Bold Colors Blog

Stickin’ it to the libs, one day at a time

Posts Tagged ‘Punitive taxes’

Unexpected honesty about Obama’s tax plan from ABC News

Posted by Liberty on March 3, 2009

Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan

Truly, I didn’t expect to find a story critical of Obama’s tax plan on the ABC news website but there it is!  It certainly comes off as vaguely critical of the messiah, Barack Obama.  The author, Emily Friedman, has focused on how Obama’s tax plan will impact people making over $250,000 annually.  The consensus among the interviewees is that they will do what is necessary to earn less to avoid Obama’s punitive taxes.

“Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama’s plan.

‘I’ve put thought into how to get under $250,000,’ said Poczatek. ‘it would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off.’

‘Generally it means being less productive,’ she said.

‘The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make,’ said Poczatek. ‘But if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.'”

Dr. Poczatek is absolutely right.  The demoralization that she’s feeling is a natural side-effect of redistributive economics.  The real unintended consequences of Obama’s tax policy will be the loss of productivity.  Think job losses now are bad?  Just wait.

“Obama’s budget proposal calls for $989 billion in new taxes over the next 10 years, most of which will be earned from increased taxes on individuals who make more than $200,000 and from families who make more than $250,000.

The expiration of the Bush administration’s tax cuts at the end of 2010 would garner an estimated $338 billion, $179 billion would come from the elimination of some itemized deductions for higher-income taxpayers and $118 billion would be brought in from a hike in the capital gains tax. The remaining $353 billion would come from taxes on businesses.”

Not many are talking about how the expiration of the Bush tax cuts will affect the economy but we should be.  The expiration of those cuts will equal a tax increase for the bulk of taxpayers.

The ABC news piece also features a poll.  The question is, “is it fair to reduce salaries to sidestep President Obama’s tax proposal?”  As of 8:08 this morning, the answer “Yes. I also would find ways to decrease my salary to avoid taxes” had a significant lead.

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Posted in Arrogant politicians, Liberalism, Obama, Redistribution of wealth, Socialist economics, Stupid legislation, Taxes | Tagged: , , , , , , , , , , , | 10 Comments »

Washington State legislature and out of control taxation: will the family farms survive?

Posted by Liberty on February 8, 2009

Ag legislator sends out alert about proposed B&O tax

“A bill that would require Washington state farmers to pay the business-and-occupation tax if their gross income is more than $200,000 was sent to the Senate Ways and Means Committee on Friday, Feb. 6.”

You read that right–gross income.  I don’t know how many of my readers know much about agriculture but I know a little.  You would certainly not get the full picture by looking only at a farm’s gross income.  Farmers face a lot of variables–the cost of inputs like seed, fuel and fertilizer; labor costs; the cost to upgrade and replace machinery.  [For those of you not familiar with how expensive that can be, here’s a little comparison.  For the cost of a new John Deere combine, which a good sized wheat farm may use for a month out of the year, you could buy a decent house.  And you could use it all year long.] 

For a lot of farms, gross income probably looks pretty good.  And then the farmer gets to pay the bills.  There’s no guarantee that those bills won’t be as much or more than the gross income.  And that’s without the state of Washington with their hand out for B&O tax. 

“The bill completely or partially repeals seven deductions or exemptions, according to a recent tax alert sent out by Rep. Mark Schoesler, R- Ritzville, ranking Republican on the Senate Agriculture and Rural Development Committee and also a member of the Ways & Means Committee.

”This is such a step backwards from what we’ve been trying to do,’ Schoessler said in an interview Friday, Feb. 6, with the Capital Press. ‘We knew people would be looking for money under every rock but we didn’t expect this shot across the bow so soon.’

Schoessler refers to the tax as the ‘most mean regressive tax’ that can be put on agriculture.

Pointing to the $200,000 threshold, Schoesler said that it wouldn’t even take a circle of potatoes in the Columbia Basin to hit that threshold.

‘And yet there’s no guarantee about profits,’ Schoesler said. Farmers also face high levels of expenses to plant, care for and harvest their crops.

Schoesler, an Eastern Washington farmer and rancher, aid that a gross income of $200,000 is right about where many farming operations become commercial and full-time.

‘This tax could spell trouble for farms that have been struggling and discourage smaller farms from expanding,’ he said.

Schoesler said is that a farmer grossing more than $200,000 could, because of expenses, earn barely enough to avoid qualifying for food stamps, free school lunches, or subsidized children’s health care. Yet that same farmer would have to pay the business-and-occupation tax if the bill becomes law.

The bill number is SB 5911.  The toll free phone number for the Washington State Legislature is 1-800-562-6000.  If you’re so inclined, give your legislator a call and let them know that spending is the problem.  Not revenue.  And give the farmers a break.  Whether or not those liberal Democrats from big city districts in Western Washington understand this or not, agriculture is a vital part of our economy.  Farmers have plenty of economic factors working against them.  Our state government needs to help facilitate the growth of all kinds of businesses, not kill them through punitive taxes.

Posted in Arrogant politicians, Liberalism, Redistribution of wealth, Socialist economics, Stupid legislation, Taxes, Washington State | Tagged: , , , , , , , | Leave a Comment »

Punitive taxes for the oil industry–what effect will they have?

Posted by Liberty on November 10, 2008

Professor Mark J. Perry [author of Carpe Diem blog] addresses this question in an article from November 7th’s Investor’s Business Daily.

Punitive Taxation Of Profitable Oil Industry Won’t Break Dependence On Foreign Crude

“With joblessness and serious economic problems rising, the last thing we need is public policy that makes them rise even faster. Yet, there is a danger this could happen if President-elect Obama’s proposed punitive taxes on the oil industry are enacted and lead to less energy development.”

Posted in Liberalism, Redistribution of wealth, Taxes | Tagged: , , , | Leave a Comment »