public sector, and we have fewer — not more taxpayers.

“Don’t Tax You, Don’t Tax Me, Tax That Fellow Behind The Tree”

According to the Penn Wharton Budget Model (PWBM) of the University of Pennsylvania, the Joe Biden plan would increase taxes by $3.37 trillion (some say $4 trillion) and would spend $5.37 trillion. The national debt stands at $26.70 trillion. So much for debt reduction.

The major provisions of the Biden tax raising program are increasing the corporate rate from 21 percent to 28 percent (e.g., trigger more money being parked overseas in wholly owned subsidiaries), hiking individual rates across the board with the highest being 39.6 percent, and lifting the already taxed capital gains to the same amount.

As previously reported by Almost DailyBrett, California with a national record for states $54 billion deficit is proposing raising its already highest in the nation state income taxes from 13.3 percent to 16.8 percent retroactive to January 1.

The state Legislature is also considering a 0.4 percent heat seeking wealth tax, which would be still applicable for up to 10 years after the target leaves the Golden State. Is that even legal? Sounds like full employment for dynamic scoring accountants and tax attorneys.

As the press secretary for former California Governor George Deukmejian, we were greeted by a $1.5 billion deficit upon taking office on January 3, 1983. The proposed solution was exactly the same then as it always is now: Raise taxes.

Almost DailyBrett is proud to report the Iron Duke did not increase taxes. The governor vetoed $1 billion in increased spending out of the California budget, supporting policies to stimulate growth and the creation of new taxpayers and when it was over — established a $1 billion prudent reserve for emergencies. Our budget was balanced all eight years of George Deukmejian’s tenure as governor thank you very much.

Believe it or not, there are other ways besides merely increasing a tax.

It takes zero brains to raise a tax.






“We have a deep sense of responsibility to give back to our country and the people who help make our success possible.” – Tim Cook, Apple chief executive officer

The largest taxpayer in the world is paying more … $38 billion more … in one lump sum.

Apple is repatriating $200 billion in the world’s largest amount of overseas corporate assets, $252 billion.

The company also announced $350 billion in direct investments in the U.S. economy, not just share buy-backs. Apple will create 20,000 jobs right here in America.

Almost DailyBrett is proud to be an Apple shareholder, for more than the 83 percent in share appreciation since 2015.

Tim Cook and his lieutenants are proving to the world that a great company can be more than the innovator and producer of wonderful products (i.e. iPhone X, iPads, Mac). Apple is more than 123,000 jobs with full benefits and a terrific return for its shareholders

Apple is also redefining the relationship between fiduciary responsibility and corporate social responsibility (CSR).

To a few misguided, well-meaning souls, major corporations are somehow the enemy of the masses. And yet how does one who holds these views explain Apple’s good deeds?

The $38 billion is happening right now. These are additional revenues for the government that would have remained trapped overseas without a reduction in the world’s largest 35 percent corporate rate to 21 percent.

Think of $38 billion in terms of 38 x 1,000 x $1 million. That amount can start to make a quite a dent in fixing our highways, airports, bridges and other major infrastructure needs.

FILE PHOTO: The Apple Campus 2 is seen under construction in Cupertino, California in this aerial photo taken January 13, 2017. REUTERS/Noah Berger/File Photo

So much for those who say that tax reform is not a dynamic scoring stimulus.

These are the same folks who conveniently forgot the nation’s largest peacetime expansion occurred during the Reagan Presidency years in which 19 million jobs were created.

Yes, there will be a $1.75 billion-over-20 years impact to the federal treasury using static scoring.

But how much additional economic stimulus will come from putting more revenues back into the economy and lifting time-consuming, expensive regulations? This is the serendipity of dynamic scoring.

Now that Apple has announced the one-time payment of record taxes, a flood of domestic investment and five-figure increases in hiring, will Microsoft, Cisco, Google and Oracle do the same?

According to Standard & Poors, Microsoft has $132.1 billion in overseas holdings; Cisco, $69.1 billion, Google, $60.5 billion and Oracle, $58.5 billion.

Messrs Satya Nadella (MSFT), Chuck Robbins (CSCO), Larry Page (GOOG) and Mark Hurd (ORCL), it is time for each of your companies to follow Tim Cook’s lead and to give back to America.

Great Time To Be A College Graduate

As a tenure-track assistant professor of public relations, integrated marketing communications, corporate communications and investor relations, the author of Almost DailyBrett could not be more excited for my graduating students.

Please do not dismiss my excitement as Greenspanesque “Irrational Exuberance.” There is little doubt that our 26,000-point Dow is in need of a healthy correction, maybe 10 percent or more.

Nonetheless, when was the last time that our GDP (gross domestic product) was growing at a 3 percent annualized rate?

Our unemployment rate stands at 4.1 percent, very close to full employment.

Wages and salaries are rising, reflecting a labor shortage for skilled employees.

Our inflation rate (e.g., Consumer Price Index) was 2.1 percent in December.

The Federal Reserve’s Fed Funds rate is 1.25 percent.

Hmm … bull market, expanding global economy, low unemployment, labor shortage, low inflation, miniscule interest rates … sounds like a Goldilocks Economy. What’s not to like?

To top it off, we now have tax reform and regulatory relief.

Certainly, all of these factors will not last forever. They can’t and they won’t.

Having said all of the above, this is a great time to start or revive a career. Your author could not be more stoked for his students.

And he has more than once cautioned his students against taking the first offer. Don’t be arrogant. At the same time, don’t be afraid to be confident and maybe a tad bold.

Tim Cook and Apple have the wind in their sails. And to prove it, they are paying record taxes, investing in America and hiring Americans.

We have at least 200 billion repatriated reasons to rejoice.





“I think if there’s anything CWU needs, it’s campus tradition, campus spirit and overall unity,” — Rob Lane, Vice President of Student Life and Facilities.

Predictably, there was some relatively quiet grumbling among the easily excitable faculty types and a few students. The status quo was being disturbed and at least for a moment inertia, because of change, was not reigning supreme.

Central Washington University just spent anywhere between $55,800 (low estimate) to $160,000 (high estimate) for a 9-foot long, 300-pound bronze statue of a ferocious Wildcat. And for what purpose, the critics huffed and puffed?DSC01528

This coming Saturday, June 13 is graduation on the Central Washington Campus. Close your eyes and just imagine tasselled graduating students in their caps and gowns having their photos taken in front of … The Wildcat statue? Yes, CWU now has a “location shot” as they call it in the television business.

Certainly, the Wildcat statue will never be confused with famous locations (i.e., Kremlin in Moscow, Brandenburg Gate in Berlin, Big Ben in London, White House Portico in DC, Statue of Liberty in Gotham or the Golden Gate Bridge in Frisco), but it’s a start for Central Washington.

And maybe some of these proud parents of graduating students or alums remembering the best days of their lives will be tempted to write a check or two. And pretty soon those checks will start adding up. And wouldn’t these checks help CWU Development …err Advancement … in fundraising? And could this activity relieve some of the pressure on those who would raise tuition?

Sounds like a dynamic effect to the author of Almost DailyBrett.

Static Scoring vs. Dynamic Scoring

The whining and complaining by the static quo bunch in Ellensburg, Washington is similar to the fight back in the other Washington about static scoring and dynamic scoring. The real issue is whether the federal behemoth should give back any tax dollars to the dwindling number of taxpayers, who are actually still contributing to the government.

Using static scoring, the methodology of choice for anyone trying to stop anything and everything, one could accurately conclude that each dollar used for the Wildcat statue (or substitute any other out-of-elite-favor activity) is one less dollar for some other noble deed for the deemed public good.

Using dynamic scoring, the methodology of choice for anyone wanting to stimulate economic activity and entrepreneurship, each activity triggers responses. Reminds one of Newton’s First Law of Motion about a body in motion remaining in motion.TommyT

Thinking about these examples, one marvels how many stop to have their pictures taken in front of Tommy Trojan on the USC campus before making the trek over to the Los Angeles Mausoleum for a football game. How many Trojan alums are wiping a tear or two out of their eyes when they see “Tommy T” and they hear Dr. Arthur C. Bartner’s “Spirit of Troy” band play “Fight On!” Time to write a check?

Even though Penn State has been through the college football definition of hell with the Jerry Sandusky scandal, the firing/passing of Joe Paterno, and the crippling NCAA sanctions, there are literally thousands of Penn State alums who still stop and have their picture taken with “The Nittany Lion.”nittanylion

During a recent visit to the Valley of the Sun, the author of Almost DailyBrett took the time to have his picture taken with the bronze likeness of Frank Kush, ASU’s feared and very successful football coach.

You may be tempted to think that CWU will never enjoy the athletic prowess of USC, Penn State or ASU, and considering the disparity in the size of the athletic budgets of the former with the three aforementioned Big 5 Conference members, you most likely will be right.

But also weigh that San Jose State also built a statue focusing on its lone athletic achievement: John Carlos and Tommie Smith, winning Gold and Bronze respectively, at the Mexico City Olympic Games in 1968.JohnCarlosTommieSmith

For some reason, one suspects there was not too much faculty grumbling at SJSU about the building of the Carlos/Smith statue.

Maybe there is a glimmer of hope for dynamic scoring after all.








The World’s Most Evil Product

The setting was serene, a cool morning with the sun rays starting to win their way through a resolute coastal fog.

There were pine cones littering the ground having fallen from shade trees not long before.


Most of all there was a granite marker telling the story of a “mother,” a “wife,” an “artist” and a “writer.” Robin was born on January 24, 1955 and she passed away on July 10, 2005…about three decades short of what should have been her expected lifetime.

Even though I can’t prove it conclusively and never will, I am nonetheless certain that cigarettes robbed 30 years or more of her life. These highly addictive and inexplicably still legal killers deprived my daughter, Allison, of her mother and me of my dear wife of more than two decades.

Both Allison and I repeatedly encouraged Robin to quit, to find another way, to say goodbye to smoking, but there was always another rationale, another excuse, another reason…it was the nicotine talking, the same nicotine that took control of her life…until the end. The official diagnosis was stomach cancer, but I am convinced it was cigarettes.

As I sat beside the grave marker last week in the Cambria Central Cemetery in Central California, a ritual that I undertake two-or-three times each year, I became incensed. The reason was the realization that this repeated pilgrimage didn’t have to be, at least not this early in her life or this early in my life. How many others are going through a similar exercise and coming to the very same conclusion?

Let me ask right here and now: Why aren’t cigarettes banned outright? They kill. They are poisonous. We know this as an empirically proven, peer-reviewed scientific fact. Why don’t the federal and state authorities just say no to cigarettes?

Are we worried about losing jobs in North Carolina, Kentucky and Virginia? Are we concerned about electoral votes from these very same tobacco-growing states? Do you smell smoke, the kind that wafts in a backroom when a deal is being struck?

In November 1998, 46 state attorneys general reached agreement with Big Tobacco on a Master Settlement Agreement (MSA) calling for the tobacco companies to cough up (appropriate verb) $206 billion during the next 25 years. The end result is the government gets bigger (the government always gets bigger), the tobacco companies are free from liability for their murderous actions, cigarettes are sold and people keep on dying.

Just three years ago, Congress passed and the president signed the sweet sounding, “The Children’s Health Insurance Program Reauthorization Act of 2009.” The key was a tax increase on smoking, increasing the federal tax on a pack of smokes from $0.39 to $1.01. This tax is levied on top of the myriad of state taxes on cigarettes, such as $0.80 per pack in Nevada; $0.87 per pack in California; $1.18 in Oregon; $2.00 in Arizona and $3.02 in Washington.

The question is who is really addicted to cigarettes? The poor, clinically addicted people who keep puffing away until they rob themselves of decades of their lives and leaving behind family members way too early? Or the federal and state governments that have tied themselves forever to cigarette tax revenues in order to continue their own addictive spending patterns? Or how about both the addicted smokers and the cigarette-tax revenue dependent governments?


Think of the irony, we as a nation are providing health programs benefitting children based upon people paying taxes on a product that we know leads to disease and death? How in good conscience can anyone support such a cruel policy?

But if you suggested to cash-strapped states and the federal government finance types that they get off the cigarette tax revenue gravy train, the static scorers in their green eye-shades would come in with some huge frightening number about lost revenues. How about the broken and lost lives that subsidize your revenues and thus your out-of-control spending?

What if we looked at this equation using dynamic scoring instead? What if cigarettes were outright banned? Would the most addicted of the hardened smokers seek their fix from the black market? Yes, they would. Would jobs be lost in tobacco states? Sure, but is tobacco the only cash crop in North Carolina, Virginia and Kentucky. I don’t think so.

What if fewer people were getting smoking-related diseases, leading to less Medicare and Medicaid expenditures? Instead of dying early, (e.g. 50-years-old) what if these people continued to live? What if they continued to be productive and thus contributed revenues through existing tax rates for the betterment of society? Wonder if we still would have a reduction in revenues that would exacerbate the deficit? Maybe this ethical policy would be an actual revenue enhancer.

The bottom line is that cigarettes are evil. We know they are addictive. We know they cause a litany of diseases for those who smoke and for those exposed to second-hand smoke. And we know they kill. How can anyone justify making this product in the face of conclusive scientific evidence? And how can our governments rationalize drawing revenues directly from a product that deprives a daughter of her mother and a husband of his wife?




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