The new tax increase is the proverbial good news/bad news. The good news for small business especially, is that the tax is designed to effect individuals making more than $250,000 a year, and large corporations. Indeed, Senate majority leader Richard Devlin specifically stated that “This legislation protects the middle class by ensuring that households making less than $250,000 a year will not pay any additional taxes and it protects small businesses by focusing the increase on large corporations.”
Look, no one likes paying taxes, but it is equally true that 1) we are in a bad economy and revenue is drying up faster than ink at a newspaper, and 2) in a civilized society, we all have to pony up and pay our joint bills — for schools, roads, etc.
But that brings us to the bad news. What is the deal with the lack of planning in this state? Our over-dependence on income and property taxes ensures that the state coffers will go through boom and, like now, bust. Is it not the job of leaders to lead, even when it's difficult? Did not our governor get elected promising, at least in part, tax reform?
Watching the Legislature here deal with the economy and taxes is sort of like watching Groundhog Day, except it seems that unlike Bill Murray, we will never get out of this endless loop.