Bob Neugebauer and Ron Nate examine the Article 5 convention resolution that passed House State Affairs Committee 9-4, with chief sponsor John Schertz leading the charge to make Idaho the 29th state calling for a constitutional convention. Nate systematically dismantles three fatal flaws: conventions cannot be restricted to balanced budget amendments despite assurances, Idaho would send moderate “squishes” like Scott Bedke rather than principled conservatives, and even a successful balanced budget amendment would either be circumvented through emergency clauses or weaponized to raise taxes on working Idahoans.
The conversation shifts to House Bill 559’s tax conformity battle, where Governor Little opposes giving Idahoans the Trump tax cuts at the state level despite $155 million in relief for overtime pay ($54.5 million), standard deductions ($39 million), qualified seniors on Social Security ($32 million), tips ($18 million), and car loan interest ($11 million). Nate documents Idaho’s 57.5% income tax revenue increase from 2020-2026 despite rate cuts, proving the state has a spending problem, not a revenue problem, while parade of program recipients testified demanding the tax dollars stay with government instead of families.
Nate previews Thursday’s noon Capital Clarity event featuring Max Nelson from Freedom Foundation discussing how to stop taxpayer funding of teachers’ unions, plus premiere of a four-minute video exposing the National Education Association president’s woke agenda from last summer’s convention. Additional topics include the billion-dollar rural healthcare federal grant creating new addiction risks similar to COVID ARPA money, enrollment declining while education spending and woke agenda increase, and Speaker Moyle’s committee dilution eliminating conservative advantages on critical votes.
The discussion concludes with Utah’s unprecedented 25-cent export tax on gasoline refined for Idaho—making Idaho’s combined federal-state gas tax exceed 75 cents per gallon—and Nate’s proposal to attract refineries to Idaho rather than fight counterproductive trade wars. His Idaho Freedom Foundation article “Mad Max Hits the Rockies” details the crisis, while his property tax elimination plan would use natural revenue growth to buy down property taxes completely within seven years without raising other taxes.
0:01 Introduction and Article 5 Convention Warning
Bob Neugebauer welcomes Ron Nate to discuss Idaho’s 2026 legislative session. Nate immediately alerts listeners to the dangerous Article 5 convention memorial that passed House State Affairs Committee, with 28 states already signed on and Idaho positioned to become the 29th state toward the 34-state threshold that would compel Congress to call a constitutional convention.
1:52 The Three Fatal Flaws of Article 5 Convention
Nate systematically dismantles the convention of states concept, explaining how John Schertz, Doug Ricks, Josh Tanner, and Larry Craig are pushing this despite historical evidence from the Articles of Confederation convention proving runaway conventions are inevitable. He warns media pressure would demand Second Amendment repeal and woke First Amendment changes, while Idaho would send moderate politicians like Scott Bedke and Butch Otter rather than principled conservatives like Tea Party Bob.
7:41 Balanced Budget Amendment Would Fail or Backfire
Even if a balanced budget amendment passed, Nate explains how the emergency clause escape hatch—used on every Idaho bill despite no actual emergencies—would render it meaningless. Alternatively, Congress would simply raise taxes on income earners rather than cut spending, making the amendment actively harmful to working families while California and New York send their worst representatives to populate the convention.
9:20 Trump Tax Conformity Battle and Governor’s Resistance
Nate details House Bill 559’s tax conformity provisions that would give Idahoans $155 million in Trump tax cuts: $54.5 million on overtime pay, $39 million in standard deductions, $32 million for qualified seniors on Social Security, $18 million eliminating taxes on tips, and $11 million on car loan interest. Governor Little opposes conformity despite Idaho’s 57.5% income tax revenue increase from 2020-2026, proving the state has a spending problem while program recipients testified demanding government keep the tax dollars.
14:06 Speaker Moyle’s Committee Dilution and Medicaid Expansion
Nate blames Speaker Moyle for watering down committee compositions, eliminating conservative advantages that previously existed on House State Affairs and other committees. He reveals Health and Welfare Committee lacks votes to repeal Medicaid expansion that would save $1.3 billion, with Heather Scott and Judy Boyle as the only two Republicans voting against the Article 5 convention alongside Democrats in a “wingtip” alliance of distrust.
18:10 Income Tax Revenue Increase Despite Rate Cuts
Nate documents Idaho’s income tax collections increasing 7.9% annually over six years despite tax cuts, with 13% growth in the last two years alone, driven by population increases, inflation raising wages, and economic growth. He refutes Democrat claims that tax cuts reduced revenue, proving spending growth outpaced revenue growth and created the current budget crisis while parade of beggars testified for maintaining government programs over tax relief.
21:03 Education Waste and Teachers Union Funding Event
Discussion of education’s massive spending with declining enrollment and performance but increasing woke agenda, leading to Nate’s announcement of Thursday noon Capital Clarity event in Lincoln Auditorium. Max Nelson from Freedom Foundation will discuss stopping taxpayer funding of teachers’ unions, with premiere of four-minute video featuring lowlights from National Education Association president’s summer convention speech that will “curl your hair.”
24:50 Federal Rural Healthcare Grant Creates New Addiction Risk
Nate warns about Trump administration’s $200 million per year for five years ($1 billion total) for Idaho rural healthcare, paralleling the COVID ARPA money addiction that saw $8-11 billion flow to state government. Despite promises to fund only one-time expenses, the state funded ongoing programs and now faces budget shortfalls, with storage rooms full of unused plexiglass shields, face masks, and hand sanitizer proving the waste of short-term spending on ineffective measures.
28:45 Utah Gas Tax Export Scheme and Refinery Solution
Nate explains Utah representative’s proposed 25-cent export tax on gasoline refined for Idaho, adding to Idaho’s existing 32-cent state tax and 18-cent federal tax for over 75 cents total per gallon—ranking Idaho in top 20 nationally. He argues against retaliatory taxes on potatoes, barley, and sugar exports or road taxes on Utah trucks, instead proposing Idaho attract refineries by removing government barriers. His Idaho Freedom Foundation article “Mad Max Hits the Rockies” details the crisis, noting Idaho is the only northwest state with no oil field or refinery.
35:16 Property Tax Elimination Plan and Conservative Principles
Neugebauer announces plans to feature Glenita and Christy Zito on upcoming podcasts as tested conservatives who use common sense and stick to principles rather than political pressures, while Nate concludes with his property tax elimination proposal that would use natural growth in tax collections to buy down property tax completely within seven years without raising other taxes. Brief discussion of New York socialism failures and communist protest encounters closes the conversation.
