TAX ACCOUNTABILITY ENDORSES GAIL DUNHAM FOR MAYOR OF SUMMERFIELD, NORTH CAROLINA

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Gail Dunham

Tax Accountability, the political action arm of Taxpayers United of America (TUA), has enthusiastically endorsed Gail Dunham for Mayor of Summerfield, North Carolina.

“I have known Gail Dunham for over 40 years, and for that entire period, she has been a champion of both taxpayers and the environment,” said Jim Tobin, President of Tax Accountability.

“As Mayor, Gail Dunham will work hard to preserve the quality of life that the rural character of Summerfield provides. Gail is concerned that developers are promoting planned developments with no density standards, no specific zoning, and with no comments allowed from the public.”

“Gail supports the low-density standards that have served her community so well through its growth for over 20 years, as well as specific zoning so that residents will know what will be built in the community.”

“Gail and her husband Ken moved to Summerfield almost 19 years ago. Since moving to Summerfield, they have fallen in love with the area and look forward to calling it home forever. Gail loves the Summerfield area so much that her daughter and her family moved there as well as many family members.”

“I strongly recommend a vote for Gail Dunham for Mayor on Tuesday, November 2nd. As Mayor, she will work hard to preserve the quality of life that Summerfield’s rural character provides.”

BIDEN ADMINISTRATION FALSELY CLAIMS 97% OF SMALL BUSINESSES EXEMPT FROM BIDEN TAXES

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The Biden administration’s claim that the President’s agenda will protect 97 percent of small business owners from income tax rate increases is misleading, according to a study by the nonpartisan Washington-based Tax Foundation.

“To assess the economic effect of higher marginal tax rates, it matters how much income or investment will be affected—not how many taxpayers,” write the foundation’s Alex Durante and Erica York.

“The Treasury analysis specifically examines filers with pass-through income, or income that is reported through a sole proprietor, partnership, or S corp. Although the White House news release does not link to the actual study, it appears that they simply calculate how many filers are above the income thresholds where President Biden’s taxes would apply.”

Looking at filers with pass-through income likely understates the effect on small businesses, and therefore underestimates the effect on the economy more broadly, asserts the study.

The government analysis classifies as small businesses many filers at the lower part of the income distribution who may not operate what we think of as a traditional business that makes capital investments, employs workers, and generates significant income.

According to the study, “A better way to assess the overall impact of the Biden tax increase on the economy would be to look at the share of pass-through income that would be impacted by it.”

The foundation found that 6 percent of filers with pass-through net income with adjusted gross incomes above $400,000 were responsible for 52 percent of all pass-through income reported to the IRS. That such a small group of filers generates more than half of all pass-through income implies that taxes that target this group could impact the economy significantly.

Moreover, according to the study, recent IRS data for tax year 2018 further confirms that a significant share of pass-through business income would face higher marginal tax rates under Biden’s proposals.

“While taxpayers making above $500,000 comprise roughly just 4 percent of returns that reported either business net income or net losses, they account for more than half of the resulting net income. In other words, while a relatively small number of business owners would be affected, an outsized share of business activity (as measured by business income) would be affected by the proposed tax increases.”

The study concludes: “When thinking how higher tax rates would affect the economy, the relevant piece of information is not the number of people affected—it’s the amount of economic activity. By focusing on the number of people, the Biden administration is misleadingly claiming their tax proposals would have a small effect. The actual statistics show more than half of pass-through business income could face tax increases.”

Source:
https://taxfoundation.org/97-percent-small-businesses-wont-pay-more-income-taxes-under-biden-tax-plan/

DURBIN’S PROPOSED TOBACCO TAX WOULD HAVE HARMFUL CONSEQUENCES

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Sen. Richard Durbin (D-IL), a hard-leftist senator representing the corrupt Illinois Democrat political machine for more years than people can remember, has proposed increasing rates on cigarettes by 100 percent and increasing the rates on all other tobacco and nicotine products to achieve parity with the rate on cigarettes, according to a new report by the nonpartisan Washington-based Tax Foundation.

“The Tobacco Tax Equity Act would double taxes on cigarettes and equalize rates on all other tobacco and nicotine products to match the new higher cigarette rate,” writes the foundation’s Ulrik Boesen.

The increase would result in substantial increases on chewing tobacco (2,034 percent), pipe tobacco (1,651 percent), and snuff (over 1,677 percent). Vapor products, which are not currently taxed at the federal level, would also be taxed at the level of cigarettes.

The report points out that a large portion of the new tax burden would fall on low-income Americans, as consumption of tobacco is more common in this group. Furthermore, the fatal flaw in this potential source of tax revenue is that “States stand to lose around $689 million in revenue from excise taxes on tobacco products due to the tax increase’s impact on consumption.”

The proposed tax also would possibly result in serious health issues, as “Tax parity between the most harmful tobacco products and least harmful nicotine products would hurt smokers’ ability to switch from cigarettes, which is a problem for public health.”

When purchasing a pack of cigarettes, the average cigarette smoker currently pays:

    $1.01 in federal excise tax,

    $1.91 in state excise tax,

    $0.66 in master settlement cost, and

    $0.36 in average state sales tax

“For a pack-a-day smoker that translates to roughly $1,435 per year in taxes on cigarettes, but the proposal would increase that total to $1,823 per year. For low-income Americans, these figures represent a significant portion of their income, and the majority of smokers have lower incomes.”

Another warning sign of negative consequences is that 32,400 smokers in Minnesota were deterred from quitting cigarettes after the state implemented a 95 percent excise tax on vapor products. While vaping has been growing in many states, the decline in smoking has accelerated—especially among teens and young adults.

The report concludes: Excise taxes are legitimate when certain negative externalities associated with a type of transaction or type of consumption can be identified, and they can work well to establish user-fee systems. Lawmakers looking to generate stable revenue for general recurring spending priorities, however, should raise that through broad-based taxes at low rates instead.

“Dick Durbin has been causing Illinois taxpayers pain and anguish since he was elected to the U.S. Senate in 1997,” said Jim Tobin, economist and president of Taxpayers United of Illinois (TUA). “Many Illinois residents hadn’t even been born when he was elected to the senate. This ultra-leftist has been in office much too long. It’s time he retired and allowed a more moderate elected official to represent Illinois taxpayers.” Source: https://taxfoundation.org/federal-tobacco-tax-proposal/