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Sunday, March 16, 2008
George Will :: Townhall.com Columnist
Phoenix Taxpayers' Gift to a Big Corporation
by George Will
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


Arizona's Supreme Court has held that whether a government transaction with a private corporation violates the gift clause depends on "the motivating and animating cause of the transaction." Got that?

This is how courts weakened the U.S. Constitution's Fifth Amendment restrictions on how government could take private property "for public use." In the original narrow understanding, "public use" meant public works such as roads, bridges, courthouses. Then taking property to cure "blight" (another elastic term) became a public use. Now property is taken and given to developers just because they will pay higher taxes than the original owners.

Similar judicial malpractice has enabled John McCain and other campaign "reformers" to eviscerate the First Amendment. "Congress shall make no law ... abridging the freedom of speech" -- unless Congress claims that the law's rationale is to prevent "corruption" or the "appearance" thereof.

Courts have misconstrued the gift clause into a nullity, so legislators now use any asserted public benefit, however remote, to justify using subsidies to compete with rival jurisdictions for businesses and their tax revenues -- or to rationalize conferring benefits on powerful interests. For example, suburban Scottsdale's City Council has given $1.5 million for 19 automobile dealerships -- some of them owned by companies with revenues in the billions -- to spend on marketing.

Today, Phoenix taxpayers are paying the cost of a pricey law firm's defense of the constitutionality of their subsidy of CityNorth. Perhaps courts, which unleashed the subsidies competition by making mush of the gift clause, can make amends by reinvigorating that clause, as the Goldwater Institute requests. Failing that, Arizonans can stop booster socialism and enforce general disarmament among their cities by amending the clause with language that stipulates the original intent. The most effective cure for foolish politics is still sensible politics.

CLARIFICATION -- In my column for Feb. 28, I said that Trevor Potter is president of the Campaign Legal Center. Actually, he is currently on leave from that position.

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About The Author
George F. Will is a 1976 Pulitzer Prize winner whose columns are syndicated in more than 400 magazines and newspapers worldwide.
 
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US Chamber of Commerce

I haven't been able to get my hands on a link to the Charter for the US Chamber of Commerce - the original or the current one.

If any knows a link to these documents I would appreciate you sharing it to look further into this matter of the roles of the Chamber of Commerce in supporting their own membership through coordinated and volume discount marketing.

Chamber of Commerce & Government subsidy
Gestell,

As citizen's benefited by those same roads, bridges and other infrastructure I'd say that was an appropriate government role to play.

When we are speaking about supporting non-for- profits to create a draw within a chamber of commerce market, what I see are that retail are gaining a benefit and office business are carry an additional cost without benefit.

In addition, the citizens just picked up another tax that goes directly to their bottomline costs and increases the cost of buying goods at local retail outlets.

In addition, there is a very real possibility that there is a diminishing return when there is tight credit, fuel cost induced inflation and a recession.
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