Tuesday, January 12, 2010

How it affects the little guy.

I just have a little something to say about Measures 66 & 67. It increases taxes on those big corporations and evil rich people right? Sounds like Robin Hood …rob from the rich to give to the poor.

Wrong.

Dan & I, we aren’t poor enough. But we most definitely aren’t rich. I suppose you’d call us middle class. We have a house, a couple cars; we both have jobs to support ourselves so that we aren’t beholden to anyone. We aren’t living off the Dole or other people’s charity. We take care of ourselves & our family. And we take pride in that.

Now Dan works hard at a company called McGuire. Great company; really takes care of their own. We have been so grateful that instead of laying people off with hard times they just tightened their belts. No bonuses or pay raises for awhile.

Well Dan & I were counting on him getting pay raises each year so that he would ultimately be making enough to support our family & I would have the blessing of staying home with our children. This is a desire very dear to my heart.

So back to measures 66 & 67. They raise taxes on businesses; they will be taxed on their gross profits, not on their net. That means that even if a business is losing money they will still be charged taxes at the high rate. The $10 minimum tax they keep speaking of is for businesses who are not profitable, who are losing money. When a business is profitable they get charged a high rate of taxes, just like everyone else.

What does this do to McGuire? It makes an already burdened company not make as much profit. That means its employees (ie: Dan) will not get a raise at best. At worst, Dan will join the thousands of private sector employees who have already lost their jobs. All this so that the Oregon State government can continue to add jobs(they have already added 5000 since the recession began) and give raises to their employees who have already received raises even since the recession began.

That means it will be just that much longer until Dan is able to make enough to support our family, & I will be able to be a stay at home mother & take care of our children.

So you see, it doesn’t just come from the corporations & the rich. It trickles down & affects the very people they are claiming it will “protect”. By economist's estimations this will cost the loss of approximately 70,000 more jobs in Oregon.

So thanks alot, all of you who plan on voting yes on these measures.

Way to stomp on my dreams of getting ahead in this world and being able to stay at home with my babies.

Please vote no on 66 & 67

12 comments:

Anonymous said...

I'm voting Yes on 66 & 67, but it's not to stomp your dreams. It's to try and stop my job from cutting my bottom-tier pay once again and to prevent them from making me take more furlough days (which they've said will happen if 66 & 67 fail). It's so I can continue to put food on the table to feed my family and a "rented" roof over our heads. Your reasons to note "No" are basically the same reasons I am voting "Yes". I have dreams too.

Lindsay Marchant said...

I totally agree Carina. I think if is funny that people think that when you tax businesses it doesn't affect us "middle-class" folks. I just don't get it! I say that cutting bottom-tier pay and taking furlough days is a heck of a lot better than not having a job at all (to anonymous). If companies have to pay more they will have to cut more. Which means instead of paying people less or having furlough days here and there because of a tight economy(which my husband has to take more than I would wish) they will simply have to cut jobs altogher! Why?? Because there will not be enough money to pay for all the workers, expenses AND extra taxes. Isn't it funny that businesses realize they have to cut hours, bonuses, jobs, etc when the money isn't coming in, but the government NEVER does. It seems that we are giving enough to the government, but SO much is wasted. If they would spend it AND cut it,in the right ways, there would be plenty. Also, there is a reason tithing is 10% for EVERYONE! That is fair! Wouldn't it be CRAZY if you had to pay a much higher % to tithing because you made more. Enough of my rantings! I appreciate your blog. You always say the things I am thinking!

Carina & Dan said...

Thank you for your comment Lindsey, it is nice to know someone understands. And to "Anonymous" don't be chicken. How can we have a discussion if you hide. If you feel good about getting youself a raise at other's expense then don't act like you are ashamed.

POST SCRIPT: The commericals make it sounds like the evil coorperations & rich will "pay their fair share."

Makes you think you'll get a piece of that pie or something.

This is untrue.

This tax hike does not personally benefit the individual citizen(well maybe if you are a government employee like Anonymous). It just lowers everyone. There is be less profits, less jobs, and more government welfare.

Teresa said...

I do see your point Carina and I have the same fear, however it doesn't outway the other concerns I have for our poor state. The government has HAD to add jobs BECAUSE of the economy, the government given $ for unemployment, food stamps, OHP, and any other government funded program handing out money has largely increased it's need of employees. I also know that government employees are forced to take furlough days which actually is a PAY CUT to them, AND many of them are not getting raises or even cost of living adjustments!

I know from my previous job that when the economy goes south the more children we have coming into the foster care system (stressed families can harm the children in them, there are raises in drinking and drug abuse, then abusing of children or complete neglect - as you know, I've seen absolute horrors done to innocent children), thus needing more employees to maintain child safety in our area and more money needed to care for these children, providing services (health care, food, shelter, counseling) they desperately need. We also work with the parents of course, offering services to help them not only better themselves but also to make them a safe parent again so they can get their children back. Also, when there are a lot more children coming into care, Child Welfare Workers are working many, many more hours than their alloted 40 hours a week AND are unable to claim ANY overtime. So not only is it a CRAZY stressful job, but it also isn't paying the employees doing it. This also includes the court system, remember we also had to shut down the courts on Fridays because there wasn't enough funding, which then backs up the other days and then cases aren't getting the needed attention and the courts just have to fly right through them. I know that if I had to go to court for something, I'd like to have everyone's full attention so my side could be heard in full.

The other horrible thing is that Lane County will most likely not get any more money from Secure Real Schools (timber funds) like we have been. Oregon and Lane County citizens NEVER vote to increase taxes, even a tiny gas tax to help cover safety costs. The money has to come from somewhere. Remember the scare last year and we went down to MINIMUM police force and jail beds?! We are already letting non-violent offenders (I'd prefer not to have the thousands of pot smokers behind wheels of vehicles, thank you) back on the street, and not charged for any crime, in the same night IF they are even arrested! I don't know about you, but public safety is a grave concern to me and those I care about.

And I don't think the commercials in favor of 66&67 makes people think they are getting a piece, no, it tells me that these companies need to payup as they have been getting off REALLY easy since the 1930's! Individuals are taxed, why not corporations. Measure 67 raises the minimum tax from $10 to $150. There is more detail as to how much a company makes to how much they would owe if it were to pass in the Voter's pamphlet.

Anyway, public safety to me is a big deal, which includes child safety.

I do see your point too, though. It is a rough thing, very rough. It just doesn't help that we already have a very poor state.

Brandi said...

I think that if the politicians would make a decent salary instead of an outrageous one we would not have to scrimp for out monthly salary at all. I didn't realize that the businesses would be taxed on gross and not net. That is ridiculous. I am doing an accounting program right now and that is just not right according to me. But what matter do the little people voices make?

Carina & Dan said...

Thank you for your comments Teresa. I really respect what you did to help children as a social worker.
Unfortunately when our state makes cuts Public Safety is the first thing they go for, since they know people won't like it & will have to give them more money. It is very dishonest what they do. There are so many other pointless pet projects & areas that can & should be cut, but they don't. That is why I still can't support it, I won't be manipulated like that. Until they learn to manage the money better & put it towards things people actually care about (like public saftely & schools) I cannot support it.
Plus when it costs our state another 70,000 jobs that won't make a our state any more well off. That is make 70,000 less people paying into the system & that many more family's that will become dependent upon State aid. It is unsustainable.

But we still love you guys though, even if we disagree on this :)

Carina & Dan said...

Thank you for your comment & support Brandi

Teresa said...

(this is Dave now, btw) Why is it that you believe the 70,000 job number provided by one third party, but not the other numbers provided? Also, the reason why they don't cut pet services and things like that is because taxes and government funds are HIGHLY regulated and have restricted allocations as to how the money can be spent. Measure 66/67 affect the General Fund, which is the fund dedicated solely to education, health care, and public safety. These measures will raise $733 million for the state, which in turn will leverage another $800 million from the feds. If these measures do not pass, it will cost the state $1.5 BILLION! Do you not think that won't kill jobs? Like nearly all taxes, they come off the gross, not the net. Look at your personal income tax, that is taxed off the gross for everything, with the exception of a few programs like Cafeteria Plans (Flexible Spending Accounts) or 401(k) programs (which you taxed on later). That is not uncommon. The company pays 0.1% tax if it makes more than $500,000 in revenue and any other tax if only if it is profitable. Businesses will either pay the minimum tax or the profit tax, not both. Also, do you really believe that a tax structure established back in 1931 is the BEST way to deal with the complex business and tax structure of today? Also, it really isn't fair to say that government hasn't been "tightening their belts like the rest of us" either. Lane County has cut 60% of its overall budget from 2003 until now! I'd say that's a HUGE cut. The state has implemented several cuts including, like you mentioned with Dan's work, salary freezes. In addition they've added furlough days, unpaid holidays, and longer work requirements... to name a few. Government workers NEVER get bonuses, so that isn't even an issue. Finally, don't you believe in capitalism too? I know I do. If a business is not profitable, should it continue to exist? If not enough people want the goods and services the business provides, than entrepreneurialism, innovation, sales, and creativity must prevail in order for the business to expand and become profitable. I understand that can take time, but that is where industry and capitalism thrive: lenders, stakeholders, and the like must take on that risk associated with making the business profitable.
Anyway, we could talk about this forever! I want you both to know that we love you guys so very much! I understand that this can be very sticky. I also just wanted you to know our perspective on the whole thing too. This is the balance and difference between the public sector and government and it is VERY complicated. I'm SO GLAD you are interested and pay attention and gather what informatino you can to make the best, most informed decision you can. I hope you know, we are doing the same thing. Its not YOU against US, its us making what we hope and believe to be the best decision possible.
Once again, love you guys!
Dave

Carina & Dan said...

Hey Dave this is Dan, I just wanted to thank you. You gave me a good laugh, not trying to be mean. I have never commented on a blog before. "Don't you believe in capitalism too", wow! If a business loses money, should they istantly shut the doors?! Maybe, but as a private business they get to decide. my company could definitly lay people off to save money and be more profitable, but as private company they (the owners) have the right to keep all their employees and branches open. The Goverment whose owners/boss are the citizens of this state. Yet if they run short on how much they want to increase spending they just take more money at the point of a gun. Now this is a state tax not a county one which I know is your area of expertise. The state has money in a rainy day fund for, I guess a day like today? because it's raining. Oregon HAS increased spending in many departments. Some are justified, some not. If I (a citizen) was running short of money I wouldn't stop paying my morgage or electric bill, but I could cancel cable, the internet, or stop eating out - nonvital expenditures. The goverment spends this money first then says we need more. You talk like it is a good thing the state getting another 3/4 of billion dollars from the taxpayers. So let me ask you (I know you are a business-smart guy) where does that money come from? If a business makes a profit do they just hide that money in a hole somewhere? You know they don't. They pay dividends which are taxed, they pay their employees which are taxed, they make capital improvements which are taxed, and even if they do pay those "evil bonuses" to employees the goverment usually taxes over half of it! You use the example of our pay checks being taxed out of gross, but our entire paycheck is a profit. If I had business expenses I would have them deducted from my taxes. There's more, but we can get together somtime for a lively debate. Still friends, Dan

Carina & Dan said...

Carina here. I agree that it is not us against you. I just get so frustrated sometimes & feel utterly powerless to do anything about it. So it comes out in a bitter rant. Nothing against you guys. We all have to do what we feel is right.

Teresa said...

I'm glad I was able to inspire you to join the blogosphere with a comment! :) I'd love to get together to have a lively chat, I know we'd have a good time! AND, OF COURSE, WE'RE STILL FRIENDS! :) I don't think something like politics could break that up. Especially since you and I agree on like 90% of political issues anyway. Anyway, you guys are awesome! We'll have to get together soon to have a very fun chat... can't wait :)

Annie and Jake Callister said...

That was really fun to read :) Jake and I can provide fans and gatorade for this said "Chat."

Personally I am still torn on the issue and need to decide by today so i can drop my vote off at the box.

p.s. I can still be persuaded either way, but only with a little help from chocolate and 20 dollar bills! :) j/k