Tax Turmoil: A Dia Fenner Economic Thriller

By Michael L Walden and M.E. Whitman Walden

Economist Dia Fenner has settled down in Raleigh, North Carolina with her husband Ethan and infant daughter Ava. She is now the fiscal adviser to the new Libertarian Governor of North Carolina. When the Governor proposes an ambitious plan to simplify taxes, lower rates, and eliminate tax perks to certain groups, she puts Dia in charge of selling the plan to the public and pushing it through the General Assembly. Yet immediately there is strong pushback from those who will lose their tax favors. At the same time that Dia is fighting the Governor’s opponents, she has to deal with an ex-boyfriend who has arrived to win her back. How far will opponents go to stop the Governor’s plan? Could they go as far as murder? Are Dia and even her family at risk? And, will Dia have to fight her own feelings to save her marriage? Are all these challenges too much, even for the resourceful Dia Fenner?

• Language: English
• Publisher: iUniverse
• Release date: Apr 10, 2024
• ISBN: 9781663260925

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Copyright © 2024 Michael L. Walden, M.E. Whitman Walden.

All rights reserved. No part of this book may be used or reproduced by any means,

graphic, electronic, or mechanical, including photocopying, recording, taping or by

any information storage retrieval system without the written permission of the author

except in the case of brief quotations embodied in critical articles and reviews.

This is a work of fiction. All of the characters, names, incidents, organizations, and dialogue

in this novel are either the products of the author’s imagination or are used fictitiously.

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ISBN: 978-1-6632-6091-8 (sc)

ISBN: 978-1-6632-6093-2 (hc)

ISBN: 978-1-6632-6092-5 (e)

Library of Congress Control Number: 2024906458

iUniverse rev. date: 04/09/2024

CONTENTS

Authors’ Notes

The Debate

Home Fires

Ticket to the Blood Sport

Winning Them Over-Almost

Hardball

Risky Business

Close Call

Foreign Advice

Pols and Polls

Screen Star

Shrimp with a Side Order of Scheming

Executive Action

Grandma Ava to the Rescue

King Willie

Columbo, Holmes, and Marple at Work

Back Door Sluething

The Strange Car

Smoke, But No Fire – Yet

Jim Sawyer

Outside-Inside

The Economics of Crime

Getting Inside

Unexpected Guest

The Big Push

Tracking the Villain

Confession

Professional and Personal Progress Reports

Game Time

Fun and Games

Skyfall

Rescue

Recovery Redux

Closing In

Gotcha

The Truth

The Family Way

Final Showdown

Appendix

AUTHORS’ NOTES

We are grateful to the readers of our previous Dia Fenner economic thrillers –

Macro Mayhem, Micro Mischief, and Fiscal Fiasco - all books designed to teach economics in an entertaining way. They have given us inspiration.

As a couple married for more than four decades, we have also benefited by finding a way of productively working together, all the while supporting and understanding each other’s sometimes different views about characters and plotting.

The numbers in the book referring to tax and spending proposals for North Carolina are real calculations made by the authors using actual North Carolina data. The Appendix provides details.

We hope you like this new adventure for economist Dia Fenner.

THE DEBATE

Mommy, Mommy - box, shouted Ava, pointing excitedly at the TV.

I know sweetheart. That is Mommy. Isn’t she pretty? replied her father, Ethan.

Mommy, Mommy, - box, Ava shouted again, this time scrunching her face up tightly as she began to cry.

Ava, Mommy really isn’t in the box. She’s in another building that is much, much bigger than our house. This box is called a television, or TV, and it lets us see Mommy where she is now. Ethan immediately knew three-year old Ava wouldn’t understand what he said, so he leaned over and took her from her playpen while he gently repeated, Mommy, Mommy, all good. Back home soon.

Ava calmed down and as Ethan rocked her and continued crooning, home soon. Ava was Ethan’s and his wife, Dia’s, first child, and they absolutely adored her. Both were in their mid-thirties when they married only four years ago. But the couple couldn’t imagine life without each other, and now Ava made their lives even better.

Lots of people can see Mommy, even though she’s really not in their houses. Ethan gave Ava a big squeeze and kiss on her head as he spoke words he knew his daughter wouldn’t understand. The love he knew she would understand. Daddy really can’t explain how TV works, because Daddy really doesn’t know, even though Daddy is an engineer. In a few years you’ll love watching TV, and when you go to college, you’ll probably have something even better than a TV.

Ava didn’t hear any of her father’s last words because she was now asleep in his arms.

OK my brilliant daughter, let’s go off to bed. After carrying Ava to her bedroom and tucking her in, Ethan returned to the living room to watch his wife.

Ethan’s wife was Dia Fenner, chief economic adviser to North Carolina’s Governor. Ethan felt butterflies the first time he saw her, and those feelings still persisted. Her poise, athletic body, auburn hair, and big brown eyes all first drew him to Dia. When he found she also had an engaging personality everyone enjoyed, that sealed the deal. Ethan teased Dia she was born to talk and make friends, but he knew he and Ava would always come first. When his wife would sometimes nod off watching TV at night, Ethan noticed her eyes may be closed, but her mouth was open. He teased Dia that was so she could immediately begin talking when she awakened. In addition to her beauty, Ethan also fell in love with Dia’s kindness, perseverance, and work ethic. Dia won most arguments not by shouting, but with reasoning and facts.

Tonight, on the local Spectrum channel, Dia was debating two political consultants about the Governor’s economic agenda for the State. The host of the program, long-time anchor Tim Conyer, was just beginning a new topic when Ethan resumed watching.

Dr. Fenner, the Governor’s recommendations on State taxes are nothing short of earth-shaking. Governor Allen wants to eliminate both the State individual income tax and corporate income tax, as well as the State sales tax, and replace them with something called a transactions tax. Also, the Governor proposes to end all tax deductions and exemptions. I have two questions for you. First, why does Governor Allen want such big changes? And second, what is a transactions tax?

Dia composed herself before answering. Taxes had always been a highly charged political issue all the way from local courthouses to the White House. Governor Allen gave Dia the responsibility of selling the new tax ideas, and Dia would need all her economic and communication skills to do that.

She began. "First, Tim, thank you for inviting me on the program to present Governor Allen’s fiscal proposals. Very few people like to pay taxes, but we need taxes to fund the important responsibilities of State government, such as education and public safety, that benefit all of us. But to accept paying taxes, people need to know the tax system is both fair and understandable. Today it is not. The current system has all kinds of loopholes and special provisions that allow people with the same incomes to pay different tax amounts. For example, why should a household pay less taxes if they used a mortgage to purchase a home, while a renter with the same income pays more taxes because they don’t have a mortgage? A transactions tax would eliminate this kind of discrimination. With a transactions tax, every time money changes hands, a very minor fee of mere pennies on the dollar would be paid to the State. It’s simple, fair, and it doesn’t get in the way of people’s decisions about buying, selling, and earning.

Tim, I have to jump in. Allison Walters, a long-time Republican political consultant and pollster, was half-way out of her seat. First, I resent the notion that homebuyers who are working hard to achieve the American dream by purchasing a home are being given an unfair gift, just because the State provides them a little help paying their mortgage. This is especially true when mortgage interest rates are so high.

Tim, let me add a follow-up comment, interjected Frank Hillibrand, chairperson of the North Carolina Democrat Party, who was watching the clock to make sure he logged as many minutes as Allison Walters. If I understand the transaction tax correctly, it will apply even to groceries people buy in supermarkets. We don’t tax groceries now because they’re a necessity. So how would a new tax system that literally makes it harder for people to put food on their table be a step forward? It’s really a big, big step backward.

With a slight smile – or it could be interpreted as a sneer – Tim Conyer looked at Dia. Dr. Fenner, what do you say to these questions from both sides of the aisle?

Tim, I need to correct you on one point. We now have a third aisle in North Carolina, with both a Libertarian Governor and Lieutenant Governor and several Libertarian Party members in the General Assembly. I know we threaten the two-party system’s hold on power, so I’m not surprised by their attacks on Governor Allen’s tax ideas. As Libertarians, we support individuals and families’ freedom to make financial choices in their own self-interests. With a very few exceptions, Governor Allen believes in not using the State government’s power over the tax system to influence how people spend their hard-earned money. By applying a broad-based transactions tax, together with reductions in overall public spending recommended by the Governor, we estimate the people of North Carolina will see no more than two pennies per dollar of transaction taken from them in taxes. Oh, and Frank – Dia looked directly at Hillibrand – the statewide sales tax doesn’t apply to groceries, but the local sales tax does. Hillibrand frowned.

The two politicos were angling to get their next jab at Dia, but Conyer ignored them by posing the next question. Dr. Fenner, you mentioned some exceptions to the Governor’s general stance on State government – and particularly the tax system – of staying out of private spending decisions. Give me an example of one such exception.

Tim, thank-you for asking that important question. Dia followed the advice of the influential economist Alan Greenspan to always complement a questioner when possible. Tim, an excellent example is pollution. People pollute only because it’s a means to an end. Most people must drive to work or school daily, and using a vehicle is still the most convenient way of doing that. Since the majority of vehicles continues to be gasoline-powered, drivers will create some pollution in the form of CO2 emissions on their way to their destinations. A simple tax – actually, fee is a better term – on each gallon of gas bought would send a financial signal to drivers of the environmental costs of their driving.

Hillibrand believed he had Dia cornered. This notion of a new driving fee just proves my point that Governor Allan and advisers like Dr. Fenner are against the average person in North Carolina who isn’t a millionaire or billionaire and can afford new taxes on food and gasoline," he said with a snarky grin.

Dia didn’t wait to have Conyer invite her to reply. Actually, Mr. Hillibrand, I haven’t had the chance yet to mention that the pollution fee imposed on some products would be returned to households based on a sliding scale with their income. Low- and middle-income households would get back most of the fees they paid, while millionaires and billionaires wouldn’t. The fee would be sort of a Robin Hood system. And – Dia raised her index finger for emphasis – numerous economic studies show that even if households have their pollution fees returned, they will use most of the fee to pay for things other than driving. Translated, they will drive less because driving has become comparatively more expensive relative to other products and services.

Hillibrand’s mouth opened but nothing was uttered. Seeing this, Conyer turned to Allison Walters. Allison, we have time for one more question, and the floor is yours.

Walters enjoyed seeing Hillibrand put in his place, and she now realized Dia was a skilled debater. But Walters thought she had a question that even Dia couldn’t successfully answer.

"Dr. Fenner, some of Governor Allen’s biggest contributors have been people in corporations who have a lot to gain from eliminating the State corporate income tax. Aren’t Governor Allen’s tax proposals just a payback to those donors?

Dia was ready for this kind of question and had done her homework for a response. Ms. Walters, it is interesting you bring up campaign financing. It is correct that Governor Allen received many donations from the business community. But the donations were from the entire North Carolina business community, all the way from mom-and-pop and small-town stores to corporations that have been in North Carolina for decades. They supported Governor Allen’s vision for our State. In contrast, the corporate donations for your and Mr. Hillibrand’s candidates were overwhelmingly from out-of-state corporations and firms. I wonder why that is? Could it be that both of Governor Allen’s opponents favored using tax incentives to bring new businesses to North Carolina, whereas Governor Allen favors low taxes and efficient State spending to grow the economy?

Both Walters and Hillibrand glared at Dia. They knew she had beaten them in the debate. They also now knew that Governor Allen, and especially her top economic advisor – Dia Fenner – would be formidable foes. As Hillibrand and Walters left the studio, they wondered if new strategies would be required to beat the team of Allen and Fenner.

As she walked to her car for the drive home, Dia mentally re-ran the debate and was pleased with how she stood up