Young Minnesota Republicans Attend Center of the American Experiment 2015 Annual Dinner

The Gopher State Politics Institute had the privilege to sponsor an enthusiastic group of young Republicans from the College of St. Benedict and St. John's University.

The group of students and alumni were led by Dr. Matt Lindstrom, Ph.D.

Thanks to all that attended.  We hope to see you at future events.

Matt Lindstrom, Ph.D., (left), P.J. O'Rourke (center), Robert L. (Bob) Smith, 3rd, Founder (right of P.J.) and the students and alumni of College of St. Benedict and St. John's University).               Photo by Mark Prokosch

Center of the American Experiment Celebrates its 25th Birthday!

The Center of the American Experiment celebrated its 25th birthday last night at its annual dinner. Gopher State Politics Institute staff was honored to attend the celebration, along with over a thousand friends of the Center.

Not only did we enjoy great food and enlightening conversation, but we also had the pleasure being entertained by P.J. O'Rourke, the great Political Satirist and Author.

Happy Birthday to the Center of the American Experiment and a special thanks to Mitch, Kim and staff. Keep up the great work.

Bob Smith, 3rd

http://www.americanexperiment.org/

Estate Tax Shoos Away Snowbirds by KIM CROCKETT - Published February 8, 2015-Star Tribune Op-Ed

Great op-ed by Kim Crockett of the Center of the American Experiment. Please share it with your friends and associates!      Bob Smith

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Estate Tax Shoos Away Snowbirds by KIM CROCKETT - Published February 8, 2015-Star Tribune Op-Ed
Of course, they’ve paid their "fair share." And once they go South, they’ll be donating elsewhere.

http://www.startribune.com/opinion/commentaries/291113251.html

In a ritual familiar to many Minnesotans, I recently made plans to visit my mother in Florida. When I called to compare calendars, she surprised me. After just a few months as a new snowbird, she is thinking of becoming a resident of Florida. "We are happy to pay the taxes, but the estate tax is another matter," she said.

Several years ago, my mother and stepdad moved from the Land of 10,000 Taxes back east to "Taxachusetts," where many of her college pals and family members still live. All of her estate planning to this point assumed she’d die a resident of Massachusetts, which has an estate tax similar to that of Minnesota and a dozen other states.

While my mother adores Massachusetts — Sen. Elizabeth Warren and all — she is a thrifty and savvy planner and hopes to leave resources behind, primarily to help a family member with special needs. She is one of those "Happy to Pay" folks, but has found her limit: She is not happy to pay a death tax. Florida has none.

I work for a nonprofit focused on public policy, so this issue is of interest — not just as a matter of good tax policy, but for our organization’s future (and I assure you for the future of every other nonprofit in Minnesota). More important, it is vital for our state’s future.

When I was making calls to donors in December, I had many similar conversations to the one I had with my mother. Too many of the people I reached had either relocated or were thinking about it. In comparing notes with other nonprofits, I found that we are all hearing the same thing: a growing part of our donor base is leaving as baby boomers retire but also as younger, more mobile people are headed to a better climate for taxes or weather, or both. This is laid out in stark detail by data from our state demographer in a report called "Minnesotans on the Move."

One donor told me that when he and his wife retired, they stuck around. This was home. They were looking forward to giving lots of time and money to the Rochester area, including a large donation to a local foundation. Over time, they were deeply offended by the (false) idea that they had not paid their "fair share" in taxes or that somehow they had not earned their success. They knew where they came from and how hard they had worked. Yet my donor stayed, continuing to pay taxes and to give generously to nonprofits.

The tipping point came with the estate tax, which my donor called "a tax on my children." He estimated the cost of Minnesota’s estate tax. Rather than pay the tax, he bought a house in Florida for less than what he would have paid in estate taxes and became a Florida resident. Instead of paying estate tax, his children are going to inherit a five-bedroom house in Florida.

Once people leave the state, they shift their lives and donations to their new communities.

Vance Opperman observed in Twin Cities Business that while Minnesota has a lot to offer, we have a problem: "the constant rhetoric attacking rich people, people that aren’t morally [willing] to pay their fair share, I resent. … And I frankly think the constant effort to harass people of wealth has a secondary but negative effect. When people make their first big hit, their first big capital gain, you want them to stay here. You want them to fund the orchestra, to fund foundations. You want them to continue to contribute to our society, to start venture capital, to invest in new businesses. And if you chase those people out because they think they’re not wanted, or if you chase those people out or you don’t attract people who are mobile, you will have a decline in many of the amenities we’ve just been talking about."

You might be thinking, "Good riddance. Who needs Richie Rich anyway?" I got a full helping of such green-eyed rhetoric last week at the State Capitol. In recognition of the exodus caused by the estate tax, both the Senate and the House are hearing bills that would either repeal the tax (best scenario) or bring the tax in line with the federal estate tax (good enough compromise).

While most legislators seemed to get the problem, during one hearing a state representative mocked the idea of helping "rich guys with three yachts on Lake Minnetonka." Another compared certain untaxed stock gains to a lottery windfall. The estate tax, it was argued, was our defense against an aristocracy.

This is how we end up with family farms and businesses being sold to pay taxes. But I get that fear about accumulated wealth. I worry about it, too. I do not want to be bossed around by Richie Rich, either.

I am reassured by two things. First, most wealthy Americans build and earn their success and then give a lot of it away to hospitals, schools, the arts and even policy organizations. Very few inherit great wealth. When they do, they arrange for their estates to be out of the reach of Minnesota’s estate tax. Second, inherited wealth is often morally debilitating. It’s like people who win the lottery; many end up with nothing — or with serious problems — because they did not earn it.

So I do not worry about aristocracy. I worry about all of the farmers and small-business owners who do not have yachts or untaxed stock gains but instead have lots of valuable acreage or capital equipment that puts them right in Minnesota’s estate tax bull’s-eye. I don’t think they should pay for the farm twice: first in property and income taxes, and again when they have gone to their peace.

I want them and their heirs to stay put and call Minnesota home, to keep working that farm or growing that business.

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Kim Crockett is chief operating officer of Center of the American Experiment, devoted to Building a Culture of Prosperity in Minnesota and the Nation

The Veterans Affairs Mess

Don’t throw the baby out with the bath water...

We at the Gopher State Politics Institute generally try to stay clear of federal matters. The U.S. Department of Veterans Affairs- the "VA" – health care issue centering on misleading dates of provider services has surfaced genuine anger among us. People are furious over this and it is not partisan. The VA must get its house in order. How?

Relieving the Secretary and Under Secretary for Health of their posts is not the way to go. They are the two who could best change the course quickly, if at all. Congress passing new laws will do little to right the course. The system needs to be managed on truth, not the political management style of making the system and higher ups look good.

Please understand that the overwhelming majority of VA employees are good persons dedicated to serving their veterans. The system has put them in a position where data fudging is almost a must. The scheduling issue is the poster child. The metrics model has to go and go now. How?

This is a very emotional issue. Cool heads need to prevail. This should be done in a dispassionate, rational, business-like adult problem-solving manner. Get rid of the political management style and replace it with a management responsible for detecting local problems and solving them, focusing on the veteran receiving quality care in a reasonably timely basis, to the extent that is possible without forcing speed.

The doctor who blew the whistle at Phoenix suggests an amnesty period where each facility can get it‘s house in order without fear of reprisal. Each facility needs to put out a true picture of where they are at with care, waiting lists, and other factors.

Management now knows where they’re at and their job should be to find, identify, and correct problems. The absolute truth must stand out and be addressed. Making one’s facility look great when it isn’t is a political management con. Leadership is in order and the VA needs only one instruction from the Administration and Congress.

Fix it! - Then stay completely out of the way.  Bob

What a Great Evening with George Will...

I had such a great evening at The Center of the American Experiment, Annual Dinner. Great people, Great Friends and George Will. George was great as always, entertaining and informative... Thank you Mitch, Kim, Tom and the whole team for a very enjoyable evening! Bob Smith 3rd

http://www.americanexperiment.org