Saying the current Legislative special session threatens to open a Pandora�s Box of new taxes, business leaders here came together today to warn of the negative impact higher taxes would have on small and minority-owned businesses struggling to stay alive in this economy.The Tax Man Cometh
The special session in Sacramento is considering a slew of tax increase proposals. Speakers today slammed proposed increases in the gas tax, a new tax on oil production and a new tax that would place a levy on services such as dry cleaners, tax preparers and even funeral services for the first time.
�I�m going to have to pass that tax along to my clients at a time when they can�t afford fee increases,� said Velma Union, managing partner of ACV Financial Services. �This has the potential to really hurt my business � either through losing clients that can�t pay more, or keeping them by absorbing thousands of dollars in new taxes I can�t pass along. Since many small companies are service businesses, this will put a lot of us at risk.�
�No matter what the politicians say, a tax on fuel either when it comes out of the ground or when a consumer fills up his tank, means higher gas prices,� said Jovonnie Mabrie, who is a real estate appraiser. �For a small business person like me, every dollar I have to pay in higher gas prices means a dollar less to pay my bills.�
�We�re talking about jobs here, too,� said James Clark of Innovative Contractors. �When your costs go up, you make cuts, and because payroll is one of the biggest expenses, you have to look at laying some people off. There are enough people out of work in California already.�
Earlier today I noted Chicago Metro Area Sales-Tax Receipts Plunge, Property Taxes Rise Cook County and Chicago raised sales taxes only to see sales tax collections plunge. In response to falling revenues Chicago raised property taxes 4.2% in spite of plunging property values.
"Despite last year�s housing market crash, tax officials calculate that property values for tax purposes rose 8.23 percent in suburban townships and 9.96 percent in the city."
Think that is good for property values or business? I don't.
Pension Crisis Bankrupts Prichard, Alabama
Inquiring minds are reading Prichard Alabama Files Bankruptcy Over Pensions; Wildcat Strike In Philadelphia; Oregon's Financial Gamble
Prichard Mayor Ron Davis released the following statement Wednesday morning:Prichard Meets Thidwick the Moose
�I have looked at every opportunity available to obtain money to help fund the retirement plan for the City of Prichard. After careful review of all of our options, bankruptcy protection seems to be the only solution left at this time.
Over the past 50 years, the pension plan was amended by the Legislature more than fifteen times, and always the economic burden on the City was increased. This has been a long term problem that was unfortunately inherited by this administration.
After several lawsuits filed by pensioners, it has forced us to come to this decision, one that will protect the city and its residents.
Congratulations are in order for Prichard, Alabama otherwise known as Thidwick the Big Hearted Moose. If you do not know the story of Thidwick the Moose, please read Dr. Seuss On The Economy.
I am quite sure you will enjoy it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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