Wednesday, January 11, 2012

Tax relief

Gov. Otter has called for, I think, $45 million in tax relief, targeted for business and corporations. And wealthy people. But, he's left the details up to the legislature. It's this last point that leaves me scratching my head.

If there is a need for tax relief for a particular reason, fine, let's target that. But just an across the board cut, from 7.8% to 7.6%* doesn't seem like it changes incentives or business calculations. I mean, .2%? .002? Is that the difference in a business moving here or not?

I'm sorry Governor, but this just sounds to me like you've tossed in "tax relief" just to sound good, to keep up the banner of being a tax cutter.

*I'm going from memory; no time at the moment to add a link. So if I botched the numbers, please correct me in the comments.


ericn1300 said...

The .2% cut is supposed to bring the individual tax rate down to the corporate tax rate and make everything equal. The dark side of the tax cut is that it won't help individuals like you and me much but it will be a huge break for a few millionaires that file as individuals. It comes out to $63.00 for the average wage earner or $200,000.00 for a millionaire. Add an additional $200K per million and pretty soon your looking at some real money.

Anonymous said...

Of course. Populist rhetoric, benefiting only the very few.