New Things to Tax

As the lege ponder raising the tax on beer, while already raising the tax on ciggies, I've been pondering on how else the State could raise funds. Of course, we could always pass non-regressive taxes, like based on actual income, but I don't want to go into the field of... beyond the beyond.

Lawn care. Everyone does it. Tax it. It applies only to owners/renters living in their actual residencies. Mowers & trimmers (electric only) would have readers on them like gas/electric. Hopefully, people would do less, save all our ears, slow down air pollution, blah, blah. Ah, peace & quiet.

Farting & burping. Also not good for the environment. I say fine 'em when in public places. Make it hefty. Hey, we could make a lot of money here. Heck, hang around those places that sell the beer!

We seem to be overly concerned with sex & who's having it. So... let's tax it. B&B's, hotels, could collect the tax for us. Just assume everyone is having it, point out the nearest drugstore, & presto! If they refuse, call it an abstinence tax. Those people definitely cost us $. They have federally fundated programs in the hundred millions, don't buy Viagra, & put that darn sex-toy shop out of business in Portsmouth. I say, tax the abstainers even more! Forget prostitution laws, go for the gold!

Wa-a-ay too much time on my hands.

Taxes, taxes, taxes

Projo ran an interesting article the other day wherein they mentioned the Guv's wanting to eliminate income tax. Instead he wants to tax expenditures because... he does. Oh, wait a minute. It will grow jobs, yeah, more trickle-down economics which has worked so well not only for the state, but the entire country as a whole. I thought that this was why we enacted the flat tax for R.I.'s wealthiest tax payers (over $250,000) & reduced the capital gains tax? So...where's the jobs?


This year alone, the state’s income tax is expected to generate $1,124,235,000 for the state and the corporate income tax $161 million."


So 42 states have no income tax: "New Hampshire (which taxes investment interest and dividends only), Tennessee, Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming." Yes, we have a lot in common with those states.


"Rhode Island ranks 24th-highest in the percentage of personal income gobbled up by personal income taxes and by the same measure, 28th-highest in corporate income taxes and 38th in sales taxes."


R.I. often ranks highly in various tax surveys that lump all taxes together because of our property taxes. It's not the sales tax, or the income tax, or the corporate tax- it's the property tax, stupid. And this doesn't appear to offer any help here.

The problem now of collecting taxes will fall on...guess who- small business. You'll need extra bookkeeping, of course. And suppose you can't collect? And who is going to enforce all this? How are you going to trace it out, let alone base revenue projections accurately? Yeah, the devil's always in the details. How much extra will small business end up charging to cover all this new overhead cost?

Sounds good until you actually get to the how-to's. So, how much are we all going to save? How much is all of this going to cost? Europeans generally tax both- income & expenditures. I just don't see how you can keep gov't functioing by taxing only the later. But maybe, that's the point. Am I favor of tax reform? But what poses as a simplistic solution is anything but. If it sounds too good to be true...

Thanks to Projo reporter Katherine Gregg for all the info

Saving Financial Markets vs. Good Schools

I'm having trouble with this. It's a-ok to throw money at troubled markets with little oversight. It's not okay to do this with schools. How many times have I heard it said that throwing money at education wouldn't solve any problems? Sure it would. We give them hardly any federal $, few state dollars, & bury the local property owner with taxes. Then we inundate our schools with benchmarks, testing, & standards. We punish them & place schools on public lists for non-performance. But for financial markets, we just hand show them the $- immediately.



I'm confused. What are our priorities as a nation? Well, clearly if there was ever any doubt, we know what they are now. The only good news as I see it is that it will be difficult to keep funding two wars & this many finally spell out its demise.



Let me recommend an excellent book for you readers out there who wonder how we got outselves into this mess. I rec'd the heads-up from Bill Moyers who frequently has him on his show to explain all matters financial. It's not an easy or quick read, but extremely informative & I enjoyed his observations.



It's by Ken Phillips, a former Nixon financial advisor- remember the reverse tax? The gov't paid you $ if you earned below a $ amount. Yes, this was a Republican proposal- oh, for the good old days. The book is "Bad Money." If you're fuzzy of some of this financial stuff, give this a read. I sometimes now explain things to my hubby & he's a whiz at all-things financial. I need to give it a quick re-read with all the current buzz. This guy was looking through his crystal ball & was right on the money (no pun intended).

Both political parties have no-where to hide on this one. Both can & should be held accountable. But John McCain??? Please. Just more foxes in the henhouse. Gee, isn't that a book, too. "Fox in the Henhouse: How Privatization Threatens Democracy." Next on the list. Try the public library or your local bookstore.

Corporate Welfare in Rhode Island

This Projo article caught my eye a few days ago. Capital Properties is now a publicly owned business. This means that it must observe certain public filings regarding its ownership, directorship, and monies. It is now becoming a privately owned company which means- none of the former.

Why should this be of concern? It's important to know what the business does. When the downtown r.r. station was rebuilt, Capital fronted half the monies needed for a new 330 car parking garage with the FRA (Federal Railroad Admin.) putting up the other half. It now owns this property. Sounds like a good deal to me.

The Chair of this company is Robert Eder who is also chair & CEO of the Prov. & Worcester Railroad Co. (a Del. corp.) His wife, Linda, own 53.2% of Capital Properties. Eder bought out the r.r. (1966) that owned much of the land involved in the redevelopment of Prov. It was both public & private funding which financed the "Renaissance City" & is still doing so.

Eder has done quite well with his initial investment (he is a Harvard grad with both R.I. & N.Y. law licenses). He makes over half a mil with the r.r. & a quarter of a mil with Capital Properties. Capital Properties is a spin-off of the r.r., now leasing the valuable real estate upon which many buildings sit. For instance, it leases land to the new Blue Cross building & owns the land under oil refineries- all quite profitable. No wonder my Blue Cross rates continue in their ever upward spiral.

Eder is a frequent campaign/PAC contributer. He contributed both to the Kerry campaign and the Swift boaters (he is a veteran after all). He frequently contributes big bucks to the 2nd largest pro-Israeli Pac in the U.S.

Now Capital Properties is becoming a privately owned REIT (real estate trust investment). This designation "minimizes or eliminates its federal corporate tax liability." (Projo) It may also do so with state taxes., So I'm wondering how many of you individuals or small business owners have had your federal taxes reduced/eliminated recently? I hesitate in even referring to this as corporate "welfare" as its an insult to those individuals receiving barely subsistence level assistance. Rep. Amy Rice intro'd legislation to end this tax loophole in R.I. which shelters income, but I believe that it died.

So thanks to the citizens of Providence and Rhode Island and the federal government, we've made a few investor/owners very, very rich with very, very little cost to themselves.
And now no cost. Ain't life grand? No wonder the local, state, & federal coffers are so low. Feeling the big bucks trickling down yet? BTW, Eder calls a Palm Beach condo his home now after selling a previous Florida property for a cool 2.25. mil. Why not? Plenty of tax shelters there, too.

Thanks to Projo's reporter Timoth8y Barmann for the article.

Meal Tax Revenues

Projo is reporting that for Feb. these revenues went up an average of 7%.

Dale J. Venturini, president of the Rhode Island Hospitality and Tourism Association, said she was not surprised that February was better this year than last. “I’m encouraged by it, but it’s much lower than I expected it to be.”
She said that a number of new restaurants have opened in the last year and that the economy in February had not yet become as “dreadful” as in March and April. She said data for those months, the first of which is due out in a few weeks, could be telling.

The State collects 8% tax & returns 1% to local gov't. Here is the rundown:

Little Compton- Feb. tax $880, Daily Av. $30; Feb. 07 tax $1,029, Daily av. $37; % change -17.4

Newport- $63,333, $2,184; $69,820, $2,494; -12.4

Middletown $33,719, $1,163; $29,866, $1,067; 9.0

Tiverton $16,009 $552; $16,098, $575; -4.0


I'm supposing that winter hurt most towns while Middletown survives with its myriad of cheap, chains & other reasonably priced establishments.

Thanks to reporter Paul Edward Parker.

Schools Open Again in Tiverton

It's back to school Wed. for everyone after a judge's consent decreet and a state mediator is finally on the job. The agreement ordered that a majority of the school committee be present for the negotiations, including the Chair/Vice Chair. Pretty sad when a judge has to order a school committee to negotiate. Why it took so long for the mediator to get on the job is beyond understanding.
The consent decree means that both sides agreed to it with the judge enforcing it. The School Committee agrees to show up & negotiate, the Union agrees to return to work, a mediatior will be present, and the towns gets its school opened. A fair deal all around. Too bad it could not have effectively done a lot soon without the judge.
The Guv finally woke up & is now meeting with the Dept. of Labor & Training to see what the glitch wash that held up these negotiations with no mediator. "From the governor's point of view, it is a shame that the situation got so far down the road that contract negotiations are allowed to affect the education of Rhode Island students," said Neal [his spokesman]. Duh, where the devil has he been all these years? He's just figured out there is a problem? Dynamic leadership involving education ain't ever been his forte. But he sure does like charter schools. And dislike unions.
This year provided the perfect storm for school funding problems by communities with the lege's basically freezing aid (instead of the guv for a change) while contemplating the results of the report that the State should better fund education which they paid for. This was also the first yr. that property tax caps kicked in. Thank the lege & the guv for all this "wind." Next year may well be better - it's an election year.
Here is the take on the Republican chair on all this: " [strikes are] nothing but an organized effort by the unions to break the law, and the unions have to be held accountable.” "The U.S. Attorney should consider a RICO Act investigation against the NEA, Rhode Island, which is authorizing, and has authorized in the past, illegal strikes by teachers unions. The NEA involvement in these local teachers union strikes amounts to extortion, which is an explicit RICO violation.”
BTW, declaring a strike is not illegal. Actually performing it is AFTER a judge reviews it. Why any teacher is a Republican escapes me. A RICO investigation??
These teachers are asking for raises that don't even cover cost-of-living increases here. They want quality health care. Book 'em, Dano, and ready the noose! I'm reminded of a Molly Ivins quote (boy, do I miss that woman), " It's like, duh. Just when you thought there wasn't a dime's worth of difference between the two parties, the Republicans go and prove you're wrong. "
Let's get these communities who are without contracts, back to work. Let's end this yearly nonsense. And, most of all, let's not forget next Nov. (unfortunately, the guv's got another 3 yrs.)

Major Candidates on Health Care

I've given you the link for a summary of all the major candidates' (both parties) stand on health care from the N.Y. Times. I like Kucinich. I've always liked him. He's constantly undermined by the press/media who make subtle (and not so subtle) comments on his appearance. I just don't care about that. Feel free to comment.

I believe that health care is a basic right. It comes under "life, liberty & the pursuit of happiness." Without good health, you can't do any of these things. I'm also pretty much fed up with our parents who saved & worked all their lives to leave something to their children and leave them zilch because it's all eaten up with health care costs. My mom now pays for for her meds under the new drug prescription plan than she did before. Thanks for nothing.

I do not care for the recent health insurance programs that the Guv & lege have come up with. Better than nothing? I suppose. But this is the best that we can do? Many preventive tests/treatments aren't covered. In bad health? It's YOUR fault. Meanwhile the richest thousand or so taxpayers get a tax break. I don't get it. How many of these "richest" actually generate income in the state (besides their own). They're easily replaced & maybe housing prices would actually decline.

Americans have repeatedly said that they believe health care is a right & are willing to pay taxes for it. At least we'd get a chance then to actually see/use where our taxes our going. Too often now, we have to remind people what they are used for. Perhaps that's because most of us just don't see it for ourselves, while we do see others provided with what we lack.

The poorest do get it. And that's why some of them choose to stay that way rather than take a job which in the end will cost them more than they receive. If the middle class doesn't get a break, then they wonder why they have to foot the bill for others. And well they should.

Perhaps that's the point, though. If we're all angry with each other, that means we're only out for ourselves. And as a societal basis, this doesn't work well for most. But it definitely works out quite well for a handful who are darn good at persuading the rest of us who are too tired, scared, & discouraged to presume otherwise.

***BTW - The discriminating teen likes Gravel who wants health care vouchers.

Fair Taxation Could Give Money to Poor Kids

Today I rec'd 2 interesting e-mails. One was out of Sen. Gibbs' office (as Chair/Co-chair?) of the Joint Child Care Commission requesting members to attend a May meeting on a presentation on "child care cuts and child care in general." Members are urged to attend 3 rallies (none here) to influence the leg to restore $ to the guv's budget. These are good things. However, the IRONY is that Sen. Gibbs' good buddy is the one who made the cuts.

Who will change the budget is Democrats. Her campaigning (as our Sen.) one way or the other is practically meaningless. That's why she encourages her committee to do it.We elect June Knows Best each year because....we do. As much as I applaud these efforts, I wonder where the extra $ will materialize from? Is she advocating other budget cuts or is she asking for additional funds to be raised.

Ah, but Ocean State Action (the other e-mail) and I have a suggestion. There is a new report out from the Campaign for R.I.'s Priorities, "Tax Tricks: Corporate Income Tax Evasion in R.I." "...[Large] corporations, many of them based out of state, avoid paying an estimated $12 million annually in Rhode Island state income tax through the use of just two corporate income tax loopholes.

“It is time for large, multi-state corporations that do business in Rhode Island to pay their fair share in taxes,” said Karen Malcolm, Executive Director of Ocean State Action, which coordinates the campaign. “Businesses like Wal-Mart and Toys ‘R’ Us benefit from our state’s public, yet they are taking advantage of loopholes and forcing a greater share of the taxes onto the rest of us – pay Rhode Island families and small businesses.”

As a small business owner, I certainly agree. I didn't pay like Wal-Mart "...just 2.0 percent of its Rhode Island income in state taxes in 2005, while middle-income Rhode Islanders paid 10.7 percent of their income, and low-income residents paid 11.5 percent of their income." Did you?

"The report outlines the impact of two “tax tricks” – the Passive Investment Corporation (PIC) loophole and the “Nowhere Income” loophole." We are one of the few states offering these tax incentives. These are NOT available to small business owners.

There are three bills out there winding their way through the lege:

1. House Bills 5618, 5619, and 5756, Rep. Edith Ajello (D-Providence)

2. Senate Bills 401 and 437, Sen. Steven Alves (D-West Warwick) and Senate Bill 583, Sen. Charles Levesque (D-Portsmouth).

These bills eliminate the tax loopholes. Good bills. Fair taxation. Let your leges know where you stand. Maybe closing these holes would help fund the child care cuts (among others) the the guv sliced from the budget. Sen. Gibbs, where do you stand? It doesn't say anything on your blog/website????

"Members of the Campaign will team up with Rhode Island Jobs with Justice for an action outside the Providence Post Office on tax day, next Tuesday, April 17, at 3:45pm, to talk to fellow Rhode Islanders who are submitting their taxes about Wal-Mart’s tax avoidance strategies."

Rep. Long Wants New Taxes

Okay, here's a bill sponsored by Reps. Trillo & Long to impose a tax (they call it a fee) of 10% of the gross revenue on owners of billboards located on interstate highways or connectors. Now I don't actually object to this. But these same Reps. (and all the Republicans) voted against Newport changing the way it taxes timeshares which would have resulted in more Newport revenue. And the reason was that they were against any new taxes. This is the same reason that the Guv has twice vetoed the legislation. Sen. Gibbs didn't vote against this, she just didn't vote (although she had voted for it previously). Nice sidestepping. The Daily Snooze really slept though these local votes.


Rep. Bruce Long has another House Bill No.5923 which raises liquor taxes. So is there a difference between a tax and a fee? What? No new taxes except if you drink or use a billboard? There is some fundamental belief system which which is escaping me here. Why billboards? The liquor tax increase goes to help those with drinking problems (guess Long would be the beneficiary here).


The Middletown Council did hold it's session with local state legislators (despite my previous doubts), although the agenda disappeared from its site the week of the meeting. Rep. Long & the Snooze were there. Funny that no one asked him if he'd paid his business taxes yet. Hey, enquiring minds want to know. No, No. We wouldn't want to involve any controversy involving Republicans. When will the Snooze also get on the bandwagon for non-partisan State elections?
Then they can pretend to be truly non-partisan while making endorsements.

Tiverton School Budget Woes

I've included the link from today's Projo for a very well-written article. Under the new current caps, a 5 1/2% tax increase "just under $1 million — is just enough to cover a whopping 20 percent projected increase in employee benefits, which totals $962,244." This is for Blue Cross increases & increased pension costs to the State.

"The president of the Rhode Island School Superintendents Association, Schools Supt. James Halley of North Kingstown, says 'the conversation has moved away from children and the achievement of children.... The conversation is about property tax relief, and that is basically provided to a certain extent on the backs of children or teachers. Essentially what the legislature is saying is that teacher benefits and salaries need to be reduced,' Halley said."

Exactly. That's the point. The Leg will tell you "what, how, & when" but you need to come up with your own $ for the "where." And they've provided the "where" by offering only one avenue - property taxes - which is just another state tax .

Sup't Bill Rearick says that about 1.3 mil needs to be cut from the budget. Goodbye electives like tech ed. & home ec. "Au revoir" to French in the h.s. & "adios" to middle school Spanish. Forget advanced placement courses at the high school and some staffing. And the list is not yet complete.

Hello mediocrity (I'm being generous here). Welcome to the wonderful world of "Many Children Left Behind" because we just don't want to fund public education. Let's welcome its demise and screw those Union people, too (who actually expect to make a decent living). Yes, another example of the "ownership" society. Need help? Well, you're on your own.

Tiverton is also negotiating teacher contracts this year. Glad I'm not on those teams.

District 12's School & Budget Woes

Troubling times in R.I. regarding the budget. Things will probably be as friendly as last year, though, regarding the relationship of the Lege and the Guv. Firstly, it's not an election year, and secondly, the Guv has no control votewise over the leadership. They "wuv" each other now & so there will be little finger wagging over who has gotten us into this mess in the first place.

I am trying a new shorthand way to refer to the Legislature or General Assembly. Somehow "Generals" didn't seem quite right & "Asses" was a bit over the top. So "Lege" works for me (thank you again, Molly Ivins).

No, you won't see any increase in taxes but you'll be seeing huge increases in fees on both the state & local levels. It's already happening in Tiverton.

Middletown is laying off all its non-tenured teachers yet again - 25 this year (Daily News says 22. Who even notices anymore except those involved? But with budget shortages looming everywhere, those rehirings in May/June will no longer be so automatic. What you're seeing in P'mouth is the future for all of us.

The "Newport Daily News" editorial opinion (no link) is upset with the Guv for once again not reimbursing Portsmouth for its group home. Last year during the election it repeatedly creamed Rep. Rice & Sen. Levesque for not collecting this $ (not to mention their opponents). Supposedly this was behind their non-endorsement of them (although it may well have had to do with the position of the stars in the sky at the time or the fact that Democrats have a "D" in its spelling). The Guv then promised to fix it & now he has reneged. Ironic, huh?

I wonder if Rep. bruce J. Long will show next Wed. at the Newport County meeting to examine the feasibility of one large district (held in Prov. after the Lege meets but it is being moved to Newport's Colony House)? I also wonder where their meetings/agendas/minutes are posted? Enquiring minds like to know. The good Rep. has been mighty quiet of late. April 15 ain't all that far away. Hope that he hasn't lost his filing form this year. I heard on WADK the other day that he was going to be participating in a health care forum in Prov. I hope the Guv isn't cutting his former wife's RITE care. Oops, I mean the Rep's former wife, of course. The Governor's wife has her health insurance paid for by all of us. Don't you?

The anticipated cost increase of Blue Cross for next year is 15%. But, you're expecting a like raise, right?

Delinquent Taxpayers

No, I'm not blogging about Rep. Long. Just came upon this site listing delinquent state tax payers.