By Warner Todd Huston ——Bio and Archives--July 10, 2012
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One of the main arguments from RUCO is that the Pima shareholders might have other business interests that lose money, and if they combine the tax credits of those operations with the tax liability from the water utility, they might not pay taxes at all, even though the customers would be paying a “phantom tax.” “When this happens, this is essentially free money for the shareholders paid by the ratepayers who receive no benefit from these payments,” RUCO wrote in a brief for the case.RUCO Director Jodi Jerich also thinks that ACC would be violating its legal duties to protect rate payers if it allows this deal to go through. He also wonders if this precedent would also allow every other utility in Arizona to try and get the same sweet deal? Who would doubt that? But something else comes to mind here. We have a guy that essentially owns the community and the water company who is setting up a sweet deal with possibly compliant government agencies within which he has friends to get his income tax paid for by the people he supposedly serves with his water service. So who is serving whom here? Doesn’t it seem like the worst case of influence peddling? Doesn’t it all smack of the old company owned communities that so unfairly bedeviled miners reminiscent of the song “16 Tons“? I’m all for capitalism, but this seems all very unfair. It seems like an awful lot of power in one man’s hands and at the expense of customers. Sort of seems like crony capitalism to a degree, doesn’t it? The ACC is holding a hearing to discuss this case at 10 a.m. Tuesday at the Sun Lakes Country Club’s Navajo Room, 25601 N. Sun Lakes Blvd.
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Warner Todd Huston’s thoughtful commentary, sometimes irreverent often historically based, is featured on many websites such as Breitbart.com, among many, many others. He has also written for several history magazines, has appeared on numerous TV and radio shows.
He is also the owner and operator of Publius’ Forum.