Tax protesters back in court to challenge system Economic downturn and rising taxes mark return of movement
By RICK KARLIN, Capitol bureau First published in print: Thursday, December 4, 2008
ALBANY — After more than a decade out of the spotlight, tax protesters are heading back to court.
This time, they are questioning the constitutionality of the Legislature's practice of giving money to private businesses as often pork-laden member items or economic development initiatives.
"We need to do whatever is necessary to keep them in the box,'' Bob Schulz said Wednesday, referring to the endless proclivity of lawmakers to hand out taxpayer money.
Schulz, who lives in Queensbury, gained a measure of fame more than a decade ago with a series of lawsuits opposing "back-door borrowing," such as the Urban Development Corporation's 1990 purchase of Attica prison. That move raised money for economic development — but also increased the state's indebtedness without a public referendum.
Schulz wasn't a party to Wednesday's proceedings, but showed up along with a handful of other tax protesters to hear arguments in Buffalo-area lawyer James Ostrowski's "Stop the Pork" lawsuit, filed on behalf of Lockport businessman Lee Bordeleau and others, including an organization that opposes wind turbine development.
Ostrowski argued before Albany County Supreme Court Justice Michael Lynch that economic development grants violate constitutional proscriptions against giving money to private entities.
In addition to the state, defendants in the suit include Advanced Micro Devices, which is part of the consortium planning a chip factory at the Luther Forest tract in Saratoga County.
I sent Mr. Ostrowski an e-mail regarding our demands for accountability and transparency in the actions and decisions of the Schenectady Metroplex Development Authority. I inquired about the legality of the redistribution of public revenues to private entities (individuals, businesses, and not-for-profits) as he cites in his lawsuit against the State of New York and several corporations and private businesses. I informed him of the State Comptroller's performance audit of the quasi-government public authority from which we are awaiting a (long overdue) report of findings.
I requested that he contact me if he has interest in expanding his lawsuit to include the Metroplex as a Defendent as the basis for the lawsuit seems to apply.
A Federal Reserve Note (FRNs or ferns, commonly referred to as U.S. paper money, or bills, and not to be confused with "Federal Reserve Bank Note") is a type of banknote issued by the Federal Reserve System and is the only type of U.S. banknote that is still produced today.
Federal Reserve Notes are fiat currency, with the words "this note is legal tender for all debts, public and private" printed on each bill. (See generally 31 U.S.C. § 5103.) They are issued by the Federal Reserve Banks and have replaced United States Notes, which were once issued by the Treasury Department.
The paper on which the Federal Reserve Notes are printed is made by Crane & Co. of Dalton, Massachusetts.
Contents [hide] 1 History 2 Value 3 Production and distribution 4 Nicknames 5 Criticisms 5.1 Security 5.2 Differentiation 5.2.1 Suit by sightless over U.S. banknote design 5.3 Fiat Currency 5.4 Constitutionality 6 Series detail 6.1 Series 1928–2003 6.2 Post-2004 Redesigned Series 7 See also 8 References 9 External links
[edit] History The first institution with responsibilities of a central bank in the U.S. was the First Bank of the United States, chartered in 1791 by Alexander Hamilton. Its charter was not renewed in 1811. In 1816, the Second Bank of the United States was chartered; its charter was not renewed in 1836, after it became the object of a major attack by president Andrew Jackson. From 1837 to 1862, in the Free Banking Era there was no formal central bank. From 1862 to 1913, a system of national banks was instituted by the 1863 National Banking Act. A series of bank panics, in 1873, 1893, and 1907 provided strong demand for the creation of a centralized banking system. The first printed notes were Series 1914.
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