Every Business Owner Should Start a 401(k) plan

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In President Obama’s new budget proposal, he suggested taxing the historically pretax 401(k) contributions of about half a million people. Some business owners are reticent to start defined-contribution plans for their employees because of this proposal. But the president’s hope to restrict the plans should actually make owners more interested in creating one. Obama’s suggested […]

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In President Obama’s new budget proposal, he suggested taxing the historically pretax 401(k) contributions of about half a million people.

Some business owners are reticent to start defined-contribution plans for their employees because of this proposal. But the president’s hope to restrict the plans should actually make owners more interested in creating one.

Obama’s suggested changes have zero chance of congressional approval. Regardless of these proposals, a sponsored retirement plan offers small-business owners a rare opportunity to reduce their unfair tax burden.

Under U.S. tax law, the entire tax burden of a small business flows directly onto the personal tax return of the owner. Profit is taxed immediately in the year it is earned. It takes between five and 40 years to fully amortize the deductions for capital expenditures. Most business owners need a tax preparer to assemble the binder-sized stack of tax forms required to comply fully with the law.

Under such a heavy tax load, owners need a way to fund their personal retirement, so their corporate finances do not burden it.

Fortunately, small-business owners can sponsor a 401(k) for all their employees, including themselves. This year such a plan allows everyone to contribute $17,500 toward their retirement without it being taxed ($23,000 for those over 50).

Employers often offer to match the first 5 percent of a worker’s salary with an additional 4 percent, encouraging saving at least 9 percent of before-tax salary. This brings workers very close to our recommendation of saving 15 percent of their after-tax standard of living.

Employers can also give employees a portion of their salary as an end-of-year bonus directly into the 401(k).

Including employee contributions as well as employer matches and bonuses, the 2014 maximum total contribution is $52,000 ($57,500 for those over age 50). These limits rise each year with inflation.

Obama’s proposal targets the 401(k) contributions of anyone already burdened with a marginal tax rate in excess of 28 percent. Thus, small-business owners or employees with a top marginal tax rate of 33 percent, 35 percent, or 39.6 percent would have to pay the 5 percent, 7 percent, or 11.6 percent tax on the contribution. Then they would have to pay their full income tax again on both the contribution and the growth when withdrawing the money.

All of this is done to solve the so-called revenue problem of the federal government. No acknowledgment is made that bureaucrats are collecting the same percentage of national income (revenue hasn’t changed as a percentage of gross domestic product) and what we really have is a spending problem.

If Obama truly wanted to solve the problem via retirement accounts, he should look to his own employees. Collecting an extra 11.6 percent in revenue on private-sector contributions pales in comparison to the 100 percent expenditure saved by reducing lavish government pensions.

Furthermore, Obama proposed a tax on private sector 401(k) contributions but put no such burden on the federal government’s analogous 457(b) plan contributions. Why let the political class grow richer by exclusively targeting the private sector?

However, Obama’s current proposal only targets traditional 401(k)s, which only adds to the many reasons to prefer funding a Roth 401(k).

First, in the unlikely event that the president’s proposal does pass, money currently in retirement accounts will probably be grandfathered. Therefore getting as much as possible into a Roth account now is the best tax-planning defense.

Second, because tax is paid on Roth contributions as they are put in, there will be no double taxation when money is removed. Paying the tax on a Roth contribution now would be better than paying some tax now and more tax later.

Finally, even if the president forces people to withdraw any money over some specific limit, money in a Roth account can be taken out tax free. This won’t be true of traditional account balances. They, unfortunately, will be subject to whatever future tax rates Congress imposes.

With 65 percent of workers failing to save at least 15 percent for retirement, it would be easy for Obama’s proposal to gain populist support with vague ideas of the rich paying their ever-increasing supposedly “fair share.” This is inevitable because politicians can only target those who have money and can usually count on the support of those who have chosen not to save.

In the meantime, small-business owners would do well to take advantage of the advice of a financial planner, rather than the president, and create their own low-expense Roth 401(k) option for themselves and their employees.

David John Marotta is president of Marotta Wealth Management, Inc., which provides fee-only financial planning and wealth management. Contact him at emarotta.com or visit www.marottaonmoney.com. Megan Russell studied cognitive science at the University of Virginia and now specializes in explaining the complexities of economics and finance at www.marottaonmoney.com.

Complying with the Nonprofit Revitalization Act’s rules

Employee Benefits & Human Resources, Insurance & Financial Services, Law, Accounting & Taxes, Nonprofits, Subscriber Only

New York Governor Andrew Cuomo signed the Nonprofit Revitalization Act of 2013 last December. Even though the law represented the first major revisions to New York Not-For-Profit Corporation law in over 40 years, all I could say was, “Here we go again!” — with all due respect to Ronald Reagan who first made that phrase

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Before I provide you with some golden information regarding your ability to decipher and diagnose the requirements of the Revitalization Act, I have one more thought for you to ponder.

I am firmly convinced that the words “revitalization” and “affordable” should never again appear in the title of any legislative act.

The following information provides you with a list of questions that will enable you to determine through a gap analysis what policy and procedure changes are required for your organization to comply with the Revitalization Act.

The following checklist was prepared by my colleague Melissa Slater and designed to provide our faithful Business Journal News Network readers with a summary of the changes that resulted from this law. Completion of this checklist will facilitate a determination for your nonprofit organization regarding whether or not it is in compliance with the Nonprofit Revitalization Act’s changes before its effective date of July 1, 2014.

The checklist is designed so that any “no” answers require additional in-depth review to determine if your organization needs to update or modify existing policies and procedures. It’s imperative to get board and senior-management involvement in addressing changes to be made.

Please remember that the legislation is 70 pages in length and there are still sections of its requirements that require additional interpretation. So, you can use the following checklist as a cost-effective approach to achieving compliance with the act’s provisions. However, you should be aware of additional interpretations that may be issued subsequent to the date of this column.

1. The chair of the board of directors is not an employee of the organization?

2. If the CEO/executive director of the organization has a vote on the board, does she exclude herself from voting on her compensation and benefit package?

3. Does the organization have a conflict-of-interest policy? If no, skip to number 4.

a. Does the policy define the circumstances that constitute a conflict of interest?

b. Does the policy have procedures for disclosing a conflict of interest to the audit committee/board?

c. Does the policy require that the person with the conflict of interest not be present at or participate in audit committee/board deliberations or vote on the matter giving rise to such conflict?

d. Does the policy prohibit against any attempt by the person with the conflict to improperly influence the deliberations or voting on the matter giving rise to such conflict?

e. Does the policy have procedures for disclosing, addressing, and documenting related-party transactions?

f. Does the policy require that existence and resolution of the conflict be properly documented?

g. Does the policy require that prior to the initial election of any director, the director shall sign and submit to the secretary a written statement identifying:

(i) Any entity of which the director is an officer, director, trustee, member, owner, or employee with which the organization has a relationship?

(ii) Any transaction in which the organization participates in which the director might have a conflict of interest?

h. Does the policy require that each director annually submit such written statement (identifying the transactions above) to the secretary?

i. Does the policy state that the secretary will provide a copy of the completed statements to the chair of the audit committee or board if not audit committee?

j. Is the board or audit committee responsible for overseeing the implementation of the conflict of interest policy?

4. If the organization has 20 or more employees, does the organization have a whistleblower policy? If no, skip ahead to question 5.

a. Does the policy include procedures for reporting violations or suspected violations of law or nonprofit policies, including a procedure for preserving the confidentiality of reported information?

b. Does the policy designate a whistleblower-policy administrator?

c. Does the policy require that whistleblower-policy administrator report directly to the audit committee?

d. Does the policy require that a copy of the policy be distributed to all directors, officers, employees and to volunteers who provide substantial services to the nonprofit?

e. Is the board or audit committee responsible for overseeing the implementation of the whistleblower policy?

5. Is the organization required to obtain an annual audit? If no, skip ahead to question 11.

6. Does the board or designated audit committee of the board (audit committee) oversee the accounting, financial reporting, and audit of the financial statements?

7. Does the audit committee retain or renew the retention of the independent auditors (auditors)?

8. Does the audit committee review the results of the audit and related management letter with the auditors at least annually?

9. Does the organization generate more than $1 million in revenue? If no, skip to question 10.

a. Does the audit committee review the audit scope and plan with the auditors prior to the audit’s commencement?

b. Upon completion of the audit, does the audit committee review and discuss the following issues with the auditors:

(i) Any material weaknesses in internal controls identified by the auditors?

(ii) Any restrictions on the scope of the auditor’s activities or access to requested documents?

(iii) Any significant disagreements between the auditors and management?

c. Does the audit committee annually review and document the performance and independence of the auditors?

10. Are only independent directors allowed to participate on the audit committee?

11. Is the organization prohibited from participating in related-party transactions, unless they are determined by the board to be fair, reasonable, and in the organization’s best interest?

12. Are all directors, officers, or key employees who have an interest in a related-party transaction required to disclose to the board/committee the material facts of their interest?

13. Is the board/committee required to review related-party transactions for the following:

a. Consider alternative transactions (if available) prior to entering into the transaction?

b. Approve the transaction by a majority vote?

c. Contemporaneously document in writing the basis for the approval, including the alternatives considered?

14. Does the organization prohibit any related parties from participating in the deliberations or voting related to these transactions?

So, once again, every “no” answer requires some review and modification to existing policies and procedures. You can see from these questions the level of granular detail and specificity now required from all New York state nonprofit corporations. The Nonprofit Revitalization Act’s requirements are one more example of the increasing pressure on small organizations to be able to comply with regulatory requirements in a fiscally affordable manner.

Gerald J. Archibald, CPA, is a partner in charge of the management advisory services at The Bonadio Group. Contact him at (585) 381-1000, or email: garchibald@bonadio.com

CNYSME honors Dolgon with 2014 Crystal Ball Award

Sports, Entertainment & Tourism, Subscriber Only

SYRACUSE — A year after reaching the American Hockey League’s (AHL) Calder Cup Finals, the Syracuse Crunch find themselves on the outside looking in at the Eastern Conference playoff spots with the regular season winding down. The 2013-14 season has included what Crunch owner Howard Dolgon described as the “imperfect storm.” It involved several players

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The 2013-14 season has included what Crunch owner Howard Dolgon described as the “imperfect storm.” It involved several players from last year’s squad moving up to play for the parent club, the National Hockey League’s Tampa Bay Lightning.

The player departures combined with injuries put a “strain on the ability for us to … be as good as we can or as good as we were … last season,” Dolgon says.

But the Crunch doesn’t organize its annual marketing efforts based on the team’s on-ice performance. “Everyone likes to win. But it’s not part of any marketing formula that we put together and never will be,” he says.

Dolgon and his staff need to be innovative and successful with their marketing efforts no matter the hockey team’s record of wins and losses and they have done so for many years. That leads to community recognition and accolades.

The Central New York Sales & Marketing Executives (CNYSME) has selected Dolgon, owner, president, CEO and team governor of the Crunch, as the winner of the 2014 Crystal Ball Award.

The organization annually bestows the award to a local businessperson who has contributed to the sales and marketing profession and has worked in community development and support.

Dolgon calls his selection a “great honor,” which is “reflective of the team effort from our staff.”

“My vision … my creative leadership is only good if it gets carried out effectively by the people we have,” he says.

CNYSME will present Dolgon with the Crystal Ball Award on April 10 at the 38th annual Crystal Ball and Sales & Marketing Excellence Awards (SMEA) ceremony at the Holiday Inn Syracuse-Liverpool on Electronics Parkway in Salina.

Dolgon will join a list of past Crystal Ball winners that he calls “impressive,” a group that includes the 2013 recipient, Peter Belyea, president of CXtec and TERACAI. Other winners include Debbie Sydow, former president of Onondaga Community College in 2012; John Stage, founder and CEO of Dinosaur Bar-B-Que in 2011; Peter Coleman, the publican of Coleman’s Authentic Irish Pub in 2010; and Edward (Ed) Levine, president and CEO of Galaxy Communications, LLC in Syracuse in 2009, according to the CNYSME website.

Prior to his ownership of the Syracuse Crunch, Dolgon was a founding member of Alan Taylor Communications, Inc., an independent sports public-relations agency, which has since rebranded to Taylor, according to its website.

In addition to the local focus on hockey, the Syracuse AHL affiliate also includes an organization that works to benefit the community.

The Crunch Foundation, the charitable arm of the Syracuse Crunch, strives to strengthen and broaden the impact of the Syracuse Crunch in the Central New York by providing support and funds to non-profit groups, educational programs and community initiatives, according to the team’s website.

For example, the team and the Crunch Foundation will continue to support the Hillside Family of Agencies with programs that bring awareness and monetary support throughout the 2013-14 season, according to a news release on the website.

Dolgon acknowledges it’s a cliché, but he believes the CNYSME wouldn’t consider him for the award if he didn’t have “the kind of staff he has” in Syracuse.

Besides Dolgon, Vance Lederman, the team’s CFO and senior vice president of business operations and Jim Sorosy, the team’s COO, lead a staff of about 25 people, including Julien BrisBois, the team’s general manager and Crunch head coach Rob Zettler.

Lederman has worked for the Crunch for 20 years, while Sarosy has been with the organization for 19 years, Dolgon says.

Contact Reinhardt at ereinhardt@cnybj.com

SALES & MARKETING EXCELLENCE AWARDS

Subscriber Only

SHARON (DELOSH) BUCHKOHoliday Inn Syracuse/LiverpoolSharon (DeLosh) Buchko has been an integral part of the sales team at the Holiday Inn Syracuse/Liverpool for the past 12 years. She began as the hotel’s social and corporate sales manager before transitioning to association sales manager eight years ago. Sharon graduated from Jefferson Community College in Watertown in 1991

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SHARON (DELOSH) BUCHKO
Holiday Inn Syracuse/Liverpool
Sharon (DeLosh) Buchko has been an integral part of the sales team at the Holiday Inn Syracuse/Liverpool for the past 12 years. She began as the hotel’s social and corporate sales manager before transitioning to association sales manager eight years ago.

Sharon graduated from Jefferson Community College in Watertown in 1991 with an associate degree in hospitality and tourism. She worked for two travel agencies before accepting a sales position with Holiday Inn Syracuse/Liverpool in 2002. She received her bachelor’s degree in business administration with a minor in marketing from Columbia College in Syracuse in 2005.

Sharon is a member of the Empire State Society of Association Executives. She also volunteers for Fr. Champlin’s Guardian Angel Society, a nonprofit organization that helps financially challenged students achieve a high school education. She currently resides in Syracuse with her husband, Todd.

MICHAEL COTANCH
Crowne Plaza
Michael Cotanch has been with the Crowne Plaza Hotel since 2004, spending the last three years in the role of meeting director. Michael is an instrumental part of the sales team and prides himself on providing an exceptional meeting experience to all guests.

His approach to guest service and up-selling technique has consistently increased conference revenues for the property. Michael’s drive and expertise motivates clients to rebook programs at the Crowne Plaza, securing a reassuring experience for their meeting attendees.

Michael was awarded “Manager of the Quarter” in 2013 and recently completed a task-force project for Richfield Hospitality.

MICHAEL FEATHERSTONE
CXtec
Mike Featherstone is going on his 17th year with CXtec. As a tried and true member of the sales organization, he quickly rose through the ranks and joined the sales management team. Mike has an unrivaled passion for sales and for success and takes great pride in leading his team to achieve its goals, individually and collectively. In 2014, he and his current education-focused team contributed the single largest margin year of any sales team in the history of the company.

In addition to selling, Mike is also passionate about his music and is the founder of the locally famous CXtec Dinosaurs. In fact, he led them to the finals of the Fortune Magazine battle of the corporate bands in 2004. The Dinosaurs appear regularly at charitable events to provide the live music and entertainment. Mike also leads the Sandra Pomeroy Caring Choir and sits on the Red House Arts Center Board of Directors. He spends his free time loving life with his wife Ellen, playing his bass, and cheering on Syracuse University basketball at every home game.

MARIANNE FRASIER
NewsChannel 9 (WSYR-TV)
This is Account Executive Marianne Frasier’s second time receiving this award and her second year in row. She was nominated by her fellow account executives at NewsChannel 9.

Marianne’s success is built on a solid foundation of generating new direct business along with meeting and exceeding her overall quarterly and yearly sales goals.

She is the ultimate team player who is always “up” for a challenge. Her enthusiasm, commitment, and dedication have been infectious to all who are lucky enough to work with her.

Marianne’s “can-do” attitude to meet every challenge and her strong commitment to putting the needs of her clients first, are major reasons for her continued success. She is one of the top sales performers year after year.

When Marianne is not busy working for NewsChannel 9, she enjoys spending time with her family and in the outdoors.

KYLE HARES
Crowne Plaza
Kyle Hares graduated from SUNY Delhi with a bachelor’s degree in hospitality in 2008 and started his career in Orlando, Fla. While concentrating on various operational positions, he excelled in exceeding guests’ expectations.

Kyle joined Crowne Plaza Syracuse in 2011 as the front office manager, earning “Manager of the Quarter” in 2012. That same year, he followed his passion and joined the sales team as group sales manager. Kyle’s aggressive selling approach and passion for hospitality allows him to surpass his goals consistently.

Kyle was recently nominated for “Sales Manager of the Year” for Richfield Hospitality and has received Presidents Circle honors for his market production in 2012 and 2013.

MARY LAMACCHIA
Business Journal News Network
Mary LaMacchia has once again exceeded her goals and led the Business Journal News Network team with not only her amazing sales, but also with her leadership and guidance to help the rest of the team be successful.

For more than 15 years, Mary has given every sale the utmost attention. Every customer is taken care of when in Mary’s hands. She has great ability to build relationships and have her customers trust her. Mary is a true partner to them and always offers her expertise to help them implement the best marketing solution she can offer.

She’s never there to just to sell them an ad. Mary has helped to pioneer our transition into the digital world and with the rebrand campaign. She is an amazing asset to the Business Journal News Network and we are looking forward to many more years of her sales success and leadership.

ROBIN MACALUSO
Leadership Greater Syracuse
The Leadership Greater Syracuse (LGS) mission statement is “Inspiring current and future leaders to make a difference in the community where we live and work.” It is realized yearly by LGS graduates through the enthusiasm, dedication, and inspiration that Robin Macaluso, program director, brings to this premiere program. For more than six years, she has helped empower aspiring individuals from diverse backgrounds to learn about Central New York and attain invaluable leadership skills through hands-on community engagement.

From recruiting and interviewing candidates to guiding the development of 10-day leadership experiences, Robin’s positive influence, interpersonal acumen, and organizational skills ensure every LGS class functions as a team and exceeds expectations. She is undoubtedly the heart and soul of LGS, and the class of 2011 would like to congratulate her on this well-deserved award.

NICK MAINE
Galaxy Communications
Since moving to Syracuse in October 2011 and joining Galaxy Communications, Nick Maine has established himself as a dominant seller in the Syracuse and Utica markets.

In his role as a sales and marketing executive, Nick is responsible for selling unique advertising and marketing solutions to businesses from various industry verticals. He is adept at selling for Galaxy’s 14 radio stations as well as marketing events and sports for Syracuse University athletics, the New York Yankees, and Buffalo Bills.

In his two and a half years in the market, Nick has generated $2.2 million in revenue and more than $325,000 in new business. His adaptability, positive attitude, and continual hustle are a positive influence on the company and a driving force behind his success.

ALLYSON MCMANUS
Valley News in Fulton — Scotsman Media Group
Professional, organized, steadfast, customer-service focused, strong under pressure, and knowledgeable. Allyson McManus, a lifetime Fultonian who has been with the Valley News for 21 years, exhibits all of those qualities.

She has worked as a sales manager and as an outside advertising sales representative, a position she currently holds. But Allyson has redefined the title. Not only has she exhibited a very high level of professionalism and steadfast tenacity, but also she has been a true team player.

Allyson is constantly devising new ways for the Valley News to serve its readers better. She originated the Fulton Family Series, a monthly article that explores a Fulton family’s long-term devotion to the community. Allyson works constantly with the publisher to improve the paper’s image and performance. She shares her experience and knowledge with the sales staff and inside office.

During her tenure, Allyson has had the opportunity to train new members of the sales staff and step in for staff out on medical leave, both duties which she has done admirably without grudge. On everything she does, she leaves her marks of organization and attention to detail. Today, she functions as the senior salesperson, always keeping the paper and her customers foremost in her mind.

LORI MENTEL
TERACAI
Lori Mentel has been a sales executive with TERACAI for four years. She spent her first year building her customer base and learning about technology, and after that she never looked back.

In 2013, Lori enjoyed a third consecutive year achieving both the Starman Award for annual goal achievement and membership in the Presidents Club, an award that puts her on a cruise ship every year. This year she earned TERACAI’s prestigious Chairman’s Club award, yet another achievement on a long list.

Lori’s success stems directly from the understanding of her customers’ business objectives accompanied by her collaborative team approach. Her positive energy, willingness to take risks, and enthusiasm for her work is contagious to not only her customers but also to the entire TERACAI team.

RYAN STEELE
CXtec
Ryan Steele started with CXtec as in intern while attending St. Bonaventure University in 2008. He was quickly recognized for his great combination of intelligence and work ethic, coming aboard full time following graduation and joining the ECS team.

Ryan helps further sell and market the CABLExpress product line for CXtec. He puts in long days of prospecting and educating himself to be an invaluable resource for CXtec, the ECS team, and his clients.

This past year, Ryan’s efforts earned him the prestigious Starman Award and membership in CXtec’s Presidents Club. His commitment to betterment and excellence is second to none, and he is an inspiration to those around him.

CHRIS TRACY
Visual Technologies
Visual Technologies is proud to honor Chris Tracy for his in-depth video skillset, friendly and dynamic personality, and ability to jump into any project thrown his way. These characteristics have made him a vital part of the team.

Even though Chris joined Visual Technologies for his video-production capability, he has enthusiastically expanded his repertoire to include training for the sales department, event staging, and he even pulls from past experiences to help with human resources.

In his spare time, Chris owns and operates a freelance business, called Chris Tracy Photography, specializing in a wide range of photographic applications. He’s most proud to donate his time and talents to benefit St. Jude Children’s Research Hospital.

*Editor’s note: The companies for which these salespeople work authored these descriptions.

A Tax is a Tax

Opinion, Subscriber Only

Here is a money-making idea for you. Rent a van. Drive to Missouri. Load the van with cigarettes. Drive back and sell them in New York. Sell them for $1 less per pack than the normal price in the state. Voila! If you do this with 10,000 packs of smokes, you pocket more than $30,000.

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Voila! If you do this with 10,000 packs of smokes, you pocket more than $30,000.
Believe me, you can pack 10,000 packs of ciggybutts into a van. More. And you should have little trouble finding places to dump them. That’s because New York is an open black market for cigarettes from other states.

Our state slaps a $4.35 tax on each pack. Highest of all states, no surprise. Missouri taxes cigarettes 17 cents per pack. This is a hustler’s dream. Drive to Missouri and back to New York, jackpot!

A report out this week tells us our hustlers provide nearly 60 percent of the smokes sold in this state. They haul in smokes from various states where taxes on them are low. New York misses out on the cigarette taxes on these smokes. It foregoes the income tax on the smugglers. (You don’t think the smugglers declare this income now, do you?)

New York has the highest tax on cigarettes. Always a leader is our state. Market theory predicts we should then have the highest rate of smuggled cigarettes. And we do. Students of economics, please note.

Our legislators should also note: When you raise taxes to unreasonable levels, people find more ways to avoid paying. Will the lawmakers learn? Will they lower taxes, in order to collect more? Nah. They will likely call for more policing. And more punishment for black marketers. And they will call for Missouri to raise its taxes.

Our state lawmakers have raised our total taxes and fees to unreasonable limits. Along with total red tape. (Red tape and taxes slow our economic activity.) We find ways to avoid paying.

How? Let me count the ways. We hide income. We smoke smuggled cigarettes. We resort to countless under-the-table activities. We pad expenses. The higher the taxes, the more of this we do. And every year many thousands of us take a big step to avoid taxes and regulations. We leave. For Florida or Texas.

Meanwhile, our lawmakers search for ways to tax us more. They sneak in little fees, hoping we won’t notice. They raise taxes on small segments of the economy. Who cares if dog groomers have to pay an extra $100 a year for their licenses? They lift tolls on the NYS Thruway and bridges. They slap another few bucks onto taxes at airports and hotels.

Who looks at that on the bill? And whom do you complain to about it? They stick more taxes on oil and gas and booze. They figure you and I won’t notice.

To me, all this camouflage and sneakiness is stupid. Because a tax is a tax is a tax. You can pretty it up. You can put lipstick on it. You can sneak it in. It is still a tax. On the economy. On economic activity. Taxes slow economic activity. Period. To think otherwise is to enjoy a fairy tale.

Washington lawmakers love fairy tales on a grander scale. Obamacare, for instance, is packed with new taxes. Loaded. Most of them hidden from your view. It is a fairy tale to believe you and others will not react. You may not see the taxes hidden throughout Obamacare. You will simply see the bill and groan.

Beyond that, the economy will whimper. It has to. It has been whacked with tons of new taxes and red tape. It has to take on these new burdens. It is like a horse when we load it with an extra 50 pounds. It will move more slowly.

The root of the problem is what politicians and economists see. That is, what they see when they look at taxes. The economist sees a burden. The politician sees an opportunity for more money to come in. To pay for his spending. I heard a politician say, “There’s always more money out there. If we need more, we’ve got a hundred ways to get it.”

’Tis true. But in the getting, sometimes smoke gets in their eyes. As it has with cigarette taxes in this state. They should re-name our cigarette tax “The New York State Smuggler Support Act.”

From Tom…as in Morgan.

Tom Morgan writes about political, financial, and other subjects from his home near Oneonta, in addition to his radio shows and new TV show. For more information about him, visit his website at www.tomasinmorgan.com

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