Representative Paul Stam

1-28-10

Time for Democrats to Lead or Follow

“It’s past time for the Democrats to lead or follow in reforming North Carolina’s tax laws,” said House Republican Leader Paul Stam (R-Wake).

Raleigh, NC - The Joint Interim House and Senate Finance Committee on Tax Reform has now met four times since November 3. Unfortunately, there has been little progress reforming North Carolina’s revenue structure. It is time for an accounting.

After participating in the first three meetings House and Senate Republicans released their “Proposed Principles for Job Creation through Tax and Spending Reform.” These thoughtful proposals outline how North Carolina can achieve a more equitable tax structure while providing an economic environment to foster business growth and job creation. So far no response has been received from the Democrats, either to the proposals as a whole or to any of the separately stated principles.

“It’s past time for the Democrats to lead or follow in reforming North Carolina’s tax laws,” said House Republican Leader Paul Stam (R-Wake).

The Republican members of the Joint Interim House and Senate Finance Committee on Tax Reform continue work on this project. However, it is time for our colleagues in the majority to indicate whether they intend to offer a proposal and, if so, what it is.

Senate Republican Leader Phil Berger (R-Rockingham) said, "This process resembles the approach of Democratic leadership at the national level. It leaves the people in the dark and does nothing to address, much less solve, the problems currently facing our state.”

A recent report quotes both the Speaker of the House and House Finance Committee Chair Paul Luebke that they expect no action on tax reform until after the next election. Why? We have seen no proposal from Senate Democrats. We have seen no proposal from House Democrats. What proposal have they rejected?

Revenues are expected to be less than projected in the current budget. Our citizens continue to suffer unprecedented unemployment levels exceeding 10 percent. Tax reform and job creation are needed now. Each committee meeting costs the taxpayers thousands of dollars in staff time for preparation, as well as travel and per diem for the members.

North Carolinians continue to await a response to our tax reform proposals

JOINT CAUCUS PRESS RELEASE

Republicans Pledge to Protect Citizens' Rights and Fight ObamaCare with the Health Care Protection Act

“Republicans will not stand idly by and watch as citizens' rights to make their own health care decisions are taken from them by the federal government.” Senate Republican Leader Phil Berger

Raleigh, N.C. — The Republican leaders of the State Senate and House were joined by the Chairman of the North Carolina Republican Party today promising to fight the federal take-over of healthcare and protect an individual’s right to make decisions about their own health coverage. The Republican leadership promised a legislative initiative called the Health Care Protection Act (HCPA).

“Republicans will not stand idly by and watch as citizens' rights to make their own health care decisions are taken from them by the federal government,” said Senate Republican Leader Phil Berger (R-Rockingham), “The people of North Carolina are overwhelmingly opposed to this blatant abuse of power. We are proud to be their legislative voice by putting forth this common sense initiative.”

House Republican Leader Paul Stam (R-Wake) said the initiative should be supported by Democrats and Republicans alike. “This should not be about partisan politics; it should be about the individual freedom of our citizens." Stam noted that either a general statue or a constitutional amendment will be presented during the short session in May. If the Democratic majority blocks the initiative, it will be submitted again the first week of next year’s session, when he believes Republicans will hold a majority.

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http://projects.newsobserver.com/under_the_dome/gop_wants_to_protect_nc_from_health_bill

http://politics.mync.com/2010/01/nc-gop-attempts-to-block-health-care-overhaul/

http://www.wral.com/news/state/story/6840311/

http://www.news-record.com/blog/53964/entry/80414

Time for Democrats to lead or follow

1-14-10

Raleigh – The Joint Interim House and Senate Finance Committee on Tax Reform has now met four times since November 3. Unfortunately, there has been little progress reforming North Carolina’s revenue structure. It is time for an accounting.

After participating in the first three meetings House and Senate Republicans released their “Proposed Principles for Job Creation through Tax and Spending Reform”. These thoughtful proposals outline how North Carolina can achieve a more equitable tax structure while providing an economic environment to foster business growth and job creation. So far no response has been received from the Democrats, either to the proposals as a whole or to any of the separately stated principles.

“It’s past time for the Democrats to lead or follow in reforming North Carolina’s tax laws,” said House Republican Leader Paul Stam (R-Wake).

The Republican members of the Joint Interim House and Senate Finance Committee on Tax Reform continue work on this project. However, it is time for our colleagues in the majority to indicate whether they intend to offer a proposal and, if so, what it is.

Senate Republican Leader Phil Berger (R-Rockingham) said, “This process resembles the approach of Democratic leadership at the national level. It leaves the people in the dark and does nothing to address, much less solve, the problems currently facing our state.”

A recent report quotes both the Speaker of the House and House Finance Committee Chair Paul Luebke that they expect no action on tax reform until after the next election. Why? We have seen no proposal from Senate Democrats. We have seen no proposal from House Democrats. What proposal have they rejected?

Revenues are expected to be less than projected in the current budget. Our citizens continue to suffer unprecedented unemployment levels exceeding 10 percent. Tax reform and job creation are needed now. Each committee meeting costs the taxpayers thousands of dollars in staff time for preparation, as well as travel and per diem for the members.

North Carolinians continue to await a response to our tax reform proposals.

Senator Eddie Goodall, Republican Joint Caucus Leader

1414 Legislative Building – (919) 733-7659 – eddieg@ncleg.net

JOINT CAUCUS PRESS RELEASE

Proposed Principles for Job Creation through Tax and Spending Reform

Raleigh – The Interim Joint Finance Committee convenes today to continue its consideration of proposals to reform North Carolina’s tax structure. Republican members of the House and Senate Finance Committees released their outline for tax reform proposals to provide renewed vitality to job creation.

1. The concept of substantially reducing personal and corporate income tax rates and sales tax rates is good. If that reduction is accomplished by broadening the base in a revenue neutral way, that is the right way to go. But it raises four major issues.

2. Neither the public nor Republicans trust Democrats to keep the rates low. There must be a mechanism to ensure this. Two possibilities:

a) A Constitutional amendment limiting the state sales tax rate at 3% + and the county sales tax rate to an equivalent. The Constitution currently specifies a 10% limit on tax on net income.

b) A Statute that sets out as a Rule of Order, applicable to each House, that an increase in the rate must be separately passed by both Houses and signed by the Governor, and cannot be combined with any other matter unless by a 2/3 vote of each House.

3. The base widening must delete the exemptions and refunds which are in current law for political reasons/not because of true economic considerations.

4. Tax Reform must include spending reform that has passed the House in the past – zero based budgeting, and must include:

a) Procedural reforms must allow “off budget” sources of revenue to be considered as part of the budget process.

b) The minority party is entitled to proportionate representation on the Budget Conference Committee.

c) The Governor’s proposed budget must only include the amount of revenue collected in the prior year (with a recession exception).

5. In determining what is “revenue neutral,” the temporary taxes imposed in 2009 shall be treated as if they had expired.

6. We should also look at other reforms that take advantage on behalf of our citizens as federal taxpayers of federal deductibility issues. This could save our citizens $1 billion a year in federal income taxes.

December 3, 2009

President Obama’s Afghanistan speech reminded me of a 1996 article.

Out of Harm's Way

No Way to Run the U.S. Army
By: Paul Stam, Representative of the 37th District

In the recent (1996) women's varsity soccer conference tournament, Cary High School lost 3-0 to Apex. During the regular season, Cary had tied Apex 1-1, then beat Apex 1-0. I have figured out why Cary lost in this final match-up.

I dreamed I listened to Coach Norcus' talk with the Cary team at half time. "Okay women," he said, "I'm going to talk to Coach Middleton. I am going to tell him that we are not going to finish this game until we know how many goals Apex is going to score in the second half. We are down by 2. We need a clear line on Apex's plans so we will know how many goals to score.

Another thing. We are not sending any of you women into harm's way, Coach Norcus said. "There is entirely too much pushing and shoving in the game. You might get a sprained ankle or a sore shoulder. I am going to let that Apex coach know that his team is not to hurt you at all."

"But, Coach," said Mary Lou "we have been training all year to tangle with the Cougars."

"Well, this is another day and there are different rules. I do not believe in letting any of you get hurt. And if Apex doesn't like it they can find someone else to play with."

"One more thing I want you to think about before we walk onto that field. I'm going to talk to the ref. We need an exit strategy. When the game is over we need to know how we are going to get out of Cary without getting mobbed by all these crazy fans. If the ref can't give me an exit strategy, we are not playing."

Maybe this isn't exactly why Cary lost to Apex. But perhaps it illuminates why the American military, despite having an overwhelming technological, material and training advantage is going to have problems.

Coach Bill Clinton is befuddled. Saddam Hussein, for one, has figured him out. In the fall of 1996, Saddam played us like a yo-yo. Saddam let us lob million-dollar cruise missiles at $50,000 targets in southern Iraq that can easily be replaced. In return, we did not even attempt to stop his slaughter of the Kurds in northern Iraq - even abandoning a group of Kurds who had been working with the CIA for years.

In November the President considered sending troops to Zaire and also continued the mission in Bosnia for another year. Television reports from Fort Bragg treated us to the spectacle of parents and spouses complaining that the Thanksgiving and Christmas season was no time to send out the troops. What an embarrassment to the country and to our brave soldiers.

I prefer a different philosophy of struggle. It was penned in 991 AD by a hard-pressed soldier facing an onslaught of Danes at the Battle of Maldon.

"Hearts shall be bolder,

Harder be purpose,

More proud the spirit

As our power lessens.

Minds shall not falter

Nor mood waiver

Though doom should come

And dark conquer."

Representative Paul Stam

P.O. Box 1600

Apex, NC 27502

Tel: 919-362-8873

Email: pauls@ncleg.net

State Ethics Reform Necessary

NC Senate Fails to Consider Important Ethics Legislation

During the 2009 Session, I was a primary co-sponsor of three bipartisan bills aimed at reforming our State ethics laws. House Bill 944, “Disclosure by Appointees,” sponsored by Reps. Glazier (D-Cumberland), Ross (D-Wake), Stam (R-Wake) and Tillis (R-Mecklenburg), requires disclosure of campaign contribution activity by those appointed to critical positions in state government. House Bill 961, “Pay to Play Regulation” was co-sponsored by Reps. Glazier, Stam, Ross and Goodwin (D-Richmond). This legislation is aimed at preventing conflicts of interest involving political contributions by critical state contractors. House Bill 1136, “Executive Branch Revolving Door,” sponsored by Reps. Ross and Stam, would prohibit certain Executive Branch employees from registering as lobbyists for six months after leaving employment with the State.

All three bills passed the House of Representatives with almost unanimous approval. HB 944 was received by the Senate on May 7, 2009. HB 961 and HB 1136 were received by the Senate on May 14, 2009. However, not one of these bills was considered by the Senate prior to adjournment last August. Recent allegations involving former Governor Mike Easley and Mary Easley, as well as other top Democratic officials, indicate the critical need for ethics law reform.

These bills will be pending in the Senate when the legislature reconvenes next May. I call upon the Senate leadership to make their consideration a priority.

Let the Sun Shine In On Mike Easley

Further Investigations Necessary to Find Truth

Raleigh – Today the State Board of Elections found significant violations of campaign financing laws and ordered former Democratic Gov. Mike Easley’s campaign committee to pay $100,000 in fines and civil penalties. The Board also required the State Democratic Party to disgorge $9,000 in unlawful contributions. These actions followed lengthy testimony before the Board this week by former Governor Mike Easley and a number of his associates and Democratic Party officials. The Board referred Gov. Easley’s case to the Wake County District Attorney for review of possible criminal charges.

Contradictions in testimony and significant memory lapses of key witnesses give us good reason to demand careful scrutiny of possible corruption at the highest levels of state government. They raise serious questions that demand complete and truthful answers. While there is a presumption of innocence in criminal court, there are clearly enough questions that investigations must continue in a thorough and swift manner. The public must have no doubt that law enforcement will expeditiously ferret out the truth and hold accountable those guilty of wrongdoing.

The State Board also recommended legislation by the NC General Assembly making a candidate personally responsible to pay any fines and civil penalties if the campaign committee is financially unable to do so. The Legislature should carefully consider this proposal during the 2010 session. I would support it.

Federal authorities are also reviewing a number of unlawful campaign activities as well as odd real estate deals and influence peddling. To ensure the integrity of our state government, these questions must be satisfactorily answered without delay. These serious allegations must not be allowed to linger.

(The following is my statement of February 27, 2007, concerning the misdeeds of former Speaker Jim Black and some suggestions made to correct these problems.)

Rep. Paul Stam

February 27, 2007

Almost 800 years ago King John agreed to certain demands made by his countrymen. He did this in order to maintain his crown and probably his life. He promised that henceforth justice and right would not be sold. We call these promises (the) Magna Carta (1215 A.D.) and they were reiterated in the King’s Coronation Oath thereafter.

Since last week’s news conference former Speaker of the House, Jim Black, pled guilty in state court to obstructing justice and purchasing his office in 2003 for cash. Previously he pled guilty in Federal Court for selling legislation out of his office for cash.

There are certain things that should be said about this and certain things that should be done immediately. Three things should be said:

1. Everybody does not do it. To allow this slur to be repeated is an accusation of the worst kind against the vast majority of the members of both Houses.

2. Federal and State law enforcement offices have acted with diligence and professionalism. This was made immeasurably more difficult by the years of denial by the former Speaker. I would hope that the Chief Executive of this State and all the leaders would expect every member of the General Assembly and every member of the Executive Branch to extend to these duly constituted law enforcement authorities candid, complete and prompt cooperation, including telling the truth the first time they are asked.

3. There is no “greater good” that excuses this kind of behavior. To paraphrase Sir Thomas Moore, “When Representatives forsake their private conscience for the sake of the public good they lead their country on a short road to chaos.”

What to do immediately? First, along with Senator Berger I have or will file a series of bills to take the profit out of this type of corruption. [done] First, we have each filed a bill to deny the state funded portion of pensions to those convicted of certain felonies while in office. Second, three Senators have filed a bill to repeal the law that was purchased last Session. I will shortly co-sponsor a bill to that effect on the House side – probably later this week. [done]

Third, we are at the time of year when the House rules for the Session are to be adopted. This is probably the most important reform that is necessary because it goes to the heart of why the former Speaker, Mr. Black, was willing to give money for his office and why he was able to sell legislation for cash.

Over the last 20 years there has been a gradual, yet pronounced, concentration of power in the House into fewer and fewer hands. I recall that in 1988 one of the themes of the election was the undue influence of what was then called the “Gang of 8” as to budgetary matters. That has only gotten worse. I have requested, and I hope that the democratic majority of the House will agree to, numerous changes in the rules that will diffuse power and make the House a more democratic institution. [not done] Although it is helpful, it is not enough that debate be full and fair if the very matters that are debated are predetermined. Without going through the technical jargon of dozens of rules that need to change, I will give you a couple of examples.

1. HB2213 – Kelo Bill – 88 co-sponsored last year by a majority from each party is a good illustration of how the will of the majority in the House and in the State has been subverted by the will of a single person. We could not get it to the floor because then Speaker Black, who would never give a reason for his opposition but let it be shuttled between subcommittees and committees to avoid a motion for recall. There is no effective recall motion if that power remains in power of anyone. [worse in 2009]

2. The Budget. In the House there are 8 co-chairs of Appropriations, all Democrats. Although the subcommittees of Appropriation are proportional in membership it is a little known fact that all 8 full chairs can vote on each subcommittee [changed] and, in effect, make all the major decisions for each subcommittee. [still true] When the full Appropriations Committee meets, because these 8 are added, that committee is grossly disproportional. [still true] The worst feature of the present rules is that the rules under which that committee operates allows these 8 to dictate the allocation for departments and then allows them to rule out of order any attempt to move money between departments at all. [still true] While dozens of amendments will be considered in the Appropriations Committee, not a one can change the decree of the appropriation chairs as to the basic structure of the budget.

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NEWS RELEASE

Early Release of Convicted Murders a Misapplication of Law

“Good Time” is Incorrectly Applied

It continues to be reported that the Department of Corrections established a rule in 1983 that applies day for day “good time” credits to lifers sentenced before the Fair Sentencing Act in 1981 for purposes of sentence reduction. This is not correct. The Department of Corrections has never done that. It has only used those credits for three completely different purposes:

1. Determining parole release dates;

2. Calculating sentences for purposes of commutations by the Governor, and

3. Determining a prisoner’s grade in his or her custody classification.

No court has ordered the release of these 20 murderers and rapists. Only two of them have been ordered to have hearings in Superior Court to determine the question – one in Cumberland County and one in Caswell County.

Gov. Beverly Perdue’s actions pretending to save the people of the State from the release of these violent felons are play acting. She should get control of her own department and exercise verbal self-restraint.

I am confident that the Courts will apply the Statutes and that these “lifers” will remain in prison for a long time unless Gov. Beverly Perdue commutes their sentences herself. That would appear unlikely, but since she signed other legislation that coddles murderers one has to wonder (SB 461).

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9/25/09
Exaggerated Budget Deficit Exposed by Representative Paul Stam, Republican leader, North Carolina House of Representatives

How the Democrats Raised Your Taxes Just Because They Could

Raleigh - A recent report by the State Controller provided an accounting for the total spending by North Carolina for the 2008-2009 fiscal years.  In a surprising revelation, the “gap” between the expenditures last year and the anticipated revenues for this year, without tax increases, was only $338 million.  This is in stark contrast to the Democrats’ constant assertion of a budget hole exceeding $4.5 billion for the current fiscal year.  Democrats increased taxes almost $1 billion to cover their exaggerated imaginary shortfall.

During the run-up to proposing a new state budget, the Democratic leadership issued warnings to teachers, mental health providers, state employees and other receptive groups that without massive tax increases essential jobs and programs would be slashed (“NC House Eyes Stark Spending Cuts”, N&O June 4, 2009). As recently as July, the News and Observer reported, “Revenue next year is expected to be more than $4 billion below what it would have taken to keep funding programs and services at recent levels, and Democrats have described the deficit as $4.5 billion or more.” (“The New Plan: More Taxes For All”, N&O July 22, 2009)

The State Controller reported 2008-09 total expenditures, including federal stimulus funds of $19,652,500,000.  According to the official General Assembly estimate, revenues for the upcoming year would have been $17,916,564,000 (without the tax increase) with an additional $1,397,863,857 in federal stimulus money for a total spending availability in 2009-10 of $19,314,427,857.  This leaves a difference or “gap” of $338,072,142.  Taxes were increased by Governor Perdue and the Democrats a total of $990 million.  This will provide $652 million more revenue than required to spend the same as during the previous year.

The recently adopted Democrat crafted budget anticipates spending $20,412,796,056 in the upcoming year for a robust 3.867 percent increase over the $19,652,500,000 in 2008-09 (see page 3 of 15 in the  report).

“In previous public statements and during floor debate, I presented to the House statistical information that the real gap between expenditures in 2008-2009 and planned spending for 2009-2010 was ultimately $1,008,727,709 (counting stimulus money) or $953,320,558 (not counting stimulus money),” said House Republican Leader Rep. Paul Stam (R-Wake).  “Now that accurate numbers have been ascertained from the Office of the State Controller and the General Assembly’s Fiscal Research Division, we now know the real gap was only $338 million.  This is far less than the $4.2, $4.4, $4.7 billion gap consistently proclaimed by Gov. Perdue and the Democrats allies.  Clearly, we could have balanced the budget without any tax rate increases simply by continuing the level of spending that had been in effect since approximately January 2009.”