Colorado taxation – Pilger Nebraska http://pilgernebraska.net/ Sat, 24 Sep 2022 16:24:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://pilgernebraska.net/wp-content/uploads/2021/10/icon-47-150x150.png Colorado taxation – Pilger Nebraska http://pilgernebraska.net/ 32 32 Idaho, New Mexico and Wyoming Stand Out in Tax Revenue Analysis https://pilgernebraska.net/idaho-new-mexico-and-wyoming-stand-out-in-tax-revenue-analysis/ Sat, 24 Sep 2022 16:24:00 +0000 https://pilgernebraska.net/idaho-new-mexico-and-wyoming-stand-out-in-tax-revenue-analysis/ Brief news From January 1, 2020 through March 2022, Idaho generated 16% more tax revenue than estimated what might have been collected without the pandemic. This ranked as the highest gain in the United States, according to Pew Charitable Trusts. Idaho took advantage of the nation’s pride fastest growing population and steady job growth over […]]]>

Brief news

From January 1, 2020 through March 2022, Idaho generated 16% more tax revenue than estimated what might have been collected without the pandemic. This ranked as the highest gain in the United States, according to Pew Charitable Trusts.

Idaho took advantage of the nation’s pride fastest growing population and steady job growth over the past two years. Additionally, Idaho approved several tax cuts, including $600 million income tax cut – the largest in state history – which was enacted in early February 2022.

This map shows the percentage increase or decrease in tax revenue in each state compared to what was expected before the pandemic.

New Mexico ranked second in tax revenue gains at 15% more than expected, led by rising energy prices. Justin Theal of Pew, co-author of the report, said the state budget relies heavily on taxes related to oil and gas drilling in the Permian Basin and has benefited from rising oil prices.

Meanwhile, other Mountain West states have yet to see their collections surpass pre-pandemic growth trends.

“States dependent on natural resources like Wyoming, and those dependent on tourism, like Nevada, have experienced some of the deepest and longest tax revenue declines during the pandemic,” Theal said.

Both states have collected about 8% less than estimates made before the pandemic.

Wyoming is one of only two states – the other being North Dakota – that the analysis found “hasn’t collected enough revenue to return to pre-pandemic levels, let alone catch up. pre-COVID growth trends”.

The rest of the region is at the positive end of the spectrum. Utah’s tax revenue gain was 7.5%, followed by Montana (6.2%), Colorado (3.6%) and Arizona (2.8%).

This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Boise State Public Radio in Idaho, KUNR in Nevada, the O’Connor Center for the Rocky Mountain West in Montana, KUNC in the Colorado, KUNM in New Mexico, with support from affiliate stations throughout the region. Funding for the Mountain West News Bureau is provided in part by the public broadcasting company.

Copyright 2022 KUNR Public Radio. For more, visit KUNR Public Radio.

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Brothers Food Mart co-owners avoid immigration and tax convictions in federal trial | Courts https://pilgernebraska.net/brothers-food-mart-co-owners-avoid-immigration-and-tax-convictions-in-federal-trial-courts/ Thu, 22 Sep 2022 09:02:00 +0000 https://pilgernebraska.net/brothers-food-mart-co-owners-avoid-immigration-and-tax-convictions-in-federal-trial-courts/ A federal court jury failed on Wednesday to convict the founder of the ubiquitous New Orleans chain Brothers Food Mart and his business partner on dozens of immigration and tax charges. Jurors are either deadlocked or returned not-guilty verdicts, after a two-week trial that explored whether the men concealed the hiring of undocumented workers at […]]]>

A federal court jury failed on Wednesday to convict the founder of the ubiquitous New Orleans chain Brothers Food Mart and his business partner on dozens of immigration and tax charges.

Jurors are either deadlocked or returned not-guilty verdicts, after a two-week trial that explored whether the men concealed the hiring of undocumented workers at their outlets, a must-see on the local convenience store scene.

Prosecutors did not immediately say whether they would retry Brothers founder Imad “Eddie” Hamdan and his brother-in-law, Ziad Mousa, on the counts where the jury was deadlocked. Still, Hamdan’s attorney, Jose Baez, said the verdict showed jurors viewed the government’s case as a serious excess.

“Brothers was here for this community for a long, long time,” Baez said. “Luckily the community came out for him today, and he’s really happy and blessed about it.”

Known for its chicken

Hamdan founded the chain after immigrating from Palestine in 1984. For three decades, the chain’s bright red and yellow logo served as a beacon for motorists in search of spiced chicken.

In a March 2019 indictment, prosecutors said something else was brewing at Brothers: criminal immigration and tax code violations.

A grand jury charged Hamdan and Mousa with one count each of conspiracy to harbor an alien. The men were also charged with 49 counts of failing to withhold, record and pay taxes; and 21 counts of aiding and assisting in the preparation of false tax returns, for allegedly paying workers cash under the table.

Both men face years in prison.

“No one hid them”

Yet during the trial, the defense argued there was no evidence the chain was actually hiding undocumented workers, as the law prohibits.

“They worked in the open air. Nobody hid them. They all wore uniforms. No one ran when the police arrived,” said one of Mousa’s attorneys, Mike Magner.

The defense also argued that Hamdan overpaid his personal taxes, as the government received far more money than if taxes had been paid on employee salaries, Baez and Magner said.

Impasse and acquittals

Ultimately, the jury was deadlocked on the harboring count for the two men, Magner said. Mousa was acquitted of all tax charges, while jurors returned a mix of stayed and not guilty verdicts on Hamdan’s tax charges.

Baez said the acquittals will make it much more difficult for prosecutors to try the remaining counts again. If the government goes ahead, Hamdan is ready, Baez added.

“I suspect we will probably find a solution. Hopefully the government will be much more reasonable,” he said.

Hamdan and Mousa sold dozens of Brothers locations to national convenience company Mountain Express Oil last year, but retained ownership of other stores, as part of a deal to expand their chicken brand fried nationwide.

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Palisade to Put Lodging Tax Increase on the Ballot | Western Colorado https://pilgernebraska.net/palisade-to-put-lodging-tax-increase-on-the-ballot-western-colorado/ Sun, 18 Sep 2022 06:15:00 +0000 https://pilgernebraska.net/palisade-to-put-lodging-tax-increase-on-the-ballot-western-colorado/ Country the United States of AmericaUS Virgin IslandsU.S. Minor Outlying IslandsCanadaMexico, United Mexican StatesBahamas, Commonwealth ofCuba, Republic ofDominican RepublicHaiti, Republic ofJamaicaAfghanistanAlbania, People’s Socialist Republic ofAlgeria, People’s Democratic Republic ofAmerican SamoaAndorra, Principality ofAngola, Republic ofAnguillaAntarctica (the territory south of 60 degrees S)Antigua and BarbudaArgentina, Argentine RepublicArmeniaArubaAustralia, Commonwealth ofAustria, Republic ofAzerbaijan, Republic ofBahrain, Kingdom ofBangladesh, People’s Republic […]]]>

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Study finds proposed ‘millionaire tax’ could help reduce inequality, if revenue is spent wisely https://pilgernebraska.net/study-finds-proposed-millionaire-tax-could-help-reduce-inequality-if-revenue-is-spent-wisely/ Thu, 15 Sep 2022 21:36:11 +0000 https://pilgernebraska.net/study-finds-proposed-millionaire-tax-could-help-reduce-inequality-if-revenue-is-spent-wisely/ A new report from the nonpartisan Center for State Policy Analysis at Tufts University finds that a proposed state tax on income and profits of more than $1 million could help reduce inequality. But the report also raises questions about how the extra money would be spent. The researchers analyzed the so-called “millionaire tax,” which […]]]>

A new report from the nonpartisan Center for State Policy Analysis at Tufts University finds that a proposed state tax on income and profits of more than $1 million could help reduce inequality.

But the report also raises questions about how the extra money would be spent.

The researchers analyzed the so-called “millionaire tax,” which would add a 4% tax on earnings over $1 million. That threshold would increase over time to account for inflation, under a ballot measure to be decided by voters in November.

The tax would bring $1.3 billion in additional revenue to state coffers in 2023, the researchers found. This estimate takes into account possible tax avoidance strategies and the likelihood that some taxpayers will leave the state rather than pay the additional income tax, according to the study.

“The impact on the overall economy is likely very small,” said Evan Horowitz of Tufts, co-author of the report. “But the ability to make targeted investments is real and significant.”

Massachusetts currently taxes all income at the same rate: 5%. The election issue would etch the high income surtax into the state constitution. Proponents of the measure say the extra revenue would fund education and transportation.

However, Horowitz says, in the past, the percentage of earmarked funds that achieved their intended goals ranged from 30%-70%. That’s because Massachusetts tax revenues come with some flexibility to be spent based on priorities set by lawmakers.

Where the money goes “depends on a lot of different factors,” Horowitz said. “To what extent are the unions pushing you to use this money in a particular way? How responsible are your politicians? Is it easy to count the money?”

Steve Crawford, spokesman for Raise Up Massachusetts, a coalition of labor and community organizations lobbying for the new tax, said the language of the proposed amendment specified “public education” as well as “roads, bridges and public transport”. He also said the coalition intends to act as a watchdog over how the money is used if the amendment passes.

“No one disputes that we need more money for education and transportation,” Crawford said. “It provides a dedicated long-term revenue stream for that purpose.”

Part of the Tufts report examined whether increased spending on education and transportation led to better outcomes. Researchers have found an extremely strong correlation between higher education spending and better student outcomes. They did not find a clear correlation between increased transportation spending and overall economic growth.

According to figures from the state Department of Revenue, a tiny fraction of Massachusetts households — 0.6% — had incomes above $1 million in 2019. About 90% of those households were white. The Economic Policy Institute ranked Massachusetts as the sixth-worst state in the nation for income inequality.

Groups calling for the tax argue that it would promote fairness and help people who may not have benefited from generational wealth.

Opponents of the tax, including business groups and some small business owners, say it would increase the burden on businesses at a time when employers are already facing higher costs due to inflation, personnel issues and supply chain issues that have been exacerbated during the COVID -19 pandemic.

Another concern raised by groups such as the Massachusetts Taxpayers Foundation is that adding a tax through a constitutional amendment removes legislators’ flexibility to raise or lower the tax rate in response to changes. economic. A change currently underway is the growing popularity of remote work and other flexible employment arrangements. Data shows more people have left Massachusetts since the pandemic began, which Mass. Taxpayers Foundation attributes, at least in part, to many. new ability of employees to work remotely.

“Imposing a 4% increase will only make this problem worse by giving people another reason to leave Massachusetts,” the group said in a recent analysis.

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Democrats consider ‘Hail Mary’ effort to revive child tax credit https://pilgernebraska.net/democrats-consider-hail-mary-effort-to-revive-child-tax-credit/ Fri, 09 Sep 2022 23:32:50 +0000 https://pilgernebraska.net/democrats-consider-hail-mary-effort-to-revive-child-tax-credit/ The White House and some Senate Democrats are reportedly eyeing a “Hail Mary” effort to revive their enhanced child tax credit this year. Hans Nichols of Axios reports that the White House has engaged Senate Democrats on the idea and may be willing to support the renewal of some expired corporate R&D tax credits in […]]]>

The White House and some Senate Democrats are reportedly eyeing a “Hail Mary” effort to revive their enhanced child tax credit this year.

Hans Nichols of Axios reports that the White House has engaged Senate Democrats on the idea and may be willing to support the renewal of some expired corporate R&D tax credits in exchange for Republican support.

The background: The enhanced child tax credit was signed into law by Democrats in March 2021 as part of the US bailout. It expanded eligibility for the credit and increased the amount families could get from $2,000 per child to $3,000 or $3,600, depending on the age of the child. The credit, which included automatic monthly payments, was credited with lifting millions of children out of poverty. But the credit expired at the end of 2021 in the face of opposition from Republicans and Sen. Joe Manchin (D-WV). The credit was left out of the Cut Inflation Act Democrats passed last month.

What happens now: The 2017 Republican tax overhaul required companies to deduct research and development expenses over five years starting in 2022. There is bipartisan support for revising this requirement and allowing companies to continue deducting these expenses immediately rather than spreading them out. . Democrats hope this will provide some leverage to renew the child tax credit.

“I don’t think we should be extending the American corporate tax cuts if we’re not going to extend the American child tax cuts,” Democratic Senator Michael Bennet of Colorado told Insider. And Sen. Sherrod Brown (D-OH) told the site, “I can’t imagine the Senate giving big tax breaks to big business and the wealthy without taking care of the kids first.”

Some Republicans might be open to a modified version of the child tax credit. “In response to the Supreme Court decision on Roe v. Wade, some Republican senators, including Mitt Romney (R-Utah) and Marco Rubio (R-Fla.), have offered family-friendly policies, including cheaper and less expansive policy. version of Biden’s child tax credit,” notes Axios. But it would take at least 10 Republican votes in the Senate.

The bottom line: Any potential action on a tax package will have to wait until after the November election.

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Tax Fraud Blotter: Just another day in paradise https://pilgernebraska.net/tax-fraud-blotter-just-another-day-in-paradise/ Fri, 09 Sep 2022 00:52:00 +0000 https://pilgernebraska.net/tax-fraud-blotter-just-another-day-in-paradise/ This beauty is a steal; hard landing; flag in midfield; and other highlights of recent tax cases. Puyallup, Washington: Donna Powell, 56, co-owner and chief financial officer of a steel manufacturing company, pleaded guilty to nine counts of failing to pay employment taxes. Powell is co-owner and operator of Pinnacle Steel Fabricators, serving as Secretary/Treasurer […]]]>

This beauty is a steal; hard landing; flag in midfield; and other highlights of recent tax cases.

Puyallup, Washington: Donna Powell, 56, co-owner and chief financial officer of a steel manufacturing company, pleaded guilty to nine counts of failing to pay employment taxes.

Powell is co-owner and operator of Pinnacle Steel Fabricators, serving as Secretary/Treasurer and Accounting Manager. Between 2010 and 2018, the company withheld some $1,167,891 in payroll taxes from employee paychecks and did not remit any of those funds to the IRS.

The company has 15 to 20 employees. Powell did not file a 941 for the period between 2010 and the first quarter of 2018. Instead of paying the taxes, Powell and her husband spent the money on personal trips, gambling and online gambling, as well only in purchases related to the spa and the swimming pool.

Sentencing is November 7. Willful non-payment of employment taxes is punishable by up to five years in prison.

Imperial, Missouri: Used car salesman Donald Benck pleaded guilty to three tax charges and admitted hiding more than $300,000 in commissions from the IRS.

He was mainly paid by commissions and admitted that from 2014 he had recruited acquaintances to receive the commissions by check, cash the checks and give the money to Benck. Acquaintances kept a small fee. In total, the acquaintances cashed $326,000 in checks from 2014 to 2016.

Benck’s employer issued 1099 forms to the acquaintances instead of Benck, who did not inform his tax preparer of the commissions and did not report the income on his returns. Benck failed to report income of $31,300 for 2014, $131,400 for 2015 and $93,035 for 2016, resulting in a federal tax loss of $84,092.

Sentencing is November 18.

Albany, New York: Sean O’Hare, 54, of South Portland, Maine, pleaded guilty to wire fraud in connection with a scheme to defraud his clients in preparation for taxes.

O’Hare, a former tax preparer and accountant, admitted that from September 2015 to September 2016, he filed quarterly returns in New York State for three companies; these declarations underestimated the amount of taxes owed by companies. O’Hare collected the full amount of taxes owed and stole the difference between the amount of taxes paid to New York and the amount he received from businesses.

He admitted to stealing $131,758, which he agreed to repay as restitution. His wire fraud conviction carries a maximum of 20 years in prison, a fine of up to $250,000 and probation for up to three years. Sentencing is January 11.

East Stroudsburg, Pennsylvania: Hope Carbone and Donna Venturini were sentenced to two years probation for conspiring to evade federal excise taxes on imported cigars.

Carbone and Venturini admitted to conspiring with Jose Dominguez, the owner of cigar manufacturer Victor Sinclair Cigars, to evade excise duties from 2009 to 2011. Carbone and Venturini served as the U.S. importer of Republic-based Victor Sinclair Cigars. Dominican. Through fraudulent invoices, Dominguez, Carbone and Venturini collected some $3.9 million in excise duties from American cigar buyers.

The conspirators only paid some $2.1 million to the government, keeping about $1.8 million for themselves.

Carbone and Venturini were ordered to pay restitution. Dominguez pleaded guilty in June and is awaiting sentencing.

Map, Texas: Raymond Griggs, 51, a former owner of a tax preparation business, was found guilty of concealing more than $1 million in income from the IRS.

Between 2011 and 2013, Griggs ran Griggs Financial in the Dallas area. The company generated over $1.3 million in gross revenue in 2013; Griggs reported to the IRS that his business made about $340,000. That year alone, he spent over $1.4 million on items such as entertainment, jewelry, travel, and flight lessons.

Griggs also consistently underreported his company’s gross receipts to the IRS by approximately $1 million for 2012 and 2011.

He faces up to three years in prison.

Key West, Florida: Volodymyr Ogorodnychuk, director of four labor recruitment companies, was sentenced to four years in prison for tax and immigration offences.

From January 2016 to around October 2020, Ogorodnychuk helped operate Paradise Choice, Paradise Choice Cleaning, Tropical City Services and Tropical City Group. The companies provided employees to hotels, bars and restaurants in Key West and other locations, even though the employees were not permitted to work in the United States.

Ogorodnychuk admitted that he and his conspirators paid the workers without withholding Social Security, Medicare, and taxes from their wages and did not report those wages to the IRS. He also admitted that he and his conspirators defrauded the IRS out of more than $3.5 million in employment taxes.

Ogorodnychuk was also sentenced to three years of probation. Return is to be determined.

Midland, TX: Trucker Thomas Valdez Rodriguez was sentenced to two years in prison for non-payment of social contributions.

Rodriguez owned Tom-E-Lee Trucking and Tom-E-Lee Industries and from 2012 to 2018 failed to pay employment taxes withheld from employees and employment taxes withheld from another company. He has also failed to pay personal income tax since 2011.

Rodriguez caused a total tax damage of $12,714,214.42.

He used some of the money to buy midfield season tickets at Dallas Cowboys games and chartered jets to take him and his friends to those games. He also bought a new residence for over $2 million.

Rodriguez, who pleaded guilty in January, was ordered to pay $12,714,214.42 in restitution to the IRS, including $1 million he paid before sentencing.

Waukegan, Ill.: Resident Wilmer Alexander Garcia Meza was sentenced to 29 months in prison for using stolen ID to make false statements.

Garcia used other people’s personal information – including names, dates of birth and identification documents such as foreign passports – to fraudulently obtain ITINs. From 2013 to 2017, he used ITINs to file claims on behalf of stolen identities, claiming thousands of dollars in fraudulent refunds. Garcia then used IDs with those same names to cash refund checks issued by the IRS. In total, Garcia caused a tax loss of some $221,923.

He was also ordered to serve three years of probation and paid some $221,923 in restitution to the United States.

Buffalo, New York: Ronald Rechan, of Douglasville, Georgia, previously convicted of making a false statement on a bank loan application and tax evasion, was sentenced to six months in jail and ordered to pay $628,144 in restitution.

In November 2017, Rechan applied for a $150,000 home loan from First National Bank of America, on which he fraudulently overstated his income.

Between April 2013 and January 2018, Rechan also committed tax fraud. While serving as CFO, Rechan paid himself $1,962,167.21 and to avoid paying tax on that income, he paid his personal expenses directly from a business account and deposited $332,746.19 into a nominee bank account.

His actions resulted in a tax loss to the IRS of $628,144.

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Audit: Fuel-Efficient Vehicles Suck Tax Revenue From Louisiana Roadworks Fund https://pilgernebraska.net/audit-fuel-efficient-vehicles-suck-tax-revenue-from-louisiana-roadworks-fund/ Tue, 06 Sep 2022 22:06:26 +0000 https://pilgernebraska.net/audit-fuel-efficient-vehicles-suck-tax-revenue-from-louisiana-roadworks-fund/ A combination of increasingly efficient vehicles and a fuel tax that hasn’t increased since 1990 has gradually depleted a key fund that Louisiana uses to pay for its transportation projects. In addition, paying down debt from past road and infrastructure works will mean less money from the Transportation Trust Fund will be available for projects […]]]>

A combination of increasingly efficient vehicles and a fuel tax that hasn’t increased since 1990 has gradually depleted a key fund that Louisiana uses to pay for its transportation projects. In addition, paying down debt from past road and infrastructure works will mean less money from the Transportation Trust Fund will be available for projects over the next decade, according to a legislative audit released Monday.

Auditors said the average fuel efficiency of light passenger cars in the United States has fallen from 18.8 miles per gallon in 1990 to 22.9 mpg as of 2020. Because better mileage vehicles need fuel less often, Louisiana has seen its fuel tax revenue decline as a result.

The audit expects the downward trend in fuel tax revenues to continue as vehicles become more efficient. Louisiana’s 20 cents per gallon tax remained unchanged longer than that of all other states except Mississippi and Alaska. If it had increased according to the indexes of consumer prices and highway construction costs, the tax would currently be 49 cents.

The state has already taken into account the impact of electric and hybrid vehicles on its future fuel tax. Starting January 1, owners of electric vehicles and hybrid vehicles will be charged annual fees of $100 and $60, respectively, to account for their use of the road and make up for what they’re not paying in taxes. on fuel.

The audit predicts that $563 million in fuel tax revenue will be lost over the next 10 years as more consumers buy electric vehicles, but calls for the new fees for electric and hybrid vehicles make up the difference.

“We have anticipated that these charges will be sufficient to offset the impact of externally-electrically charged vehicles on fuel tax collection, but not the impact of more fuel-efficient vehicles. As a result, the state could still lose $322.9 million from calendar years 2023 through 2032,” Legislative Auditor Mike Waguespack said in a letter to legislative leaders.

The audit assumes that electric vehicles will account for 30% of all auto sales by 2032.

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The Transportation Trust Fund is also used to pay for Transportation Infrastructure for Economic Development (TIMED) model projects through a 4-cent levy approved in 1989. Program of more than 5 billion dollars of major construction projects was due to be completed in 2004, but has consistently fallen behind schedule, with major hurricanes adding to the delays.

Debt service to TIMED projects and approved local infrastructure works totaled nearly $310 million from the Transportation Trust Fund (TTF) from 2015 to 2021, the audit calculated.

“In addition, we have estimated that $902.6 million of TTF-Regular funds projected over the next 24 years will be required to supplement TIMED debt, which would also reduce the amount of TTF funding available for the backlog of projects. transportation,” Waguespack wrote.

State lawmakers called for the audit after the state Department of Transportation and Development identified $14.87 billion in unmet highway and infrastructure needs.

The Legislative Auditor recommends that legislators consider linking fuel tax increases to changes in inflation, population or fuel efficiency. Its report also suggests that Louisiana is looking for alternatives to provide “diverse, dedicated, predictable, and sustainable revenue” for building roads and bridges.

As an example, he cites Texas voters’ approval in 2014 to put revenues from oil and gas production into its highway construction fund. The following year, Texas dedicated a portion of its state sales tax, vehicle sales tax, and vehicle rental tax to infrastructure.

In 2008, Florida earmarked a portion of its document tax for transportation projects. Georgia imposed fees, ranging from $50 to $100, on trucks based on their weight to raise more money for roadwork, and it added a $5 per night fee for hotel stays. hotel and short-term rentals.

In Colorado, fees were approved last year for ride-sharing services such as Uber and Lyft, as well as app-based delivery services.

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CALDARE | Ensuring Educational Results for Tax Increases | Opinion https://pilgernebraska.net/caldare-ensuring-educational-results-for-tax-increases-opinion/ Sun, 04 Sep 2022 07:00:00 +0000 https://pilgernebraska.net/caldare-ensuring-educational-results-for-tax-increases-opinion/ Jon Caldara It’s that moment again: the derogation period for factory samples. Isn’t it amazing, just amazing that the warring Douglas County School Board can’t agree on anything but a tiny little thing. They all want more money. So like many of our 178 school districts, they’re reaching out to voters to increase the mill […]]]>






Jon Caldara


It’s that moment again: the derogation period for factory samples.

Isn’t it amazing, just amazing that the warring Douglas County School Board can’t agree on anything but a tiny little thing. They all want more money.

So like many of our 178 school districts, they’re reaching out to voters to increase the mill levy, you know, for kids.

Unfortunately, raising property taxes without measurable guarantees and performance incentives is a recipe for disaster, rewards failure, and is a big reason our state‘s test scores stink.

A bond is just a loan that taxpayers can repay. Luckily, thanks to our Taxpayer Bill of Rights, we can vote on it, which means the school district has to sell us the idea.

They promise that our children will learn more, their test scores will increase, the dropout rate will decrease, fewer children will be hurt in school, fewer crimes will be committed.

Like a boy in the back seat of a car, they’ll tell us anything we want to hear to get us to say yes.

Compare school bonds with a construction loan. You are going to build a new office building and you get a million dollar loan. But you don’t get a million dollars all at once. You get it in increments as different parts of the project are completed.

First you get the money to do the excavation. Once you show it’s done, the bank releases the money to build the foundation. Once that’s done, they release the money to build the framework of the building, and so on.

Why do banks do this? To protect himself. The lender does not want to be held responsible for an asset that does not exist. The builder must prove step by step that he is delivering what he promised.

Steve Schuck, developer and philanthropist in Colorado Springs, has lived with this reality throughout his career as a builder. For years, he has been trying to convince the world of education to live by the same rules.

His idea is ridiculously simple and straightforward: taxpayers should shoot down any factory tax waiver unless there is a measurable educational outcome attached to it.

We are told that taxes are raised so that children can learn better. Well, if that’s really the case, the money can be released when certain education milestones are met.

Let’s say a quarter of the total bail amount is released upfront so the school district can start doing the promised work.

Then, when certain benchmarks are met, such as district test scores improving to a certain level on a certain date, the next tranche of money is released. Perhaps when drop rates are reduced to an agreed amount, the next tranche is released.

Pledges can be structured as the district wishes, but there must be measured improvement by a specific date to get the rest of the dough.

The bank backing the loan for the office building has a built-in incentive to release money this way: it’s their tuchu that’s at stake. Bond dealers don’t. The taxpayers are going to pay them no matter what.

You see the problem here. The guy getting the loan, the school district, certainly doesn’t want to guarantee the results and the guy giving the loan doesn’t care, his “customer” doesn’t pay back the loan — captive taxpayers are.

No wonder Steve Schuck couldn’t sell this simple and powerful idea.

The bad guy is not the school district. They just want more money – they always have it, they always will.

The villain is not the bond merchant. They are soulless – they always have been, they always will be.

So who are the bad guys? Who should we blame for the catastrophic state test results? It rests at the feet of the “education booster class” who advocate higher taxes with no guaranteed results.

Community leaders, the PTA, chambers of commerce, newspaper editorial boards and other influencers, if they really care about children, should be the ones to withhold their support unless the link is tied to results .

And imagine how easy it would be for boosters to sell the bond to their community with performance guarantees.

Until school districts are ready to put any guarantees on student outcomes, there should be no more factory checks in Colorado.

Unless of course we don’t really care about children.

Jon Caldara is president of the Independence Institute of Denver and hosts “The Devil’s Advocate with Jon Caldara” on Colorado Public Television Channel 12. His column appears on Sundays in Colorado Politics.

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The Fog of Tax Increases Part Two – Pagosa Daily Post News Events & Video for Pagosa Springs Colorado https://pilgernebraska.net/the-fog-of-tax-increases-part-two-pagosa-daily-post-news-events-video-for-pagosa-springs-colorado/ Fri, 02 Sep 2022 11:10:55 +0000 https://pilgernebraska.net/the-fog-of-tax-increases-part-two-pagosa-daily-post-news-events-video-for-pagosa-springs-colorado/ Read the first part The Pagosa Springs City Council engaged in a heated conversation yesterday, around a single issue. Should the Council support a $6.5 million sales tax increase ballot measure originally proposed by Archuleta County Executive Derek Woodman a few years ago? month? By a vote of 4 to 2, the Council agreed to […]]]>

Read the first part

The Pagosa Springs City Council engaged in a heated conversation yesterday, around a single issue.

Should the Council support a $6.5 million sales tax increase ballot measure originally proposed by Archuleta County Executive Derek Woodman a few years ago? month?

By a vote of 4 to 2, the Council agreed to support the ballot measure.

$6.5 million is only an estimate of tax increase recoveries, for the first year. Maybe more, maybe less. But if the $6.5 million estimate is correct…and if inflation in America stays around 8%…well, that could represent a big change in government, over the next 10 years.

According to my pocket calculator – and based on the current rate of inflation – this proposed sales tax increase would, over the next 10 years, extract approximately $94 million from the general public and route to county and city bank accounts. At a more “normal” inflation rate of 3%, the proposed tax hike would total $74 million over the next decade.

The timing of the Council’s discussion was important, as the Archuleta County Board of Commissioners is expected to make a decision on the proposed ballot measure at its regular meeting on Tuesday, September 6 at 1:30 p.m.

As currently proposed, the tax would be perpetual. The County could have proposed a tax that would “die off” after a few years, to give voters more control. But maybe the County doesn’t trust us?

This is a relatively simple process for proposing a tax increase, whether temporary or permanent. But when a county sales tax is perpetual, it’s nearly impossible for voters to get rid of it.

Ahead of yesterday’s Council vote, Mayor Shari Pierce – one of the Council members who ended up voting to go ahead with the proposed tax increase – invited the public to comment on the matter.

But first, City Manager Andrea Phillips gave council an overview of all the ways the city government could spend its share of the money. Which, according to my calculations, could be between 40 and 45 million dollars over the next 10 years?

Next, local activist and former city council member Mark Weiler rose to address the council.

“Thank you, Mr. Mayor and members of council, for giving me the opportunity to share some thoughts with you.

“Number one. What I’d like you to consider doing is using the internet, with this search phrase: ‘Impact of sales tax increase on low- and middle-income families.’ Probably the most respected in the business world is Bloomberg, and I think you’ll find writing there about the devastating effects of higher sales taxes on low- and middle-income families.

“Number two. What I would like you to consider is what increase in sales tax collections has the City enjoyed in the twenty years I have been here. Knowing that your current budget is $10 million, generated by sales tax revenue, it’s really staggering, compared to what it was when I came here.

“Number three. The most significant change in sales tax revenue occurred as a result of the Supreme Court’s ‘Wayfair’ decision, which required businesses to collect sales tax based on the location of their business. purchase. You’ve had a massive increase in your income, here in the City…”

I’m going to interrupt Mr. Weiler here to clarify that statement. In 2018, the United States Supreme Court upheld the right of the state government of South Dakota to collect sales tax on internet sales, and subsequently many other states – including Colorado – began to require that sales tax be paid on Internet purchases, and remitted to state and local governments. Paid by the consumer, of course.

In 2018, the city of Pagosa Springs received sales tax only on local purchases, amounting to approximately $5.1 million.

In 2022, the city expects to earn $8.8 million from purchases made in Pagosa, as well as Internet sales made by people having their purchases shipped to a location in Pagosa.

Mr. Weiler continued.

“The next thing I want you to consider. When you say we’re only talking about a 1.5% sales tax increase, my fellow lawyers use a polite term: Dishonest. A polite term, to tell a lie. The actual increase you are looking at is 37.5%.

“37.5% cost increase for low- and middle-income citizens of Pagosa Springs. I find this unacceptable. I think you should too.

“The last thing I would like to point out is that one of our county commissioners was quoted by the [Pagosa Springs SUN newspaper] saying, “The voters are responsible for putting us in a very difficult financial situation, because they rejected our request – twice – for a sales tax increase.”

“That is not an accurate statement. The commissioners have put the citizens in a terrible financial situation by not paying attention to the opinions of the citizens. »

I’m going to interrupt Mr. Weiler again here to clarify that last comment. In 2017, and again in 2018, the Archuleta County Board of Commissioners proposed a 1% sales tax increase to fund a new county jail and “justice center.” Both times voters rejected the plan and the sales tax increase. The BOCC then went ahead and built the jail and justice center anyway, using “certificates of participation”…and putting the county taxpayers in “a terrible financial situation” (to use the words by M. Weiler).

Mr. Weiler continued his comments.

“I think the city of Pagosa Springs has always been the leader in Archuleta County. It wasn’t the county commissioners. And I understand the county commissioners’ desire for more revenue, to cover up their past mistakes. But I urge you not to be complicit in this.

Mr. Weiler was not the only person to urge the Council to refrain from supporting a ballot question on the 2022 sales tax increase. The most telling analysis of the many reasons for that this proposal was inappropriate came from Council member Brooks Lindner.

I believe that Mr. Lindner is the only Board member who has been instrumental in bringing about a successful tax increase here in Pagosa Springs, which he did during his tenure on the Archuleta School Board. This two-year process involved many community gatherings and a well-organized marketing campaign.

It also meant, ultimately – at the end of this process – a significant reduction in the amount of the tax increase that the school district was asking the community for.

Even here in “financially conservative” Archuleta County, the ballot measure passed by a healthy margin.

We will hear Mr. Lindner’s appeal to his fellow Council members in Part 3 on Monday…

Bill Hudson

Bill Hudson began to share his opinions in the Pagosa Daily Post in 2004 and cannot break this habit. He says that in Pagosa Springs, notices are like vans: everyone has one.

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KiwiSaver U-turn: fee tax proposal dropped after opposition https://pilgernebraska.net/kiwisaver-u-turn-fee-tax-proposal-dropped-after-opposition/ Wed, 31 Aug 2022 02:31:22 +0000 https://pilgernebraska.net/kiwisaver-u-turn-fee-tax-proposal-dropped-after-opposition/ Luxon and Ardern on the government’s U-turn on a Kiwisaver tax. Video / Mark Mitchell The government has backed away from a proposal to tax fees on KiwiSaver funds. The proposal would have forced managed funds and KiwiSaver providers to pay a flat 15% GST on fees. The government’s pushback comes after a chorus of […]]]>

Luxon and Ardern on the government’s U-turn on a Kiwisaver tax. Video / Mark Mitchell

The government has backed away from a proposal to tax fees on KiwiSaver funds.

The proposal would have forced managed funds and KiwiSaver providers to pay a flat 15% GST on fees.

The government’s pushback comes after a chorus of opposition to the move, including National Party leader Christopher Luxon, saying his party would push to end “pension tax”.

On the AM show this morning, Luxon said Kiwis would be angered by plans to charge GST on fees paid to KiwiSaver accounts from April 2026, which could net the government millions of dollars per year in additional income.

“It’s such a bad idea; a retirement tax while we’re trying to get people to KiwiSaver just doesn’t make sense,” Luxon said.

“It can’t stand, it’s a very bad idea.”

Prime Minister Jacinda Ardern said the turnaround was the result of comments from fund managers.

“It was clear to us that we had an uneven playing field in how GST was applied to fees and services. Ultimately, however, we felt we were fixing the system for these service providers. We heard very clearly from them, they don’t believe that’s what it would accomplish,” Ardern said.

Revenue Minister David Parker continued to champion the change.

He said that after the proposal was released, KiwiSaver’s small vendors made it clear that they opposed the move.

“During extensive consultation, opinions were divided on the merits of technical change. Larger companies benefiting from the current setup were opposed to the change, while smaller suppliers were more supportive of the change. Indeed, those suppliers who charged the full GST on their service fees faced unfair competition from the bigger players.

“However, since the announcement, it has become clear that smaller suppliers are also opposed to it,” Parker said.

Parker said he was “proud” of Labor’s history in Kiwisaver’s introduction.

“I am proud of Labour’s role in introducing KiwiSaver and its role in securing the future of New Zealanders. We will never do anything to undermine it.

“In contrast, National will not commit to maintaining KiwiSaver in its current form, and cannot be trusted to support this important program. When last in government, National dropped the Kick-Start payment and introduced a tax on employer contributions,” Parker said.

Parker dismissed the idea that the tax was a tax on KiwiSaver — the tax was a tax on KiwiSaver fees, which regulators said would cause KiwiSaver balances to drop, he said.

“This was a proposal to equalize GST on fees paid to KiwiSaver vendors,” Parker said.

Murray Harris, head of KiwiSaver at Milford Asset Management, said the government’s change in stance was “reasonable”.

“Obviously, it generated a lot of debate.”

He said adding GST to the KiwiSaver fee would have been another disincentive for Kiwis to save for retirement.

The introduction of New Zealand’s pension scheme means that KiwiSaver members are already taxed on their earnings before contributions are made to KiwiSaver and are also taxed on investment returns. Many other OECD countries provide tax exemptions for this purpose.

A 2018 OECD report found that New Zealand had the second-lowest tax gain on its retirement savings.

Industry body KiwiSaver, the Financial Services Council, also welcomed the government’s decision.

“This is the right decision by the government and one that will benefit New Zealanders’ retirement savings in the long term.

“At the heart of the matter is good pension outcomes for all New Zealanders, and as an organization with a vision to increase the financial confidence and well-being of New Zealanders, we believe that a tax GST on KiwiSaver fees was not conducive to this goal.”

The Autorité des marchés financiers, the government’s regulator, warned that the fees would be passed on to consumers and cause KiwiSaver balances to drop by $103 billion by 2070.

The proposed tax bill was introduced in parliament yesterday to change the way tax is applied to service fees charged by managed funds, which are currently not subject to GST.

The Inland Revenue has calculated that the proposed change will add about $225 million a year to government tax revenue.

Financial agencies and GST experts have warned that the tax will hit KiwiSaver balances hard and will be passed on in the form of higher fees, while the opposition has described it as “yet another tax grab. .to swindle New Zealanders out of their hard-earned money”. “.

The Financial Services Council of New Zealand (FSC) has also described proposed changes in the Tax Bill (Annual Rates for 2022-23, Platform Economics and Remedial Matters) as legislative “overruns” and a “sub-optimal outcome” amid a cost of living crisis.

The new rules would have raised the GST on fees for managed funds and KiwiSaver to the standard rate of 15%. Currently, the tax treatment of these funds varies.

Modeling by the Financial Markets Authority (FMA) warns that the tax and its cumulative effects would reduce KiwiSaver balances by $103 billion by 2070.

This compares to total KiwiSaver balances which are projected to be $2.196 billion in 2070.
Non-KiwiSaver funds will be hit by $83 billion. The total fund balance in 2070 would be $1757 billion. The figures were included in a Regulatory Impact Assessment (RIA) released with the rule change.

This amount of lost savings was equivalent to more than half the size of New Zealand’s GDP in 2022.

Individual savers with balances of $100,000 could have lost about $20,000 over 25 years.

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