Another incentive for businesses to move to Delaware

New Jersey on the Chesapeake – WSJ.com

There was good news in Maryland last week, where the state legislature voted to repeal a widely loathed tax on computer services. Much less appealing is the way they did it: In place of the tech tax, legislators pushed through a late-night income tax rate surcharge on Marylanders making more than $1 million a year to 6.25% for three years.

Consumers and business groups had fought the tech tax that had many companies considering moving their offices over state lines. Republicans aimed to offset the computer tax repeal by slowing the rate of growth in state spending to 3.7% from the Governor’s planned 5.9%. But Democrats who dominate the legislature jammed through the income tax hike after defeating five attempts to repeal the tech tax without it.

The surcharge continues Maryland’s march up the ladder from a low- to high-tax state. Two years ago Maryland had a low flat tax rate of 4.75% on income of more than $3,000. Last year it made the code more progressive, raising the rate to 5% on single filers earning more than $150,000 and the top rate to 5.5% on those over $500,000. State pols also raised the corporate tax rate to 8.25% from 7%, and the sales tax to 6% from 5%.

As California and New Jersey have shown, a steeply progressive income tax makes state revenue highly dependent on relatively few earners. In good times, those earners do well and the pols spend the excess revenues. But in slowdowns, the state quickly finds itself in deficit, and, true to this form, Maryland’s pols now find themselves on the New Jersey ratchet to ever higher rates.

As state Senate Minority Whip Allan Kittleman pointed out, many of Maryland’s so-called millionaires are actually small businesses that pay taxes through their proprietor’s personal tax returns. With the state’s economy struggling, wise money would avoid cudgeling a sector that has grown to more than 440,000 small businesses statewide. They now have another incentive to move to Delaware.

The only thing that might save Delaware’s economy is that the Democrats in surrounding states understand economics even less than ours do.

Employers warn that minimum wage increase will reduce employment, Senator refuses to listen

Some employers fear minimum-wage hike | delawareonline | The News Journal

Dukart said his company, which employs about 700, has very few workers earning minimum wage, and those who do usually get a raise within a year. Nonetheless, the proposal would drive up his labor costs for those earning the minimum and put pressure on him to increase other wages.

“From a business standpoint, we’re getting hammered on every end,” Dukart said. “When your labor increases, so does your payroll tax and workers’ comp, and it just goes on and on and on.”

Saul Hoffman, chairman of the economics department at the University of Delaware, said most economists agree that minimum-wage hikes cause some employers to cut back on hiring, making it harder for some workers to find jobs.

“If employment is lower, somebody isn’t getting a job who would otherwise get a job,” Hoffman said. “We don’t see a layoff necessarily, but we just see a position not getting filled.”

Dukart said a business can never afford to have an incompetent employee, but in the good times a boss might have “more of a heart.”

“When times are pretty tough, you can’t afford to have a heart as much,” Dukart said.

Marshall rejected the argument that a minimum-wage hike would result in a loss in jobs, saying the evidence from previous increases shows that Delaware has not lost jobs.

What Marshall fails to understand is that we can’t see how many jobs went uncreated because of the previous increases. It’s this invisible, but real nonetheless, job loss that we should seek to avoid. And a job not created is an opportunity for someone lost, which reduces their work experience, which reduces their future income potential. The surest way to hurt the poor is to keep them from getting jobs.

Think of it this way: when gas prices go up, we try to use less gas. When electricity costs more, we make sure to turn the lights off when we leave the room. Is Senator Marshall denying the laws of economics don’t apply to jobs? That somehow employers are exempt from behavior we all practice in our daily lives? Raising the minimum wage is bad economics, bad logic and bad for the poor while appearing helpful. So naturally Democrats love it.

Biden his Time

Biden His Time [Peter Wehner]

Beyond that, Biden is showing himself to be rude, testy, and off-putting, acting like a small-town prosecutor. I’m reminded why Joe Biden’s two presidential campaigns went up in smoke — in the first instance because he plagiarized from the life of Neal Kinnock, in the second instance because he has almost no national appeal. Joe Biden is the chairman of the Foreign Relations Committee, which serves as a reminder that the Senate rewards longevity rather than intellectual merit.

This is kind of cool

This Day in Delaware History:
1731 James Nixon, great-great-great-great-grandfather of President Richard Nixon, bought a 100 acre farm in Brandywine Hundred. His other great-great-great- great-grandfather Thomas Milhous lived 9 miles away just over the line in Chester County, Pennsylvania.

Delaware Pro-Life Convention Information

Delaware Pro-Life Convention Information

Agenda:

Keynote:
Pastor Luke Robinson – Warns of Black Genocide by Planned Parenthood

Luncheon:
Byron C Calhoun, MD, FACOG, FACS, – Exposes Premature Birth Link to Abortion

Banquet:
Phil Klein, Esq., former Kansas City Attorney General – Suing Planned Parenthood for 107
Offenses

Outstanding sessions by prominent pro-life personalities: Debbie Vinnedge, Paul Byrne, MD,
and more….

Sign up information at the link above.