Comments for Third Base Politics

Comment on Obama’s EPA Again Threatens Ohio Energy & Jobs by Modern Esquire

Modern Esquire — Mon, 10 Jun 2013 18:09:08 +0000

And yet, Sherrod Brown and Barack Obama both carried Ohio last year despite the “war on coal” meme. So, I guess the people have spoken.

Comment on Budget Focus Continues On Right Path by Modern Esquire

Modern Esquire — Fri, 31 May 2013 19:08:00 +0000

It doesn’t cut the entities’ tax, but their owner’s personal income tax on the income they get from their equity share (for S Corps it would be dividends, for LLCs, draws). That’s why it is highly unlikely to generate job creation as these dividends and draws are made AFTER the company has made any decision to expand payroll. Heck, there is nothing in the tax cut that prevents them from getting these cuts if they CUT employment if that increases the size of tax cuts the owners can take. There is nothing about this tax cut that is directed to job creation. It’s just political spin to justify exempting 50% of business owners’ of the first $750,000 of income of business owners.

Comment on Budget Focus Continues On Right Path by Modern Esquire

Modern Esquire — Fri, 31 May 2013 19:04:31 +0000

Um, neither are S corps or partnerships subject to income tax, they’re subject to Commercial Activities Tax. And 20% of this income tax cut goes to peope out of Ohio, according to the Kasich Administration

Comment on Budget Focus Continues On Right Path by Modern Esquire

Modern Esquire — Fri, 31 May 2013 19:02:36 +0000

They can’t if their owners have to take it as profit to qualify for the tax cut… which they do. And not all business owners have a say on whether a company hires, either. So, no, this tax cut won’t create jobs especially since 80% of the business owners getting it will only get $400 a year and just as many already have no employees beyond the owners already.

Comment on Budget Focus Continues On Right Path by Jake3BP

Jake3BP — Fri, 31 May 2013 10:08:15 +0000

Bryan, my understanding is it’s a tax deduction, allowing pass-through entities to cut their taxable income by 50%, effectively cutting their tax liability in half. It applies to all industries.

Comment on Budget Focus Continues On Right Path by Bryan

Bryan — Thu, 30 May 2013 18:40:35 +0000

Jake – thanks for the reply – I still don’t get it. I am not familiar with the details of what the Senate proposed. How does the 50% tax cut for pass-through entities work? Is it a tax credit for corporate earnings? Does it apply to any specific groups like manufacturing? If a pass through business is taxed at the personal level, then how do you cut the taxes for that entity without cutting all personal rates, or at least all personal rates at a given income level?

Comment on Budget Focus Continues On Right Path by Jake3BP

Jake3BP — Thu, 30 May 2013 14:17:46 +0000

Bryan, the only companies in Ohio (to my knowledge) that don’t or can’t file their taxes at the individual income tax level are C corps, which are not subject to the state income tax anyway. In other words, this 50% tax cut for pass-through entities has far more effect in moving the needle for small business job creation than an across the board 7% cut.

Comment on Budget Focus Continues On Right Path by Jake3BP

Jake3BP — Thu, 30 May 2013 14:14:32 +0000

You missed the part about business owners being able to reinvest that money into hiring more people. I don’t care about my extra pizza, but I do care about job creation.

Comment on Budget Focus Continues On Right Path by Bryan

Bryan — Thu, 30 May 2013 13:26:45 +0000

Jake (or others), how does the Senate’s version of the tax cut specifically target small business? Since many small businesses are S corps, and their incomes flow through to individual tax returns, it would seem that an overall tax cut would hit many small businesses along with everyone else. So how do they specifically target small businesses including those that are flow-through entities AND those that are not?

Comment on Stay Classy ODP by Tim Russo

Tim Russo — Thu, 30 May 2013 13:23:12 +0000

See you there!!