Responsibility #84

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=110 BGCOLOR="#666699" TEXT="#080000" bgproperties="fixed" background="04900840erlcjm.png"> <div> <FONT SIZE="5" COLOR="#FFFFFF" FACE="Arial" ><B>NATIONAL SECURITY--Structural,Moral,Economic,Domestic,International</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="NATIONAL SECURITYStructural,Moral,Econom"><U><B>home</B></U></A></div> <div> <A HREF="id33.htm" TARGET="_top" TITLE="Responsibility Contents"><U>Responsibility Contents</U></A>   |   <A HREF="id34.htm" TARGET="_top" TITLE="Responsibility 1"><U>Responsibility #1</U></A>   |   <A HREF="id35.htm" TARGET="_top" TITLE="Responsibility 2"><U>Responsibility #2</U></A>   |   <A HREF="id36.htm" TARGET="_top" TITLE="Responsibility 3"><U>Responsibility #3</U></A>   |   <A HREF="id37.htm" TARGET="_top" TITLE="Responsibility 4"><U>Responsibility #4</U></A>   |   <A HREF="id38.htm" 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President, et al,"><U>Health Care Letters to President, et al, 8/24/94</U></A>   |   <A HREF="id123.htm" TARGET="_top" TITLE="Arguments for Delay in Enactment of a He"><U>Arguments for Delay in Enactment of a Health Care Bill</U></A>   |   <A HREF="id124.htm" TARGET="_top" TITLE="Post WORLD WAR IIPost COLD WAR Deja Vu"><U>Post WORLD WAR II--Post COLD WAR Deja Vu</U></A>   |   <A HREF="id125.htm" TARGET="_top" TITLE="Responsibility 89"><U>Responsibility #89</U></A>   |   <A HREF="id126.htm" TARGET="_top" TITLE="Responsibility 90"><U>Responsibility #90</U></A>   |   <A HREF="id127.htm" TARGET="_top" TITLE="Responsibility 91"><U>Responsibility #91</U></A>   |   <A HREF="id128.htm" TARGET="_top" TITLE="Responsibility 92"><U>Responsibility #92</U></A>   |   <A HREF="id129.htm" TARGET="_top" TITLE="Responsibility 93"><U>Responsibility #93</U></A>   |   <A HREF="id130.htm" TARGET="_top" TITLE="Responsibility 94"><U>Responsibility #94</U></A>   |   <A HREF="id131.htm" TARGET="_top" TITLE="Responsibility 95"><U>Responsibility #95</U></A>   |   <A HREF="id132.htm" TARGET="_top" TITLE="Responsibility 96"><U>Responsibility #96</U></A>   |   <A HREF="id133.htm" TARGET="_top" TITLE="Responsibility 97"><U>Responsibility #97</U></A>   |   <A HREF="id134.htm" TARGET="_top" TITLE="Responsibility 98"><U>Responsibility #98</U></A>   |   <A HREF="id135.htm" TARGET="_top" TITLE="The Structure of Our Nation is Unsound"><U>The Structure of Our Nation is Unsound</U></A>   |   <A HREF="id136.htm" TARGET="_top" TITLE="Ltr. to Editor, 3/19/96, Property Taxes "><U>Ltr. to Editor, 3/19/96, Property Taxes and Education Funding</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=190 BGCOLOR="#CCCCFF" TEXT="#080000" background="04311c00egdysm.png"> <bR> </td> <td valign="top" height=370 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> Responsibility #84</div> <div> To the People of the United States of America:</div> <bR> <div>      <U>6th postscript, April 1994</U>.  We continue, in this 12th paper on <U>Taxes/Appropriations/Organization Reforms</U> during the terms of the 42nd President, and the 103rd Congress, the many-faceted subject begun in the last essay.  That is, the ramifications of taxes and appropriations among states, or between the federal government and individual or groups of states.</div> <bR> <div> 16. "House panel backs tax breaks for state's horse, dog tracks--  But bill is imperiled by greyhound breeders, who want bigger cut" is the headline for a news article that appeared March 25, 1994.  Excerpts: "A [Arizona] House committee has unanimously approved a new bill to cut taxes for horse and dog tracks ..."  "The measure ... would give tracks a credit on pari-mutuel taxes equal to three times the decline in their wagering.  Track owners say they are being severely hurt by Indian gaming and need tax breaks to compensate for their losses."  "A separate tax, a sales tax on the horse and dog tracks' share of wagering revenue, would be phased out over three years."  "The tracks stressed to the committee that they are at severe risk because of the business siphoned off by Indian gaming."</div> <div> As in the previous tax discussions, the questions should not be whether the state can or should (arbitrarily) increase or decrease the state fees, or taxes, levied on a particular industry or business.  The consideration should only be what benefit, or what costs, are incurred by the gaming operations (directly or indirectly) that must be recouped by the state, as the just share of those businesses (and ultimately the passing of those fees and taxes, as part of the prices paid by those enjoying the privileges of gambling and observing the races).</div> <div> But there are larger implications, on or below the surface of the subject matter of the cited news item.  First there are the interfaces involved in federal to states, and between or among states, of their Indian and gambling policies.</div> <div> Both type policies were the subjects of a news article of April 21, 1994, with the banner "Senators push to regulate tribal gaming".  Extracts: "WASHINGTON--The prospect of the mob muscling into poorly regulated Indian casinos was raised Wednesday at a Senate hearing by lawmakers who want the federal government to lay down standards for states to follow.  'This is a national scandal in the making,' said Sen. Harry Reid, D-Nev. 'We can't allow gaming to operate as it did in the Wild West, with six-shooters the only guarantee of integrity.'"  </div> <div> "Reid and other members of the Senate Select Committee on Indian Gaming heard from regulators in New Jersey and Nevada as part of the panel's effort to fashion a bill by June dealing with casinos on Indian land."  "Indian gaming has become big business in recent years."  "Overall revenue estimates for Indian casino gaming in 20 states last year neared $4 billion."</div> <bR> <div> "The issue of Indian gaming arose after the U.S. Supreme Court ruled in 1987 that Indian tribes were not subject to state gambling regulations.  Congress then created the National Indian Gaming Commission, leaving the tribes responsible for regulating bingo and certain card games but with commission oversight.  The law left Indian casinos to be regulated under compacts negotiated between the states and each tribe."</div> <bR> <div> The pseudo-sovereign-nation status of Indian tribes, and the claim of states-rights by states, in regard to the conduct of gambling, leave the nation in an impossible situation.  It leads only to the uncontrollable proliferation of gambling, deterioration of relations between states and tribes, as well as among states.</div> <div> This is exemplified by this quote from the above cited article: "... one of the most successful ventures, in Connecticut, the Mashantucket Pequot tribe, is drawing Northeast customers away from Atlantic City."  [It is not surprising that the Senator quoted, and the regulators reported as testifying, were from Nevada and New Jersey.] </div> <div> Casinos, on Indian reservations and in states that allow them, draw customers away from non-casino gambling activities in other states.  [Refer to the above discussion, of pressures in Arizona to subsidize horse and dog tracks through tax breaks.]  But that is only the half of it.  The casino entrepreneurs use loss-leaders (bargain hotel room and restaurant rates, low-priced high-value shows, subsidized transportation, etc.) to pull gambling customers from other states.  Hotels, restaurants, tourism, et al, in other states thereby suffer.  This pressures those states to proliferate the approval of gambling enterprises. Ten years ago, only Nevada and New Jersey had legal casinos. Now, casinos are legal in at least some portions of 23 states.</div> <div>   </div> <div> The greatest abomination, and the worst examples set, is the use by states and other governments, of revenues from lotteries in lieu of enactment and collection of taxes.  New Hampshire started the first legal state lottery of this century in 1964.  By 1980, 14 states had lotteries.  Now only 14 states do not.</div> <div> The proceeds from lotteries are used for a multitude of purposes, according to the whims of the particular state legislature.  Like tax credits, exemptions, and deductions, they are pressured by countless special interest groups to gimme, gimme, gimme!  It appears that the politicians fall into line, proliferating the number and type of lotteries, stopping only at the perceived saturation point.</div> <div> The worst of the harms of the lotteries is that they serve, not just as placebos but, as opiates.  The pain of paying for appropriations is relieved.  The fact that lotteries are merely an indirect tax is totally hidden.  Nor is it appreciated that the "tax rate" for lotteries typically exceeds 50 percent.  That is, less than 50 percent of gross revenues are returned to players in the form of winnings.  In contrast, although maximum federal income tax rates in the past have exceeded 50 percent, they are now 39.5 percent of taxable income (which is a considerably reduced figure from gross income).  State income taxes are typically a small fraction of federal income taxes for each taxpayer.</div> <bR> <div> A brief Arizona letter to the editor, published on May 14, 1994, was highlighted: "How long can our civilization endure with gambling as pervasive as it is now?"  Quote: "With increasing gambling (Lotto, Fantasy Five, Power Ball, gambling in Indian reservations, off-track gambling, and now in-home gambling) taking away from food and other necessities, and with increasing crime, how long will it take before our civilization goes down the tubes?"</div> <div>      We will address this issue in the next RESPONSIBILITY paper.</div> <div>                          Publius IV</div> <bR> <div> <A HREF="id118.htm" TARGET="_top" TITLE="Responsibility 85"><U>Responsibility #85</U></A></div> <div> Back to: <A HREF="id33.htm" TARGET="_top" TITLE="Responsibility Contents"><U>Responsibility Contents</U></A></div> </td> </tr></table></body>