Tag Archives: taxes

The Taxman Cometh: Governor’s got the right idea, legislature not so hot!

“No man’s life, liberty, or property are safe while the legislature is in session.
[1 Tucker 248 (N.Y. Surr., 1966)]

With a number of tax increase proposals on the table up at Pierre, one wonders whether they actually paid attention to the most notable trend in the last election: the widespread feeling that government at most levels is all too willing to meet any actual or perceived need and/or shortage with a tax increase to meet the self-defined necessity.

The Chief has a budget of his own. When there seems to be a limitation on the availability of disposable income, something’s got to change. Inevitably, what changes is the elimination of desired spending (since I don’t own a printing press like the Federal Reserve does, nor do I have the ability to arbitrarily raise income by a legislative action.

As a result, any number of additional needs, including (but not limited to) a new pickup, several fine firearms of various calibers, some much-needed improvement in the technical capabilities of my HAM radio station installation, just to name a few things. Unfortunately, the income to acquire these wonderful things doesn’t seem to be there, due to the circumstances and vicissitudes of life, so priorities come into play, and such mundane items as food, propane, electricity for example trump the new truck, etc. C’est la vie.

Far too long, the legislative branches of government at all levels have grown accustomed to the idea that the needs of the government deserve a priority in all things that they, in their infinite wisdom deem to be important (certainly things that are more important than the insignificant desires of the citizenry to presume to manage their own money. This attitude has pretty much directly led to the unspeakably obscene federal deficits and debt, as well as the near (and impending) bankruptcy of some state and local governments.

Fortunately, South Dakota is not in that sort of position yet. We have been blessed to have been spared the worst effects of the current, and, despite D.C. cheerleader propaganda to the contrary, continuing economic distress. With the national economic reality catching up to the state, the revenue stream to Pierre is down, and the legislature starts immediately moves to keep the budget in line by raising taxes, rather than cutting spending to keep a budgetary balance.

This is not to deny that budget cuts, deferred spending, or even (shudder) cancellation of wanted spending are pleasant, but when needs must, the devil drives.

South Dakota finds itself with two points of view regarding the prioritizations involved in government finance, and the underlying assumptions that often are present: like the one that assumes that the current structure and composition of governmental agencies of all types is absolutely essential to the continued existence of the state. It MUST be essential, right? Otherwise past legislatures would have never set them up the way they are, right? So shut up and smile while you pay your taxes!

Any honest observer of the last election cycle HAS to note the reaction to the assumption that government (at all levels) must continue to grow, can never be cut, and is morally entitled by legislative fiat to seize however much of the citizens’ wealth it deems necessary to accomplish their aims. In the current SD setting, there are apparently is a financial dichotomy forming between those in the legislature and elsewhere who seek to continue (to some extent at leat) spending as usual, and on the other hand the Governor.

Firstly, IT DOESN’T MATTER HOW GOOD THE STATE’S PROGRAMS, AGENCIES, ETC. (including Education at all levels) ARE…if the money isn’t there, it isn’t there, and can’t be spent. If there is a contingency fund (which there is), it should be left for some emergency need…and shouldn’t be used just to kick the legislative ball down the road for one more year…with the problem only postponed. Sort of like a sinner’s prayer: “Help me Lord to turn away from my sins, but not quite yet.” The stable, and more realistic solution is that of the governor, as reported:
Daugaard: We don’t have any money to give

Gov. Dennis Daugaard defended his proposed budget in a tour of South Dakota communities last week, saying he slashed expenses for every department because the state “can’t give money we don’t have.”

Daugaard sat down with the Enterprise last week prior to giving a speech in Brookings. The governor described in detail his plan to cover an estimated $127 million structural deficit in one year with a proposed 10 percent spending reduction throughout state government.

His budget proposal includes cuts in state aid to school districts and reimbursements to those who provide services to Medicaid patients, both of which would have a significant impact in Moody County [and elsewhere]

Daugaard says he won’t raise taxes and is opposed to using reserves for operating expenses. He’s also pledged to veto any budget this year that doesn’t eliminate the deficit.

On the other hand, legislators are talking about (so far) nine tax increase measures. Even temporary increases are problematic, since a later simple act all too often makes them permanent. With the declines in disposable income than many in the state are experiencing from inflation (check your HyVee receipts, and gasoline costs for examples), and increasing taxes (at all levels), it shouldn’t be too much to expect that the legislature would get the picture, and realize that it’s not time to be raising taxes to continue currently unaffordable spending.

“Remember that a government big enough to give you everything you want is also big enough to take away everything that you have. — Barry Goldwater

Death and Taxes…

Family charged ‘death tax’ for baby who lived one hour

…an application of on aphorism about the inevitability of death and taxes. In this case only living one hour is not an excuse for dodging the taxman.

Olivia Clark lived for only one hour. Doctors didn’t even expect her to survive birth. Now her family has a hard time understanding why the King County Medical Examiner has to review her death and charge $50.

“With Olivia, there was so much love in that room and we knew it was going to be such a short time,” says her grandmother, Diana Clark. “That was probably the most joyous hour that I’ve experienced.”

Her grandparents say Olivia was polycystic and, as a result, her lungs never developed. So, her short life was a miracle….

“There was a little line on there near the bottom of the bill that said ‘King county death tax: $50.’ And we looked at that, and looked at that and looked at each other and said ‘what is that?’ Couldn’t believe that a little girl that lived for an hour has to pay a $50 tax,” said Larry.

Brings to mind a bit of old Beatles music:

Don’t ask me what I want it for,
If you don’t want to pay some more.
‘Cause I’m the taxman,
Yeah, I’m the taxman.

Now my advice for those who die,
Declare the pennies on your eyes.
‘Cause I’m the taxman,
Yeah, I’m the taxman.

— George Harrison

Ag Assessment Changes Revolting

I find myself both in a state of near-total agreement with Cory in this posting over at Madville Times, and in a state of astonishment at this unusual occurrence.

This is really a very badly screwed up system…under it’s application in Moody County, some very high productivity land in the southern part of the county had their assessments reduced, while land in the NW part of the county, qualitatively rated as mediocre based both on soil types as well as actual production figures had increases in the range of +50%. Result overall: our smallish county ended up with the highest increased assessment under the new order.

We had the opportunity to visit with Sen. Peterson (D), as well as Sen. Knudsen (R) who were involved in drafting the bill. While both agreed that the implementation in our county was not at all what they thought was in the law, neither could offer any resolution beyond the normal appeal process through the Township Board and thence to the Board of Assessment (County Councilors with a different “hat”.) Beyond that, nothing. It WAS amusing to see my wife literally back Knudsen into a corner as he tried to escape after one of the Gov. candidate forums at Brookings, but it didn’t help any with the problem.

As far as the appeal process…after presenting eleven years of actual and exact production figures for each field, both the township and county were in agreement about the quality and accuracy of our records…and made a minor tweak to the assessment, and said, “Have a nice day!”

As far as the County Treasurer was concerned, she stated to us that her hands were tied by the new law…and that she HAD to make the 55% increase in assessment in one year, which directly contradicted the STATED intent of Peterson, Knudsen, and company in the new law.

So, where does that leave things? Hopefully not where Sen. Rhoden wants them to be. Time will tell…meanwhile we figuratively batten down the hatches and await the onslaught of next years tax bill based on the new assessment. It’s not a joyful prospect.

SD Job Losses Projected from B.O. Tax Hikes

This is a fairly serious article on the economic impact of the Obamunist program of tax hikes that are planned for us. In the words of the Warren Zevon song: “It ain’t too pretty at all.”

Obama Tax Hikes: The Economic and Fiscal Effects

Since 1996, Congress after Congress has voted to lighten the tax burden on Americans. The current Congress will decide this fall whether to continue this policy or to significantly raise personal income taxes. President Obama has advanced a plan that reverses the long-standing successful policy: The President and his supporters are calling for tax increases, primarily on upper-income taxpayers and businesses— including small businesses, the primary job creators in the country. Those who will be most burdened if this plan becomes law are the millions of Americans just starting their economic lives and the millions more trying to find work after the worst recession in 60 years. The rest, whose lives are affected by the investments and business decisions of those taxpayers in the high-income classes, will share the burden. No income earner will be unscathed.

…or, to carry the lyrical comparison a bit farther with Rod Stewart’s “Every picture tells a story, don’t it?”:


Click on image for larger version.)

So…South Dakota looks to take a hit from all this…estimate job losses from this tax hike of 1820-2320 jobs lost per year, from 2011 through 2020. Oh, joy.

There are a lot more gory details in the article, on how these tax increases are NOT the way to grow the economy, but they ARE a dandy way of the Washington “progressive” establishment to increase its power over us.

At least if taxes are raised, they can be cut again…eventually…perhaps not until after 2012.

Presidential Disingenuity

This is the latest example of B.O.’s continuing disingenuous criticism of Republican “obstructionism”. Frankly the Chief is really tired of hearing this sort of attack…like the GOP should roll-over and rubber stamp whatever he proclaims as being The Truth.

Obama: GOP Holding Tax Cuts “Hostage”
President Urges Congress to Approve Extension of Middle Class Tax Cuts from Bush Era for Families Making Less Than $250,000

President Obama is applauding two Republican senators who voted for a small business bill and says he’d welcome that kind of cooperation on the divisive issue of extending tax cuts for the middle class.

Mr. Obama thanked Republicans George Voinovich of Ohio and George LeMieux of Florida for voting to move the bill closer to final passage. Speaking in the Rose Garden after a Cabinet meeting Wednesday, Mr. Obama urged lawmakers to approve an extension of Bush-era tax cuts for middle class families making less than $250,000 a year.

After praising these two Republocratic Demmicans for being properly submissive to the proclaimed will of The One, B.O. went on with one of his favorite complaints against the opposition:

Mr. Obama says Republicans should stop holding those tax cuts “hostage.”

This was originally, and continues to be one of the most puzzling political statements one can ever encounter. Let’s do some simple arithmetic.

The House of Representatives currently contains 434 members (with one vacant seat). This is comprised of 256 Democrats, and 178 Republicans. The Senate seats are currently held by 57 Democrats, 41 Republicans, and 2 Independents. Even without using a calculator or computer, it is readily apparent that there are significantly more Democrats than Republicans in both houses.

After careful examination of my trusty pocket Constitution, I see nothing there that prevents majority rule from operating in either of the houses of Congress. If President B.O.’s halo of political glory is not enough to persuade even his own party members from supporting his often ill-conceived legislative and policy initiatives, then what reason does he have to blame the GOP? All he needs to do is to have his partisan legislative satraps drum up enough loyal Democrats and he would be able to pass anything he wanted…oh, yeah, enough loyal Democrats to support his agenda…not any more.

In the case at hand the bone of contention concerns whether or not to kill the so-called Bush tax-cuts, which is worth commenting on in itself:

“They want to hold these middle class tax cuts hostage until they get an additional tax cut for the wealthiest 2 percent of Americans,” Mr. Obama said. “We simply can’t afford that.”

This statement, on its face, is false. According to B.O. he so called wealthy are those with $250K or more of income. While the Chief concedes that that certainly seems to be greatly more than he has had the chance to appreciate in his life, it must be recognized that a significant number of small businesses that are not incorporated are included in this group, and pay income tax on their legal BUSINESS as legal INDIVIDUALS.

Given the continued stubborn lack of employment to respond as predicted to the massive Keynesian bout of trillion dollar stimuli, throwing a de facto tax increase onto these small businesses, that historically create the most jobs, is the LAST thing needed to help relieve unemployment. Also of dubious veracity is the shot about affording this tax cut, ignoring the dynamic that repeatedly increases net government revenue as marginal tax rates are reduced…but why quibble with reality, when there’s an need for some way invent another political stick to flail the opposition in response to diving poll numbers and fading electoral hopes.