Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

CARROLL: Ritter can't lose

By Vincent Carroll, Rocky Mountain News (Contact)

Published August 12, 2008 at 12:05 a.m.

Text size  

More Opinion Columns & Blogs

More stories »

Oh, what a difference eight months can make.

As the election approaches, Gov. Bill Ritter will be crisscrossing the state to promote a ballot measure that will cost the oil and gas industry $320 million a year through the elimination of a tax credit.

"This is the single best example of a tax credit that is now over 30 years old and has no real relationship to incentivizing an industry that is in a sustained boom time," Ritter told Rocky Mountain News editors and reporters last week. ". . . This is an area where a tax subsidy doesn't have - it has no place."

Last December, however, before he decided to join forces with environmental groups to run the ballot measure, which will fund college scholarships and wildlife and renewable energy initiatives, Ritter had a decidedly different take on the tax credit when asked whether it should be ended.

"You do away with that credit," he told the Rocky, "and it could impact the revenue flowing to counties because of producers pulling out because they don't get the offset anymore. And so that's why it's so important to involve the industry in this conversation . . ."

Needless to say, the energy industry was not involved in the conversation that led to Ritter's initiative. It is very unhappy with the measure and is poised to funnel millions into fighting it at the polls. And at least some of that money, it is probably safe to assume, will be used to alert voters to Ritter's views of just a few months ago.

As awkward as that publicity might be for the governor, there is at least one upside to his shift: No matter which way voters break on the measure, Ritter will be able to boast that they have dutifully followed his advice.

Too harsh or merited?

The next time you hear someone complain that this state imposes harsh criminal sentences on too many nonviolent offenders, remember that some of them - in fact, many of them - have a lot in common with David John Heckman.

Heckman was sentenced last week to 144 years for burglary - essentially a life sentence for the 32-year-old. Heartless? Only if you think he's a candidate to reform his ways. Unfortunately for that thesis, Heckman's case involved a burglary spree that hit 23 homes, and his prior record includes a breathtaking 10 felony convictions.

Some people are incorrigible criminals. Heckman gave every indication he was one of them.

To be sure, given the soaring cost of Colorado's rising corrections population, this state has little choice but to consider diverting more offenders into less costly forms of punishment and supervision. But there are many who simply can't be trusted to toe the line outside prison walls: Heckman himself was an escapee from community corrections at the time of his latest arrest.

Colorado Attorney General John Suthers, in his book No Higher Calling, No Greater Responsibility, describes the profile of the Colorado inmate population when he ran the corrections department between 1999-2001: "About 75 percent were in prison for a violent offense, had committed a violent offense in the past, or were charged with a violent offense before plea bargaining to a nonviolent offense. The quarter of inmates who could truly be considered nonviolent offenders, who didn't pose a threat to the physical safety of other people, averaged almost three prior felonies apiece. A significant percentage of these nonviolent offenders hadn't been sentenced to prison initially for their current offense, but had failed on probation or community corrections."

There's no denying that Heckman's latest sentence is harsh. But Judge Dennis Hall can make an excellent case that the thief earned every year of it.

Vincent Carroll is editor of the editorial pages. Reach him at carrollv@RockyMountainNews.com.

Comments

  • August 12, 2008

    12:59 a.m.

    Suggest removal

    jacka writes:

    The Governor also gave state employees the Right-to-Work in his November 2, 2007 executive order that allowed the Unions exclusive representation of the state's employees.

    Now he and Mayor Hickenlooper are strongly opposing real employee free choice (Right-to-Work) for the rest of Colorado.

    I say YES on Amendment 47 for equal workplace rights and protections for the rest of Colorado.

  • August 12, 2008

    5:20 a.m.

    Suggest removal

    roger44 writes:

    I think taking the tax credits away from oil & gas will bite the state in the rear eventually. They will cut corners while no one is looking and possibly have some large consequences for the environment. This is the year to pick on the oil companies, many other businesses make the same profits percentage wise, and they are glad oil gets the barbs, they can smile all the way to the bank.

  • August 12, 2008

    7:30 a.m.

    Suggest removal

    Mike_In_Hartsel writes:

    roger44 you have it wrong. The oil and gas companies will pass the tax on to the consumers so we all end up with a personal tax increase. All for Ritter's look-good, feel-good, more-votes next election projects.

  • August 12, 2008

    9:37 a.m.

    Suggest removal

    mmannino writes:

    "Alaska has a comprehensive severance tax in place that pays every man woman and child $1500.00 per year. Alaska is the only state that has a budget SURPLUS."

    The Alaska comprehensive severance tax is legalized theft. Essentially, Alaska has decided that its residents deserve mineral right royalties without any investment and risk. This legalized theft has three consequences: lower production levels, higher energy costs for all users of Alaska oil, and lower royalties to the holders of mineral rights and shareholders of oil exploration companies. These lower dividend and royalty levels will lead to lower investment by the oil industry.

    The oil industry pays taxes at every stage of production. They pay $5 in taxes for every dollar of profit. Those screaming for higher taxation of this industry advocate legalized theft. There is no free lunch. These higher taxes discourage production (loss of jobs), raise energy costs, and lower returns to shareholders (pension funds).

    "wouldn't it be a better day when the Oil companies paid their fare share in taxes. instead of taking from us twice. once in tax credits and twice in gouging us at the pump."

    This statement is misinformed. Oil prices are set in the commodities market. Neither the oil companies nor OPEC sets oil prices. Perhaps you would like to set oil prices. Your set prices (price controls) would lead to energy shortages and chaos. The statement is also ignorant about the level of taxation paid by the oil industry at every stage of production.

    The war on the oil industry by the left is immoral. This industry provides a vital product to our economy. The left is trying to increase costs on this industry and lower production levels. Thousands are losing jobs as a result of the immoral policy by the left. The transportation, travel, and manufacturing industries are in a precarious situation with many layoffs already. Price increases as a result of this immoral policy are impacting every part of society.

  • August 12, 2008

    10:54 a.m.

    Suggest removal

    fatheromalley writes:

    Yahoo mmannino! Good response..
    Concise, to the point and you even skipped over some points.
    Taxes are passed on to the consumer (US). When will the morons here get that? Stick it to the man is sticking it to yourself.

    Oil Company Profits last year $400 billion
    Taxes paid $1.3 Trillion!
    We not only paid for their $400 billion in profits which are taxed too.. but WE paid 1.3 trillion to government subsidies and programs for OTHER industries, people and special interests, with no choice and the force of law..

    Wow that will really "invigorate" the economy! Yeah boy!

    www.fairtax.org.. The FairTax Act by Americans for Fair Taxation has withstood the onslaught of the power elite that do not wish to pay 23% tax on NEW RETAIL GOODS AND SERVICES without their beloved "incentives, exemptions and depreciation tables"..

    Repeal all taxes on production, tax consumption of NEW RETAIL GOODS and Services, collect the same amount of revenue, un-tax the poor completely.. then watch us thrive! Watch our bills go down..

    Utility bills going up? How much directly or indirectly goes to taxes and subsidies WE PAY FOR?

    You like working the first 6 months of each year to pay all of your local, state and Federal Taxes? AND you will vote for men that will raise that %? You gotta be kiddin', right?

    Cranial rectal inversion?

    www.fairtax.org
    www.votesmart.org
    www.fatheromalley.com for click throughs to these and more! Plenty of videos!

    Love to all,
    Father O'Malley

  • August 12, 2008

    12:31 p.m.

    Suggest removal

    roger44 writes:

    Government subsidizes ethanol also, so we are paying twice. Natural gas plentiful, but going up this winter. Sticking it to us at every turn. So what are the folks in Congress and Senate doing to help? Same thing they've done for 40 years, nothing.

  • August 12, 2008

    1:31 p.m.

    Suggest removal

    socrates writes:

    Well, wouldn't it be nice if I could just...say... deduct what I pay in property taxes from my income taxes owed? Maybe we should just start doing that - since that's exactly what we let the oil companies do. Why the double standard?

    Why the tax break for the oil companies.... yes, I know, because they're barely scraping by. Oh, wait, no - that's right, Exxon just posted record profits for the second quarter. That's immediately after the old record they posted in the first quarter.

    This doesn't impact consumer prices one cent. That's just patently false. You want to see the price of natural gas? Go here: http://www.oilnergy.com/1gnymex.htm - that's the price whether the gas is from Wyoming, Colorado, New Mexico or anywhere else. That's just the price the market sets.

    Oil prices? You can find those in the business section of any paper. It's the same price all over the world. Colorado's severance tax credits won't impact it one penny.

  • August 12, 2008

    2:33 p.m.

    Suggest removal

    JCRiggle writes:

    So I am all for ending subsidies to the oil companies (as well as most other industries as well) but why does that increase in tax revenues for the government always have to be used for something else? Why can't you reduce tax rates to offset the increase of tax revenue to the government?

    Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Reagan

  • August 12, 2008

    9:10 p.m.

    Suggest removal

    libertarianbill writes:

    Economics lesson for every one here. Businesses don't pay taxes. Their customers do. If you enjoy paying high gasoline and natural gas prices, vote for people who think their tax will be lost in the shuffle. It is nothing more than a HIDDEN fee the government steals from your wallet every time you buy anything from any business that pays tax. Sorry Socrates. Your understanding of basic economic principles needs work. When companies leave a market due to high tax rates, supply is lowered. When supply is low, the market sets the price higher. Companies with high tax rates will also keep their product in storage (lowering the supply) until the market corrects and allows them a profit for their efforts. My uncle used to do this with his cows. Beef is a commodity that is regulated by the "market" just like oil. He would wait until the market corrected to reflect the price of production and THEN he would sell. Simple economics.
    The sneaky tax I love the most is the matching social security tax that your employer must pay to keep you employed. I sure would love a 7.5% raise to pay these gas taxes right about now.

  • August 12, 2008

    10:57 p.m.

    Suggest removal

    mmannino writes:

    Socrates writes:

    "Well, wouldn't it be nice if I could just...say... deduct what I pay in property taxes from my income taxes owed?"

    There is no double standard. You can include property taxes as an itemized deduction, lowering your tax bill. There are many items offering credits that directly reduce your income tax bill.

    You need to look at net taxation. The oil industry pays a high level of taxes. They may have some deductions and credits but these are more than offset by many other taxes are all levels of production to governments at all levels. This canard by the left that the oil industry is subsidized does not hunt.

    In contrast, the renewable industry is born of subsidies, lives by subsidies, and will die without massive subsidies. Mandates are even worse than subsidies because the consumer has no choice.

    The war on oil by the left is immoral. The left is deliberately withholding massive amounts of oil from the market to drive up energy prices. This supply manipulation has resulted in upheaval in many industries and much higher consumer prices. Most on the left simply do not care. Their arrogance is unbelievable. The Democratic Oil Blockade is causing huge pain and suffering. The Democratic delusions about energy will lead to an energy meltdown.