The Legislature is now mulling over a capital gains tax of 5 percent to resolve some budget issues, noting that 40 other states have a similar tax. The implication is that such a tax would only affect a small segment of the population and that capital gains are not really earned. When, if ever, our legislators will look at the state budget as a means of allocating available funds without automatically seeking to create new “revenue.”
The next step will likely be a proposed state income tax! As a taxpayer, I cannot “create” new revenue and must rely on either spending less or reallocating my available funds to support my expenses. That additional 5 percent plus the existing 20-plus percent federal tax are disincentives to invest. Legislators, earn your pay and our votes, by taking another look at that budget.
Raymond L. Tiffany