Buckeye State Bucks Estate Tax

Ohio has succeeded in something that many in Indiana have been pushing toward for years (and it has nothing to do with a Big Ten football championship). The Buckeye State successfully repealed its state estate tax. The Washington, D.C.-based American Family Business Foundation recently issued a statement on the matter:

Ohio will become the first state since 2009 to repeal its state estate tax, which was one of the worst in the nation, taxing any family with more than $338,333 in assets. The repeal goes into effect on January 1, 2013, and is a part of Ohio’s FY 2012-2013 budget, which Governor John Kasich is expected to sign into law by the end of today.

The American Family Business Institute (AFBI), a national trade association of family business owners, farmers and entrepreneurs across the country, applauds Ohio’s Governor and the State House for passing repeal, which was included in Ohio’s 2012-2013 biennial budget and which goes into effect starting January 1, 2013.

AFBI’s President Dick Patten, who testified before both the Ohio House of Representatives and Ohio Senate in support of the legislation, said: “By repealing and not just ‘reforming’ their state estate tax, Ohio has set an example for the 21 other states and the District of Columbia that still impose these onerous taxes.”

Those remaining states with estate or inheritance taxes include: 
  
Connecticut – Estate Tax
Delaware – Estate Tax
Hawaii – Estate Tax
Illinois – Estate Tax
Indiana – Inheritance Tax
Iowa – Inheritance Tax
Kentucky – Inheritance Tax
Maine – Estate Tax
Maryland – Estate and Inheritance Tax
Massachusetts – Estate Tax
Minnesota – Estate Tax
 Nebraska – Inheritance Tax
New Jersey – Estate and Inheritance Tax
New York – Estate Tax
North Carolina – Estate Tax
Oregon – Estate Tax
Pennsylvania – Inheritance Tax
Rhode Island – Estate Tax
Tennessee – Inheritance Tax
Vermont – Estate Tax
Washington – Estate Tax
Washington, DC – Estate Tax

“Ohio’s estate tax repeal is emblematic of the larger trend towards repeal or positive reform of estate taxes that is occurring throughout the nation,” said Patten.

For example:

  • In Oregon, voters spoke out and legislators backed away from a proposal to turn the state inheritance tax into an estate tax with the highest rate in the nation.
  • In Maine, the Governor signed into law a proposal to double the estate tax exemption.
  • In North Carolina, the State Senate rejected the governor’s proposal to do away with the current exemption, which would have caused more Tarheel state residents to be hit with an even heavier death tax.
  • In Minnesota, the legislature has proposed quadrupling the estate tax exemption as part of the state budget.
  • On Capitol Hill, nearly 150 Members of Congress – both Republican and Democrat – have cosponsored the “Death Tax Repeal Permanency Act” (HR 1259), a bill that would permanently repeal the Federal Estate Tax.

Indy News Anchor Files Complaint Against Union

WRTV-6 news anchor Trisha Shepherd is one of many American workers who believe she should actually receive the money she earns rather than a union she would prefer not to belong to. Most telling is her quote that she’s not trying to make a political statement, just trying to protect herself. While unions have every right to exist, how can forced membership be justified? The Indy Star reports:

A news program anchor for WRTV (Channel 6) has filed an unfair labor practice complaint against the union representing workers at the Indianapolis television station.

Trisha Shepherd, who anchors the evening newscasts, claims in a complaint to the National Labor Relations Board that the American Federation of Television and Radio Artists is illegally trying to collect dues or fees from her.

Shepherd’s two-page complaint, filed this week with the NLRB office in Indianapolis, has echoes of the controversy over right-to-work legislation that failed to pass the Indiana General Assembly.

Unions consider such laws to be politically motivated attempts to weaken the labor movement by cutting their ability to charge fees even to nonmembers who receive the benefits of collective bargaining.

Shepherd said Thursday that her complaint to the NLRB isn’t intended as a test case on right-to-work issues.

She said the controversy in Indiana, Ohio, Wisconsin and other states did not motivate her complaint against AFTRA.

"This is not intended as a political statement," she said.

"I’m just like any other citizen trying to protect myself," Shepherd said.

The union has been trying to collect $1,032 as of April 18. It hired a Pennsylvania collection company to try to get her to pay, according to NLRB filings.

Federal Regs Got You Down? Let Us Know

The Competitive Enterprise Institute is a Washington, D.C.-based think tank that publishes an informative update titled Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State. While much attention has been paid to the rising deficit, yearly regulatory compliance costs are estimated to be AT LEAST $1.7 TRILLION.

Freshman congressman Todd Rokita (R-4th District) and the Indiana Chamber want to do something about that. In an effort to bring to light the harm that many federal regulations do to Hoosier businesses, a new initiaitive has been launched. "Cutting Red Tape, Creating Hoosier Jobs" is a way for business owners and managers to communicate directly to Rokita on issues critical to their business success.

The congressman offers more details in this letter. The Chamber has established a dedicated web site where you can provide feedback on proposed, pending or existing federal regulations. You can also submit through mail to Cam Carter at the Indiana Chamber or via email to federalredtape@indianachamber.com.  

What kind of regulations are we talking about? The EPA trying to regulate carbon dioxide emissions through the Clean Air Act is a prominent one. But there are thousands of other "red tape" examples, rules that simply provide additional compliance headaches with little or no benefits.

Rokita needs specific cases (with impacts on business operations or new job creation) in his effort to see a return to limited, common sense government.

For those especially interested in regulatory issues, you may wish to join our D.C. Fly-in in September.

The Speaker is Coming, the Speaker is Coming!

What does all this legislative activity (all indications are lawmakers will complete their work on time today) mean for companies, employees and citizens throughout the state? The Indiana Chamber will have some answers during its May 13 Policy Issue Conference Call for members.

Providing some of the analysis will be none other than House Speaker Brian Bosma, who weathered the five-week Demcorat walkout and has helped orchestrate what will go down as one of the most successful General Assembly sessions in quite some time.

Chamber members, you don’t want to miss this one. Sign up today!

Political Shake-ups in Europe

In the U.S., 2006 and 2008 belonged to the Democrats. Then 2010 went decidedly the other way. Who knows what 2012 holds, although approval ratings for President Obama may indicate the rightward swing could continue through the next election cycle. What is a bit out of sorts is that in Canada and Europe, economically right-wing parties have continued to gain more prominence than in recent memory (at least in my recent memory). Spiegel Online reports this story out of Finland on what the Drudge Report referred to as "Europe’s Tea Party":

Timo Soini, 48, is standing in front of "Hesburger," a fast food restaurant in the western part of Helsinki. It is shortly before 10 a.m., and he is waiting patiently for the restaurant to finally open its doors. Soini, the chairman of the right-wing populist Perussuomalaiset, or "True Finns" party, has been giving interviews for almost three hours. There are more than 250 new text messages on his mobile phone. Now he’s hungry.

It is the morning after an election that brought what the papers have called a "revolution" to Finland. Almost one in five voters voted for Soini’s party on Sunday, April 17, and now it looks like it is about to become part of the new government. A political earthquake is happening in Helsinki, one that could have reverberations throughout Europe.

Until now, the small country in the far northeastern corner of the continent was seen as a model member of the European Union. It was known for its successful export-oriented companies, liberal social policies and the best-performing school students in the Western industrialized world. It is ironic that it is here in Finland — a part of Europe that always seemed eminently European — that a movement is now coming to power that inveighs against immigrants and abortions, considers Brussels to be the "heart of darkness" and rejects all financial assistance for what it calls "wasteful countries," like Greece, Ireland and Portugal. "We were too soft on Europe," says Soini, adding that Finland should not be made to "pay for the mistakes of others."

The election result from Europe’s far north has alarmed the political establishment in Brussels. If Soini’s party becomes part of the new government, there will be more at stake than Helsinki’s traditional pro-European stance. The entire program to rescue the euro could be in jeopardy, because it has to be approved unanimously by the entire European Union. That includes both the anticipated aid for Portugal, the additional billions for the euro bailout fund and the planned reform of the fund. Swedish Foreign Minister Carl Bildt calls the Finnish election results a "reason for concern," while Hans-Dietrich Genscher, the former head of Germany’s pro-business Free Democratic Party (FDP) and former German foreign minister, warns: "The outcome of the elections is a warning sign."

So what do you think? Is this an indicator that the American Tea Party will move more into elected prominence in 2012 (although supporters could argue they already made a serious impact in 2010)? Or is the movement too much on the fringe? Let us know your thoughts in the comments section.

Coats, Chamber Members Share Tax Reform Ideas

Combine a U.S. senator working to thoughtfully make a difference on a major issue impacting our future with an audience of knowledgable business leaders and there’s no doubt that you have a winning combination. That point was proven earlier today.

The event at the Indiana Chamber featured Sen. Dan Coats (R-Indiana) discussing The Bipartisan Tax Fairness and Simplification Act of 2011. This year’s version was introduced last week with Sen. Ron Wyden (D-Oregon). Coats came to Indianapolis to outline the topic and gain feedback; he and his staff were not disappointed as they left with ideas and initiatives to further explore.

How does the following sound as part of the introduced bill?

  • Having 90% of taxpayers able to file with a one-page form
  • Reducing the corporate income tax rate to a flat 24% (or possibly even lower) to encourage economic growth
  • Moving the U.S. away from having the second highest combined corporate tax rates among 36 developed countries

It’s all done on a revenue neutral basis. Many current exclusions in the tax code would be eliminated in exchange for the lower overall rate. But Coats notes that this is a work in progress — and that’s why he’s collecting reactions and suggestions as he did today.

"There will be several other iterations (tax reform proposals), but we’re the first one out of the gate," he said, outlining his principles in agreeing to sign on to the legislation. The final caveat was that this be an open book — "so we can modify and adjust as needed."

In a letter sent to President Obama, 64 senators wrote, as Coats outlined today, that "this is more serious than who wins the election in 2012. It’s about which path we want to take for the future of our country." Currently, he adds, the federal government is spending $4 billion a day more than it takes in.

Returning to the Senate position he once held, Coats does cite a positive in the first few months of 2011. "We’ve elevated the debate to where it needs to be. The debate is not about how much more to add (budget spending), but how much to cut."

With a debt that he explains has gone from $1 trillion in 1981 to $14.3 trillion 30 years later, how can anyone argue with that?

Indiana’s High Corporate Tax Could be Reduced This Session

In a recent conversation with Gerry Dick of Inside INdiana Business, Indiana Chamber President Kevin Brinegar relayed his expectation that the state could see a drop in its corporate income tax, which is currently among the top 10 highest in the nation:

The president of the Indiana Chamber of Commerce believes a reduction in the state’s corporate income tax will be passed during the legislative session. Kevin Brinegar says a cut from 8.5 percent to 6.5 percent would make a "positive statement" about Indiana’s business climate…. Brinegar says the plan has been split into two bills, but he still expects passage by the April 29th deadline.

He also feels it will be very active at the Statehouse as that date approaches with lawmakers playing catch-up after the month-long House Democrats’ walkout.

Brinegar also commented on last week’s committee rejection of a statewide smoking ban.

He says some groups were looking for a perfect bill, instead of taking a proposal that would at least start to implement restrictions.

Organizations had concerns about the number of exemptions in the bill.

Lugar, Three Reps Earn Enterprise Awards from U.S. Chamber

Sen. Richard Lugar and Reps. Steve Buyer, Dan Burton and Mike Pence were recently presented with the U.S. Chamber of Commerce Spirit of Enterprise award for their support of American businesses during the last session. Here is a list of the recipients. Lugar’s office reports:

Lugar scored a perfect 100 percent from the Chambers his votes against President Obama’s health care financial regulation legislation, in addition to his votes to extend Middle Class tax breaks.

The Chamber has given Lugar the award for his pro-jobs creating votes every year since Lugar began serving Indiana in the Senate in 1977. During that time Lugar has a cumulative voting score of 91 percent on hundreds of votes to promote economic development.

“The Chamber applauds Senator Lugar for supporting the private sector and job growth through these difficult times,” said Tom Donohue, president and CEO of the U.S. Chamber of Commerce. “He has demonstrated great courage and we commend him.”

The Spirit of Enterprise Award “recognizes those lawmakers who have demonstrated leadership on important business issues” according to the Chamber.

Lugar has received additional pro-business and taxpayer awards including the Taxpayer Hero Award from the Council for Citizens Against Government Waste, and the Watchdog of the Treasury. Lugar has consistently been named “Guardian of Small Business” by the National Federation of Independent Business (NFIB) for a 100 percent voting record on behalf of America’s small-business owners during the 111th Congress. Lugar has been named a “Guardian of Small Business” 16 of the last 17 Congresses.

“Atlas Shrugged” Film to Hit Theaters Around Tax Day

I’m assuming many of the readers of this blog are Ayn Rand fans, or at least are aware of her work. While the idea has been kicked around for years — and likely decades — a film version of "Atlas Shrugged" is slated to hit theaters on April 15.

While I don’t personally subscribe to her entire philosophy of Objectivism, or her seemingly blanket rejection of any sort of a "collective," I do think her themes and warnings of overarching state abuse and its impact on the business community are noteworthy for our purposes.

The film will be released in three parts. And its fan site busts a few myths about its production, as well. Watch the trailer and let us know if you’re enthused:

Judge: Supreme Court Voice Needed on Health Care Reform

The Florida judge who declared the federal health care reform law unconstitutional "updated" his own ruling yesterday and urged that "the sooner this issue is decided by the Supreme Court, the better off the entire nation will be."

On January 31, 2011, U.S. District Judge Roger Vinson (Pensacola, Florida) determined that the “individual mandate” provision of the Patient Protection and Affordable Care Act (PPACA) is unconstitutional and declared the remainder of the Act void because it was not severable.  The defendants (the Obama administration) filed a motion to clarify with the court, suggesting that there would be adverse consequences from an immediate halt of implementing the Act given that many provisions are now in effect and that several other district court judges have upheld the law.

Yesterday, the judge stated that while his original order “was as clear and unambiguous as it could be, it is possible that the defendants may have perhaps been confused or misunderstood its import.”  He did however, treat the clarification as a stay from his original order and as such granted it.  He conditioned the stay upon the defendants filing their anticipated appeal within seven days of his order, either in the Court of Appeals or with the Supreme Court. He chastised the administration that it had been more than a month since his order and the defendants had not filed their notice of appeal.

Twenty six states, including Indiana, are party to the lawsuit. On Wednesday at the Indiana Statehouse, a joint meeting took place with the House and Senate Insurance and Health Committees. Attorney General Greg Zoeller commented on PPACA and offered his view that in those states that were party to the suit the Act was unenforceable. Those comments do not apply a day later as Judge Vinson’s stay to his original order was granted.