10x25MM

Metallurgical engineer, troublemaker....

Conservative News, Cronyism, Democrats, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Philosophy, Rent Seeking, Republicans, Taxes

Lie of the Month: “We’re talking about introducing an entirely new industry to Michigan”

by 10x25MM • December 3, 2015 • 11 Comments

Pandora's Box Has Been Opened

Actually, no. There are at least 28 third party data centers already up and operating in Michigan. The House Fiscal Agency thinks there are 40, but didn’t specify them. None of these 28+ existing data centers required the tax breaks just reported out of the Michigan House Committee on Tax Policy to get up and running. But Switch SuperNAP does? Why?

The promoters of Switch SuperNAP’s tax break package launched their campaign back in November with a heavy emphasis on the ‘new industry’ angle. This whopper seems to have been originated by Switch’s spokesman Roger Martin:

“It is a tough issue,” Switch spokesman Roger Martin said. “There’s no question about it. We’re talking about introducing an entirely new industry to Michigan, something that is the future of this country and of this world. It’s a good, vigorous debate.”

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Cronyism, Democrats, Fees, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Another Deceitful Michigan Tax Scam Exposed

by 10x25MM • November 25, 2015 • 4 Comments

Desperate Local Politicians Seek to Preserve Surreptitious Business Activities Tax

Less noticed during this year’s roads tax furore, a roiling commercial property tax dispute has exposed a widespread, sub rosa business activities tax hidden in commercial real property taxes. A hidden tax you have been paying with every purchase at big box chain retailers who occupy stores they themselves own. Big box retailers have been exposing and successfully challenging this corrupt assessing practice through the Michigan Tax Tribunal and local units of government are howling over the loss of their ill gotten revenue. Michael B. Shapiro of Honigman, Miller has been leading the charge against these bloated assessments.

Local units of government are demanding the Michigan Legislature overturn long standing real estate valuation principles and the Michigan court rulings which hold that assessed true cash value (i.e. fair market value) for tax purposes be based upon what a property would be sold for at arm’s length. They want true cash value to effectively incorporate the retail success of current owner-occupants. This artificially jacks up the property’s true cash value, its taxes, and the prices you pay at the store. Remember that businesses don’t pay taxes, customers of those businesses – in this case you – do.

Michigan’s nitwit media have deceitfully relabeled traditional true cash value assessment the ‘Dark Stores Loophole’. Local government organizations are screaming about lost revenues. Even MoveOn.org is right in there with a petition to support their favorite spenders. This is a devious effort to stampede our state’s legislators into codifying creative assessment methods solely intended to extract surreptitious revenues from shoppers. A follow on to the more blatant ‘Amazon Tax’ campaign of 2014. The State of Michigan got into your pocket last year, now it is your local government’s turn.

The term ‘Dark Stores Loophole’ was created to suggest that vacant big box stores have lower, fire sale values when compared to occupied stores. True enough, but we are discussing assessments used to determine real estate, i.e. property, taxes. Not taxes on business activity. The two creative assessment methods used most often to loot shoppers are ‘construction cost‘ and ‘imputed lease‘ calculations. Each might be valid under some very limited circumstances, but both are entirely invalid when assessing big box retailers.

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Conservative News, Cronyism, Democrats, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Rent Seeking, Republicans

Switch SuperNAP Michigan Data Center: Chaos in the Offing

by 10x25MM • November 18, 2015 • 10 Comments

A Few Details Michigan's Legislators Might Want to Consider

Michigan’s nitwit media have been gushing over the announcement last Thursday that Switch, LLC will purchase the erstwhile Steelcase Pyramid southwest of Grand Rapids and convert the site into one of their state-of-the-art SuperNAP cloud computing data centers. The ‘information economy’ has been touted as Michigan’s future by no less than Michael Dell. He was in Detroit to address the Economic Club after his company purchased EMC Corporation, another major data center operator with three facilities in Michigan, in a blow out $ 67 billion buyout. Switch SuperNAP promoters, notably The Right Place, Incorporated, are touting 1,000 new jobs in Gaines Township, but this should be regarded wth the same skepticism as any other MEDC clone employment prediction. No one has said anything about financing, but there is good reason to believe that Michigan will be asked to ‘participate’ here as well.

Steelcase vacated their distinctive Corporate Development Center in 2012 and sold it to to Norman Properties in May. Norman Properties, in turn, has agreed to sell this property to Switch LLC, pending the approval of State tax breaks. Those tax breaks have been introduced in the Michigan House by Representatives VerHeulin, Yonker, and Schor. Identical tax break legislation has been introduced in the Senate by Senators Hildenbrand, Schuitmaker, and MacGregor. These legislators are targeting quick passage in the legislative session which convenes after their Thanksgiving break. They might want to consider a few details before they lunge further forward.

This being RightMI, you might think this post is about those tax breaks. You would be wrong. There is actually a critical flaw in this project which will injure Consumer’s Energy electricity customers all across West Michigan. A couple of other issues exist as well, but they pale in comparison to the electricity consumption of this project. Those tax breaks are a lost cause in American politics today – not even worth protesting.

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80th District Special Election (2015), Conservative News, Cronyism, Elections, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans

Come Out, Come Out, Whoever You Are!

by 10x25MM • November 5, 2015 • 8 Comments

The Election's Over, Your 10 Days Are Up, File Your Damned Campaign Finance Statements

Richard D. McLellan

A scratch corporation named Michigan’s Voice (LARA 71630M) was registered with Michigan’s Licensing and Regulatory Affairs Department on 26 October by a connected lawyer, Richard D. McLellan. He signed the Articles of Incorporation on 15 October.

Michigan’s Voice Flyers

Just in time to mail two obnoxious, lying flyers knifing Jim Storey, the second place finisher in the 80th House District special primary held on 03 November. The address used for the Michigan’s Voice LARA filing and printed on the flyers was not Richard McLellan’s, rather it was that of Eric E. Doster’s law firm Doster Law Offices, PLLC.

Close Up, Michigan’s Voice Flyer

The Michigan Campaign Finance Act, PA 388 of 1976, requires all committees engaged in Michigan politics to file a Statement of Organization within 10 days of being formed. MCL 169.221 Section 21(9) also requires all committees to designate a Treasurer before receiving and disbursing funds. MCL 169.232 Section 32(9) further requires all committees to report late contributions [those received after 18 October in this election] be filed with the SoS within 48 hours of receipt as well. Michigan’s Voice has done none of this.

Committees are defined in MCL 169.203, Section 3(4) as:

“a person who receives contributions or makes expenditures for the purpose of influencing or attempting to influence the action of the voters for or against the nomination or election of a candidate,………., if contributions received total $500.00 or more in a calendar year or expenditures made total $500.00 or more in a calendar year.”

The word ‘person’ in this act is used in the legal sense and most definitely refers to a corporation registered at LARA, fiddling in politics. Michigan’s Voice is assuredly a committee under the MCFA.

Michigan’s Voice Articles, Page 1

Twenty-one days have passed since Richard McLellan signed Michigan’s Voice’s Articles of Incorporation and 10 days have passed since those Articles of Incorporation were officially filed by LARA. I received the first Michigan’s Voice flyer on 28 October, so arrangements and payments must have been made days before that. Arena Communications of Salt Lake City, the Michigan’s Voice mailings’ designer and printer, isn’t that quick and the U.S. Postal Service certainly isn’t. So the MCFA 10 day grace period has been sorely abused.

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80th District Special Election (2015), Cronyism, Elections, Michigan, Michigan Politics, Part Time Legislature, Proposal 15-1, Republicans

The ‘Money Poll’ in Michigan’s 80th District House Race

by 10x25MM • October 30, 2015 • 2 Comments

Mary Whiteford - the Establishment's Revenge for Proposal 1's Defeat?

More campaign finance reports are trickling in to the Secretary of State’s Bureau of Elections and it is clear that an avalanche of money from establishment Republicans is backing Mary Whiteford in the State House of Representatives 80th District special election. You have to dig a little to figure out just how much money and from where, but most of the evidence is available. Let’s call this the ‘money poll’.

Ms. Whiteford’s official committee (BoE 516401) has collected $ 28,200, plus another $ 2,807.96 of in kind contributions (actually expenditures) by the candidate herself. Great Lakes Education Project, an IRS 527 political action committee, has been furiously mailing cards supporting Mary Whiteford and trashing Cindy Gamrat. – $ 15,477 worth. So a total of $ 46,484.96. Another group, Michigan’s Voice (LARA 71630M), has made at least one mailing on Mary Whiteford’s behalf, but little is known about this recently incorporated (10/26/15) group and they have made no filings with the SoS BoE. By law they have 10 days to file, so we probably won’t know anything further about their efforts until after the primary. A well targeted mailing in the 80th costs around $ 4,000, so the Michigan’s Voice effort elevates Ms. Whiteford’s total funding in this special primary above $ 50,000.

Only 26 of Ms. Whiteford’s contributions – $ 6,300 – came from within the 80th District (excluding the candidate’s own contributions), far less than the 200 plus contributions that came to her from within the District in her first election attempt last year. This year, 85% plus of her funding is coming from establishment Republicans from outside the 80th.

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Conservative News, Cronyism, Democrats, Fees, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Philosophy, Rent Seeking, Republicans, Taxes

The Only Genuine Flint Water Expert: Josiah Willard Gibbs

by 10x25MM • October 8, 2015 • 15 Comments

Albert Einstein Called Him "The Greatest Mind in American History."

Josiah Willard Gibbs
1839 – 1903

The second phase of Governor Snyder’s plan to restore Flint’s damaged water infrastructure was announced today. Michigan’s taxpayers will pay the pirates at Detroit Water & Sewerage $ 6 million to reconnect the Flint water system to DW&SD’s Lake Huron water supply. The Charles Stewart Mott Foundation will ante up $ 4 million more and the City of Flint will will pay $ 2 million extra as well. Governor Snyder said: “The technical experts helping the city on its water advisory all agree this move back to the Great Lakes Water Authority provides the best public health protection for children and families.” Note that our devious Governor gives you the impression that the funds will be going to the GLWA. No, they will all be going straight to the pirates at DW&SD unless Flint’s new Karegnondi water pipeline is seriously delayed.

As we pointed out last week, the Flint water distribution system has been seriously damaged by 17 months of amateur chemistry and government incompetence after resourcing their water supply to the Flint River. Incompetent control of water chemistry after April 2014 has dissolved protective pipe linings, allowing lead, iron and steel corrosion which has released lead and iron compounds into Flint’s water on its way to customers. A process called leaching. The finished water coming out of the Flint Water Treatment Plant is seemingly fine, but it certainly isn’t by the time it arrives at their customer’s taps.

Because the damage to Flint’s water infrastructure commenced with this resourcing, a hue and cry went up to reconnect Flint to Detroit water. A logical fallacy. Detroit water did not damage Flint’s water infrastructure when it was used prior to April 2014, at least as far as we know. (Do we really know?) However it cannot – by itself – repair the damage done since. Flint pipes may not have been corroding before April 2014, but they certainly are now. Detroit water is controlled just enough to prevent damage to water infrastructure, but not enough to repair damaged infrastructure. Flint is going to require a distinctly different water chemistry than Detroit.

The technical experts are touting corrosion control plans to stop the corrosion in Flint’s water distribution piping. By corrosion control, they intend to load up Flint’s water with orthophosphate forming chemicals to prevent further corrosion and attempt to restore the protective scale linings in Flint’s water piping. This is the EPA’s stock recommended practice, derived from their statistical analysis of water systems across the nation. The problem here is those statistical analyses were made of more or less functional water distribution systems. Not a heavily damaged system like Flint’s. Flint’s water problems are an ex novo case. The only recent case of lead pipe leaching even close occurred in Washington, DC, but is enough different in its particulars that Washington’s corrective actions do not provide an assured plan of action for Flint.

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Cronyism, Democrats, Fees, Flint Water Fiasco, Government Incompetence, Humor in Michigan, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Flint Water Quality – Michigan Taxpayers Are Going To Pay For It

by 10x25MM • October 1, 2015 • 22 Comments

Amateur Chemistry, MDEQ Lies, All Around Government Incompetence, Social Justice Warriors => Everything Goes Wrong

Usually, when the words ‘Flint’ and ‘lead poisoning’ are used in the same sentence you get a mental image of homicides by gunshot. Likewise, in Michigan, ‘amateur’ and ‘chemistry’ conjures up images of an illegal meth lab fire. Now, however, we have allegations that the City of Flint’s amateur drinking water chemistry is causing high lead levels in children. This story has exploded over the last week and, as usual, the ignorati in the main stream media and Michigan politics are clueless.

Flint’s emergency financial manager switched the city’s drinking water source to the Flint River in April 2014, an attempt to save the ruined city $ 30 million a year – the vigorish being extracted by the pirates at the Detroit Water & Sewerage Department. The same extortion which motivated the Detroit suburbs to create the Great Lakes Water Authority. Using river water was an intermediate step, with the ultimate goal of Flint joining the new Karegnondi Water Authority and resuming Lake Huron sourcing after the new KWA pipeline is completed in 2016.

Unfortunately, Emergency Financial Manager Ed Kurtz did not realize that river water would require much different preparation than the Lake Huron water they had been supplied by DW&SD. He rose in life as the leader of a business school, not as a chemist. It doesn’t appear that Flint Water Treatment Plant’s staff water chemists had a clue, either. Comments made by Governor Snyder at the presser for his Supreme Court nominee Joan Larsen suggest he was neck deep in this decision and also completely oblivious to the technical issues.

Flint residents protested immediately, complaining of poor taste, foul odors, and turbidity (lack of clarity). Much of this unrest was part of a long term drive to oust the emergency financial manager running Flint, the paramount goal of the city’s social justice warriors. It didn’t help that Ed Kurtz raised water rates about 50%, emulating DW&SD’s obscene fees on top of maximum taxes piracy. Public outrage has increased in Flint ever since. Genesee Circuit Court Judge Archie Hayman enjoined Flint’s water rate hike, throwing Flint’s finances back into disorder. Since Judge Haymen’s order was left in place by the Appeals Court and went into effect, Flint water collections have dropped by $ 1.75 million a month.

In all fairness to EFM Kurtz, part of his rate increase was intended to replenish $ 15.7 million which had been transferred from the Flint water fund in 2007 to pay a sewerage overflow settlement. However this entire situation was almost certainly an attempt to quickly balance Flint’s books and wrap up emergency financial management. Lansing was certainly sweating EFM Kurtz to conclude Flint’s restoration in order to shut down the social justice warriors before our 2014 election.

So what is happening here, technically? Will Detroit water fix Flint’s problems? (Hint: No)

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80th District Special Election (2015), Conservative News, Elections, Fees, Michigan, Michigan Politics, Opinion, Part Time Legislature, Philosophy, Republicans

Ain’t No Learnin’ in the Fifth Kick of a Mule

by 10x25MM • September 28, 2015 • 1 Comment

The Horrendous Campaign Finance Mess of Another Republican Candidate for the 80th House District Seat

This is, without a doubt, the single most convoluted political mess I have ever encountered.

Allegan County Commissioner James M. Storey was one of the first to announce for the special election in the 80th District of the Michigan House of Representatives and one of the last to file. Just before he actually filed, several media stories explained that Mr. Storey was late to file because he discovered outstanding fines against his campaign committee assessed by the Secretary of State. Mr. Storey “discovered a forgotten 33-year-old open campaign account with the Michigan Secretary of State’s office stemming from Storey’s failed 1982 state House bid to represent the eastern UP.”

Mr. Story “said he agreed to amend the reports for that committee and pay a $2,500 fine to the Secretary of State as a result.” His actual predicament is far more recent than his statements suggest and his old ‘Jim Storey for State Representative’ committee still exists and still is noncompliant with Michigan election finance law.

Mr. Storey’s unextinguished State Representative committee did indeed incur an initial $ 25 fine for failing to file its 1998 annual statement (covering 1997) which eventually grew to $ 1,000 in 2001 when it was finally paid. This may have occurred because Mr. Storey moved from Saginaw to his present Holland residence during this time frame. He might not have filed an address change with the Secretary of State and missed their notices. Understandable, but expensive.

However, he filed his committee’s 1999 statement (covering 1998) on time from his current Holland residence, but then failed to file his 2000 statement (covering 1999). Somehow the Secretary of State’s Bureau of Elections overlooked this failure to file for 14 years.

Mr. Storey’s real problems with Michigan’s campaign finance law began in 2012, the year he ran for the Allegan County Commission’s 2nd District, a race which he won. He filed his 2012 annual statement (covering 2011) late, then fails to file his next four required statements until the eve of his 80th District filing.

The filing he did make with the Secretary of State in 2012 referenced 105th District state representative race. Then on 15 September 2015 he created the ambiguous ‘Jim Story for Allegan County’, referencing his 80th District State House candidacy.

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80th District Special Election (2015), Cronyism, Elections, Michigan, Michigan Politics, Opinion, Part Time Legislature, Philosophy, Republicans

Running for Money in the 80th

by 10x25MM • September 26, 2015 • 0 Comments

An Establishment Republican Candidate Seeks Lobbyists' Love

The special election underway in Michigan’s 80th House District is a consequence of forbidden love. Now one candidate in this special election is running for the entirely legal love of Michigan’s political money class.

Michigan’s campaign finance laws do not require financial reporting by candidate committees in the November 3rd special primary until October 23rd, but three of the filed candidates have active campaign committees whose past financial statements are open for public review.

Mary P. Whiteford came in second to Cindy A. Gamrat in the 2014 regular primary election, a hotly contested four-way race. Ms. Gamrat went on to win the general election in the 80th and then got expelled from Michigan’s State House a year later – in no small part because she antagonized the Lansing political establishment.

Ms. Whiteford was clearly the establishment Republican candidate in the 2014 race. Vice Chairman of the Allegan County Republican Committee and a significant contributor to other county Republican committees and all the correct Republican establishment candidates. Ms. Gamrat, on the other hand, has a far more modest contribution record focused on Tea Party candidates.

Ms. Whiteford spent $ 87,400 in her 2014 primary effort, an unremarkable sum by Michigan State House race standards. Ms. Gamrat spent $ 54,150 in her primary victory, so there is no story here.

Both candidates’ committees were in debt at the end of the hotly contested August 2014 primary. Ms. Gamrat’s committee owed $ 7,933.47 – all to herself and members of her immediate family. Ms. Whiteford’s committee, on the other hand, owed $ 67,701.57 – all to herself.

A Year Later…..

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All the Other Stuff, Conservative News, Cronyism, Democrats, Humor in Michigan, Liberty, Michigan, Michigan Politics

Does EMU Have a Guilty Conscience?

by 10x25MM • September 8, 2015 • 1 Comment

Ivory Tower Finances in Michigan: No Pocket Left Unpicked, Other People's Crumbs for the Students!

In June, the EMU Board of Regents unanimously voted a 7.8% increase in tuition for students. Their new tuition rate for Michigan residents is $ 10,417.00 per year. This $ 754.00 annual increase – about four times the rate of inflation – was justified on the grounds that EMU’s tuition was thirteenth among Michigan’s major public universities. Its not like EMU’s past tuition increases had been held below the rate of inflation, its just that they had been more circumspect about raping forcing their students into perpetual debt slavery.

EMU specializes in disciplines which don’t command especially high wages, but they do generally qualify for our fearless leader’s Income Driven Repayment (IDR) debt forgiveness plans. So the EMU President and Regents probably figure that it is long past time time to tap the federal taxpayers for their grand delusions ambitions through their victims students. Who would notice a few millions more in delinquencies in a program which already has $ 187 billion in delinquencies?

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