Latest / The KFAB Comment Line with Jean Stothert / Blue Dot and Consumption Tax 6-25-26
Transcript
- 0:00Speaker 1: I am your host, Jeans Dothard. Peyton Hilock, my producer,
- 0:03Speaker 1: is also here. Good morning Peyton, Good morning Jean.
- 0:06Speaker 2: You have a sweatshirt on. It looks like you're cold today.
- 0:08Speaker 3: You know it's a little cloudy and rainy outside today
- 0:11Speaker 3: and sometimes it's cold in here.
- 0:12Speaker 4: You're wearing no sleeves today.
- 0:14Speaker 1: Well, I am solar powered. I love this summer and
- 0:17Speaker 1: I love hot weather. But we want to hear from
- 0:20Speaker 1: you today and we want to get your feedback. We
- 0:22Speaker 1: want to hear your comments, concerns, questions, complaints, anything goes,
- 0:27Speaker 1: whether it's city, state, national, the world, and we will
- 0:30Speaker 1: have plenty of guests. We don't have a guest today,
- 0:33Speaker 1: but I'm lining some good ones up for next week.
- 0:35Speaker 1: And we're going to continue on our conversation that we
- 0:38Speaker 1: had yesterday about taxes, because that seems to always get
- 0:42Speaker 1: a lot of comments and a lot of people want
- 0:45Speaker 1: to have, you know, ask questions and they want to
- 0:48Speaker 1: be heard too, So we're going to cover a lot
- 0:51Speaker 1: of the emails that we got yesterday that we didn't
- 0:53Speaker 1: get to. But you're going to hear a lot of
- 0:55Speaker 1: opinions from me too. But it's your chance to speak
- 0:59Speaker 1: up and sound off. You can send your emails to
- 1:01Speaker 1: comment at kfab dot com or you can call us
- 1:04Speaker 1: at four two five to five, eight eleven ten. We
- 1:08Speaker 1: are very happy that you are Weathers today and Peyton
- 1:13Speaker 1: America is playing today. USA is playing today, USA.
- 1:17Speaker 4: USA is playing today World Cup where they playing? Give
- 1:20Speaker 4: us an update? Ooh, I actually don't know where they're playing.
- 1:22Speaker 1: Oh well, you will give us an update soon where
- 1:24Speaker 1: they're playing and who's playing.
- 1:25Speaker 4: But here's the thing.
- 1:26Speaker 3: United States has already done what they needed to do,
- 1:29Speaker 3: finished on top. So this game for them is just
- 1:31Speaker 3: kind of let's get some of the other guys on
- 1:34Speaker 3: the team that haven't played yet a chance to play,
- 1:36Speaker 3: get the morale up on the team. I don't want
- 1:39Speaker 3: to say it means nothing, but United States has already
- 1:41Speaker 3: done as good as they needed to do, so they
- 1:44Speaker 3: played today their final game, so I'm looking forward to it.
- 1:49Speaker 3: This is going to be in Los Angeles, California, Inglewood.
- 1:53Speaker 3: More specifically, this is a sofi stadium where the Los
- 1:56Speaker 3: Angeles Chargers play a sorry Los Angeles Rams, but yes.
- 2:02Speaker 2: And it's going to be great.
- 2:04Speaker 4: Son o'clock nine, is that past your bedtime?
- 2:07Speaker 2: Oh? No, I can stay up past nine thirty.
- 2:10Speaker 4: Wow, there you go.
- 2:12Speaker 3: Oh.
- 2:12Speaker 1: You know, as elderly people, we have to get our sleep.
- 2:16Speaker 1: But you know, I was speaking of the USA team
- 2:20Speaker 1: national team playing and alls you hear on the news,
- 2:24Speaker 1: and I want to hear all your opinion about this too,
- 2:26Speaker 1: is how all of these people that are in the
- 2:29Speaker 1: United States, from all of these forty three countries, from
- 2:32Speaker 1: all over the world, and how much great things they
- 2:36Speaker 1: have to say about our country. They are just they're
- 2:40Speaker 1: they're mind boggled about what we have here, and they
- 2:43Speaker 1: keep on.
- 2:44Speaker 2: I mean, they talk about BUCkies.
- 2:46Speaker 1: For gosh sakes, you know how great BUCkies you know are,
- 2:49Speaker 1: and and just how nice the people are and what
- 2:52Speaker 1: we have here and the opportunities we have here. And
- 2:56Speaker 1: then last night I was watching the program about the
- 3:00Speaker 1: celebration on the National Mall. The President was there, you know,
- 3:03Speaker 1: all of the branches of service, and the bands were playing,
- 3:06Speaker 1: and the patriotism you could just feel it. And then
- 3:10Speaker 1: I think of all that is going on of our
- 3:12Speaker 1: citizens in this country with this hatred that we keep
- 3:17Speaker 1: on hearing about, and it just boggles my mind that
- 3:21Speaker 1: people that are US citizens, the hatred that they are
- 3:25Speaker 1: viewing some of these new elected officials, some of our
- 3:28Speaker 1: congressmen and our senators. The things they are saying just
- 3:32Speaker 1: so negative about this country. It just really really is
- 3:36Speaker 1: disheartening to hear all of that when you see on
- 3:39Speaker 1: the other side all of this pride coming out of DC,
- 3:44Speaker 1: and so many people are against all of this celebration
- 3:48Speaker 1: because they don't like Donald Trump. Well, it's not about
- 3:51Speaker 1: Donald Trump. It's about celebrating the two hundred and fiftieth
- 3:55Speaker 1: anniversary of our independence against the British Empire, our American independence.
- 4:01Speaker 1: That's what we are celebrating. George Washington was president then, folks,
- 4:06Speaker 1: and we should be celebrating what we have in this
- 4:09Speaker 1: country too. Want to hear your comments about it. You know,
- 4:12Speaker 1: the other day there's a little shopping center on ninetieth
- 4:18Speaker 1: and Center, which I really like. And I know a
- 4:20Speaker 1: lot of you that live in Omaha know about this
- 4:23Speaker 1: shopping center. I go there a lot. There's Fairway Meet
- 4:27Speaker 1: Market there, there's a clothing store there. I like, there's
- 4:29Speaker 1: a flower shop.
- 4:30Speaker 2: I like a lot.
- 4:31Speaker 1: The market Basket used to be there. A lot, really
- 4:33Speaker 1: nice little shopping center there, And I was told just
- 4:36Speaker 1: the other day that one of the stores there, which
- 4:41Speaker 1: is The Bookworm was basically hosting a Lynn Waltz rally,
- 4:49Speaker 1: but it turned into a very loud anti Trump rally
- 4:54Speaker 1: out in front of all of these stores, and it
- 4:58Speaker 1: was outside the Bookworm. And then they had these I
- 5:02Speaker 1: guess they were like troops rallied and they were called
- 5:05Speaker 1: the pode I'm just saying po'd because I don't want
- 5:09Speaker 1: to say that word on the radio. The pode Gradmas
- 5:13Speaker 1: is what they call themselves. And they were wearing homecoming sashes,
- 5:16Speaker 1: wild hats, singing songs about ousting pillin all sorts of
- 5:21Speaker 1: radical talk. Makes me very uncomfortable. I go to that
- 5:25Speaker 1: shopping center all the time, and I'm doubted that they
- 5:28Speaker 1: asked them all management, and I'm a little bit annoyed
- 5:32Speaker 1: about it, to be honest. Now, I believe in freedom
- 5:34Speaker 1: of speech, but I mean people are just carrying it
- 5:37Speaker 1: too far, very very negative, very hateful rally towards Republicans,
- 5:41Speaker 1: the president, the governor, etc. In this really nice little
- 5:45Speaker 1: open mall that should be open for everybody and enjoyed
- 5:49Speaker 1: by everybody.
- 5:50Speaker 3: Gene, that's a really good point to bring that locally.
- 5:53Speaker 3: I was just thinking about when you were talking about
- 5:55Speaker 3: America two fifty celebration, and there have been nine states
- 5:59Speaker 3: that have declined to participate in America two fifty. In Washington, DC,
- 6:05Speaker 3: and we have all these people coming over for the
- 6:07Speaker 3: World Cup and talking about how great our country is,
- 6:11Speaker 3: and we don't even have nine of our own states
- 6:14Speaker 3: participating in America two fifty.
- 6:15Speaker 4: It's a shame I did. It's a shame.
- 6:18Speaker 1: And I'll go back to this nice little shopping center
- 6:20Speaker 1: because I know the owner and who the developer, and
- 6:22Speaker 1: they do a great job. But I really doubt that
- 6:26Speaker 1: it was using that public area was not in their
- 6:29Speaker 1: lease agreement. If it was indeed organized by the Bookworm
- 6:34Speaker 1: or anybody involved with it, but I doubt that was
- 6:37Speaker 1: in their lease agreement that they could have a rally
- 6:39Speaker 1: out there that was so political and so anti against
- 6:45Speaker 1: what is going on with the Republican Party right now.
- 6:48Speaker 3: Absolutely, And I have a phone call already this morning
- 6:51Speaker 3: from Max who it might contribute to this conversation. Max,
- 6:54Speaker 3: thank you so much, a sixty year listener here on
- 6:56Speaker 3: the line. Welcome to KFAB. You're live with Jeanist author.
- 7:00Speaker 5: Yeah, Gean, I've got a question here for you. I
- 7:03Speaker 5: would like to ask you personally, what's your opinion of
- 7:07Speaker 5: the blue dot here in Omaha. I've got a lot
- 7:12Speaker 5: of Democratic friends. I am Republican, but I have Democratic
- 7:17Speaker 5: friends that give me their opinions, but they really don't
- 7:21Speaker 5: give me any real deathment opinion. And I'd like to
- 7:25Speaker 5: just kind of know your opinion.
- 7:26Speaker 1: Thank you for that question. And you know, I have
- 7:29Speaker 1: a lot of Democrat friends too. My son is a Democrat,
- 7:33Speaker 1: you know, and my daughter's a Republican. So there you go.
- 7:37Speaker 1: But the blue dot are saying a city is blue.
- 7:42Speaker 1: It used to be just that the majority of voters
- 7:46Speaker 1: were Democrat over Republican. Republican typically are called red, like
- 7:51Speaker 1: Nebraska is typically called a red state because the majority
- 7:54Speaker 1: of voters in the entire state are Republican. Blue used
- 7:58Speaker 1: to signify Democrat, and if they would say that city's
- 8:01Speaker 1: blue or that city's red, basically all it meant was
- 8:06Speaker 1: that it was the majority of voters were either Democrat
- 8:09Speaker 1: or Republican. Now in the state of Nebraska, this has
- 8:12Speaker 1: taken a turn because I think right now, calling Omaha
- 8:16Speaker 1: the blue dot is more about winner takes all, and
- 8:21Speaker 1: it's more about you know, our our votes that we
- 8:26Speaker 1: have in the state of Nebraska, and it's just it.
- 8:30Speaker 1: It doesn't make sense to me anymore. It's become a
- 8:33Speaker 1: symbol of anti Trump, anti Republican, and that's what concerns
- 8:41Speaker 1: me a lot, because yes, the city of Omaha, they
- 8:45Speaker 1: have more Democrat voters than they have Republican Okay, that's fine,
- 8:49Speaker 1: That's been that way for quite a while. I was
- 8:51Speaker 1: a Republican mayor of the Blue Dot for twelve years,
- 8:54Speaker 1: you know, and so I got a lot of votes
- 8:57Speaker 1: from independents and from Democrats to and from Republicans. But
- 9:01Speaker 1: this is just now focused on that electoral votes that
- 9:05Speaker 1: we have here that they really really want. The governor
- 9:13Speaker 1: would like the winner takes all. I think it makes
- 9:15Speaker 1: sense because all but two states, Nebraska being one of them,
- 9:19Speaker 1: don't have winner takes all. But right now, you know,
- 9:22Speaker 1: in the state of Nebraska, we have five electoral votes,
- 9:25Speaker 1: two for the overall winner and then one for each
- 9:28Speaker 1: congressional district. Congressional District two is the one that they
- 9:33Speaker 1: are focused on now, and that's the one that Don
- 9:35Speaker 1: Bacon is a representative for now, and that's the one
- 9:38Speaker 1: that Brinker Harding is running against Denise Powell for it
- 9:43Speaker 1: now and alls you hear Denise Powell talk about is
- 9:46Speaker 1: maintaining the blue dot. In what she is talking about
- 9:51Speaker 1: is she wants to maintain that this congressional district remains that,
- 9:56Speaker 1: you know, independent of the winner takes all. Every other
- 10:00Speaker 1: state except one has and so I think it's just
- 10:04Speaker 1: taken a turn of what the blue dot actually means.
- 10:08Speaker 1: And it's a shame that it does, because that's all
- 10:11Speaker 1: you hear about is the blue dot, the blue dot,
- 10:12Speaker 1: the blue dot.
- 10:13Speaker 2: And people are saying, what's this mean?
- 10:15Speaker 1: And you know, now we see a lot of neighbors
- 10:18Speaker 1: people that I like, I mean people all over Omaha
- 10:21Speaker 1: with blue dots in their window and blue dots in
- 10:24Speaker 1: their front yard, and it's just it's it's kind of
- 10:27Speaker 1: mind boggling to me that this has been such a
- 10:29Speaker 1: wave that they and you know now I use that term.
- 10:33Speaker 1: It pops into my mind now instead of just the
- 10:35Speaker 1: blue dot, you see posters all over of the blue
- 10:40Speaker 1: wave meaning the Democrats are going to take over, the
- 10:44Speaker 1: Liberal Party will take over, And I just I don't
- 10:46Speaker 1: I really I don't get it. When I had Dennis
- 10:50Speaker 1: Crawford on the other day, who has to be on
- 10:52Speaker 1: this show, and he is a lawyer in Lincoln an author.
- 10:56Speaker 1: Now he calls himself a historian and he's written a
- 10:58Speaker 1: few books. He wanted to be on this show to
- 11:01Speaker 1: say I was a Republican and now I have become
- 11:04Speaker 1: a Democrat and here is why.
- 11:06Speaker 2: And I mean, he was.
- 11:08Speaker 1: Really, really, really angry against the Republican Party on this show,
- 11:12Speaker 1: the president on this show. He was, you know, giving
- 11:16Speaker 1: out all these statistics and things which I didn't have
- 11:18Speaker 1: a chance to even fact check. But I wasn't here
- 11:21Speaker 1: to debate him. I just let him go on and
- 11:24Speaker 1: that was it. But you know, I do know Dennis
- 11:26Speaker 1: Crawford now does a lot of trolling on Republicans Facebook,
- 11:30Speaker 1: saying a lot of really really negative things and so
- 11:33Speaker 1: and you know he's talking about the blue dot. So
- 11:37Speaker 1: what used to be what used to be just significant.
- 11:41Speaker 1: The significance was just that it was the majority where
- 11:45Speaker 1: Democrats has now taken a turn and it's signifying about
- 11:48Speaker 1: your electoral votes. And they want to keep this congressional
- 11:52Speaker 1: district independent of the winner takes all, and they want
- 11:56Speaker 1: to keep it Democrat.
- 11:57Speaker 2: And that's what that's.
- 11:58Speaker 1: Why so many outside organizations are getting involved in this
- 12:04Speaker 1: congressional race. That's why Denise pal had so much outside money,
- 12:08Speaker 1: millions of dollars of outside money from outside this state
- 12:13Speaker 1: putting money into her race so that she could win
- 12:16Speaker 1: this race and maintain the blue dot. And you know, frankly,
- 12:19Speaker 1: I don't think people from out of state need to
- 12:22Speaker 1: be telling us in Omaha, US, in Nebraska, US, in
- 12:25Speaker 1: congressional district too how to vote.
- 12:27Speaker 2: No, thanks, we can figure it out on our.
- 12:29Speaker 3: Own, most definitely, And we're always open to comments anything
- 12:33Speaker 3: that's on your mind four zero two, five to five,
- 12:36Speaker 3: eight eleven ten comments at kfab dot com or on
- 12:40Speaker 3: the iHeartRadio app we have the radio talkback MIC. One
- 12:43Speaker 3: topic that we really got into yesterday, which you can
- 12:46Speaker 3: find on the podcast page, was property taxes. And one
- 12:52Speaker 3: big topic that we kind of briefly touched on yesterday
- 12:56Speaker 3: that I think is very complex that we should talk
- 12:58Speaker 3: about a little bit more today is the consumption tax. Yes,
- 13:03Speaker 3: and Mark sent me an email yesterday and said, I'd
- 13:07Speaker 3: like to hear your opinion on the consumption tax. Yes locally,
- 13:10Speaker 3: he also threw it nationally. I don't know how relevant
- 13:13Speaker 3: that is, but consumption tax. Maybe, Gene tell us a
- 13:16Speaker 3: little bit more. What is the consumption tax? Your opinion
- 13:20Speaker 3: on it? What it would look like. Just to spend
- 13:23Speaker 3: a second here at explaining that to.
- 13:25Speaker 1: Us, it will take me more than a second here,
- 13:27Speaker 1: because and I do know a lot about it, because
- 13:30Speaker 1: you know, there was a ballot initiat to a petition
- 13:32Speaker 1: going around to get this on the ballot, and it
- 13:35Speaker 1: really scared me for a while because I thought the
- 13:38Speaker 1: way they were presenting the consumption tax, I was thinking, Hmmm,
- 13:43Speaker 1: I'm afraid they're going to get enough signatures to get
- 13:45Speaker 1: to ad on the ballot and vote this in here
- 13:48Speaker 1: is what it is the advocates propose replacing. They will say,
- 13:52Speaker 1: if you vote for this or sign this petition for
- 13:56Speaker 1: the epic tax or the consumption tax, is what they
- 14:00Speaker 1: are saying. As they will say, it will replace your
- 14:03Speaker 1: property tax, your income tax, and your inheritance tax with
- 14:08Speaker 1: a consumption tax, which is effectively a sales tax on
- 14:13Speaker 1: services and new purchases. And they will say it will
- 14:18Speaker 1: be set at seven point five percent sales tax now
- 14:22Speaker 1: in the city of Omaha. Now keep in mind the
- 14:24Speaker 1: state of in Nebraska now is five point five percent
- 14:27Speaker 1: sales tax. Each city or governing entity has the option.
- 14:34Speaker 1: The City of Omaha had the option a local option
- 14:37Speaker 1: sales tax of adding another one point five and so
- 14:40Speaker 1: that makes the sales tax in Omaha seven. So people
- 14:43Speaker 1: in Omaha go, oh wow, you mean I could pay
- 14:46Speaker 1: seven and a half percent and I won't have to
- 14:48Speaker 1: pay property tax, income tax, inheritance tax.
- 14:51Speaker 4: Ever.
- 14:51Speaker 1: Again, I'm all for it. Well that petition, thank goodness,
- 14:55Speaker 1: it did fail to get on the ballot. And here's
- 14:58Speaker 1: what it would tax. And it would tax not groceries,
- 15:02Speaker 1: so we know that, and that's something that I think
- 15:05Speaker 1: everybody was worried about. They would say, oh my gosh,
- 15:08Speaker 1: I don't want it to tax groceries. Groceries and would
- 15:10Speaker 1: the petitioners would say, it won't tax groceries at all.
- 15:14Speaker 1: But it would be a sales tax on all new
- 15:16Speaker 1: goods is basically what it is. So think about this
- 15:20Speaker 1: and then I'm going to tell you what the tax
- 15:22Speaker 1: really would be. A new home you would pay a
- 15:24Speaker 1: sales tax. A new car you would pay a sales tax.
- 15:28Speaker 1: Prepared food and beverage. People are still screaming about a
- 15:31Speaker 1: two and a half percent restaurant tax. Well now they're
- 15:35Speaker 1: saying it'll go up to seven and a half percent
- 15:38Speaker 1: on all prepared food and beverage. But you don't have
- 15:40Speaker 1: to pay your property taxes. Then it would be all
- 15:44Speaker 1: sales tax exemptions would go away, So farmers, equipment, everybody
- 15:48Speaker 1: would be paying sales tax. You would pay sales tax
- 15:52Speaker 1: on medical bills. You would pay sales tax on dental bills.
- 15:56Speaker 1: You would pay sales tax on government wages. If you
- 15:59Speaker 1: were remind modeling and existing property, rental property, your monthly
- 16:05Speaker 1: rent would pay sales tax. Almost everything new would have
- 16:10Speaker 1: a sales tax. Now here's the clencher.
- 16:12Speaker 6: Here.
- 16:13Speaker 1: The Tax Foundation did many calculations and analysis, and they
- 16:18Speaker 1: suggest that for that epic plan to actually work so
- 16:22Speaker 1: that you can replace all of your property tax, income tax,
- 16:26Speaker 1: and inheritance tax won't work with seven and a half
- 16:29Speaker 1: percent even with all of these things I just mentioned
- 16:33Speaker 1: that would now have sales tax. They are saying it
- 16:36Speaker 1: would have to be a statewide consumption tax rate of
- 16:40Speaker 1: at least twenty one point six percent. Okay, omahans, we
- 16:46Speaker 1: pay seven percent now, and they're saying, the Tax Foundation
- 16:51Speaker 1: says it's going to have to be to eliminate all
- 16:54Speaker 1: those other taxes at least twenty one zero point six percent.
- 16:59Speaker 1: And then it also did not prevent local government from
- 17:03Speaker 1: enacting their own consumption taxes like the City of Omaha,
- 17:07Speaker 1: Metro Community College, metro Transit, so that total rate could
- 17:11Speaker 1: even be more than twenty one point six percent. So
- 17:15Speaker 1: now you're talking about a sales tax. If you go
- 17:19Speaker 1: eat food, if you go eat in a restaurant, if
- 17:22Speaker 1: you buy a house. Can you imagine if you bought
- 17:25Speaker 1: a four hundred thousand dollars house and you paid, say
- 17:28Speaker 1: a twenty five percent sales tax on it, or a
- 17:31Speaker 1: new car. It would ruin the housing industry. It would
- 17:34Speaker 1: ruin the new housing industry. It would ruin car sales
- 17:38Speaker 1: for new cars. I mean, just think of all of
- 17:41Speaker 1: these things that would be tax beyond what people could afford.
- 17:46Speaker 1: And here's what's going to happen. And this is what
- 17:49Speaker 1: they what they don't tell you too. What will happen then,
- 17:52Speaker 1: is everybody in Nebraska that lives on the border, they
- 17:57Speaker 1: are going to go to Iowa, They're going to go
- 17:59Speaker 1: to Missouri, they're going to go to Colorado, They're going
- 18:01Speaker 1: to go to South Dakota to buy things. And it
- 18:04Speaker 1: would the burden would be placed on all of those
- 18:06Speaker 1: in Nebraska that live in the interior because people in
- 18:10Speaker 1: Omaha aren't going to go out to dinner here anymore
- 18:12Speaker 1: if they're going to have to pay, say a twenty
- 18:13Speaker 1: five percent sales tax.
- 18:14Speaker 3: I'm gonna play a little bit of Devil's advocate here, Gene.
- 18:18Speaker 3: So when you started this conversation, it was seven and
- 18:20Speaker 3: a half percent, hypothetically seven and a half percent catch
- 18:23Speaker 3: such they were selling. So when I think about that,
- 18:26Speaker 3: I'm saying, not bad. Well, that's not too bad, you know,
- 18:29Speaker 3: that's manageable. I don't got to worry about the property
- 18:31Speaker 3: taxes or all this other junk tax that is confusing
- 18:34Speaker 3: in too much. Seven and a half percent on everything blanket. Well, hey,
- 18:38Speaker 3: that doesn't sound too bad exactly. But if it's upwards
- 18:42Speaker 3: of twenty five percent, yes, that feels unbelievable.
- 18:46Speaker 1: And that's what the Tax Foundation, all the analysis that
- 18:49Speaker 1: they have done on this, they're saying, no, there's no
- 18:53Speaker 1: way in the state of Nebraska that you're going to
- 18:55Speaker 1: replace property tax, income tax, and inheritance tax if you
- 18:59Speaker 1: have a sales taxes seven and a half percent on everything.
- 19:02Speaker 1: They said, you know it is the proposed rate is
- 19:06Speaker 1: based on a flawed calculation that really does not reflect
- 19:10Speaker 1: the tax base. And so they said the corrected calculation
- 19:14Speaker 1: is at least twenty one and a half percent, if
- 19:17Speaker 1: not more. And then think about that, like I said,
- 19:20Speaker 1: on a new house, on food, on remodeling, on your
- 19:24Speaker 1: medical bills, there would be a sales tax. They said,
- 19:27Speaker 1: not food, but still because and I think everybody understands
- 19:32Speaker 1: the problems with food. But in my opinion about that
- 19:36Speaker 1: that I think the policy makers in the state of Nebraska,
- 19:40Speaker 1: including the governor, which is his number one concern, they
- 19:45Speaker 1: are seeking to constrain and to lower property taxes with
- 19:52Speaker 1: with I think, with the better ways to target and
- 19:56Speaker 1: to achieve these aims, I think that they can they
- 19:59Speaker 1: can come up with much better ways that they can
- 20:02Speaker 1: reduce our property taxes without doing something this drastic. This
- 20:06Speaker 1: scary thing to me is what they were doing with
- 20:09Speaker 1: their petitions is they were telling people basically what it
- 20:16Speaker 1: involves and what would come out of it, but it
- 20:19Speaker 1: was all based on flawed calculations. People were being given
- 20:23Speaker 1: a bit of goods that weren't true. And you know,
- 20:25Speaker 1: I had a real fear that that was going to pass.
- 20:28Speaker 1: People were going to think, oh, yeah, I get this
- 20:30Speaker 1: seven and a half percent, why not? But that's not
- 20:32Speaker 1: what it's going to be folks, and that's what really
- 20:35Speaker 1: really bothers me. And plus that no state, no state
- 20:40Speaker 1: has ever abolished property tax, that would make Nebraska the first.
- 20:44Speaker 2: So we don't have anything.
- 20:46Speaker 1: To compare us to soaring property tax burdened or a
- 20:51Speaker 1: genuine concern, and it's the state of Nebraska, and it
- 20:54Speaker 1: is very appropriate for policy makers to really really look
- 20:59Speaker 1: for solution.
- 21:00Speaker 2: But I think you.
- 21:01Speaker 1: Know that that's that what they have done with the
- 21:04Speaker 1: with the state income tax, social security tax. But you know,
- 21:08Speaker 1: there's been in the past several years just a dramatic
- 21:11Speaker 1: rise and assess value on your property, and also the
- 21:15Speaker 1: cost of government services has gone up, so doing away
- 21:18Speaker 1: with property taxes has a substantial appeal. But we've always
- 21:24Speaker 1: heard the phrase it's too good to be true, and
- 21:27Speaker 1: I think with the epic tax, that's exactly what it is.
- 21:30Speaker 1: I think it's too good to be true to tell
- 21:33Speaker 1: people that you won't have to pay property tax, all
- 21:37Speaker 1: these other taxes, inheritance taxes, it, state income tax, if
- 21:42Speaker 1: you just want to pay seven and a half percent
- 21:44Speaker 1: sales tax.
- 21:45Speaker 4: It's too good to be true, folks. Your host Gene Stutht.
- 21:49Speaker 3: My name is Peyton Highlock, here on news radio eleven
- 21:52Speaker 3: to ten KFAB the KFAB comment line. We love to
- 21:55Speaker 3: hear from you, Gene. I have an email from a
- 21:58Speaker 3: listener yesterday that has a little bit of feedback based
- 22:02Speaker 3: on your show, and I'd love to get into that. Yesterday, Gene,
- 22:05Speaker 3: we talked a lot about property taxes and I got
- 22:08Speaker 3: a lot of thoughts and opinions in my email inbox. Good,
- 22:11Speaker 3: that's what we want. This is exactly what we want.
- 22:14Speaker 3: And I'm going to take that head on. And I
- 22:16Speaker 3: got an email and I want to bring it up
- 22:19Speaker 3: to you so you can address it. Sure, Gene and
- 22:22Speaker 3: I have not talked about this at all. This is
- 22:24Speaker 3: a raw response, Okay. Today's comments by Jeane st author
- 22:29Speaker 3: This was yesterday. Yesterday's comments by jeene'st author were very
- 22:33Speaker 3: typical of a seasoned politician. Excuses, blame game, people would scream, etc.
- 22:40Speaker 3: To begin with, her argument against capping revenue is ridiculous.
- 22:44Speaker 3: A very very well written email. But I'm going to
- 22:47Speaker 3: cut down to the bottom and it says you argued
- 22:50Speaker 3: that the city of Omaha doesn't have an option. As
- 22:54Speaker 3: an example, you quoted labor costs as the most significant
- 22:58Speaker 3: expense and complain that you were unable to reduce the
- 23:01Speaker 3: expense of union contracts. But a quick search shows that
- 23:06Speaker 3: the mayor holds the official authority to negotiate labor contracts
- 23:10Speaker 3: and sign off on agreements. So the blame comes back
- 23:14Speaker 3: to you and weak negotiating typical of an experienced politician
- 23:21Speaker 3: versus an experienced business owner.
- 23:24Speaker 1: Okay, I'd love to answer that email. First of all
- 23:29Speaker 1: excuses in blame game, No, I will say they are facts,
- 23:36Speaker 1: and this is not coming from a political point of view.
- 23:41Speaker 1: It's coming from a point of view of someone who
- 23:45Speaker 1: was responsible for creating and maintaining and controlling a over
- 23:51Speaker 1: billion dollar budget for the City of Omaha for twelve
- 23:54Speaker 1: years in a row. It is the mayor's responsibility to
- 23:58Speaker 1: do the city budget. It's a mayor's response ability to
- 24:00Speaker 1: control the city budget.
- 24:02Speaker 2: Folks. The city budget is balanced to the.
- 24:05Speaker 1: Penny when it goes into effect January first, at the
- 24:08Speaker 1: beginning of the year. It has to be balanced to
- 24:11Speaker 1: the penny on December thirty first, at the end of
- 24:14Speaker 1: the year. And it's the mayor's responsibility to do that. Now,
- 24:18Speaker 1: saying capping revenue is ridiculous, No, it's saying doing cappingue,
- 24:26Speaker 1: he said, Saying it that it would be hard to
- 24:28Speaker 1: cap revenue is ridiculous. Absolutely not ridiculous. Here's the deal.
- 24:33Speaker 1: Like I said, you are saying at home, the cost
- 24:37Speaker 1: of living is going up every day. The cost of
- 24:39Speaker 1: running a city is going up every day too. And
- 24:43Speaker 1: I was absolutely one hundred percent accurate yesterday to say
- 24:47Speaker 1: that seventy four percent of the city budget is personnel cost.
- 24:51Speaker 1: It's police, it's fire, it's civilians, it's all of those
- 24:55Speaker 1: people that are out there repairing potholes and fixing your
- 24:58Speaker 1: streets and running your park all of that. That's seventy
- 25:02Speaker 1: four percent of the entire city budget. It things cost
- 25:06Speaker 1: more every year. If you cap revenue and you have
- 25:10Speaker 1: to say you can't get any more revenue whoever the
- 25:14Speaker 1: mayor is than the year before, but all your expenses
- 25:18Speaker 1: are going up every year, then what do you do?
- 25:21Speaker 2: You cut?
- 25:22Speaker 1: So where do you cut? If seventy four percent of
- 25:25Speaker 1: the budget is people, then you cut people. So who
- 25:28Speaker 1: are we going to cut? Are we going to cut
- 25:30Speaker 1: the fire department, the police department, public works, street maintenance?
- 25:34Speaker 1: I mean, who are we going to cut to get
- 25:36Speaker 1: those expenses down?
- 25:38Speaker 2: Every year?
- 25:38Speaker 1: If your revenue has to stay the same as the
- 25:42Speaker 1: year before. And you know, I said the other day,
- 25:46Speaker 1: if you have to lower your levee every time that
- 25:51Speaker 1: you get more revenue in to keep it zero balanced
- 25:54Speaker 1: from the year before. Keep in mind that I did
- 25:58Speaker 1: lower the levee five times and the city's portion of
- 26:01Speaker 1: your property tax is only twenty two percent, and people
- 26:05Speaker 1: didn't feel it. I lowered the levee on twenty two
- 26:07Speaker 1: percent of your total property tax bill. You take for
- 26:10Speaker 1: every penny you lower the levee for the city of
- 26:14Speaker 1: Omaham just talking about Omaha here, you take about five
- 26:16Speaker 1: and a half million dollars out of the budget. So
- 26:19Speaker 1: now you're saying you got a cap revenue, you got
- 26:22Speaker 1: to keep it at the same as the year before.
- 26:24Speaker 1: Expenses are going up. You want your levee to go down.
- 26:27Speaker 1: That's taken more money out of the budget. So what
- 26:30Speaker 1: do you do? I mean, And this is the challenge.
- 26:32Speaker 1: And this is not politics. This is not talking about
- 26:37Speaker 1: this is coming from a big politician making excuses. This
- 26:41Speaker 1: is facts, folks. This is the way it is. And
- 26:44Speaker 1: you know, sales tax is our biggest source of our revenue.
- 26:47Speaker 1: The general fun budget for the City of Omaha this
- 26:50Speaker 1: year is about five hundred and sixty two million dollars.
- 26:54Speaker 1: The biggest source of our revenue is sales tax. The
- 26:57Speaker 1: next biggest source is property tax, and then the restaurant tax.
- 27:02Speaker 1: If you can't your property tax revenue can't be any
- 27:05Speaker 1: more than the year before, and the other two stay
- 27:08Speaker 1: pretty steady. You're gonna have to cut people and you're
- 27:11Speaker 1: gonna have to cut services. That's all there is.
- 27:14Speaker 4: Now.
- 27:14Speaker 1: They brought up the mayor is the chief negotiator negotiator. Yes,
- 27:18Speaker 1: it is the mayor for all of these labor negotiations.
- 27:21Speaker 1: And I've been involved with them for years, and even
- 27:25Speaker 1: when I was on the school board, I was involved
- 27:26Speaker 1: in teacher negotiations. But here's the deal. They are negotiated.
- 27:32Speaker 1: I initiate the negotiations, but to get an agreement, to
- 27:37Speaker 1: get a settlement, to get a collective bargaining agreement approved,
- 27:41Speaker 1: both sides have to agree, the employee and the employer.
- 27:47Speaker 1: And so the employer is the mayor. It's the city
- 27:50Speaker 1: and you are responsible for these negotiations.
- 27:53Speaker 2: But then you have the unions.
- 27:55Speaker 1: You have OPOA with the police, you have Local three
- 27:57Speaker 1: eight five with the fire and they have to agree
- 28:01Speaker 1: to these negotiations, and if they don't agree, you're at
- 28:05Speaker 1: an impasse and you're not going to get a contract.
- 28:08Speaker 2: And so then what do you do?
- 28:10Speaker 1: So you want as mayor, you want the best You
- 28:13Speaker 1: are representing the taxpayers. As the mayor, they're representing their
- 28:19Speaker 1: members of their union, but the members of their union
- 28:22Speaker 1: are also city employees. And so I felt like I
- 28:25Speaker 1: was representing the taxpayers to try to do the best
- 28:28Speaker 1: job I can in the labor negotiations for the taxpayers,
- 28:31Speaker 1: but these are also our employees. As you remember, for
- 28:35Speaker 1: since twenty twenty, we were having a heck of a
- 28:38Speaker 1: time getting people and it was happening all over the country,
- 28:41Speaker 1: but to apply for jobs with law enforcement, with our
- 28:44Speaker 1: police department, and the one thing we found that was
- 28:47Speaker 1: one of the issues is a lot of other law
- 28:50Speaker 1: enforcement agencies were paying more than the City of Omaha.
- 28:53Speaker 1: So what do we do to really solve that problem
- 28:56Speaker 1: is we had to negotiate to give our police officers
- 28:59Speaker 1: more money, more salary, to make us more competitive with
- 29:03Speaker 1: the other law enforcement agencies. This is the problem that
- 29:07Speaker 1: you deal with with running a city. I mean, it
- 29:09Speaker 1: becomes very challenging. So to say I just sound like
- 29:12Speaker 1: a politician here. I want to sound like somebody who
- 29:16Speaker 1: has done it, who has actually done it, who has
- 29:19Speaker 1: actually been in there and created twelve different city budgets
- 29:24Speaker 1: that were multi multimillion dollar budgets and then manage them
- 29:29Speaker 1: year after year after year. Every year that I was mayor,
- 29:33Speaker 1: we ended the year with a surplus. I never ended
- 29:37Speaker 1: the year the year with a negative. So I tried
- 29:40Speaker 1: to tell people. I tried to control the budget the
- 29:43Speaker 1: best I can lower the levee as often as I
- 29:46Speaker 1: can and still maintain the number of employees that we
- 29:50Speaker 1: needed in the City of Omaha to provide good city services.
- 29:54Speaker 2: That's the facts.
- 29:57Speaker 3: There we go and I love the sound of that.
- 29:59Speaker 3: And there's a lot of other things going on here
- 30:01Speaker 3: as well. And one thing that we talked about earlier
- 30:04Speaker 3: today from a caller was about the blue dot, and
- 30:07Speaker 3: we'll get into that here very shortly.
- 30:09Speaker 2: Like we have a guest we just dropped out. I
- 30:12Speaker 2: told you to keep the doorlight.
- 30:14Speaker 4: Wait, what is that?
- 30:15Speaker 2: What is that adopted? Oh wait, it's adopted, Chris Baker.
- 30:22Speaker 6: I'm sorry to butt in on your great show. No,
- 30:25Speaker 6: but we're talking about taxes and revenues and things like that.
- 30:29Speaker 6: And something that a lot of people don't know, and
- 30:32Speaker 6: I'd love to get your perspective as someone who I
- 30:34Speaker 6: don't know if people know this, she was mayor here
- 30:37Speaker 6: for twelve years, I think, I said, if you've ever
- 30:39Speaker 6: brought that up, But I do know that I don't
- 30:46Speaker 6: think that city government is given really good budgeting numbers
- 30:52Speaker 6: because of things that are not how do you just
- 30:57Speaker 6: put it, uh well covered? Because one of the things
- 31:02Speaker 6: that I'm very passionate about obviously illegal immigration. Illegal immigration
- 31:08Speaker 6: crimes are not tracked right. In other words, crime statistics
- 31:14Speaker 6: are not separated by legal resident versus illegal resident, right,
- 31:20Speaker 6: And the same thing goes for education. It's never separated
- 31:25Speaker 6: like that, and incarceration. I mean, there's so many different
- 31:30Speaker 6: avenues where we're not able as taxpayers, and I would
- 31:34Speaker 6: imagine as civic leaders to look at that budget accurately
- 31:39Speaker 6: and see, Okay, this money we really shouldn't be spending anyway.
- 31:44Speaker 6: Does that make sense?
- 31:46Speaker 2: I'm following you, Okay.
- 31:48Speaker 6: So I'm just wondering, And again, I don't know if
- 31:51Speaker 6: people know you were the mayor for I think twelve years.
- 31:54Speaker 2: Oh stopped?
- 31:55Speaker 6: So did that ever come up? Did anybody ever mention this?
- 32:01Speaker 6: Because when you have to budget for the city, for fire, police,
- 32:05Speaker 6: all this other kind of stuff, I think you should
- 32:07Speaker 6: be able to know that.
- 32:09Speaker 1: Well, I think I'm following what you're trying to what
- 32:12Speaker 1: to your point you're trying to make here, Chris, But
- 32:15Speaker 1: with the budget, the city budget is one of the
- 32:18Speaker 1: mayor's number one responsibilities. And you know I always said
- 32:21Speaker 1: my priorities number one were public safety. Number two the
- 32:24Speaker 1: city budget in lowering taxes. Those two priorities that I
- 32:28Speaker 1: had are not even listed as Mayor Ewing's priorities. His
- 32:33Speaker 1: number one priority is affordable housing. However, since that budget
- 32:39Speaker 1: city budget was my responsibility, I tried to be as
- 32:43Speaker 1: transparent with the community as I possibly could. And what
- 32:47Speaker 1: I would do is I well, first of all, I
- 32:50Speaker 1: would do a budget speech, which just goes over the budget,
- 32:52Speaker 1: but I would do a report to the community quarterly,
- 32:55Speaker 1: and I would put that out as a press release,
- 32:58Speaker 1: and I would list each city department, each one of them,
- 33:02Speaker 1: and I would list those that are on budget, those
- 33:05Speaker 1: that are under budget, and those that are over budget.
- 33:07Speaker 1: And I would get a report monthly, and then if
- 33:11Speaker 1: any of the departments were off where I wanted them
- 33:13Speaker 1: to be, I would reel them in right then. I
- 33:16Speaker 1: wouldn't wait till the end of the year and say, oops,
- 33:19Speaker 1: you know, we got a big shortfall here, right, And
- 33:22Speaker 1: so I tried to be very transparent with it. Now,
- 33:24Speaker 1: another couple things that I did is I did put
- 33:27Speaker 1: the city budget online the.
- 33:31Speaker 2: Day I gave the budget speech.
- 33:33Speaker 1: And I put the city checkbook online, so anybody could
- 33:37Speaker 1: go online at any time, any citizen in Omaha. They
- 33:41Speaker 1: could see where the money's coming from, and where the
- 33:44Speaker 1: money's going, and where the money is being spent anytime,
- 33:48Speaker 1: any citizen.
- 33:49Speaker 6: What about the city credit card? Could you get that online?
- 33:52Speaker 6: Because you know, yeah, I mean yeah, we could have
- 33:55Speaker 6: some fun with that.
- 33:56Speaker 1: And listen, listen, jeans do there did not have a
- 33:59Speaker 1: city I just had.
- 34:00Speaker 2: There's very few of those.
- 34:02Speaker 6: Actually, I didn't mean to come in and butt in
- 34:04Speaker 6: on your show, but it seems to me, if you're
- 34:08Speaker 6: gonna you have to put together a budget. Yes, you
- 34:10Speaker 6: have to know where money is going, absolutely and where
- 34:13Speaker 6: money is coming from, but you also need to know
- 34:17Speaker 6: which of your expenditures you really shouldn't have to be
- 34:21Speaker 6: dealing with in the first place.
- 34:23Speaker 1: And that's why I tried to put everything out there
- 34:26Speaker 1: that people could get online and they could see where
- 34:29Speaker 1: the money is coming in and where the money is
- 34:31Speaker 1: going out, and they could see where it is going.
- 34:34Speaker 1: And I think and when I put the city checkbook online,
- 34:37Speaker 1: that is basically all the bills that we are paying
- 34:41Speaker 1: and where that money is going, so people could look
- 34:43Speaker 1: at it if they wanted to.
- 34:44Speaker 6: Hmm, oh, okay, well did that Did you ever get
- 34:48Speaker 6: like a giant vault of cash never that you would
- 34:51Speaker 6: have in your office just for flex purposes.
- 34:54Speaker 2: No, no, that didn't happen.
- 34:55Speaker 1: But keep in mind again, Chris, I know you are
- 34:57Speaker 1: a big proponent of public safety.
- 35:00Speaker 2: I know that.
- 35:01Speaker 1: And out of that budget this year, the general fund
- 35:04Speaker 1: budget is five hundred and sixty two million. Two thirds
- 35:08Speaker 1: of that entire budget is fire and police, two thirds
- 35:12Speaker 1: of the entire budget the third the remaining third of
- 35:15Speaker 1: the budget goes to fund every other city department, libraries,
- 35:19Speaker 1: swimming pools, parks, roads, public works. All of that is
- 35:24Speaker 1: one third of the city budget. So try like try
- 35:27Speaker 1: to manage all of that when to say, well, you
- 35:30Speaker 1: can't spend more than the year before, but all the
- 35:32Speaker 1: expenses are going up.
- 35:33Speaker 6: By the way, the emailer took a cheap shot at
- 35:36Speaker 6: you two about negotiating union.
- 35:38Speaker 2: This is not the first time.
- 35:40Speaker 6: Well, but I was listening to that too, and I remember,
- 35:44Speaker 6: you know, the contract is not a yearly deal.
- 35:47Speaker 1: It can be, it depends on what the agreement is.
- 35:50Speaker 1: But I usually like long term, longer term.
- 35:53Speaker 6: Trying to bail you out here, Okay, go ahead, I'm interrupted,
- 35:56Speaker 6: So long term. See these contracts just not like every
- 35:59Speaker 6: year you go on negotiation. It's it's a yearly thing. Okay,
- 36:03Speaker 6: right way, I'm getting out of your way, no ruining
- 36:05Speaker 6: your entirety.
- 36:06Speaker 1: So that was very thoughtful things because I would always
- 36:09Speaker 1: and the reason I would try to do a multi
- 36:11Speaker 1: year contract is it gives you some certainty when you're
- 36:15Speaker 1: doing the next year's budget of what you're going to
- 36:18Speaker 1: be paying these folks.
- 36:19Speaker 6: Do you think that adoptee treatment could be on the
- 36:24Speaker 6: city health plan?
- 36:25Speaker 2: Adoptee?
- 36:28Speaker 1: That's but we love the that's and speaking of the
- 36:32Speaker 1: blue dot, you know that's the blue dot and I
- 36:35Speaker 1: do that commercial with Chris and which is really really funny.
- 36:38Speaker 3: Speaking of the blue dot, gen we'll talk about it
- 36:40Speaker 3: when we come back. Yes, Peyton, here we are today
- 36:44Speaker 3: and earlier today we are talking about the blue dots.
- 36:47Speaker 3: We had a listener ask Geen, what are your thoughts
- 36:49Speaker 3: about the blue dot? And I had a caller, Dave.
- 36:52Speaker 3: I believe he lives in Iowa. I'm going to assume,
- 36:55Speaker 3: but he brought this up to me. Josh Turik is
- 36:58Speaker 3: a Democratic candidate for Jony Ernst seat in the Iowa Senate,
- 37:05Speaker 3: and he was just acknowledging he feels like there's a
- 37:09Speaker 3: lot of outside influence here in Omaha in Nebraska campaigns
- 37:14Speaker 3: for the Democratic Party, hence the blue the blue.
- 37:17Speaker 4: Dot, and that whole philosophy and idea.
- 37:20Speaker 3: And he says that he feels like it's the same
- 37:22Speaker 3: for Josh Turk in Iowa and across the state of
- 37:25Speaker 3: Iowa as well, not just a Nebraska issue with outside money.
- 37:30Speaker 2: Yeah. Point well taken.
- 37:31Speaker 1: And you know, even in my last race, John Ewing
- 37:34Speaker 1: was receiving outside out of state money to help him
- 37:39Speaker 1: when because they really the Democrats really wanted a Democrat
- 37:42Speaker 1: mayor of the city of Omaha. And you know, talking
- 37:45Speaker 1: about the blue dot, though I said, it became it's
- 37:48Speaker 1: symbolic now and it's became an issue about the winner
- 37:52Speaker 1: takes all in electoral college. But you know, I want
- 37:56Speaker 1: to expand on that, because the blue dot is also
- 38:00Speaker 1: embolic of a lot of other things. And when you
- 38:03Speaker 1: talk about Denise Powell, the things that she keeps on
- 38:06Speaker 1: saying that I'm going to fight for the blue dot,
- 38:09Speaker 1: I mean she's talking more about fighting for socialism, for
- 38:13Speaker 1: free everything, and higher taxes, taxpayer funded abortions. You know
- 38:19Speaker 1: what Chris was saying, should we be paying for a
- 38:22Speaker 1: lot of the things we're paying for? You know, taxpayer
- 38:25Speaker 1: funded abortions. Seems like it comes under the blue dot. Now,
- 38:29Speaker 1: men and women's sports, et cetera, et cetera, et cetera.
- 38:32Speaker 1: They want to they want it to support that, they
- 38:37Speaker 1: want to keep it to support the national radical left agenda.
- 38:41Speaker 1: That's what the blue dot is symbolic for now, and
- 38:45Speaker 1: that is not Nebraska values.
- 38:47Speaker 3: I also heard during the break, Gene that you've got
- 38:50Speaker 3: a few pieces of information that you would like to
- 38:52Speaker 3: provide to help wrap up as we end the show
- 38:54Speaker 3: here today.
- 38:55Speaker 2: Pieces of information. Yes, you know.
- 38:57Speaker 1: One of the things is Senator Kathleen Kauf with on
- 39:00Speaker 1: earlier today and she just wanted me to remind people
- 39:05Speaker 1: as we talk about property taxes, that their last day
- 39:08Speaker 1: to file for homestead exemption is June thirtieth. They can
- 39:13Speaker 1: get in an extension, but we want She wanted to
- 39:16Speaker 1: make sure everybody knows June thirtieth is at target for
- 39:20Speaker 1: when you file for homestead exemption. So thank you Senator
- 39:23Speaker 1: Calf for bringing that up to And I do want
- 39:26Speaker 1: to remind people once again about off the subject but fireworks,
- 39:31Speaker 1: because I think I'm hearing those noises out there myself.
- 39:34Speaker 1: They can be used or discharged only folks July second, third,
- 39:40Speaker 1: and fourth between noon and eleven pm. That's it, and
- 39:45Speaker 1: then over of course the New Year's Eve. But we're
- 39:48Speaker 1: not even going to talk about New Year's Eve now.
- 39:50Speaker 1: So that is it for us today. We really hope
- 39:53Speaker 1: you join us again tomorrow. Thank you so much for
- 39:57Speaker 1: listening and spending.
- 39:58Speaker 2: All of this time with us.
- 40:00Speaker 1: When we start talking about taxes, there's a lot to
- 40:03Speaker 1: talk about, and we can talk about it tomorrow again too.
- 40:05Speaker 1: But I am Jean Stothard and this is eleven ten
- 40:09Speaker 1: KFA B