The following testimony was presented by Joan Ryder during the Fallston budget hearing. A copy was provided to The Dagger:
First of all let me thank you, the County Council, for the 5% decrease in the General Fund Budget last year. I don’t think you received the credit you deserve.
This General Fund Budget as presented has a $40 million dollar deficit. The school system has a $12 million dollar school board structural deficit that does not include any funding, the start up for the Red Pump School, $1 million dollars needed for the treatment plant or the $500,000 dollars needed annually to operate it. In addition, it takes into account $17 million in recordation taxes that is not reoccurring.
I feel that this budget as presented grossly overstates revenues and extremely underestimates expenses. This is not sustainable. We need insulation from tax increases. The projections in this budget have to be applied against real bills.
How can you look at $17 million dollars coming from recordation taxes when we only received $3 million last year? How was this revenue projection forecasted? There are clear inconsistencies in how this is formulated. If you take the average price of a home in Harford County which is currently at $223,000, the revenue from the recordation tax would be $1,472 from each home. Divide that into the $17 million and that means we will have to have over 11,500 homes that need to be sold in 2011 to collect that revenue. There are only 165 homes that have sold in the first quarter of this year. Looking back over the last ten years, the average number of homes that have been sold yearly in Harford County is 3,254 and that was with three years of 4,000 to 4,100. Assume 11,500 homes are sold? Do you expect us to believe there are no expenses to the County that offset the revenue?
We see a 2 cents decrease in taxes and also the promise to use the constant yield. Last year we asked for the constant yield to protect us from the 20 to 30% increases. The assessable base was going up; however, the last reassessment in Northern Harford County went down by 13% and with the Bel Air area looking at reassessment in 2011 and the Rt 40 corridor in 2012, these decreases will directly affect the assessable base and it will be much lower. Using the constant yield will mean our taxes will go up!
The County Executive didn’t offer to use the constant yield when the assessments were going up so don’t use it now to increase our taxes when the taxable base is going down.
The handouts and constant spending need to stop.
There are two items that stand out in the Budget or Audited numbers:
#1 The General Fund Budget has increased from $318 million to $470 million since 2004. That is an increase of 48% or $152 million.
#2 The County Executive’s Budget & Staff has increased 41.7% while laying off County employees – which equates to an addition of 5 employees taking that from 12 to 17.
With respect to the public education component, you increased the Board of Education’s budget by an additional $3 million dollars at the request of the County Executive. With binding arbitration signed into law this week for public education unions and the certain transfer of teacher pensions from the State to the Counties next year, it appears sound fiscal management has been thrown out the window for the purpose of securing future votes.
We need solutions, not just double talk. Our County is in trouble.
In closing I think that you need to send the General Fund Budget back to the County Executive. We need a budget that is sustainable…one with realistic figures. Actions of this year’s budget sets the stage for 2012 and is unsustainable.
In this economy, we do not need a 48% increase in the General Fund Budget or
$8.5 million dollars more than last year. It would have been more if not for you, the County Council, making a 5% cut last year.
I urge you to send it back. Ask for an internal audit.
We need solutions. Our County is in trouble. We need to outsource jobs, consolidate resources and stop the spending and we need to do it now.
Joan Ryder
Fallston, MD
Cdev says
One inaccuracy is that it is not for sure that the pennsion costs for teachers will be shifted to the counties yet. No bill has made it through. But she is spot on for alot of things.
US Taxpayer says
Joan Ryder mentioned that there was a “5% decrease in the General Fund Budget last year” and a “2 cents decrease in taxes.” She then went on to point out that the “General Fund Budget as presented has a $40 million dollar deficit.”
Since this is a growing county, that needs to provide the services needed to keep us in a competitive posture to attack new residents, it seems that we need to increase revenue. We can’t keep slashing services and expect excellence. This is especially true for our schools. New residents, especially those from an area with excellent schools have only one consideration when picking a home: how good are the schools. Harford County already has one of the lowest salaries in the area and we will not be a competitive county if we continue to short-change education. I would think that Mrs. Ryder as a realtor would know this.
Her suggestion that we outsource jobs does not seem to be a viable option as many contractors use illegal workers that allow them to offer “cheaper” costs. If we do that, then aren’t we as guilty as the contractor? I feel we should just increase funding and not be “penny wise and pound foolish.” There are many things worse than taxes. The major reason Greece is such dire straits is that they do not pay their taxes and without funds a county slips further behind.
Joseph Caruso says
US Taxpayer
While certainly people looking to live in Harford County and those who already live here are concerned with the quality of schools, however they are also concerned with taxes. And teacher salaries is only part.
Additionally,
Joseph Caruso says
continued…
to suggest that using third party service providers i.e., contractors would mean these “contractors” would use illegal alien labor is foolish.
Joe
US Taxpayer says
Because contractors do not do this? You are naive if you think that.
Joseph Caruso says
US Taxpayer
Joan suggested Harford County outsource jobs to third party providers, how do translate that common practice to equal the use of illegal aliens?
Joe
amdactivist says
why would anybody attack someone for trying to save them money? But yet again, somebody’s got to pay for the $2 billion tax $$ a year maryland gives illegal aliens. An important little item most people forget. Don’t they see they also working our state highways and landscaping? About 85% are not legal in any sense..
Toby Sanchez says
Ms. Ryder did an excellent job of presenting the facts of the budget and the potential for problems w/n this projected budget at Fallston on Thurs. night. The issues that you raise,( Cdev, the teacher pensions, is pretty much a done deal, tho,) you are correct that it has not been voted on as yet on the state level.
US Taxpayer, you are unclear on you interpretation of facts. The budget as presented, will cause approx. $40mill. deficit for 2012, if it is accepted as is. The 5% decrease in General funds was made by CE Craig, across the board for all depts. under his control. The .02 decrease in prop. taxes, from 2009, is also accurate. The problem is that the 1/3 of the county that was assessed this year were approx. 13%lower property assessment values than last years property assesed values. This will impact the central part of the county in 2011, and Rt. 40 area in 2012. The values of property will probably decrease, due to the higher rate of foreclosures, unemployment, defaults and generally a down economy. This as you note is within a growing county.
Your comment about the schools is way off base. The schools that both citizen meetings, AHS and FHS, are like the Taj Majal, both are show cases for the various skills and talents of both the students and staff. I am curious how the size, shape and beauty of the buildings impact the learning w/n the buildings. The curriculum w/n the schools is being taught. Whose responsibility is it for the students to learn what our teachers are teaching? No amount of funds will ensure that a student pays attention or that the student is encouraged at home. The old adage, lead a horse to water, applies here, too.
As far as your comment on outsourcing jobs…where is your proof? According to you, the illegal workers that allow “cheaper” costs, that may be true, but do you have evidence that the contractors here in our county use illegal immigrants here? The costs that I see cut by outsourcing of services would come from the Harford county residents that would be able to work on an as needed basis, not sit around and wait for the snow or storm damage. Cleaning staff, lawn maintenance, electrical staff, these resources could be on a contractual basis to lower costs. All of hirees would have to be processed through Human Resources, too, and that could find the alleged illegals you are worried about taking all of the jobs.
Being penny wise is a great idea.
US Taxpayer says
So is not being “pound foolish.”
I will concede that I have no proof that contractors hire illegal workers, yet they all speak Spanish.
amdactivist says
report them anyway. You don’t need proof.
Cdev says
unless you want to be taken seriously.
Joseph Caruso says
US Taxpayer
Are you racially profiling people, shame on you. All the good little liberal/progressives will be aghast by your sin.
Joe
US Taxpayer says
I know.
amdactivist says
joe, how do you racially profile an illegal. Illegal is not a race issue its criminal..
amdactivist says
How about a Casa de maryland day labor camp for illegals in your area? A show of hands please. Its on the way folks.
Honesty says
There is a glaring problem with the argument that Ms. Ryder makes here. She is assuming that only the sale residential properties provide recordation fees. Commercial properties will be selling at a rapid pace in the next year and a half. The needs of BRAC alone will account for many of the sales. That does not even include the huge project that Wegmans will anchor. I am not a supporter of Craig or any council member. I am also not an opponent of any of them. I just wanted to make sure that this argument included some important facts.
R. Parker says
Thank you Ms. Ryder for your efforts to keep the politicians accountable for our hard-earned money! I was most distressed to read item #2 in your statement, “The County Executive’s Budget & Staff has increased 41.7% while laying off County employees – which equates to an addition of 5 employees taking that from 12 to 17.”
Having been laid off in private industry once in my life, I was outraged to read that, and had to see for myself that it was true. I examined the proposed 2011 budget, and don’t see where it says that. The budget for the County Exec’s office does go up, but it makes it clear that it is due to the fact that a whole department, Governmental & Community Relations, was abolished and folded into that office. The position for the director of the abolished department was also erased.
So when you combine the offices, it looks to me like the staff actually decreased, going from 13 to 12, and the county will spend $110,000 less than last year’s budget. I have no idea where you are seeing that 17 people will work in that office.
Unless I am missing something. Hopefully somebody else will look into it. Budgets can be kind of confusing.
Harford Lifer says
To R. Parker:
Your comments are exactly correct. Ms. Ryder is not correct and not looking out for our best interests. She is working for one Mr. Craig’s oppenents (Robert Wagner) is trying to play with numbers.
The budget is smaller and the Office of Community Relations was aborbed and the Director’s job was removed after Ms. Lynch moved to the private sector.
Don’t be fooled by Ms. Ryder playing games for Wagner.
R. Parker says
Thanks for that info Harford Lifer. It’s most disappointing that someone who is involved in the community as much as Ms. Ryder would find it necessary to spread misinformation like that. Especially under the guise of looking out for the community’s best interest.
Toby Sanchez says
Mr. Parker,
If Ms. Ryder has proven anything, she has proven that she questions and researches problems first, she THEN addressed the council with her questions/concerns. Ms. Ryder sent this letter to the Dagger to share the info with as many folks as possible to make sure if and when the council makes changes to the budget that her/yours/my responsiblity in our gov’t. system to allow for input BEFORE decisions regarding our taxes being raised and used. This information was shared in an open forum at FHS.
Ms. Ryder has the right, freedom and responsiblity to support what she believes in as a citizen.
So do you, and you should be grateful for the Dagger to allow free discussion of ideas… If Pres. Obama gets his wish, I pray he does not, control of said ideas may be under big brother’s watchful glare.
US Taxpayer says
Toby: The only distortions of the news is on Fox.
R. Parker says
Toby Sanchez,
What in the world are you talking about?
I praised Ms. Ryder for watching how our money is spent. I was only pointing out that some of her figures appeared to be incorrect. Are you contending that they are all correct? Am I not allowed to question what community leaders like her say, or am I just supposed to assume it to be true?
Braveheart says
Harford Lifer,
While Ms. Ryder may have missed the small picture, you may be missing the bigger picture. She raised many significant issues with huge budget consequences. I’m no fan of Craig, Wagner, or Wright. I do not intend to vote for any of them. The fact of the matter is that Ms. Ryder’s assessment of the huge growth of the Harford County budget is correct and is do to short sighted politicians that are probably in over their head. Craig has no business trying to run the County. He was a school administrator for goodness sakes.
I suggest that you look at the budgets for the last 6 years and you too will be shocked by the growth.
Cdev says
As a note Mrs. Ryder picked the tiime period of 2004-2011! An interesting thing she failed to p[oint out is the soring cost of electricity and everyday expenses over that time. the cost of power increased over that same time period by almost 200% That alone would cause a budget to be increased or services to be cut. Since our county chose the former that is what we have. To say that the budget increase is totally a result of fiscal mismanagement is just plain misleading.
cisco says
things other than energy prices and utility costs increased the cost of govt. Mainly the cost of pensions and benefits paid to retired county employees increased significantly. Harford county budget has an allotted amount for future benefits to be paid out they are going to a fund that now has over $25 million and growing..this is due to state changes and mandates that shifted some of the future cost of benefits to the counties…also called fund shifting that our governor is so fond of doing, it really doesn’t decrease expenditures, just sends them to the county to pay instead.
Additonally, shifting some costs by outsourcing may reduce short term costs, but there is no real benefit as private enterprise will seek refunding and increases in funding as they find out that some of these jobs require people that are certified, cleared and trained to do some of these proposed cuts. I am for studying and reducing expenses where appropriate, but some costs of govt are fixed by state mandates and federal law.
Cdev says
I no more then that went into it but it was a mager contributing factor. Even with the fund shifting that does not equl big governmetn which is the point Ms. Rydr is trying to make.
Cdev says
I no more then that went into it but it was a mager contributing factor. Even with the fund shifting that does not equl big governmetn which is the point Ms. Rydr is trying to make.
Kathy Thompson says
Ms. Ryder,
The recordation estimate comes from the state and has to be used by the County Treasurer, County Government and the Council. They do not have an option to use another estimate.
Regarding the increase you claim to have found in the budget, it looks like you are the one using double talk. If you read the budget like you declare (but more likely are being fed lies from Wagner – according to the post above), you will know that an entire department was removed and absorbed by another department. No increase jobs.
amdactivist says
Anyone know of any horse farms in harford county who hire illegal aliens. On talk radio today a Casa de maryland spokesperson said many illegal aliens working on horsefarms in harford county. Let us know please.
cisco says
activist-you know where the farms are located and you probably know what a farm looks like, so just go ahead and dare a local farmer to tell you whom he has under employment. I know a couple of farmers that said that they could not hire a local farm hand to clean stalls, feed cattle, and take care of crops even if they were paid over $20.00/hr. Lets face it, we don’t tell our kids “farming looks like a great job”, so someone else has to do it, mainly someone that can’t get another job. Most of the time is gonna be someone illegal, not that the farmer likes to do so, but can’t get affordable help otherwise.
amdactivist says
hell for $20 bucks an hour, i’ll take the job. now where is this farm?
Billy Jack says
And put your disability income at risk? You have allowed a personal tragedy to turn you into a zealot, rarely a positive or healthy response. While I suspect your credibility is gone in respect to actual “illegal alien reporting” , given your reckless technique, the idea of you turning your focus to the honest and hardworking farmers and horse farms of this county is appalling to me. As you have been politely and not so politely removed from other web sites and activist groups, I hope you will alienate yourself here in my home county.
amdactivist says
bILLY you have a way of twisting words around to suit your own anger and you keep adding words to others comments that are bold face lies. No wonder your ignored. MY turn..I respect farmers. I’m not bashing farmers that abide by the laws and I’m not on a disability income and I use straight forward links with no bull. Now get off your high horse and tell me what farm lane you live on..
amdactivist says
if a farmer can’t afford to hire an american citizen he shouldn’t be farming. He attributes to the scams of illegals and for many people losing their homes for no work. Report the farmers. They are as much a criminal as the illegal aliens in this country. Don’t buy from these farmers. Richardson farms is one of them. Don’t buy from richardson..
Billy Jack says
It has been clear to me you are unbalanced for awhile now. If you can take a break from riding around Harford County looking for people of color on construction and road crews to turn in to ICE and turn your time to visiting local farms to ferret out those who work there and appear to you to be suspect, I can’t wait for you to come ambling down my farm lane.
amdactivist says
Apparently you haven’t been hit by a tragedy with an illegal. When it hits home, you’ll walk side by side with me and see the real illegal aliens in our country and the employers who hire them. It is not a pretty site. Employers are saving tons of cash by hiring an illegal alien. Other ways to save money, but 1 illegal alien who works for cash, puts 1-3 citizens out of work. Yet many illegals are receiving welfare also using fake id’s. How many employers are using E-verify that is free, quick and easy to use to check the status of employees? Maybe they just don’t want to know?
Here’s another way you can check if you really want to know!
EMPLOYERS.
The Social Security Administration offers a free employee verification service for employers wishing to verify the legal status of former or current employees. The service verifies the social security numbers (SSN) for up to 5 employees. Call toll-free 1-800-772-6270, weekdays from 7:00 a.m. To 7:00 p.m. EST. You will be asked for your company name and EIN. You must also provide the following information for each name/SSN you want to verify:
SSN
Last name
First name
Middle initial (if applicable)
Date of birth
Gender
amdactivist says
billy jack, i just read your last sentence. Where is your Farm lane?
John P. Mallamo says
A few points:
It is certainly true that there is no current bill to transfer teacher’s pension from the State to the County. There seems to be a growing consensus that it will happen next year, after the gubernatorial election, along with state tax increases. Councilman Slutzky’s response, on anothere Dagger thread, to comments on the subject back to the State Treasurers office should provide more insight into the matter.
Outsourcing functions is not limited to illegals who would presumably perform only the County’s manual labor. The process of outsourcing, or contracting out, could be applied to all functions that are not inherently government in nature. Information Technology functions are one example. Vehicle maintenance functions are another. Unless there is something in the job classification that would prevent either of these from being performed by a non government employee, they are sertainly candidates. The County Treasurer’s position on the other hand should be inherently government in nature. The point Ms. Ryder makes is valid, and deserves consideration. All jobs would have to be reviewed and coded government only or not government prior to any implementation. It is unlikely that jobs requiring higher skill sets could be contracted out to “illegal workers who all speak Spanish” unless they have the requisite skills. Surprisingly, however, there are people in the US, illegally, who are well educated and multilingual.
A rise in Recordation Tax revenue from $3 Million in one year to $17 Million the next is inexplicable. In order to capture 17 Million dollars in Recordation Tax revenue the County would have to generate 2.6 Billion dollars in activity. That is Billion with a B. There are no other indicators in the County budget or State projections that support this level of activity. Personal property tax revenue projections are flat, Transfer tax projections are flat, The State’s projections for the Assessable base in Harford County rise only .7% in 2011. Partial year levy’s for the Assessable base do not reach this level The states estimate of the Assessable Base for Commercial Property in 2011 does not come up to this level. Even Wegman’s as big as the project may be won’t make it up to this level. There is some thought that homes in the area, with adjustable mortgages, will be refinanced and that this is the basis for the projections. Maybe, but that is still thosands of home. In the current economic environment, that case might not occur.
As for BRAC and all of the commercial activity it will generate, 2011 will be a pivotal year in the Department of Defense. The President set 2011 as the year that US troops will be returning home. Secretary of Defense Gates, who will leave his position in 2011, in recent speeches has announced that Defense budgets will decline. High dollar programs have been, and will be cut. Defense contractors have already started to reduce their operations in anticipation of reduced budgets. BRAC may not materialize as once envisioned.
The source of the Recordation Tax revenues projected should also be scrutinized. There does not seem to be a good correlation between the States projections and the audited revenues in previous years. The accuracy of the projections notwithstanding, using the States projections in the revenue section of the budget is one issue, applying those projections as expenditures is another. The point remains that Recordation Tax revenue represents one year money, and can only be applied to specified accounts. If the County does not sustain another $2.5 Billion dollars in activity in 2012, there will be $17 Million dollars less to service debt for education. That shortfall will be difficult to make up.
Ms. Ryder’s stated in here argument that the number of positions and budget of the County Executive rose from 2004 to 2011. Comparing the budgets of 2011 and 2010 or even from 2009 to 2011 repose the argument. The results of the comparison do not invalidate her points, they form a new argument which may comparison do not invalidate her points, they form a new argument which may have its own valid points. Additionally, the total number of personnel and positions assigned to the County Executive are not reflected in the Personnel Summary Sheet of the budget. The reader would have to look at the County Executives section in the budget to determine all positions and personnel assigned , and would then have to analyze bugets from 2004 to 2011 in order to challenge her point.
It is commendable that the County Executive proposed a budget that is lower than some previous budgets, that there are no furloughs, no layoffs, no pay cuts, and a 2 cent reduction in property taxes. I hope that he, or his successor, will continue to seek ways to reduce the budget, and still provide good governance, effective government and efficient operations.
It is also commendable that Ms. Ryder took the time to review the budget, analyze it and provide comments.
It is as easy to suggest that the County Executive constructed this budget in order to get elected as it is to suggest that Ms Ryder made her comments to support someone else’s election. The facts as I see them is that this budget is not sustainable. 2012 may see some improvements in the economy, but the budget starts with a deficit. There are real problems in Harford County. Calling names, making disparaging comments, ascribing base motives to the actions of others will not fix those problems.
Toby Sanchez says
Right on, Mr. Mallamo!
cisco says
A couple of points:
1-The county has 200 less people working today than 5 yrs ago due to retirements, attrition and layoffs.
2-Due to safety reasons many positons such as IT and engineering are in-house, same for procurement. Protecting county interests, state/federal law require that the county handle other depts such as zoning & planning, housing services, housing agency and law dept. Human resources supports all depts mentined. I don’t know that outsourcing these jobs would be practical or more efficient. Many of these positions can’t be found in the private market, but others such as environmental services, janitorial staff, and security guards could be handled by private industry. The good people at public works do more that just clean up after storms and snow. That statement by itself shows how little you guys really know what takes place every day at the county offices.
Braveheart says
Cisco – with all do respect where are you getting your numbers? I’m trying to reconcile your facts with John’s and obviously there is a large swing.
Thank you,
John P. Mallamo says
Cisco,
Sir/Ma’am
It appears that we would agree that prior to implementing any outsourcing or contracting positions action, a determination would have to be made on the possibility or feasibility for each position.
Regarding your statement on the fewer number of personnel, a quick check of the personnel summary of the 2006 budget indicates 1,030 full time personnel and 15 part time. The personnel summary in the 2011 budget indicates 1,144 and 15.75 part time. It would appear that the number of personnel has increased.
cisco says
Number of open positions is not the same as positions filled. There are less employees now than 5 yrs ago.
Many depts have open positions (which could be filled should funding be available) or paid by others such as state/federal grants.
Budgeted positions are filled county jobs for which a PIN has been assigned and human resources counts as a classified position that the county has to fund and can only be reclassified in order to not fund it.
There are positions not filled or funded with grants and are not counted as part of the county budget because the county is not obligated pay/include in the budget because our tax revenues don’t pay for them.
You won’t see a reference to positions paid by way of grants, which by the way have increased under this administration, but overall classified positions have decreased in the past 5 years.
Braveheart says
Good information Cisco. thank you
US Taxpayer says
Good news for tax payers: “Tax bills in 2009 at lowest level since 1950. Amid complaints about high taxes and calls for a smaller government, Americans paid their lowest level of taxes last year since Harry Truman’s presidency, a USA TODAY analysis of federal data found.” So I guess the Tea Party will not need to complain anymore.
Braveheart says
US Taxpayer – Once again you are caught trying to mislead the readers of the Dagger. Tax revenues are down because of the recession – private sector wages are down and taxes paid are down as a result. The only wages seemingly going up are PUBLIC SECTOR JOBS. On top of all this almost 50% of American Households pay no federal income tax at all. I’m sure you are part of this group.
Instead of doing the correct thing and eliminating unneeded federal jobs, reducing federal pay and benefits, and making tough choices on social security, medicare our left-wing governemnt spends spends spends. You nuts (democratic and republican) are out of touch and will soon be out of office.
US Taxpayer – you are truly a deceptive person in the same mold as your beloved president Barrack Hussein Obama and the rest of the leftist cronies.
US Taxpayer says
Braveheart=Fox, Bush, Palin, Rush, etc.
Braveheart says
Thank God for Drudge, Fox News & O Reily. Without them, you left wing nuts would have taken over the Country by now.
US Taxpayer says
Unless you have been in a hole and under a rock since the last election, we have! The reason Democrats are in charge is because the mess your side created. Give me ONE positive thing Republicans did lately that benefited you or me. I know my taxes have reduced 20% since 2008.
US Taxpayer says
Braveheart: Unless you have been in a hole and under a rock since the last election, we have! The reason Democrats are in charge is because the mess your side created. Give me ONE positive thing Republicans did lately that benefited you or me. I know my taxes have reduced 20% since 2008.
US Taxpayer says
Braveheart, did you read the article from USA Today? Perhaps if you would you could refute it.
Here is some facts you will not get on Drudge or Fox. “About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability….that is NOT the same as getting relief.
According to a Congressional Budget Office analysis conducted in 2007, it’s true that the wealthiest one percent paid more in Federal income taxes than the bottom 90 percent kicked in.
But what else did the CBO find? Drudge won’t tell you, but the CBO also said that the top one percent paid 5 percent of their incomes in state and local taxes, while the bottom 50 percent — many of whom pay nothing in federal taxes — paid 10 percent of their take, twice as much proportionately.
It also found that those in the bottom 80 percent of the earnings ladder paid around 9 percent of their incomes in Social Security taxes; the top one percent paid just 1.6 percent of theirs. After the income tax, payroll taxes represent the largest share of the federal take — those dollars represent a much bigger piece of the pie than corporate income taxes or taxes on capital gains.
A 2009 study by the nonpartisan Institute on Taxation and Economic Policy looked at state and local taxes in greater detail. It concluded, “nearly every state and local tax system takes a much greater share of income from middle- and low-income families than from the wealthy. That is, when all state and local income, sales, excise and property taxes are added up, most state tax systems are regressive [emphasis theirs].”
The researchers found that those in the top 1 percent of the heap paid around 5 percent of their incomes in state and local taxes; the next 4 percent paid about 7 percent of theirs; the middle 5th paid just over 9 percent and those at the bottom of the ladder, the poorest 20 percent of the population, forked over almost 11 percent of their incomes on average to state and local governments.
They also looked at excise taxes — taxes on gas, cigarettes, alcohol and other goodies. They found that the “average state’s consumption tax structure is equivalent to an income tax with a 7.1 percent rate for the poor, a 4.7 percent rate for the middle class, and a 0.9 percent rate for the wealthiest taxpayers.”
So we really have a flat tax. That’s the conclusion of a 2007 study by Boston University economists Laurence J. Kotlikoff and David Rapson, who found that when you add it all up — state and local taxes, federal taxes and excise fees – “The average marginal tax rate on incomes between $20,000 and $500,000 is 40.3%, the median tax rate is 41.8%, and the standard deviation of all of those rates is 5.3 percentage points. Basically, most of us pay about 40%, plus or minus 5.3 percentage points.”
The thing is, this isn’t just a Big Lie, but a beautiful example of right-populism. This is how you shift the focus of people who are rightly angry about their loss of economic security from those above them on the social hierarchy — the elites who in fact can influence their own outcomes — to those who are poorer (and/or darker) than them.”
The Fifteen Biggest Lies About the Economy (And Everything Else the Right Doesn’t Want You to Know about Taxes, Jobs, and Corporate America))
cisco says
I am in favor of a tax in which all taxpayers contribute to pay the country’s bills, not one in which 50% pay no form of federal income tax. I am also in favor of eliminating most tax credits all tax payers pay their fair share of the country’s and county’s burden.
US Taxpayer says
Oh really! Then why isn’t the Tea Party and people like you outraged that big business cheat the American tax payer out of 60 BILLION DOLLARS ANNUALLY? If big business paid its fair share of taxes, then we would not need to pay them.
The reason, I feel, is that the Republican Party is a tool for big business and the average Republican voter just believes whatever crap that comes out of the GOP propaganda mills (Fox) and then votes against its own best interests. Look at the bailout that Bush gave banks and the HUGE bonuses the bosses still make. As long as Tea Party activists do not hold the Republican Party accountable for the “borrow and spend” mess they got us into, we are doomed.
Before that the Republicans diverted attention from how they were working for big business by harping on religious questions such as gay marriage. Do you really think that Republican leaders care about that? Look at Dick Chaney with a gay daughter. Look at the number of gay closeted Republicans and religious “leaders”. I don’t care if they are gay, but I do care that they are such hypocrites about it and that the rank and file voters actually believe them.
Here is some information about how the government (including Democrats) allows big business to cheat us out of their fair share of taxes. This must stop! Dig a little deeper than the talking points Fox feeds you.
Transfer pricing costing US $60 billion annually
Transfer pricing refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization (a corporation or similar entity). For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary. Since the prices are set within an organization (i.e., controlled), the typical market mechanisms that establish prices for such transactions between third parties may not apply. The choice of the transfer price will affect the allocation of the total profit among the parts of the company. This is a major concern for fiscal authorities who worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. http://en.wikipedia.org/wiki/Transfer_pricing
Transfer pricing lets companies such as Forest, Oracle Corp., Eli Lilly & Co. and Pfizer Inc., legally avoid some income taxes by converting sales in one country to profits in another — on paper only, and often in places where they have few employees or actual sales…(there is over) $60 billion in annual U.S. tax revenue lost to thousands of companies’ income shifting, according to a study published in December in the National Tax Journal by Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon. http://www.businessweek.com/news/2010-05-13/companies-dodge-60-billion-in-taxes-even-tea-party-condemns.html
US Taxpayer says
Oh really! Then why isn’t the Tea Party and people like you outraged that big business cheat the American tax payer out of 60 BILLION DOLLARS ANNUALLY? If big business paid its fair share of taxes, then we would not need to pay them.
The reason, I feel, is that the Republican Party is a tool for big business and the average Republican voter just believes whatever crap that comes out of the GOP propaganda mills (Fox) and then votes against its own best interests. Look at the bailout that Bush gave banks and the HUGE bonuses the bosses still make. As long as Tea Party activists do not hold the Republican Party accountable for the “borrow and spend” mess they got us into, we are doomed.
Before that the Republicans diverted attention from how they were working for big business by harping on religious questions such as gay marriage. Do you really think that Republican leaders care about that? Look at Dick Chaney with a gay daughter. Look at the number of gay closeted Republicans and religious “leaders”. I don’t care if they are gay, but I do care that they are such hypocrites about it and that the rank and file voters actually believe them.
Here is some information about how the government (including Democrats) allows big business to cheat us out of their fair share of taxes. This must stop! Dig a little deeper than the talking points Fox feeds you.
Transfer pricing costing US $60 billion annually
Transfer pricing refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization (a corporation or similar entity). For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary. Since the prices are set within an organization (i.e., controlled), the typical market mechanisms that establish prices for such transactions between third parties may not apply. The choice of the transfer price will affect the allocation of the total profit among the parts of the company. This is a major concern for fiscal authorities who worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. (Wikipedia) Dagger removes links
Transfer pricing lets companies such as Forest, Oracle Corp., Eli Lilly & Co. and Pfizer Inc., legally avoid some income taxes by converting sales in one country to profits in another — on paper only, and often in places where they have few employees or actual sales…(there is over) $60 billion in annual U.S. tax revenue lost to thousands of companies’ income shifting, according to a study published in December in the National Tax Journal by Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon.(Business Week, 5-13-2010) Dagger removes links
fedup says
If this is true, I am outraged. Yes, the republican party tends to be for big business and capitalism. The heads of these big companies are a good ole boy network that put each other on the boards and vote each other big bonuses. You wouldn’t want to know what I’d do to them. The democratic party is pushing a nanny state. It all boils down to which one you want. I say, get the taxes that are owed and pare the government to a fourth of what it is (keeping essential services) and we can start to work on the deficit they’ve all had a hand in creating – including the current administration which has added hundreds of billions. I was against the bank bailout (which was the end of free market economy in the U.S.) and I was against the car company bailout. While we’re looking at bonuses, lets look at the bonuses the heads of Fannie, Freddie, and the Post Office got… after all, those organizations are constantly being bailed out. It’s refreshing to see you were against the bailouts too. It’s also refreshing to see you spread blame to the democrats for something. Thanks.
US Taxpayer says
fedup: Basically the biggest differences between me and Reagan Republicans are based upon the premise that they trust big business to look out for your best interests and I don’t. While big government is not perfect, big business is evil. I can’t think of one instance where they didn’t screw the little guy for profits, see BP oil spill and the deaths of 15 workers.
fedup says
I see two forms of the same evil. Big business will screw you for money while big government will screw you to control you and for the joy of the power trip of screwing you. BP has to be made to pay for the deaths and the spill and if it bankrupts them, you confiscate all the luxury yachts and mansions of the execs and leave them penniless.
US Taxpayer says
It will cost them a few days profits, no more.
Braveheart says
US Taxpayer – I generally don’t read rags that generally report with a strong left wing bias, i.e USA Today, NY Times, DC Post, Baltimore Sun. There is a reason those papers are in decline while the WSJ continues to thrive. You should consider reading the WSJ.
I don’t dispute that American Citizens are over-taxed. The reason that we are over taxed is because of people like you that continually want more and spineless politicians that will not make tough decisions. Wake up – there is a reason that California and NY are going bankrupt. Too many services, increased taxes pushes productive Companies and Citizens out of state. Eventually states are left with a bunch of deadbeats like yourself. Our Company would leave the Peoples Republic of Maryland if we didn’t have family ties.
Socialism doesn’t work, check out Europe.
By the way – your skin color comment is insulting. However not unexpected, since the only race brokers in the Country are people like you, the Reverand Jesse Jackson, Al Sharpton and the Barrack Hussein Obama.
Go ahead and get busy with your cutting and pasting. I know you don’t need to get up for work in the morning.
Just Think says
I would like to know why do you think that the cleaning crew &grass maintenance who is the lowest paid should be contracted?
US Taxpayer says
The Wall Street Journal, once a great newspaper has been bought by Rupert Murdoch who wants to install his own man. Murdoch who owns Fox, is well known for manipulating the news to suite his conservative point of view. Newspapers should be balanced. The highly respected managing editor could not compromise his integrity and will leave.
“Marcus W. Brauchli will step down as the top-ranking editor of The Wall Street Journal after less than a year in the job…Since December, when Mr. Murdoch’s News Corporation bought Dow Jones & Company, publisher of The Journal, he (Murdoch) has immersed himself in the newspaper’s daily operations and quickly made changes in its shape and style. Friends and colleagues say that Mr. Brauchli has been frustrated with some changes, and with the sense that he did not have the control over the newspaper that he was promised.” http://www.nytimes.com/2008/04/22/business/media/22dow.html
Of course ditto heads love Fox and the WSJ, they reinforce your point of view, no thinking required. Also, if skin color remarks are so insulting, why haven’t I seen you complain about the vile signs at every Tea Party demonstration?
You should move your company to a state that reflects your views such as Mississippi. It is perfect for you. It receives more federal dollars than it pays, it has the lowest education rates, the highest divorce rates, and the fattest people, and is Republican.
Braveheart says
US Taxpayer – On Crack and Unemployed.
fedup says
I’ve never understood the left’s fear of Fox news and any other organization that might hold a different viewpoint. They seem to want to shut these sources down rather than debate. At least on Fox I see more than a few contributors with decidedly left leaning viewpoints… not something you generally see reciprocated on the left leaning networks. With CNN I usually stick to their International page. MSNBC is usually worth a laugh… I particularly enjoyed the headline banner they had that stated “New law makes it a crime to be illegal immigrant”. They must think “irony” means something is like metal. Priceless. These points lead me to view Fox as more balanced than most. Over all though the main stream media has participated in a fawning idolatry of Obama that I find a bit too creepy for me… not that some of the commentators on Fox haven’t also been too soft on republicans. Most intelligent folk will be able to weed out what it good from that which is fluff. But then I really don’t see how hurling insults at one another will help to convince someone to see the merits of my point of view either… aren’t I the odd duck?
US Taxpayer says
fedup says: “Most intelligent folk will be able to weed out what it good from that which is fluff.”
There’s the rub.
fedup says
Good. So we agree… after all, everyone deserves a good rub once in a while.
US Taxpayer says
You’re correct that insults do not move the discussion. They’re just funny. Braveheart gets so frustrated by his inability to construct a cogent response that he reverts to his 12 year old and calls me names. I admit that I laugh at that.
Braveheart says
US Taxpayer – LEFT WING LAP DOG
Virtually all responses or points you have made on this site include an incendiary or insulting comment about the person making the post or about conservative members of Society.
Like I said – I’m here to point out to everyone that reads the Dagger what you are. You are a left wing lap dog.
I’m sure you are unemployed, have been the recipient of government aid for most of your life, and really have nothing better to do but to cut and paste left wing garbage.
US Taxpayer says
Ha, ha, ha.