Archive for March, 2009

More on Tobacco Taxes in the States

March 24th, 2009 admin

The latest update on states looking to jack up tobacco taxes in the current economy from the March 21 New York Times is, to say the least, worrisome from a small retailer perspective.

The Times reported, for example, the following:

• “Budget shortfalls are pushing more than 20 states to look to tobacco for revenue, even those that have long been loath to touch cigarette taxes. In the South, where such taxes have been lower than in the rest of the country, Arkansas has nearly doubled its tax, to $1.15 a pack, and Kentucky’s will double, to 60 cents, on April 1. Increases are also under consideration in other tobacco-growing states like North Carolina, South Carolina and Georgia.”

• “In Oregon, now at $1.18 a pack, Gov. Theodore R. Kulongoski has proposed a 60-cent increase. In New Jersey, Gov. Jon Corzine is asking the Legislature for a 12.5-cent increase over the current $2.58. New York has the highest state tax on cigarettes, $2.75 a pack.”

Of course, the federal cigarette tax will rise by 62 cents in April.

One of the things being missed in this flurry to raise tobacco taxes is that small retailers suffer lost business, and the economy gets hit whenever resources are shifted from the private sector to the government.

Raymond J.

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The House, the Constitution, and the 90% Bonus Tax

March 23rd, 2009 admin

As I’ve made perfectly clear throughout my career as an economist and policy analysis, I am not a fan of government bailing out private businesses. Taxpayer dollars are thrown away, the size and reach of government expands, moral hazard is created, and the entire market system is undermined.

And of course, whenever government sticks its nose into something, along with it comes politics.

Last week, the U.S. House of Representatives served up politics at its most pandering. It voted by 328-93 to approve a 90% surtax on bonuses to employees earning more than $250,000 at companies that received at least $5 billion in government financial rescue dollars. The bill would set up the tax retroactively to December 31, 2008, and was generated in response to outrage over bonuses handed out at AIG, which has been one of the government’s biggest bailouts.

There are a good number of reasons to oppose this political fit by members of the House.

But one supersedes all others. It is plainly unconstitutional. Article I, Section 9 of the U.S. Constitution states: “No Bill of Attainder or ex post facto Law shall be passed.” Quite simply, Congress cannot impose legal consequences without a trial, nor after an event took place.

Incredibly, U.S. Rep.

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AIG Outrage ….. Who’s REALLY At Fault?

March 23rd, 2009 admin

I recently received the latest newsletter from Rep. Randy Forbes (my Congressman) and the message really hit home with me.

Like many of you, I am more than ticked at AIG and their giving of bonuses to executives that created their mess in the 1st place …. AND giving billions to Foreign banks. All of it coming out of their bailout money. Meaning “my” pocket and yours.

But even worse …. is the mishandled way that Congress ( sic Democrats) rushed these bills through with no prudent review and zero tangible plans for oversight included in them. Their whining now about AIG bonuses and payments to foreign banks smacks of hypocrisy based on their own mismanagement of the situation …. AND VOTING THEMSELVES A PAY RAISE IN THE LAST MONTH.

Anyway …. below is what Rep. Forbes has to say. I couldn’t have said it better myself. Your thoughts / comments are encouraged.

==============

AIG Outrage

Imagine a situation where a husband goes out one day and, in the midst of the current economic situation, decides to buy an expensive new boat. A few weeks later, the bill comes in the mail.

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2nd Jacksonville Green Expo, April 25th and 26th, Prime Osborn

March 22nd, 2009 admin


 





We are finding that “Green Businesses” are doing rather well in this economy and it is likely to get even better for them as we grow out of this economic down cycle. Here is an opportunity to learn more about the coming “Green Wave” in Jacksonville…

The 2nd Jacksonville Green Expo will be a two-day event to be held on Saturday and Sunday, April 25th and 26th, 2009 at the Prime Osborn Convention Center, downtown Jacksonville. The 2nd Jacksonville Green Expo, will be a much bigger event than last year and we  will be featuring new and innovative technologies, added to a dynamic mix of exhibitors,expert speakers and workshops.

The first Green Awards Breakfast will honor the winning nominees in three different categories: non-profit, business, and individual. The winners in each category will be selected if they have shown a proven track record in actively promoting “green awareness” in Jacksonville.

 Among many other “green” related events, we hope to feature the following:

  • Book signings by environmental book authors
  • Green building technology
  • Test drive hybrid vehicles
  • “Green” Movie screenings
  • Culinary demonstrations of organic foods
  • Fashion Shows
  • Recycle drive 
  • Green Business Workshops
  • Organic Wine, Coffee, Beer and Food Sampling
  • Green Raffle and Awards

     

  • The 2nd Jacksonville Green Expo will be held on the weekend after Earth Day, which is Saturday, April 25th and Sunday, April 26th, 2009.

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    Incoming Searches that might interest you:

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    How building an SBI (Site Build It ) site grows wealth

    March 21st, 2009 admin

    Most of us know what it’s like to work for others. When the work stops, so does the pay.
    Having money in the bank, of course, is different. The bank pays interest.
    That’s how money differs from wealth. Money changes hands. Wealth accumulates.
    I have created wealth with our write at home websites. Every page we post (and we have posted over a thousand!) is a page that will be earning for us tomorrow…and ten years from tomorrow.
    Try to imagine how good that feels. We could stop working on any or all of our websites and they’d still be working for us.

    THAT’S how wealth accumulates.
    Want to accumulate some for yourself? For your family?

    I can’t recommend SiteBuildIt highly enough. Once you’ve used it you can’t fathom building a website any other way.
    We want a business, not a lottery ticket. We want to be able to count on getting results for our efforts, rather than merely hoping for a positive outcome.
    Now, you may not have as much time to spare for your new website as we do.
    That’s okay. Lots of great websites are written slowly, over time. You’ll take comfort and have pride in knowing that your spare minutes are being spent building something for your – and your family’s – future.

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    Democrats Worried About Obama Economic Policies

    March 20th, 2009 admin

    So, it’s not just Republicans, conservatives and free market types who are worried about many of the policies being pushed by the Obama administration.

    In the three weeks since the budget was unveiled, fiscally conservative Democrats have raised concerns about proposed spending increases. Leaders of the House and Senate tax-writing committees have criticized some of Obama’s proposed tax increases on wealthier Americans. And influential Democrats are backing away from using a legislative shortcut that may be Obama’s best hope for passing his far-reaching health and energy policies.

    An additional multibillion-dollar bailout for banks and other financial institutions, which the administration will soon propose, is expected to add more pressure to the federal government’s finances.

    Into that tinderbox, a lit match has come from new deficit estimates.

    Where Obama’s budget foresees rolling up $7 trillion in cumulative deficits over the next 10 years, Sen. Kent Conrad (D-N.D.) on Thursday pegged the deficits at $1.6 trillion higher over that period.

    Conrad, chairman of the Senate Budget Committee, said the figure was calculated by his panel’s Democratic staff members.

    The Congressional Budget Office report today is expected to reflect a worsening deficit outlook in part because economic conditions have deteriorated in the two months since the administration set its budget assumptions.

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    10 Steps to Entrepreneurial Success

    March 20th, 2009 admin

    Not as easy as it sounds. Nevertheless, here are ten things one can do to increase the chance of entrepreneurial success:

    1. Know the business well – Knowing the business by working in the sector or by being connected to it for a long time, will result in valuable insights and invaluable contacts.
    2. Plan – Not to be confused with making a business plan. Before you start the venture , the process of venture creation has to be planned out, risks and bottlenecks have to be identified and resources have to be organised.
    3. Start small but scalable – Even if you can start big; start small, learn from things that go right and wrong and then expand.
    4. Arrange for the money – Do not make assumptions regarding availability of money. Have it on call before you plan on spending it. Also arrange for sufficient money.
    5. Burn your bridges - Make the business your sole professional activity; do not have any back up plans in life. That is the way to get hungry for success
    6. Hire well - Hire people you need; do not settle for the people available.

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    Does This Sound Like Your Approach To Small Business??

    March 20th, 2009 admin

    “The future belongs to those who fuse intelligence with faith, and who, with courage and determination, grope their way forward from chance to choice, from blind adaptation to creative evolution.” ~ Charles E. Merriam ~

    I came across this today and it rings deep… it really says a lot about business (and other things too). Especially the small business entrepreneur.

    The way I read it is …..

    If you’re prepared to work smarter, face your fears and act anyway, persevere and never give up even when you can’t see clearly, take advantage of the opportunities that come your way and build on them, and be creative in your problem solving, the future is yours!

    What do you think?

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    Watching Inflation

    March 18th, 2009 admin

    If you go back to Economics 101, when money supply growth gets out of control, inflation eventually results.

    And since the summer, the Federal Reserve has been juicing up money supply in an unprecedented way in an attempt to salvage the credit system and the economy. Of course, as we have seen, that plan has not worked out too well.

    Now, the question is: When will inflation start to kick in?

    While one month does not make an inflation problem, it is worth noting that CPI inflation for February, which was announced today, registered 0.4 percent. That followed a 0.3 percent increase in January.

    With the decline in prices in late 2008, inflation for the past year was basically nonexistent. But the increase in the past two months warrants watching.

    Again, getting back to economic basics, keep in mind that inflation is still all about too much money chasing too few goods. Given the current economic climate, the less-than-stellar expectations for the economy over the coming year or so, and the Fed’s loose money, stagflation has to be on the list of worries for entrepreneurs and investors.

    Raymond J. Keating
    Chief Economist
    Small Business & Entrepreneurship Council

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    Small Business Fax Service Resource

    March 18th, 2009 admin

    All to often, a new business with a need for corporate faxing either spends big bucks on a fax server, or ends up disappointed with a consumer oriented e-fax type service. They later come to regret that decision much as they would have had they chosen AOL as an ISP instead of a business grade service.

    desktopFAXservice.com functions as a business grade fax service agency (not unlike your insurance agent)… gathering the information about your exact faxing needs, and then helping you get the best deal possible with a best of breed business grade fax service.

    They have 21 years of experience in the outsourced fax marketplace.

    Your business relies on faxing – they know that…. and their service is free.

    To learn more go to: Small Business Fax Service

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    17th Annual Small Business Week Celebration,Honoring North Florida’s Small Business Leaders, Champions, & Top Lenders

    March 17th, 2009 admin


    Featuring Keynote Speaker: Tom Szaky

    April 30, 2009

    11:30 a.m.

    UNF University Center, Alumni Drive

    Tom Szaky is co-founder and CEO of TerraCycle, Inc., producer of the world’s first products made from, and packaged in, waste. At the ripe old age of 26, Szaky has been featured in virtually every major media outlet from “60 Minutes” to the Wall Street Journal (5 times) and dubbed the “Coolest Startup In America” by Inc. magazine. Tom’s book, Revolution in a Bottle, was released in February. Szaky will deliver the luncheon keynote address on eco-capitalism in challenged economic times to an expected audience of 400.

    This annual event culminates in the presentation of the prestigious SBA Small Business Week and Top Lender awards.

    Tables of 8 or individual seating are available. For more information go to www.sbdc.unf.edu or call 904.620.2476.

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    Another Response to Obama’s Small Business Agenda

    March 17th, 2009 admin

    Republican Study Committee Chairman Tom Price (GA) offered the following response to President Obama’s March 16 small business agenda:

    If President Obama really wants to help small businesses, he won’t tax away their viability. His attempt finally recognizes that small businesses will play a vital role in our economic recovery. Unfortunately, his policies have been entirely counterproductive. This aid package makes for a nice media opportunity, but it does not make up for the fact that the President is putting the largest tax hike in American history on the backs of small businesses across the country. Raising taxes on small businesses will only lead to more lost jobs. That is the last thing we need during these tough economic times. These big-government plans restrict economic freedom and tax away any opportunities for recovery. We must put economic power back in the hands of American individuals and businesses. We can immediately clear the way for economic growth by cutting taxes and letting businesses invest more of their own money. The road to economic recovery is paved with a healthy small business community that requires greater access to its own capital.

    The RSC has offered a substantially different agenda to boost small business and the economy through the Economic Recovery and Middle-Class Tax Relief Act.

    Raymond J.

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