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Taxes Matter 1 November, 2009

Posted by David Anderson in Tax Hikes.
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TABOR is back and will be worth watching in two liberal leaning states. Maine and Washington are poised to pass Tax and Spending measures which limit spending growth to population plus inflation. Those will be as interesting and more of a national indicator than even the Governor’s races which have personalities and other issues involved.

NJ, Chris Christie will likely edge out a victory because of fiscal and economic troubles with the state and quite frankly concern that the Democrats will try to impose gay marriage. The reason that Christie may keep Daggett at bay is the marriage issue. Christie would have this race in a runaway except that he refused to discuss specifics about his tax plan. When Daggett came out with a real plan no matter how imperfect, it sent his numbers soaring. Why? Taxes matter.

In Virginia, Craig Deeds killed his campaign this summer when his transportation plan opened him up to tax increase charges. McDonnell has a consistent record of being a full spectrum conservative. The choice was clear.

I think the victory one Tuesday will be a Tea Party victory. It will be one for the restraint of government. Democrats will ignore it at their peril. Republicans must embrace it or the Hoffman and Daggett phenomena will be their peril.

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Balance, Cut, and Save 26 August, 2009

Posted by David Anderson in Action Item, Budget, Tax Hikes.
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Here is the newest and soon to be hottest petition on the Internet from Governor Mike Huckabee.

The Constitution starts with “WE THE PEOPLE” and it’s time you start remembering that.

American families on a daily basis make hard choices in order to live within their means.

Why can’t Congress and our federal government do the same?

I urge you to work towards balancing the budget.

I urge you to cut our taxes so families can save more and to cut the wasteful spending that is mortgaging the future of generations of Americans and severely limiting their ability to prosper.

Instead of your own re-election, put families in your district and state first.

I am signing this simple: “BALANCE, CUT, SAVE” petition because I believe it is these three things that you should remember when making decisions about new spending, taxes and health care in the weeks ahead.

If you stick to these guiding lights, you can’t go wrong.

Mr. President and members of Congress, I’ve kept it simple for you:

BALANCE, CUT, SAVE.

That’s what should guide you in your decisions in the week’s ahead. My family can’t afford the decisions you are making on my behalf so I am signing this petition to remind you of what is important:

My Family, My Country And My Freedom.

Levin and a New Isolationism 11 August, 2009

Posted by David Anderson in Fair Tax, federal, President Obama, Tax Hikes.
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Some in the administration and the Senate would put America behind a wall of taxation is the new isolationism. The excuse is trying to prevent people from being able to hide income off shore. The truth is the largest forms of tax evasion are local. What this is doing is locking American investors out of the hottest economies in the world. The Levin bill has the backing of the administration which is hungry for new revenue streams.

While it is advertised as punishing countries that use banking laws to shield anonymous investors. Its sweeping language would punish countries that don’t tax dividends and capital gains like Hong Kong and Singapore. It would be a form of economic imperialism. They are responding by threatening to ban U. S. investment. The damage done to their economic system by losing investment of Americans would be far smaller than the damage of hurting both local and global investment by adopting Democratic tax policy.

If other nations follow suit this could be as damaging as Smoot Harwley Act. If we are to ever have a sustained economic recovery, it has to be based upon sound policy not failed ones.

America needs fundamental tax reform designed by clear thinking, real world, economists. We need policies which encourage American production not flight of production. Levin is right that it starts with the tax code. He couldn’t be more wrong about the solution. Maybe would should take a page from the growing economies instead of closing the book on learning.

Hidden in the numbers 4 August, 2009

Posted by David Anderson in Budget, federal, Tax Hikes.
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You all saw the news about plummeting tax receipts to the federal government. Revenues are down 18% over last year, but what you may not have noticed is social security has moved closer to payout more than it brings in. Estimates put it closer to the worst case scenario of 2013. Democrats blocked President’s Bush’s reform effort. Now they will need their own on top of everything else. Demagoguery has a price.

Democrats you own this problem now solve it.

Taxes, Taxes, and ,more Fees 30 June, 2009

Posted by David Anderson in State, Tax Hikes.
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In his inaugural speech, Lt. Governor Matt Denn blasted the late President Reagan for encouraging people to hold their government responsible results. He called for sacrifices of us but not from the governing class. That was a signal of what was to come– taxes, taxes, and more fees.

The Democrats in the Delaware General Assembly had to accept the concept of sunset clauses to many of their tax bills in order to avoid a government shut down. Even then they voted down 1 year sunsets and voted in 4 year sunsets. This allowed them to get 1 republican vote so they could get their super majority. We have hundreds of millions in tax increases and tens of millions more in fee increases. Death taxes, income taxes, gross receipts taxes, cigarette taxes, and fees on practically everything are going up. If you get too depressed about it, and go drinking (not recommended)  you had better hurry because that will be taxed too as soon as they can get one more vote. The only other thing left on the table are certain corporate taxes that take a 2/3 majority.

Democrats had to agree to cutting the state workforce by another 2% through attrition. There is no early retirement so far. There is no reform of the purchasing system that is losing us $200,000,000 a year which happens to equal the income tax hike. Various posts here have shown savings of over $300,000,000 which could be achieved before cutting a single service or laying off one person. The irresponsibility of funding the addiction instead seeking treatment has to stop. The sad fact is that it will not stop without some tax fighting reformers in legislative hall.

When the choice was between reforming government or taxing the people, the Democrats choose taxing the people. They couldn’t be persuaded to give the little guy a break even though he was hurting any more than a shark could be persuaded not to go after a bleeding fish. They should be ashamed. All I can say is that it is on. It is time to retake the house. 5 to survive in 2010.

They say cut spending first. 23 June, 2009

Posted by David Anderson in Budget, State, Tax Hikes.
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Thomas H. Kovach, House of Representatives
Thomas.Kovach@state.de.us

North Wilmington Republican Representatives Tom Kovach, Greg Lavelle, and Debbie
Hudson joined together today to call on the Legislature to reject increases in the personal
income tax and short-sighted state employee pay cuts, instead promoting meaningful and
sustainable reductions in state expenses.

Representative Lavelle (R-Sharpley) said that, “We recognize that we must make difficult
decisions in order to move Delaware beyond this current budget crisis. Balancing the
budget on the back of Delaware’s working families through the administration’s
proposed tax increases is simply unacceptable. The budget proposals offered by the
Democrats are too quick to increase the tax burden and fall far short of the necessary,
sustained and sustainable cuts in state government. Without these changes, tax
increases like we are seeing now will become an annual event.”

The Legislators argue that state government needs to operate in a fashion more like that
of the private sector. According to Representative Kovach (R-Brandywine East), “We
must address the government’s economic problems in the same fiscally responsible
manner that the private sector does. This means we must not raise what we charge our
customers, but we must cut staff and spending to balance the budget, while keeping the
necessary, good employees at their current pay.”

The Legislators said that the current proposal of state employee salary reductions simply
masks the real problem: an oversized and unsustainable state government.
“The alleged savings on a 2.5% state employee pay cut result in approximately $30
million for the state and will last for one year,” said Representative Hudson (RFairthorne).
“Not only is this reduction significantly less than 1% of the state’s operating
budget, the Democrats now seeking to impose this pay cut will surely seek to avoid the
same cut in the upcoming election-year. The resulting shortfall will have to be paid for
with yet another increase in personal income tax for the majority of Delawareans.” In
their battle against irresponsible taxes, all three agreed that they will also fight to put a
one-year “sunset” to any Democratic imposed tax increase—a proposal the Democrats
have already rejected.

“The tax increases pushed by the Democrats shift the burden from the state to Delaware’s families and small businesses,” said Rep. Kovach. “The proposed personal income tax increases, which will result in an additional burden on working-class families and individuals making over $50,000, is a terrible idea at a time when many are trying their best just to make ends meet. Coupled with the 25% property tax increase imposed by New Castle County, these increases will be unbearable to the average citizen.”
Republican-offered solutions, such as the elimination of redundant school administrative
positions, cutting the Community Transportation Fund, and a temporary reduction in the
prevailing wage paid by the state to contractors (often from out-of-state), have been
largely ignored by the administration. Other possibilities include exploring a tax amnesty
program and offering an efficiency rewards program.

“Quite simply, we must require that the state reduce the size and expense of government
and avoid the placing the burden of oversized and bloated state government on the
taxpayers,” said Rep. Kovach. “There are plenty of solutions that have been left off the
table, contrary to what the Governor and House Democrats have claimed,” said Rep.
Hudson.

Rep Lavelle, Hudson, and Kovach stand firm together, “We remain opposed to all tax
increases until the government can certify that it has taken all immediately practical
actions to reduce waste and inefficiency. At this point, we are not even close.”

Senior Exemption at Risk 23 June, 2009

Posted by David Anderson in Action Item, State, Tax Hikes.
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Today, I spoke with a contingent a Legislative Hall regarding the repeal of the Senior exemption. Our group opposes it.

Senator Bonini said, “Its absolutely true – “means testing” (see eliminating for most seniors) the up to $500.00 tax exemption for Senior Citizens is part of Governor Markell’s proposed budget solutions (see his March budget speech). Per usual, there hasn’t been a bill yet – probably will be a late-night June 30th vote. This is a tax increase targeting Senior Citizens exclusively. I don’t know the current status of the proposal, but I know its in the Governor’s and the Democrats budget numbers”.

I think an interesting take is by Frank Knotts.

It is being floated in the usual Delaware style, here in Delaware our legislators don’t just come out and sponsor a bill , first they let it get around that they might sponsor a bill , or in this case might slip one in in the midnight hours at the end of the legislative session.

This time it has to do with the repealing of the tax exemption for seniors of up to five hundred dollars of the school portion of their property tax.

No one is willing to drink the political poison in public yet by saying that they support this idea, though some have said it is possible that a bill of this type could get slipped in at the end of the session. Also Gov. Markell has hinted at support of such a proposal.

Let’s get those greedy job creators 1 June, 2009

Posted by David Anderson in Jobs, Tax Hikes.
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Guest Post from Joe Isuzu –wink (A wink is as good as nudge to a blind bat.)
Maryland had a very successful experiment with a millionaire income tax surcharge. It changed state revenues by an 100 million dollars. Did I say that it lost 100 million dollars when 1000 or 1/3 of the millionaires moved? Oh, well I considered it a success because the more you tax something the less you tend to get of it. I love the proposals to do same in Delaware. I fully support them. Let’s set a goal for our state and follow suit. The more the state taxes fall, the more likely we will have smaller and more efficient government. We need to punish the job creators to teach them that they aren’t the bosses of us. They need to sacrifice or leave.

John Kowalko and several others have it all planned out. The Republican minority could block it, but they understand the value of a good tax increase so let’s make it temporary for 3 years. Maybe we won’t make them leave, we will just play chicken with the train. Let’s show the rich that both parties are willing to give it to them.

I am so happy that we can follow NY, NJ, and MD. I am proud that we are finally going to stand up to the rich guys making over 60K. Well, that’s how we will get the rich to stay. We will tell them misery enjoys company and punish the middle class too.

I am especially overjoyed that while we talk about these tax increases, we will put reform of our state financial mismanagement system on the back burner and throw the equivalent of the tax increase out into the back dumpster. We don’t need to make any reforms. We need to transfer more wealth to government to save our economy.

Thank you all. I am Joe Isuzu, and I wrote this article.

Here is a Baltimore Sun quote from one of the selfish millionaires. It shows the bad attitude of some of these greedy types. Good riddance, I say.

The implication from one of the people you quoted is that people in my position would never ‘move’ for a 1 or 1.5% tax difference [the millionaire bracket for the income tax]. Are you kidding me? I grew up poor. A $32,000 tax difference is VERY real, even for someone in my position. That’s how much we saved in 2008, filing in Virginia and not in Maryland (besides the millionaires tax, base rates are lower here). The bottom line is that Maryland… lost more than $150,000 in [total] annual income taxes from my family alone that would not have been lost if it were not for the O’Malley administration’s confiscatory extra tax grab.

The Lastest Wisdom from Thomas Sowell 26 May, 2009

Posted by David Anderson in Economic Policy, Tax Hikes.
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From Thomas Sowell’s Random Thoughts column.

If increased government spending with borrowed or newly created money is a “stimulus,” then the Weimar Republic should have been stimulated to unprecedented prosperity, instead of runaway inflation and widespread economic desperation that ultimately brought Adolf Hitler to power.

Just days after Colin Campbell (Powell) informed us that the American people were willing to pay higher taxes in order to get government services — and that Republicans therefore needed to stop their opposition to taxes — California voters resoundingly defeated a bill to raise taxes in order to pay for the many government services in that liberal state.

Remember When President Obama thought taxing health benefits was wrong 21 May, 2009

Posted by David Anderson in Action Item, Healthcare, Tax Hikes.
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Will President Obama be able to fight off Congressional Democrats’ effort to tax health benefits? They all seemed to agree with him during the campaign now he seems to be moving their direction. I would advise that you contact your delegation on this before the White House caves.