In this year’s election, what is the NUMBER 1 ISSUE? JOBS! This is particularly so on Maryland’s Eastern Shore. While some candidates attempt to divert attention from the job exodus we’ve experienced over the last decade by pointing to the government sector, House 38-A candidate John Phoebus has proposed a common sense, positive solution. Phoebus wants to reduce or eliminate the state’s corporate income tax.
Yes, we all know the cries we’ll hear from the left – tax breaks for the rich, we need the revenue, etc. etc. Yet, it is these “rich” businesses that will hire people IN MARYLAND, purchase goods and services IN MARYLAND, and pay myriad other taxes and fees IN MARYLAND if only we can convince them that Maryland is a sound place to be in business.
Unfortunately, Maryland already “enjoys” a reputation as one of the most non-business friendly states in the union. A closed shop state with an oppressive regulatory scheme, the once Free State also taxes the life out of businesses – particularly in comparison to its neighbors Virginia and Delaware.
Phoebus’s proposal, coupled with other common sense changes, could well be the ticket IF our state government is genuinely interested in seeing permanent private sector jobs created for its citizens.
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18 comments:
So, John Phoebus' plan would eliminate corporate income tax in Maryland? WHAT????
Why should corporations not pay taxes when I do? It's bad enough that SCOTUS has given them the same political rights as individuals (in in some cases, more), now corporations would get BETTER treatment under the tax laws? Apparently, John Phoebus is just fine with individuals paying state & local income taxes that end up at almost 10%, but GOD FORBID a business have to pay those taxes!
You want to start class warfare in the state of Maryland, just try and eliminate state corporate taxes. I'd go to Annapolis myself with a torch and a pitchfork. What ever happened to everyone pays their fair share?
Fruitland Generic Citizen -
First of all, his proposal is to REDUCE or eliminate the tax. Second, corporations are double taxed. The corporation pays taxes and then the owners (shareholders) pay taxes on those profits that are distributed to them as dividends.
I can only assume that since you are so opposed to this proposal it is perfectly fine with you that Maryland is uncompetitive when it comes to attracting employers. I guess that creating jobs on the Shore isn't a priority for you.
Black & Decker - GONE! Crown Cork & Seal - GONE! Dresser - GONE! Solo Cup - GONE! And with all of these employers gone; and with Maryland uncompetitive in attracting replacements, get ready to pay even higher taxes.
THERE IS VERY LITTLE THE GOV. CAN DO TO DIG US OUT OF THIS RECESSION.
No one wants to admit this. Tax cuts won't do squat for me when I don't have anybody buying my products in the first place. I'm not going to hire because I don't need to produce any extra inventory. And while artificially pumping money into the system did keep us from going over the brink, we've just about maxed out the short term benefits of this strategy.
If conservatives really want to make a difference, they will sign on to a national campaign to BUY AMERICAN. That includes foreign companies that create jobs here in the US. Imagine how much good the star power of Palin, Gingrich, Rush, Hannity and others could do under this scenario. But alas, these people really are not "looking out for you".
If your an S corp and you lease everything, I mean everything back to your corp you wont pay anything, might even get a refund,ha,ha,ha...Plus you show your earnings are low because of the expense of all your corp leases from you, lease income is not personal income to boot.
Anon 0938 -
I understand your plight. However, you should not look at this as how it will impact only you.
Maryland recently lost out on the Northrop Grumman HQ. We've seen employers leave for other states or foreign shores because of Maryland's high taxes and over regulation.
If more employers are in Maryland then there would be a larger market for your products or services (assuming that your market is primarily local). As for your desire to launch a "Buy American" campaign, I have no problem with that PROVIDED that it's voluntary. Protectionism by the government has never helped the economy in the long run. In fact, it has done great harm. While I try to buy American, I definitely don't want the government dictating that we can't buy imported goods.
No one said "gov. mandated" buy America. I'm talking about a media drive. These folks are so willing to spend their time on the "Obama is a scary socialist muslim" campaign. How about starting a campaign that will make a real difference.
It is such nonsense from Phoebus -- pandering to conservatives about something that will never happen in order to get votes -- that would make him ineffective in Annapolis.
His "cut spending" cry will only result in the others cutting funds for Somerset and Wicomico County, and then saying that should make you happy, now go back to Crisfield.
He would be another "back bencher" from the Shore.
Boy, Julie sure is busy today on Salisbury News.
Phoebus must think we are too dumb to know what would happen to personal income and other taxes if Maryland dropped the corporate tax.
Better keep him in Crisfield.
Mr. Phoebus:
Maryland can solve its fiscal crisis by planting those funny looking trees that money grows on.
I've got some seedlings that I'll sell real cheap if you got the dough.
GA: Who came up with this tactic -- Phoebus or you?
Massive tax cuts like Phoebus is pushing would have dire consequences -- such as reduction or elimination of the state funding -- about 2/3's -- of Wicomico County's school budget. Is his answer to just close down the schools system?
What would happen is massive increase in personal income and real estate taxes.
Face it, Mr. Phoebus -- you ain't ready for prime time.
Anon 1156 -
So your argument is that we should elect someone who is going to "go along" and vote for every tax and spending increase that comes down the pike? Yeah, that really sells.
Anon 1200 -
Go read a decent basic economics text. If the corporate income tax was lowered or repealed there would be an increase in revenue over the long term Maryland would see more jobs created. What about this don't you get?
Anon 1237 -
I wish I could say that I came up with the idea. John Phoebus and Jay Hancock are the only two I've heard discuss this idea and it's a winner.
Anon 1322 -
You and Anon 1200 must have learned economics from the same place. Economics is not a zero sum game.
All the candidates oversimplify economics and their solutions. "I'll do A so B will automatically happnen". Idealogues on both sides eat up these half-baked solutions without much thought or in depth analysis.
I can't believe G. A. Harrison. There are two competent and experienced businessmen, both Republican, running in this race and who is he pushing -- a lawyer. Go figure.
Mr. Harrison:
I'll bet your favorite "decent basic economics text" is "The Road to Serfdom".
Normally I wouldnt consider supporting the candidacy(sp?) of a lawyer either, but I believe that John shares the same affinity for the rights of the watermen and farmers that the late Mr.Elmore did and the truth is he could practice law anywhere but he chooses to stay here on Delmarva.Those are the 2 reasons he has my support.
5:32 you mean one qualified business man and one qualified business woman, the other is a slumlord who inherited his business from his daddy.
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