Beyond UN Resolution 242

The following is a response to President Obama’s speech at a recent AIPAC conference. During his speech, Pres. Obama reiteratesd the proposed return of land taken as a result of an act of war perpetrated by a number of Arab nations against Israel in 1967. Professor Eidelberg’s rebuttal was first aired on Israel National radio. Prof. Eidelberg is professor of political science and founder of the Foundation for Constitutional Democracy in Israel.

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Prof. Paul Eidelberg

Attorney Howard Grief’s The Legal Foundation and Borders of Israel Under International Law which is subtitled “A Treatise on Jewish Sovereignty Over the Land of Israel,” is probably the most comprehensive and incisive analysis of Israel’s legal claim to the land its repossessed in the Six-Day War of June 1967. This monumental work is actually the culmination of scholarly articles Grief began publishing in the mid-1990s for the Ariel Center for Policy Research. This should be borne in mind as I read the most salient passages of the Grief’s book dealing with UN Resolution 242. I will then proceed to consider, from a theological perspective, the failure of Israeli prime ministers to defend their people’s claim to the land in question.

On November 22, 1967, in the wake of the Six-Day War, the UN Security Council passed Resolution 242. As Grief informs us that “In regard to all Security Council resolutions relating to the Middle East, it is important to examine the question if Israel is legally bound by any of these resolutions, particularly in regard to Israel having to withdraw its armed forces from [so-called] ’occupied territories,’ as indicated by Resolution 242….

Referring to a 1969 article by the jurist Amos Shapiro, then a senior lecturer in Law at Tel-Aviv University, Grief points out that “there is a fundamental distinction between decisions of the Security Council which are binding in nature and decisions which are only advisory and not compulsory.” Shapiro’s “penetrating analysis makes clear that only those resolutions or decisions that impose legal obligations on the parties concerned, even without  their consent,  must be obeyed by UN members unless they are inconsistent with other provisions of the [UN] Charter. On the other hand, resolutions or decisions which are no more than recommendations, do not have to be complied with by UN members unless they freely consent to implement them.”

Grief goes on to show, by analysis of Chapter VI of the Charter, that UN Resolution 242 was a “non-binding recommendation.” He notes “There has never been any agreed-upon definitive interpretation of Resolution 242, especially as to whether Israel has to withdraw from all or only some of the territories re-conquered and repossessed from Jordan, Syria and Egypt… However, [says Grief] it can be stated without any qualification that any Security Council Resolution that aims to oblige Israel to withdraw from any land that was designated to be included in the Jewish National Home under the [Palestine] Mandate … is ipso facto illegal, since such a resolution would be in direct conflict with Article 80 of the Charter and the acquired legal rights of the Jewish People secured under previous acts of international law, to which the doctrine of estoppels applies.”

“Resolution 242 can therefore have no application to Judea, Samaria and Gaza, which were originally included in the Jewish National Home under the Mandate for Palestine. Nor should it be applied to the Golan Heights, which Israel captured in the Six-Day War of June 1967, since this territory is part of historical Palestine rather than of historical Syria, though it was improperly and illegally exclude from the borders of mandated Palestine in the Demarcation Agreement of February 3, 1922.”

Grief goes on to say that “A separate reason that can be invoked by Israel for not withdrawing to the pre-war armistice lines is that since Israel fought a war of defense against its Arab neighbors, Egypt, Jordan and Syria, it is entitled to keep those areas it re-captured in the Six-Day War from the occupying countries that expressly threatened ‘to wipe Israel off the map’ or participated in the joint Arab aggression.”

“In fact, says Grief, “Even the application of Resolution 242 to the Sinai cannot be sustained, because in 1967 when this resolution was passed, this territory did not belong to Egypt under international law, and so Israel was not obliged to make any withdrawal from Sinai since it did not constitute ‘occupied territory’ within the meaning of Article 42 of the Hague Resolutions….”

Grief also observes that, “Despite Israel’s withdrawal from Sinai … there was never any admission by Israel that Sinai belonged as of right to Egypt. That was still the legal situation prevailing when Resolution 242 was passed on November 22, 1967. Bearing in mind the legal status of the territories repossessed by Israel in 1967, at which Resolution 242 was undoubtedly aimed, the appropriateness of describing these territories as ‘occupied’ under international law is not only challengeable but definitely wrong. It is therefore a travesty,” says Grief, “to affirm that Israel is obliged under international law to withdraw from territories that are deemed to be ‘occupied’ when, in fact, they had been recognized internationally in 1919, 1920 and 1922 as being the patrimony of the Jewish People represented today by the State of Israel.”

So why did Israel accept Resolution 242? According to Grief, “Israel’s acceptance of this resolution was seen by the Levi Eshkol National Unity Government as beneficial because its text stated that ‘every state in the area’, which naturally included Israel, has the ‘right to live in peace within secure and recognized boundaries free from threats or acts of force”’ ….

“In addition it was understood from the language and content of Resolution 242 that Israel’s withdrawal to ‘secure and recognized boundaries’ did not entail complete withdrawal from all the territories described in the resolution as occupied by Israel armed forces in the recent conflict. The clear understanding that Israel did not have to make a complete withdrawal to the 1949 ceasefire lines … was reinforced by the fact that these lines could never be considered ‘secure’ borders by reputable military experts, as attested to by the constant infiltration into Israel, prior to the war, by terrorists and marauders determined to wreak murder and havoc from both Egyptian-occupied Gaza and the Jordanian-occupied ‘West Bank’….

“Despite the language of Resolution 242 and its logical consequences, Arab states, aided and abetted by Russia and its Communist allies, as well as western European powers interpreted Resolution 242 in another way, to mean Israel’s full withdrawal to the [1949] armistice lines …. Nor was the United States very different in this regard. Under the Rogers Plan of October 1969, presented by Secretary of State William Rogers, Israel had to withdraw to the armistice lines with Jordan with only insubstantial alterations, and to the boundary that existed with Egypt just prior to the outbreak of the war. The Rogers plan did not deal with the fate of the Golan Heights.

“The Rogers Plan was followed by President Ronald Reagan’s Peace Initiative of September 1, 1982…. It described UN 242 as ‘the foundation-stone of America’s Middle East peace effort’, which, it said, applies to all fronts, including the West Bank and Gaza.”

This is where the state of Israel is today, trapped at the in a 44-year period of political impotence and ideological fatigue, a period during which one Israeli prime minister after another have failed to stand up and defend their people’s birthright. Instead, they have insanely pursued, as Professor Louis Rene Beres has brilliantly described, a never-ending Sisyphus peace process with haters of Jews and Israel. In the process, they have been undoing the miracle of the Six-Day War. This is a display of monumental ingratitude, and on an international scale which may be deemed a desecration of God’s Name. The subsequent degradation of Israel follows as night follows day.

Ingratitude is as old as Adam who was given life in the Garden of Eden, “the environment,” says Joshua Berman, “in which man can enter into communion with the divine.” “The land of Israel,” he adds, “can be construed as a conceptual expansion of the garden of Eden.”  Therein was the Temple to which all mankind may come and be blessed.

Make no mistake: It was not simply the Israel Defense Forces that defeated five Arab armies in 1948.  Nor was it simply the IDF that defeated Egyptian, Jordanian, and Syrian forces in six days of the June 1967 war.

To undo the miracle of that war is to expose Israel to Adam’s punishment for ingratitude. Make no mistake: Israel has been given an implacable enemy animated by a love of death.  There is only one way to confront this enemy, and that is to stand for the God of Israel, the God of life.

Controversial New Hungarian Pro-Life Constitution Signed Into Law

By Samantha Singson

Last month, Hungarian President Pal Schmitt signed a controversial new constitution into law that includes a provision for the protection of unborn life “from conception” and the definition of marriage as between a man and a woman.

While the new constitution easily passed in the Hungarian Parliament by the governing majority, it was without any participation from the smaller opposition party who walked out before the vote. The Council of Europe,  UN staff and non-governmental organizations are also questioning the legitimacy of the new constitution as controversy continues to rage over both the content and the process by which the constitution was passed.

Abortion rights groups have targeted Article 2, which states, “The life of a fetus will be protected from conception.” The pro-abortion law firm Center for Reproductive Rights, along with Amnesty International, has campaigned against the provision saying it will lead to restricted access to abortion  either by legislative reform or constitutional challenge.

Amnesty International and a number of homosexual rights groups have criticized the constitution’s exclusion of sexual orientation from the protected grounds of discrimination and the clause protecting the traditional definition of marriage because it could serve as the basis of a ban on “same-sex marriages,” which they argue violates European anti-discrimination standards.

Beyond the social issues, critics bemoan what they call a lack of transparency and the short time frame of nine days in which the constitution was passed in Parliament.

The Council of Europe has tasked constitutional experts with reviewing the new law. Experts of the Venice Commission, an independent advisory body, are set to travel to Budapest this month and report back to the Parliamentary Assembly of the Council of Europe to address the concerns surrounding the drafting process.

The Friday Fax first reported on the Venice Commission in 2008. The Commission featured prominently in the Kosovo constitutional process, pushing a draft constitution that removed protection for unborn life by only providing protection “from birth,” included non-discrimination status on the basis of “sexual orientation,” and removed references to men and women in its marriage article. Kosovo’s parliament ultimately adopted the controversial draft constitution, but removed “from birth” from its right to life article.

Roger Kiska of Alliance Defense Fund was “overjoyed” by the new Hungarian constitution calling it a victory for democracy, for life and the family, and for Hungary. Kiska found “shameful” the attempts by the European institutions to undermine the Hungarian government, a government overwhelmingly approved by popular electoral vote, he said.  “I hope that Hungary stays strong in its convictions because what is at stake, life and the family, are too high a price to pay simply to appease the bureaucrats in Brussels.”

The Hungarian government has maintained that the law is fully in line with the European Union’s fundamental charter of human rights and argued that the reform was necessary to replace the outmoded ‘Stalinist’ document dating from 1949.  The new constitution comes into force on January 1, 2012.

Originally published in Fridayfax on May 5, 2011. FridayFax is a publication of the Catholic Family and Human Rights Institute (C-FAM).

See also <a href=”http://www.c-fam.org/blog/id.99/blog_detail.asp” target=”_new”>Kenya’s Draft Constitution Continues Trend of Pro-Life Legislation</a>.

Do Parents’ Rights End at the Schoolhouse Gate?

By John w. Whitehead

<p style=”margin-left:50pt;margin-right:55pt;font-size:8pt;”>“There is no fundamental right of parents to be the exclusive provider of information regarding sexual matters to their children, either independent of their right to direct the upbringing and education of their children or encompassed by it. We also hold that parents have no due process or privacy right to override the determinations of public schools as to the information to which their children will be exposed while enrolled as students.”— Fields v. Palmdale School District PSD, Ninth Circuit Court of Appeals (2005)</p>

Do parents have a right to control the upbringing of their children, especially when it comes to what their children should be exposed to in terms of sexual practices and intimate relationships?

That question goes to the heart of the battle being played out in school districts and courts across America right now over parental rights and whether parents essentially forfeit those rights when they send their children to a public school. On one side of the debate are those who believe, as the U.S. Supreme Court has ruled, that “the child is not the mere creature of the state” and that the right of parents to make decisions concerning the care, custody and control of their children is a fundamental liberty interest protected by the U.S. Constitution. On the other side are government officials who not only believe, as the Ninth Circuit Court of Appeals ruled in Fields v. Palmdale School District PSD (2005), that “[s]chools cannot be expected to accommodate the personal, moral or religious concerns of every parent,” but go so far as to insist that parents’ rights do “not extend beyond the threshold of the school door.”

A recent incident in Fitchburg, Massachusetts clearly illustrates this growing tension over whether young people, especially those in the public schools, are essentially wards of the state, to do with as government officials deem appropriate, in defiance of the children’s constitutional rights and those of their parents. On two separate occasions this year, students at Memorial Middle School (MMS) in Fitchburg were administered surveys at school asking overtly intimate and sexually suggestive questions without their parents’ knowledge or consent.

Students were required to complete the Youth Risk Behavior Survey (YRBS) at school, a survey which asks questions such as “Have you ever tried to kill yourself?”, “Have you ever sniffed glue, or breathed the contents of spray cans, or inhaled any paints?”, and “With how many people have you had sexual intercourse?” Older students were also given the Youth Program Survey (YPS), which asks true/false questions about a student’s beliefs about contraception (“I feel comfortable talking with any partner I have about using a condom”) and sexual activity (“I have had oral sex at some point in my life”).

While the survey questions are explicit enough in terms of their content, the multiple-choice answers are actually quite informative—at least, in the sense that they educate young test-takers about a host of practices and terms with which they might not actually be familiar and provide them with suggestions on how to go about acquiring drugs, sex, etc. This is a not-so-subtle form of indoctrination into behaviors that no parent would want for their children. For example, the survey asks: “During your life, how many times have you used heroin (also called smack, junk, or China White)? …how many times have you used methamphetamines (also called speed, crystal, crank, or ice)? … how many times have you used ecstasy (also called MDMA)?” And for those not up on the various prescription drugs, the survey provides a handy list: “During your life, how many times have you taken a prescription drug (such as OxyContin, Percocet, Vicodin, codeine, Adderall, Ritalin, or Xanax) without a doctor’s prescription?”

One question asking how students acquired cigarettes suggested the following as responses:

A. I did not smoke cigarettes during the past 30 days
B. I bought them in a store such as a convenience store, supermarket, discount store, or gas station
C. I bought them from a vending machine
D. I gave someone else money to buy them for me
E. I borrowed (or bummed) them from someone else
F. A person 18 years old or older gave them to me
G. I took them from a store or family member
H. I got them some other way

As for sex, the survey asks, “The last time you had sexual intercourse, what one method did you or your partner use to prevent pregnancy?” The responses provided are an education in themselves.

A. I have never had sexual intercourse
B. No method was used to prevent pregnancy
C. Birth control pills
D. Condoms
E. Depo-Provera (or any injectable birth control), Nuva Ring (or any birth control ring), Implanon (or any implant), or any IUD
F. Withdrawal
G. Some other method
H. Not sure

Moreover, instead of acquiring written consent from parents, which is required under federal law, before subjecting students to these invasive surveys, MMS officials relied on so-called “passive consent,” by which parents are presumed to have given their approval if they do not return the opt-out form sent home with students. When challenged by a parent over this passive consent practice, a representative with the local social services agency administering the survey stated that the reason the “passive consent” system was adopted and why the method of obtaining consent would not be changed is that the agency needs a 98% participation rate in the survey in order to qualify for future government grants. In other words, recognizing that the participation rate would be 30% or less if a system requiring actual written parental consent were employed, test administrators adopt the fiction that a failure to respond is tantamount to parental consent in order to achieve the numbers needed to qualify for grant funding for their activities.

Unfortunately, Fitchburg, Mass., is not the only locality using young people as test subjects for the purpose of mining data and securing government funding. In fact, as of 2009, the only states that did not participate at all in the survey were Oregon, Washington and Minnesota. The national Centers for Disease Control and Prevention (CDC), the government agency responsible for creating and distributing the survey, states that the main purpose of the survey is to monitor “priority health-risk behaviors and the prevalence of obesity and asthma among youth and young adults.”

Currently used in at least 45 states, the YRBS test takes approximately 35 minutes to complete, with questions on everything from how much television the student watches to thoughts on suicide, sexual activity and drug use. For example, the 2011 middle school questionnaire includes such questions as: “Have you ever seriously thought about killing yourself?” “Have you ever made a plan about killing yourself?” “Have you ever used marijuana?” “Have you ever used any form of cocaine, including powder, crack, or freebase?” “Have you ever had sexual intercourse?” “The last time you had sexual intercourse, did you or your partner use a condom?” “Have you ever sniffed glue, or breathed the contents of spray cans, or inhaled any paints or sprays to get high?” “Have you ever taken any diet pills, powders, or liquids without a doctor’s advice to lose weight or to keep from gaining weight?” “Have you ever vomited or taken laxatives to lose weight or to keep from gaining weight?”

Developed in 1990 by the CDC, the Youth Risk Behavior Surveillance System is similar to other mental health screening programs that have been creeping into the classroom since President George W. Bush’s New Freedom Commission on Mental Health recommended mental health screenings for all school-aged children, including those in preschool. However, while the supposed goal is to identify and prevent risky behavior among young people, many parents are understandably up in arms over these tests.

First, there are concerns about how the tests are administered. Health screening tests like YRBS are often given to students without parental knowledge or consent. While the CDC insists that local parental permission procedures are followed prior to administering the test, many school systems use the passive parental notification procedures, which assume that parents have given their consent unless they notify the school of an objection. But passive notification is merely a surreptitious way to avoid obtaining written parental consent. And in the end, whether due to the child losing the notification form or forgetting to give it to the parents, parents are often left in the dark, unaware that their children are being subjected to such invasive tests.

Second, the manner in which these tests are administered puts them in violation of the Protection of Pupil Rights Amendment (PPRA), a federal law that was intended to protect the rights of parents and students. PPRA, which covers educational entities that receive federal funds, applies whenever students are asked to submit to any survey, analysis or evaluation that seeks private information about the student, such as political affiliations, sexual activity, illegal activities or religious beliefs. The PPRA allows parents to inspect their children’s instructional materials and requires that schools obtain “written parental consent” before schools engage in such programs as mental health screening.

Third, critics of these risk assessment tests insist that they’re aimed at advocating antidepressant drugs for teenagers. For example, TeenScreen, which is similar to YRBS in its intent to identify suicidal tendencies and social disorders, has been labeled by the Alliance for Human Research Protection as a “duo-drug promotion scam” that declares “otherwise normal children to be mentally ill.” As a result, an increasing number of children are being medicated with antidepressants, despite FDA warnings about the increased risk of suicidal thinking and behavior in children who take them. All the while, pharmaceutical companies rake in the profits.

Finally, legitimate questions remain about whether such tests really help students achieve healthier lifestyles. TeenScreen, for example, has an 84% false-positive rate. This means that 84% of teens diagnosed as having some sort of mental health or social disorder are, in fact, perfectly normal teenagers. Furthermore, although the CDC insists that there is no danger in asking students highly suggestive questions about sex, drugs and suicide, most parents prefer to decide the timing and content of such a sensitive discussion.

Helping America’s teens make positive, healthy and responsible lifestyle choices is a worthy goal, but it must start with parents within the home. If the schools are to be part of the process, they must ensure that parents are fully informed and involved at every step of the way. In turn, parents should demand that they be notified about mental health evaluations and that the evaluations not be given unless they have provided express written permission, which is required under federal law. Parents should also be provided an advance copy of the screening questionnaire in order to make an informed decision about whether they want their child to be screened.

As Elliott M. Davis, writing for the Harvard Journal of Law &amp; Public Policy, concludes in his analysis of the Ninth Circuit’s Fields decision:

<p style=”margin-left:20pt;margin-right:30pt;font-size:8pt;”>The right of a parent to control the upbringing of his child is fundamental. Though public schools can and do usurp many parental choices, this right—which encompasses “the inculcation of moral standards”—vests first in parents. When a child passes through the public school doors, he does not become a “mere creature of the state.” Judicial interference in public schools should be minimal because legislatures are primarily charged with crafting policy; courts, however, should not stand idly by as public schools violate fundamental rights. As the Supreme Court declared in West Virginia State Board of Education v. Barnette, “The Fourteenth Amendment, as now applied to the States, protects the citizen against the State itself and all of its creatures—Boards of Education not excepted.” Although the public school exerts a high level of control over its students, its control is not absolute. American constitutional jurisprudence affirms that this society is not one where children are wholly disconnected from their parents and educated entirely by the state. If the Meyer-Pierce parental right is to have any real meaning, it is to preclude the public school from egregiously usurping the parental role in matters of the utmost importance.</p>

Constitutional attorney and author John W. Whitehead is founder and president of The Rutherford Institute. He can be contacted at johnw@rutherford.org. Information about the Institute is available at www.rutherford.org.

A Call to Economic Arms

by Thomas Heffner

We are losing an economic war, here’s how:

“Free trade” is unrestricted access by foreign companies to everything we have – to buy, to sell, to knock out any business at will. We are doing nothing to stop it – in fact we are encouraging it in “free trade.” One example is the automobile industry – the rest of our former great industries are now following.

Today we have a military army to protect our shores, the FBI, CIA, NSA, NTSB, border patrols, national guards, and airport security to protect us from domestic threats. We have the SEC to protect securities markets and the Federal Reserve Board to regulate and protect our money supply and our banking. We have social security to protect us in old age, Medicare to protect us from illness, clean air and clean water acts to protect the environment, and antitrust laws to protect the freedom of the market.

Yet we have nothing that is protecting or even monitoring our industrial base, our means of production, and our ability to sustain a competitive position in the global economy. It is true that the global economy is not a zero-sum game. However, that fact does not mean that there are not winners and losers; thousands of American manufacturers and hundreds of American industries and their stakeholders to be precise.

The U.S. Department of Commerce is the number one advocate of free trade in this country. The one group that should be tasked with monitoring and securing our industrial defenses is doing everything possible to eliminate our defenses as fast as possible and make us most vulnerable. In fact, in the 1980s, the U.S. Department of Commerce had one of the highest rates of any federal department of ex-officials going on to earn huge sums of money representing foreign companies and countries in lobbying efforts in Washington.

We are currently relying on a completely laissez-faire style of domestic policy while all of our global competition is actively lobbying, engaged, focused, subsidized, and organized with strategies and tactics to build their own industrial base and dismantle ours. It is truly shameful that we send our industries and individual companies into the fray bearing no ax and no shield as they compete head-to-head with foreign corporations that are the product of entire galvanized nations singularly focused on becoming globally dominant. Big business is a much-maligned group as of late, blamed in many circles for the present-day recession.

We must remember however, that despite some notably corrupt individuals, industry is what drives our economy first and foremost. Our businesses are employers and avenues for earning livings. We need to foster economic development and take great care to maximize incentives and assistance to make sure our companies can continue to provide opportunities for Americans to work, compete and achieve.

While devoting incredible cost, energy, time, and attention to wars in Iraq and Afghanistan for which there seems to be at best sparse justification, we devote almost no cost, no energy, no time, and no attention to fighting for our economic survival. Despite this ignorance, Washington absorbs millions of dollars from foreign lobbyists aimed squarely at maintaining “free trade” and wide open American borders free from quotas and tariffs.

We seek to placate every other country in the world at the expense of our own. We are steadily depleting the wealth of this country for the benefit of those who have no long-term interest in this country. We cannot afford to delay or ignore the situation at hand. We all must take action immediately or face the very real risk and consequence of once again becoming a colonial “servant” economy in the decades ahead. Begin today by becoming aware of these issues and discussing them with others and our leaders. As Thomas Jefferson said,”The price of freedom and the responsibility of all Americans is eternal vigilance and awareness.”

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Originally published by Economy In Crisis, the publication of Concerned Citizens. Thomas Heffner is the publisher and founder of both.

Is U.S. Becoming a Low-Cost Country?

As Chinese wages are rising at 17% per year and yuan’s value increases, the U.S. is looking pretty good as a place to locate manufacturing plants, according to a new analysis by The Boston Consulting Group.

“We expect net labor costs for manufacturing in China and the U.S. to converge by around 2015. As a result of the changing economics, you’re going to see a lot more products ‘Made in the USA’ in the next five years, said Harold L. Sirkin, a BCG senior partner.

“Since wage rates account for 20% to 30% of a product’s total cost, manufacturing in China will be only 10% to 15% cheaper than in the U.S. — even before inventory and shipping costs are considered. After those costs are factored in, the total cost advantage will drop to single digits or be erased entirely,” Sirkin said.

Products that require less labor and are churned out in modest volumes, such as household appliances and construction equipment, are most likely to shift to U.S. production, the group says.

Does this mean Americans are less capable of performing intensive manual labor? And, what about the dollar to yuan wage similarity? Does the converging of labor costs mean manufacturing wages in America will be less?

Although those questions remain unaswered, the rest of the article titled Is U.S. Becoming a Low-Cost Country?can be read on Indusry Week’s webiste.

Gov. Kaisch & Lt. Gov. Taylor On CSI Ohio: The Common Sense Initiative

In March, Gov. John R. Kasich won his second major legislative victory. This was a major step toward cutting government red tape and tearing down barriers to job creation by signing into law Senate Bill 2, legislation establishing CSI Ohio: the Common Sense Initiative.

S.B. 2 (Hughes) essentially codifies Kasich’s first executive order signed on January 10, placing Lt. Gov. Mary Taylor in charge of CSI Ohio and developing a process for holding state agencies accountable for promoting flexibility, balance, transparency and consistency as rules and regulations impacting businesses are developed or renewed.

“Seeking the right balance of regulations that makes Ohio businesses competitive while protecting the health and safety of our citizens is our goal and this bill certainly helps us accomplish that,” Kasich said. “Ultimately this is a huge victory for job creators who want to locate, grow, expand and create jobs right here in Ohio.”

S.B. 2 received broad bipartisan support following a 32-to-1 vote in the Ohio Senate on February 23 and an 81-to-14 vote in the Ohio House of Representatives on Wednesday, March 2.

Highlights of Senate Bill 2 include:

Business Impact Analysis: CSI Ohio will require agencies to adequately address the purpose of each proposed rule or regulation and the adverse impact to business.

JCARR: Allows the Joint Committee on Agency Rule Review to invalidate proposed rules when agencies fail to justify a regulatory benefit.

Customer Service: CSI Ohio will require state agencies to develop customer service standards and integrate them into the job descriptions and performance evaluations of employees.

In a previous interview, Taylor responding to the newly passed bill, said:

“This is common sense and it is encouraging to see the legislature support CSI Ohio and our process of cutting through the red tape and eliminating burdensome, costly and duplicative rules and regulations,” Taylor said. “This will help us revive Ohio’s economy and improve our business community’s ability to put their job-creating ideas into action.”

On Saturday May 14, the Business Journal Daily also interviewed Lt. Gov. Taylor about CSI and its reception by Ohio business. A video of the interview can be watched by clicking here.

Economy, Washington Are Hindering Small Business Growth, Survey Finds

The Small Business Outlook—a nationwide survey of more than 900 small business owners—found that 84% of small businesses think the United States is headed in the wrong direction, and 83% think the national economy is on the wrong track. Some 87% of the respondents think Congress is standing in the way of economic growth and progress, while 75% feel the president is standing in the way.

“What we’re hearing is that small business wants Washington to get out of the way, and they want more certainty,” said Bill Miller, senior vice president of Political Affairs and Federation Relations at the Chamber. “Uncertainty is a significant impediment, and small businesses are reluctant to get into the game until they know what the rules are.”

Read the rest of this article in the Free Enterprise Magazine.

SBE Councils “Business Tax Index” Ranks State Tax Systems

The Small Business & Entrepreneurship Council (SBE Council) published its “Business Tax Index 2011: Best to Worst State Tax Systems for Entrepreneurship and Small Business.” The index ranks the 50 states and District of Columbia according to the costs of their tax systems for entrepreneurship and small business.

Raymond J. Keating, chief economist for SBE Council and author of the report, said: “Higher taxes have an impact on a state’s competitiveness. There is a reason why low tax states are better able to attract investment, and ‘Business Tax Index 2011’ helps to shed light on the tax burdens that are affecting the decisions of individuals and businesses. In many states, elected officials continue to propose tax increases – and actually raise them – in order to fund out-of-control government spending. High levels of spending translate into increased tax burdens on the entrepreneurs and investors who drive economic growth and job creation.”

SBE Council’s “Business Tax Index 2011” pulls together 18 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared. Among the taxes included are income, capital gains, property, death/inheritance, unemployment, and various consumption-based taxes, including state gas and diesel levies.

Keating added: “State and local taxes affect the decisions made by entrepreneurs, investors, businesses and individuals. Several states in recent years have hiked taxes in response to excessive government spending, and declining revenues in a down economy. In high-tax states, elected officials have refused to cut spending or slow its growth. The implications for entrepreneurship, small businesses, competitiveness, investment and employment are significant.”

According to the “Business Tax Index 2011,” the 15 best tax systems are: 1) South Dakota, 2) Texas, 3) Nevada, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8)Alaska, 9) Ohio, 10) Colorado, 11) South Carolina, 12) Mississippi, 13) Oklahoma, 14) Virginia, and 15) Missouri.

The 15 worst state tax systems are: 37) Illinois, 38) North Carolina, 39) Nebraska, 40) Connecticut, 41) Oregon, 42) Rhode Island, 43) Hawaii, 44) Vermont, 45) California, 46) Maine, 47) Iowa, 48) New York, 49) New Jersey, 50) Minnesota, and 51) District of Columbia.

SBE Council President & CEO Karen Kerrigan added: “The path is pretty simple for elected officials that want to attract investment, encourage small business growth and create jobs. Keep taxes low, and get spending under control. In several states – particularly those that are making headlines such as Ohio and Wisconsin – the Governors are working to do just that, and these states will reap the benefits of their sound approach. A competitive tax system will help small businesses grow, and allow each state’s economy to thrive.”

Higher Energy Prices Dominate Legislative Activity

With higher gas prices undermining small business growth and potentially the economic recovery, various approaches addressing the issue are being pursued in the U.S. House and Senate.

Senate Majority Leader Harry Reid (D-Nev.) Senate Majority Leader Reid will open floor debate this week on the Democrats’ bill to raise taxes on the largest oil/gas companies. As the Congressional Research Service has reported, hiking energy taxes will only translate into higher prices and less supply. SBE Council adds “fewer jobs” to the list of ills. So, raising energy taxes will increase business costs even more as SBE Council President & CEO Karen Kerrigan noted at a May 9 media briefing at the National Press Club.

“Proposals that hike energy taxes are unthinkable given the fragile state of the economy. Small business owners continue to struggle with weak sales while their business costs tick higher. Raising taxes on energy will exacerbate uncertainty, and the real challenge that many small businesses face in regard to their ability to compete in and survive the tough economy. Higher energy taxes mean higher costs for small businesses, and it’s irrational for Washington to inflict more pain on our nation’s struggling entrepreneurs,” said Kerrigan. SBE Council has urged the Senate to reject these tax hike proposals and focus on solutions that increase supply and will help make energy costs more affordable.

“Washington needs to pursue and enact policies that promote business confidence, investment, certainty and growth for small businesses – indeed for all sectors and industries,” said Kerrigan. “Policies that encourage energy exploration and development, while promoting investment, will lead to a more reliable supply and lower energy prices. Raising energy taxes is the wrong approach.”

Meanwhile, over in the House, SBE Council is supporting two pieces of legislation that will be voted on this week. SBE Council sent letters to all members of the House communicating support for H.R. 1229, “Putting the Gulf Back to Work Act” and H.R. 1231, “Reversing President Obama’s Offshore Moratorium Act.” Both of these bills will help move energy policy in a positive direction by encouraging domestic exploration and development, which will bring more certainty to energy supply and foster affordability. For the thousands of small business owners and millions of employees whose livelihoods are tied to a vibrant energy sector, these two bills are also critically important.

The latest SBE Council Energy & Entrepreneurs analysis reviews why some politicians are pursuing vindictive policies against the energy sector in light of recent profit reports. “As sure as the sun rises in the east and sets in the west, no doubt existed as to what the reaction would be in certain political circles to recent reports on oil industry profits,” SBE Council chief economist Ray Keating writes. He sorts out the politics, the policies and the economics in the piece “Bonus Resource: Why Gas Prices are Rising – Let’s Investigate,” by SBE Council’s Keating.

U.S. Tax System Ranks Poorly on PWC’s Paying Taxes 2011 Report

by Scott A. Hodge, Tax Foundation

Were the U.S. to get its own headline from the recently released Paying Taxes 2011 – a joint product of PriceWaterhouseCoopers, the World Bank, and the International Finance Corporation – it would be “The U.S.: where it is moderately easy to pay relatively high corporate taxes.”

That is hardly the kind of marketing slogan that will bring investors flocking to do business in the U.S.

The report ranks 183 economies on the compliance and tax burden faced by a standard firm with 60 employees. The compliance burden is broken down into three indicators: the ease of paying taxes; the number of tax payments a firm must make; and the time it takes the firm to comply. The tax burden (called the Total Tax Rate TTR) measures the percentage of profits going to pay not only the income tax, but any sales taxes, labor taxes, and mandatory contributions a firm might pay.

When it comes to the ease of paying corporate taxes and the time it takes to comply with them, the U.S. ranks 62nd and 66th respectively out of the 183 economies. Not terrible, but not great either. By contrast, Canada ranks 10th best in ease of paying and 34th best in the amount of time wasted. The U.S. does rank a bit better (35th) when it comes to the number of tax payments a firm must make. Canada, however, ranks 15th.

The U.S.’s Total Tax Rate of 48.8 percent gives it a below-average ranking of 124th. The world average TTR was 47.8 percent while the average rate among EU countries was 44.2 percent. Closer to home, Canada ranked 37th overall, with a TTR of 29.2 percent.

The factor that boosts the U.S.’s TTR the most is our profits tax, which totals 27.6 percent of profits. In Canada, by contrast, the effective tax rate on profits is 9.8 percent, whereas in France the rate is 8.2 percent, in Germany 22.9 percent, and in the United Kingdom it is 23.2 percent.

The current talk of fundamental tax reform, especially cutting the U.S. corporate tax rate, is a welcome sign of the growing recognition that our tax system is undermining our global competitiveness. Hopefully, the talk will soon turn to action.