Democrats look to increase tax on food

Tom Humphreys digs out the dirt on the omnibus corrections bill and finds what may be up to $20,000,000.00 or more in new taxes. Included in the new taxes are increases in the tax on some food, increases in taxes on small farmers (Dave Oatney should love this one), increases in Taxes on small business and many others.

One of the quotes is priceless. From Reagan Farr...."It never ceases to amaze me the hoops people will go through to try to avoid taxes," said Farr.

Well Regan it never ceases to amaze me the hoops government will jump through to increase taxes on people (especially when times are tough). At least Farr is finally admitting it is a tax increase and not "Closing a loophole" as he has tried to pass it off as for years.

I guess it is a philosophy difference, Liberals believe increasing taxes and increasing government helps employ people in government jobs (or gives government employees raises). I guess when they look at government as the big employer that is what they see. Conservatives believe less taxes and less government help employers and the people. I guess when we look at private business as the best employer that is what we see.

Another thing that jumped out at me is the one tax incentive listed in the article.

"Making it easier for companies that invest in "economically distressed" counties to claim tax credits. Currently, the credit goes to those investing at least $500,000 and creating at least 25 jobs within one year. The provision would allow firms to qualify even if it takes up to five years to create the 25 new jobs"

While I generally support lowering taxes, this seems like it could be ripe for abuse. I wonder how "economically distressed" is defined. Why should some counties get an unfair advantage over other counties? This does not seem like a bill that benefits the entire state or has state wide applications. Shouldn't the county set up the tax break if that is what their constituents want? It is like if the federal government said "We are giving tax credits if you start a small business in Georgia." All well and good for Georgia but is that fair for Tennessee? Why is one employer more special than another? If they employ some one who needs a job no matter where they live don't they deserve credit?

Also what is done if they never reach 25 employees. What if they only employ 5 people? or 2? Will they have to give back some of the money? What if they only employ 25 people for one day in the fifth year or What if they hire and fire 25 people to do the same job in one year? Would they get the tax credit for all 5 years? What about the person whose company has been struggling to employ that many people for the previous five years? Don't they deserve some credit as well instead of giving a potential competitor a special break for 5 years?

Tax relief should be broad and equal to be fair for all.