The Liberals say we have to tax more for the most vulnerable
Well, they are starting to make the small companies that employ the people that pay the taxes that "protect the most vulnerable" (hmm, tell me, WHY is it that we need Government to be the in-between for charity actions again?). In short, proponents of Government doing more and more (and requiring more in order to do so) are killing the goose that lays the golden eggs.
Our good friend DCE from WeekendPundit also has another blog called One Voice in Gilford where he talks to this:
How is it a $1.4 billion increase in state spending is seen as 'cuts' by the New Hampshire House, Senate, and governor? Between a 17.5% increase in the last budget and a13.7% increase in this budget, state spending has skyrocketed 31.2% in four years...
...If the budget passes as written, over 45,000 small businesses in the state will be paying an income tax (though the legislature doesn't call it that). One of those small businesses will be the one owned by my wife and I.
So how is all of this supposed to increase state revenues if the tax increases end up turning marginally profitable businesses into unprofitable ones (and forcing some to close)? They haven't explained that, either.
There seems to be more evidence for this, as the TaxProf let's us know:
Taxes as a Cause of Small Business Bankruptcies
Rafael Efrat (California State University-Northridge, College of Business and Economics) has published The Tax Burden and the Propensity of Small-Business Entrepreneurs to File For Bankruptcy, 4 Hastings Bus. L.J. 175 (2008). Here is the Conclusion:
Consistent with the growing tax burden on small-business owners, as well as the growing body of evidence linking higher tax burden with limited entrepreneurial growth and higher closure rates, this study has found that tax problems constitute an important reason for bankruptcy filings for a sizable number of entrepreneurs. Interestingly, those entrepreneurs that attribute their business collapse to tax problems do not come from disadvantageous background. Instead, the average entrepreneur in the bankruptcy sample that has faulted tax problems for his financial woes was typically older male, white, native-born, well-educated and an experienced business owner. Nonetheless, the typical entrepreneur with tax problem in the bankruptcy sample was facing enormously higher debt burden with more than five times as much debts as other entrepreneurs in the bankruptcy sample.
We are given the impression that most bankruptcies are medically grounded. I just wonder when the media would grab onto this topic - you KNOW that most Progressive politicians will not bring this up (I remember Hillary Clinton's famous line about "undercapitalized entrepreneurs" not able to pay increased costs from her stab at pushing nationalized healthcare back in the early '90s).
I wonder if this will become more of an issue at the $1.6 Trillion cost of Obamacare sinks in (and still leaves people "uninsured" - and some estimates go multiples higher)?
