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Never Owned a Business – Part 3 December 31, 2007

Posted by awatcher in Uncategorized.
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Rep Dianne Primivera wrote Improving the lives of middle class Coloradans.

It is quite apparent from her essay that Rep Dianne Primivera either doesn’t have the knowledge to be a state legislator or that she thinks voters lack the native intelligence to understand the depth of her deception.  Neither premise is appealing.

After having proposed an agenda that will raise taxes on Colorado citizens by at least 2 billion while claiming it won’t raise taxes at all, she wants full credit for cutting a single million dollars in business taxes.

If you’re a small business owner, you have enough to worry about without an overly complicated tax code. I will co-sponsor legislation that gives over 30,000 small businesses much-needed tax relief by raising the business personal property tax exemption from $2,500 to $7,000. We will also streamline the tax code so business owners pay taxes based on sales only, instead of navigating a complicated formula.

There are very few businesses which have start up costs for personal property of $7,000 or less.  Lawyers and accountants may benefit from this as they need only a computer, a desk and chair, and some office furnishings.  Anyone who has a real business with real requirements for store fixtures, point of sale software, or mechanized equipment will quickly exceed the $7,000.  We wonder if the Representative has ever owned a business, or known someone who has.

Because we are cynical, we would guess that the state has figured out that the cost of administering and collecting personal property taxes on really small businesses exceeds the revenue generated by those taxes.   Note that if a business has personal property of more than $7,000, it still pays taxes on the whole amount. 

The formula Rep. Primivera refers to is automated and allows for equipment depreciation.  The formula is applied by the taxing agency each year based on changes in equipment reported by the business.  A small businessman never sees or works with that formula, so this bill doesn’t cut down on paperwork.   

In short, this “tax cut” that she is trumpeting generates so little net revenue (and may result in negative net revenue) that it is a nuisance even to the tax collectors.  She has doubtless been told this, but wants credit for something she isn’t really willing to do – cut taxes.

Her essay is so misleading that we would call her a willing part of the Big Blue Lie Machine.   Integrity does not seem to be one of Rep Dianne Primivera’s strong points. 

Part 1 and part 2 of this essay are linked.