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State Senator Admits Cable Industry Helped Write Pro-Industry Legislation

jamie sends in news of comments by David Hoyle, a State Senator in North Carolina, about recently defeated legislation he sponsored that would have limited the ability of government to develop municipal broadband. Hoyle readily admitted that the cable industry had a hand in writing the bill. We discussed the cable industry's extensive lobbying efforts in that region last year. From the article: "The veteran state senator says cities should leave broadband to the cable companies. 'It's not fair for any government unit to compete with private enterprise,' he says. In the last legislative session Sen. Hoyle tried to put a moratorium on any more local governments expanding into municipal broadband. When the I-Team asked him if the cable industry drew up the bill, Senator Hoyle responded, 'Yes, along with my help.' When asked about criticism that he was 'carrying water' for the cable companies, Hoyle replied, 'I've carried more water than Gunga Din for the business community — the people who pay the taxes.'"

20 of 426 comments (clear)

  1. Wohoo! by DoofusOfDeath · · Score: 4, Funny

    It's not fair for any government unit to compete with private enterprise.

    I'm going to start my own mercenary company, and the U.S. Army won't be allowed to compete for national defense!

    1. Re:Wohoo! by timeOday · · Score: 4, Insightful
      Just don't fall behind on your protection money!

      Stories like this remind us that representative democracy (a form of government), isn't particularly tied to capitalism (an economic system). In fact, the pairing is counter-intuitive and occurred only relatively recently in history. Honestly, what self-respecting captain of industry believes they should share political power equally with the underclass! Even the authors of the Constitution lacked this vision; "in the eighteenth century, the right to cast a vote belonged largely to white, male property holders. Even John Adams, in 1776, opposed broadening the franchise." So, it is only something that has come about over time.

      The type of government most similar to capitalism is not democracy but plutocracy, since that's what private companies are. It turns out that democracy and capitalism, though conflicted in some ways, are a very powerful combination. But if we neglect to uphold the separations between them, democracy will be lost.

  2. This is great news! by Weaselmancer · · Score: 5, Funny

    When the I-Team asked him if the cable industry drew up the bill, Senator Hoyle responded, 'Yes, along with my help.' When asked about criticism that he was 'carrying water' for the cable companies, Hoyle replied, 'I've carried more water than Gunga Din for the business community — the people who pay the taxes.'"

    Apparently it's business that pays all the taxes in this country and not the citizens!

    Wooohoo! All that tax I've been paying every year around April 15 is an error! There has been some huge oversight and I've been being billed incorrectly.

    I'll take a check for the balance Senator. Pay me when you can.

    --
    Weaselmancer
    rediculous.
  3. US citizens pay more taxes than corporations by RichMan · · Score: 4, Informative

    It is a great US myth that corporations fund the government. The actual facts are that the people pay more.
    Also the citizens vote. So why are the politicals doing the behest of the corporations ?

    http://www.usgovernmentrevenue.com/yearrev2009_0.html

    2009 Income Taxes
    Individual: $915.3B
    Corporate: $138.2B

    1. Re:US citizens pay more taxes than corporations by GungaDan · · Score: 5, Insightful

      This is not a mystery: the corporations fund the election ads for the parasite class that makes our laws. Problem is that the modern Democratic party has now shown us quite convincingly that even when campaigns are funded mostly by small individual citizen donations, they still rule for the benefit of corporations once they get into office (I'm looking squarely at you, Mr. Obama - you fucking disgrace). It's a win/win for business and a no-win for citizens. The only solution is to take money out of elections entirely by mandating public financing for all elections and forbidding any private money at all to be used in campaigning.

      --
      Eloi are stupid, throw morlocks at them!
  4. At least he's consistent by DoofusOfDeath · · Score: 4, Funny

    It's not fair for any government unit to compete with private enterprise.

    At least he's puting his money where his mouth is, by handing the legislative process over to the private sector.

  5. What's new? by elrous0 · · Score: 4, Informative

    Hardly a secret that industry basically writes policy and law at both the state and federal level. As expensive as Congressional campaigns are, and with free reign to donate to (aka "bribe") any politician they choose, is it any real surprise that they're calling all the shots? Hell, Dick Cheney even gave the oil companies their own secret task force to write U.S. energy policy.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
  6. Re:Who pays taxes? by Anonymous Coward · · Score: 5, Insightful

    'I've carried more water than Gunga Din for the business community -- the people who pay the taxes.'"

    So much for the idea, hugely popular with the 'business community,' that taxes are always just passed through to the consumer.
    I guess he must be a democrat, right?

    PS - it isn't this David Hoyle in case anyone else was wondering...

    Translation: I am bought and paid for so screw you.

  7. Contradiction by Ukab+the+Great · · Score: 5, Insightful

    Whenever there's a discussion about privatizing municipal services, private industry's selling point is always that they can do a far better job than government because government is so inept and inefficient.

    If this is indeed the case, then shouldn't a municipal broadband should be no threat at all to private industry, and therefore there should be nothing at all for them to worry about.

    1. Re:Contradiction by cowscows · · Score: 4, Informative

      Most local and state governments cannot just decide to run deficits in the way that the federal government does. That's one of the reasons why state and local governments are having to severely cut services and get rid of employees over the course of this economic turmoil.

      --

      One time I threw a brick at a duck.

  8. Only one problem with his position by Todd+Knarr · · Score: 5, Insightful

    Only one problem: most municipalities contemplating running their own broadband Internet service are doing it precisely because the cable and phone companies aren't providing the service. It's time to stop thinking about Internet access as a service and start thinking about it as a utility, with the changes in mindset that implies (eg. you don't want parts of your city to be without water or electricity just because the utility companies think it won't be cost-effective to serve them).

  9. Businesses Pay Taxes? by tekrat · · Score: 4, Interesting

    Apparently this guy has never heard of Exxon!

    Once any business gets large enough, they do creative accounting or move all their "official" offices offshore (do you kow how many businesses are incorporated in Bermuda as a tax haven?) to avoid taxes.

    http://blogs.forbes.com/energysource/2010/04/07/exxon-says-it-does-pay-u-s-income-taxes/

    If the USA could actually collect what it is owed by big business, we wouldn't *have* a national debt!

    --
    If telephones are outlawed, then only outlaws will have telephones.
    1. Re:Businesses Pay Taxes? by Red+Flayer · · Score: 4, Informative

      Because the respective prices those corporations would charge to maintain the same profit margin would go up, multiplied countless times as their products get used and reused in creating final end consumer products.

      No. Pricing is not done to maintain a fixed profit, it is done to maximize profit. If they have room to move prices higher to maintain net profit in the face of higher taxes, then they are not pricing correctly.

      In theory, raising the tax on gross profit will have no impact on pricing, since their product is already priced to maximize gross profit.

      How many jobs would be returned to the US if we made the US a corporate tax haven and instituted some sane liability laws?

      Very few. The location of the headquarters has little to do with where the bulk of the jobs are. Instead, we'd have a higher direct tax burden on everyone, and no recourse if a company fucks people over.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  10. For those who are interested... by moeluv · · Score: 4, Informative

    in letting Senator hoyle know exactly what they think of his ideas. Office: 300-A Legislative Office Building Phone: (919) 733-5734 Email: David.Hoyle@ncleg.net Legislative Mailing Address: NC Senate 300 N. Salisbury Street, Room 300-A Raleigh, NC 27603-5925 Terms in Senate: 9 (0 in House) District: 43 Counties Represented: Gaston Occupation: Real Estate Developer/Investor Address: P.O. Box 2567, Gastonia, NC 28053 Phone: (704) 867-0822

  11. Re:For those playing "Guess the Party" by Mongoose+Disciple · · Score: 5, Informative

    The source article doesn't mention his party, which is odd, but that's a perfectly non-conspiracy-theory explanation for why it's not in the summary if you'd like one.

  12. Re:For those playing "Guess the Party" by rbrander · · Score: 4, Insightful

    As Kurt Vonnegut once put it, the real two parties in the USA are "Winners" and "Losers".

    Ralph Nader would be your classic Loser. Stands always for a set of principles, never wins a thing. Ron Paul also very principled, despite having won at one level, despite having a crowd of fanatics that love his every utterance ("Nader's Raiders" could probably exchange some notes with them) has no better chance at a presidential run than Nader, and so is another Loser.

    The "rightward shift" of recent decades has basically been both parties wanting to be Winners, because corporate lobbying, corporate personnel going through revolving-doors into government and vice-versa, and regulatory capture of government agencies like the FCC and the MMS, and other forms of influence, have clarified for them all that anti-corporate laws and regulations will make you a Loser.

    Why nobody ever seems to do a kamikaze political career, a one-term deal where he does all the damage to the system he can and goes back to his law practice, mystifies me. Unless that's what Alan Grayson's plan is. (No plan is actually visible at present.)

    So both parties now claim to champion the Regular Little Guy while emphatically not doing so. The only difference I can spot is that Republicans openly claim that What's Good For Business IS Good For Everybody, and Democrats claim to be restraining business while putting only the most superficial and ineffective limits and controls on them, for show.

    Please, I'm not taking sides on that. It's possible that letting telecoms do anything they want with the airwaves and internet is a good thing, letting Wall Street make any deals is wants is a good thing, letting oil companies drill and frac anywhere they want (not "frack", that would be obscene) is a good thing. I'm just saying that one party says that and does it, the other ALSO does it while saying something different.

    It's getting ever-harder to stand for Party rather than principles, and much of Mr. Paul's appeal is he actually does so, breaking with is party, diametrically, and often. I happen to think his principles are frequently batshit crazy, but hey, I'm Canadian and can safely be dismissed from Serious Discussion.

  13. Yes, slashdot is biased by DarthBender · · Score: 5, Insightful

    Where is the 'Democrats' tag? Where is the party affiliation in the summary? And where is the donkey icon? If he was a Republican can anyone here seriously say that there would not be a 'Republicans' tag, the word 'republican' in the summary and the elephant icon?

  14. Re:I'm not sure..... by spun · · Score: 5, Insightful

    I don't think it actually works that way. In reality, businesses have many different expenses, payroll, taxes, inventory, and so on. The prices of the products and services they sell will certainly not be any less than the costs they incur. But how meaningful is it to say, "No business ever paid a single dime in taxes that wasn't paid for by a consumer?" You could say that about absolutely any expense a business had, "No business ever paid a single dime in payroll that wasn't paid for by a consumer," or "No business ever paid a single dime in inventory that wasn't paid for by a consumer," are all equally accurate statements.

    In fact, by your logic we could easily say that only businesses pay taxes, as individuals pass on the expense of taxes to their employer. No individual ever paid a single dime in taxes that wasn't paid for by a business, because said individual would be broke if they didn't have an income form some sort of business. And that is why your statements are meaningless.

    The real question comes when we raise taxes. Is the entirety of that increase always passed on to the consumer, or does some of it occasionally come out of corporate profits? I would hazard a guess that if corporations could just raise prices willy-nilly, they would. Competition keeps them from raising prices to arbitrarily high levels. If a corporation is hit with new taxes while making high profits, they may have to accept a reduction in profits in order to stay competitive.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  15. An educated senator? by VojakSvejk · · Score: 4, Insightful

    I just can't get over the fact that a state senator (or a US one, really) knows that Gunga Din was a water bearer. Maybe US education is better than I thought.

  16. Re:Govt. competing with private enterprise by shentino · · Score: 4, Insightful

    That's a valid quid pro quo to compensate for the fact that mail service in the US is done for everyone, no matter how unprofitable a particular place might be.

    If it were left up to the free market, they'd welch out on the boonies and stay in the cities where it's profitable.

    Which would leave the USPS with nothing but losses as they get stuck with all the sucky spots.