Yesterday I attended a speaker series hosted by NC Policy Watch. This luncheon focused on climate change and federal legislation surrounded cap & trade. There was an interesting perspective on this issue and the recurring theme of all 3 speakers was that action needed to be taken now. While they all agreed that any policy that comes out of Congress won't be perfect, cap and trade is an ideal option and needed to be signed into law immediately.
The NC State Grange has opposed cap & trade because of concerns that it will result in higher costs for the average household, decreased global competitiveness and detrimental impacts on the agricultural industry. All of these concerns tie back to the notion that cap & trade will do little to nothing to affect global climate change. During Q&A time with the speakers, I couldn't help but ask what the actual effect on global climate change a cap & trade policy would have. Simply, the answer I received was that an insignificant change would occur. Exactly the point the Grange has been stating all along. The speaker argued that China has the capability to implement a cap & trade policy and technology which would surpass us in reducing the carbon footprint and we would be "left behind" by China. There wasn't enough time for a follow up question, but if there was I would have asked - what indication has China given us that they are going to reduce their carbon emissions? None that I have seen. He was absolutely right.. China has the ability impose a policy to reduce carbon emissions and has the ability to do it through technology. However, they have not given any type of indication that they have any intention of doing so. The other two speakers followed up with my initial question by saying that cap & trade would only be the first step toward reducing carbon emissions. What an even scarier thought.....
Thursday, December 10, 2009
Tuesday, December 8, 2009
Estate Tax
BACKGROUND
Not long after the income tax was officially established, World War I began. Tax revenues were predominantly brought in by tariffs, but because Europe was at war, imports and exports significantly decreased. Therefore, tariffs decreased. Congress needed a revenue source and turned to the idea of taxes, much like they had for the funding of previous wars. In 1916, the estate tax became permanent through the Revenue Act of 1916.
WHAT IS AN ESTATE TAX?
The estate is the total money and assets of a person. The estate tax is a tax against total property of a person when they die. Appraisers will determine the fair market value of the assets and interests (business investments, etc.) and come up with an overall value of the estate. The federal government then receives tax money before an heir receives the inheritance.
SUNSET PROVISION AND RESURRECTION
In 2001, President Bush signed an Act which would repeal the federal estate tax in 2010, but would resume in 2011 at its old rate of 55%. A footnote in President Obama’s 2010 budget reads: “The estate tax is maintained at its 2009 parameters.” The death tax, which should have fallen to 0% next year, will now leave estates larger than $3.5 million or $7 million for a couple taxable by up to 45% and will rise to 55% in 2011 with a $1 million exemption. The US House of Representatives passed HR 4154 on Thursday, December 3rd which permanently extends the estate tax. Similar legislation is pending in the US Senate, however, the health care debate has taken precedent over any issue.
IMPACT ON THE FAMILY BUSINESS, INCLUDING THE FAMILY FARM
For many family businesses, passing the business to descendants after death would be ideal. Unfortunately, 70% of family-run businesses do not make it to the second generation and 90% never make it to the third. In a survey conducted by Prince & Associates asking why family-owned firms fail, 98% said “the need to raise funds to pay estate taxes.” After death, the taxes that must be paid on a small family business can be so large that dissolution of the business or sale to a larger corporation for the purposes of paying those taxes is an option the family must consider. Similarly, for family farms—which are often asset rich and money poor—the largest asset is the land. Upon death and an assessment of the highest and best value of the land, the difficult choice of selling the family farm is on the table. Given a deadline for paying estate taxes and little liquidity, a family farm will easily disappear. Currently, only .23% of estates
are affected by the estate tax. However, in 2011 the first $1 million is not taxable, but anything after it is.
CONFISCATORY ELEMENT OF THE ESTATE TAX
When small business owners and small farmers decide to put their money, time, talent, effort and risk into beginning a small business or farm, they should not have to worry that almost half of the accumulation of their life’s work will later be confiscated by the federal government. When a person earns, saves, invests or spends money, they pay taxes. When that person dies, they should not be taxed on those assets again. This double taxation is morally wrong. Punishing success is far from how the Founding Fathers envisioned this nation.
OBLIGATION
Rep. Jared Polis, D-CO stated, “In America, it’s not a sin to be rich nor is it a crime to die rich.” He’s exactly right. A lifetime of success is not a sin and those who profited from investments should not die with a bill from the federal government for those successes. The rest of Rep. Polis’ statement on the subject, however, is of great concern. “This bill gives our nation’s wealthiest families the ability to know exactly what their obligation to the nation that fostered their wealth will be, and it is fair and it is just.” Rep. Polis has confused the nation with the federal government. The obligation he speaks of, in regard to an estate tax, is to the federal government. The federal government did not, and never will, foster one’s wealth. Risk, ingenuity, sound decision making, capital, time and effort on behalf of an individual are the foundations
for the development of one’s wealth. An individual should have the right to choose where their obligation lies—whether it’s with their family, a charitable organization or any other place. Taxing an individual’s estate is a punishment for saving, gathering and investing. It is far from fair or just.
ECONOMIC DAMAGE
Lawrence Summers, top White House Economic Advisor to President Obama, wrote in a 1980 report that “The evidence presented indicates that intergenerational transfers accounts for the vast majority of aggregate US capital formation.” In other words, passing money and assets through families grows the US economy. In an effort to reduce the tax burden an individual will ultimately bear upon death, many people bind up their assets in tax shelters, such as foundations. Rather than finding ways to protect their assets, a person could have easily invested that money in other business ventures or in other people in the form of jobs. A study by Dr. Douglas Holtz-Eakin shows that eliminating the death tax will create over 1.5 million
small business jobs. The total number of jobs that would be lost in 2011 (with a $1 million exemption and 55% rate) amounts to 500,000. In North Carolina, Dr. Holtz-Eakin and other state analysts, estimate that the number of jobs gained by the repeal would be 42,669 and the number of jobs lost with $1 million exemption and 55% rate would be 14,223.
WERE YOU PROPERLY REPRESENTED BY YOUR REPRESENTATIVE?
HR 4154: Bill to reinstate the estate tax in 2010
YEAS: Butterfield, Etheridge, Price, McIntyre, Kissell, Shuler, Watt, Miller
NAYS: Foxx, Coble, Myrick, McHenry
WILL YOU BE PROPERLY REPRESENTED BY YOUR SENATORS?
Kay Hagan: 202-224-6342 Richard Burr: 202-224-3154
Not long after the income tax was officially established, World War I began. Tax revenues were predominantly brought in by tariffs, but because Europe was at war, imports and exports significantly decreased. Therefore, tariffs decreased. Congress needed a revenue source and turned to the idea of taxes, much like they had for the funding of previous wars. In 1916, the estate tax became permanent through the Revenue Act of 1916.
WHAT IS AN ESTATE TAX?
The estate is the total money and assets of a person. The estate tax is a tax against total property of a person when they die. Appraisers will determine the fair market value of the assets and interests (business investments, etc.) and come up with an overall value of the estate. The federal government then receives tax money before an heir receives the inheritance.
SUNSET PROVISION AND RESURRECTION
In 2001, President Bush signed an Act which would repeal the federal estate tax in 2010, but would resume in 2011 at its old rate of 55%. A footnote in President Obama’s 2010 budget reads: “The estate tax is maintained at its 2009 parameters.” The death tax, which should have fallen to 0% next year, will now leave estates larger than $3.5 million or $7 million for a couple taxable by up to 45% and will rise to 55% in 2011 with a $1 million exemption. The US House of Representatives passed HR 4154 on Thursday, December 3rd which permanently extends the estate tax. Similar legislation is pending in the US Senate, however, the health care debate has taken precedent over any issue.
IMPACT ON THE FAMILY BUSINESS, INCLUDING THE FAMILY FARM
For many family businesses, passing the business to descendants after death would be ideal. Unfortunately, 70% of family-run businesses do not make it to the second generation and 90% never make it to the third. In a survey conducted by Prince & Associates asking why family-owned firms fail, 98% said “the need to raise funds to pay estate taxes.” After death, the taxes that must be paid on a small family business can be so large that dissolution of the business or sale to a larger corporation for the purposes of paying those taxes is an option the family must consider. Similarly, for family farms—which are often asset rich and money poor—the largest asset is the land. Upon death and an assessment of the highest and best value of the land, the difficult choice of selling the family farm is on the table. Given a deadline for paying estate taxes and little liquidity, a family farm will easily disappear. Currently, only .23% of estates
are affected by the estate tax. However, in 2011 the first $1 million is not taxable, but anything after it is.
CONFISCATORY ELEMENT OF THE ESTATE TAX
When small business owners and small farmers decide to put their money, time, talent, effort and risk into beginning a small business or farm, they should not have to worry that almost half of the accumulation of their life’s work will later be confiscated by the federal government. When a person earns, saves, invests or spends money, they pay taxes. When that person dies, they should not be taxed on those assets again. This double taxation is morally wrong. Punishing success is far from how the Founding Fathers envisioned this nation.
OBLIGATION
Rep. Jared Polis, D-CO stated, “In America, it’s not a sin to be rich nor is it a crime to die rich.” He’s exactly right. A lifetime of success is not a sin and those who profited from investments should not die with a bill from the federal government for those successes. The rest of Rep. Polis’ statement on the subject, however, is of great concern. “This bill gives our nation’s wealthiest families the ability to know exactly what their obligation to the nation that fostered their wealth will be, and it is fair and it is just.” Rep. Polis has confused the nation with the federal government. The obligation he speaks of, in regard to an estate tax, is to the federal government. The federal government did not, and never will, foster one’s wealth. Risk, ingenuity, sound decision making, capital, time and effort on behalf of an individual are the foundations
for the development of one’s wealth. An individual should have the right to choose where their obligation lies—whether it’s with their family, a charitable organization or any other place. Taxing an individual’s estate is a punishment for saving, gathering and investing. It is far from fair or just.
ECONOMIC DAMAGE
Lawrence Summers, top White House Economic Advisor to President Obama, wrote in a 1980 report that “The evidence presented indicates that intergenerational transfers accounts for the vast majority of aggregate US capital formation.” In other words, passing money and assets through families grows the US economy. In an effort to reduce the tax burden an individual will ultimately bear upon death, many people bind up their assets in tax shelters, such as foundations. Rather than finding ways to protect their assets, a person could have easily invested that money in other business ventures or in other people in the form of jobs. A study by Dr. Douglas Holtz-Eakin shows that eliminating the death tax will create over 1.5 million
small business jobs. The total number of jobs that would be lost in 2011 (with a $1 million exemption and 55% rate) amounts to 500,000. In North Carolina, Dr. Holtz-Eakin and other state analysts, estimate that the number of jobs gained by the repeal would be 42,669 and the number of jobs lost with $1 million exemption and 55% rate would be 14,223.
WERE YOU PROPERLY REPRESENTED BY YOUR REPRESENTATIVE?
HR 4154: Bill to reinstate the estate tax in 2010
YEAS: Butterfield, Etheridge, Price, McIntyre, Kissell, Shuler, Watt, Miller
NAYS: Foxx, Coble, Myrick, McHenry
WILL YOU BE PROPERLY REPRESENTED BY YOUR SENATORS?
Kay Hagan: 202-224-6342 Richard Burr: 202-224-3154
Monday, November 30, 2009
Texting Ban Effective December 1
Adult drivers are still be able to talk on the phone, but texting could land the offender a $100 fine plus court costs. "When you're texting, you have your brain and your hand and your eyes all off the road at the same time," said Arthur Goodwin, a senior research associate with the UNC Highway Safety Research Center. "Texting is about one of the most dangerous things you can do while driving."
The Grange supported the texting while driving ban and are pleased to see that tomorrow, December 1, a ban on this practice will be in place in the state of North Carolina.
The Grange supported the texting while driving ban and are pleased to see that tomorrow, December 1, a ban on this practice will be in place in the state of North Carolina.
Closer to the Capitol
I have many goals as a Legislative Director, but one priority is to have a strong presence at the NC General Assembly. We have been able to do that very well in the past and I am determined to follow those footsteps. One way is to to move the Legislative Department to Raleigh. I will now live and work in Raleigh so that I will have greater access to our elected officials at the state capitol. I hope that this move will bring increased effectiveness to our legislative program and I can continue serving our members to the best of my ability.
National Convention
The annual session of the National Grange was held November 16-21 in Grand Rapids, MI. The Midwest region hosted this year's convention and it was such a great time! I assisted Leroy Watson, Legislative Director for the National Grange, with committee meetings and the business session. I enjoy seeing all of the resolutions that come from various states. It's interesting that there are common issues that affect all of us, regardless of location. I also love listening to the discussions that accompany the issues that come forward. The variety and mixture of expertise that is brought to the table when discussing issues makes policy development for the Grange so wonderful. When our policy is developed, we all stand together as a collective unit to advocate for these issues.
It wasn't all business in Michigan though.. there was plenty of time for fun and fellowship! From tours, luncheons, dinners and museums to workshops, the Idea Fair, the Evening of Excellence and Celebration Banquet... we all had such a great time being with our Grange friends! Although I've only been to 2 National Conventions, it's such a great feeling to be able to go to a place and feel so welcome! The opportunity to meet and interact with folks from across the country is an irreplaceable experience that everyone should have. Luckily, the 2010 National Convention will be held in Charlotte, NC next November and all of our North Carolina Grangers won't have far too travel to experience a wonderful National Convention!
It wasn't all business in Michigan though.. there was plenty of time for fun and fellowship! From tours, luncheons, dinners and museums to workshops, the Idea Fair, the Evening of Excellence and Celebration Banquet... we all had such a great time being with our Grange friends! Although I've only been to 2 National Conventions, it's such a great feeling to be able to go to a place and feel so welcome! The opportunity to meet and interact with folks from across the country is an irreplaceable experience that everyone should have. Luckily, the 2010 National Convention will be held in Charlotte, NC next November and all of our North Carolina Grangers won't have far too travel to experience a wonderful National Convention!
Sustainable Local Food Policy Advisory Council
A new state law created the North Carolina Sustainable Local Food Advisory Council. One of the issues to be considered by the Council is an in-depth analysis of the potential impacts that the production of sustainable local food would have on economic development in North Carolina, both the direct impacts for the producers of sustainable local food and the actual and potential indirect impacts, such as encouraging restaurants that feature locally raised agricultural products and promoting food and wine tourism.
The Council is made up of 27 members and the Grange was given a position. Phil Hudson from Westbrook Grange was appointed by the Speaker of the House to represent the Grange. Phil is the owner and manager of John Hudson Farms, Inc. in Newton Grove.
The Council is made up of 27 members and the Grange was given a position. Phil Hudson from Westbrook Grange was appointed by the Speaker of the House to represent the Grange. Phil is the owner and manager of John Hudson Farms, Inc. in Newton Grove.
Wednesday, October 7, 2009
Technology!
Technology has certainly made it much easier for us to stay in touch. By logging onto the internet, you're able to keep up with the Grange much easier than ever before! If you haven't checked out all of the ways to stay connected to us, I urge you to do it! Not quite sure about all of this new stuff? I'll explain!
You can easily tap into the National Grange too! Check them out!
Don't think your Grange can join the technology bandwagon and get connected online? Think again! Look at how these Granges stay connected online!
Schley Grange's website
Cape Fear Grange's blog
Southern Wake Grange's Facebook page
Think it's too expensive to do all of these things? Nope! While it does cost money to host a website, there are free sites. However, these sites don't offer very many options with what you can post or upload online. There has been an effort on the part of the National Grange to set up a website which will allow local Granges to host their own website. I'll keep you updated on that information as it becomes available! Starting a blog and joining Youtube or Twitter is completely free! How can you sign up? Click the following links to take you to the "Sign up" page for each website.
Blog
Facebook
Youtube
Twitter
NEED HELP DOING ANY OF THIS?? Call the State office! Allison or Jessica can help you get started!
Website
This one is pretty self explanatory! The website is our "home" on the
web. You are able to click through each section of our website to find out news
and information about our many programs and services.
Main Blog
This blog provides general information and happenings of our organization.
There are dates to remember and pictures to look at!
Membership Blog
Membership Director, Jessica Horton, updates her blog as she makes her way
around North Carolina. She documents her efforts in starting new Granges,
recruiting new members and revitalizing Granges. She also works closely
with Rusty Hunt, Membership Director for the National Grange, in his efforts to
grow the Grange across the nation!
Legislative Blog
If you're reading this... you probably already know what the legislative
blog is all about. I keep you updated on recent votes of interest and
issues concerning the Grange. I also document my networking and visits
across the state. This is a way for our members to stay updated on the
action they need to take on issues that effect Grange policy.
Facebook Group
This is NOT an official group of the NC State Grange. However, it's a way
to connect to other Grangers! You will need to be a member of Facebook to access
this site. What is Facebook? Simply put, it's a website that was
designed for college students so that they could connect with others on
campus. You are able to create a profile about yourself including a
picture, interests and hobbies, etc. Then, you can become "Facebook friends"
with others by sending a request. You're able to join various groups on
Facebook. These groups have their own profile and are dedicated to one issue,
interest, subject, organization, etc. There is a "wall" on everyone's profile as well as within the group. On this wall, you're able to leave comments and start discussions with others who are members of the group. A Facebook group dedicated to Grange is: "I LOVE NC STATE GRANGE!!!!!!!!"
You can easily tap into the National Grange too! Check them out!
Website
Again, this is pretty self explanatory. The website provides tons of
information and resources for Grange members. Take a look around the site to see
what all they have to offer.
Blog
I found the blog this morning.. and it's brand new! Keep updated with this
blog and I'm sure you'll be "in the know" about everything going on in DC, in
other states and on the national level.
Facebook Group
Again, there is a group dedicated to the National Grange. There are updates
and links to happenings around the National Grange (such as National Convention
registration and Youtube videos) There is even a National Grange Youth
Facebook group which can be found here. Remember, you have to sign up for Facebook to view and/or join these groups.
Youtube
The National Grange has produced several videos that they have posted
online. These videos range in nature - some promote programs and events like
National Convention while others are messages from the National President.
Youtube is a website that was designed to allow people to upload videos and
share them with others. The National Grange has their own Youtube Channel where
all of their videos are available for viewing.
The most recent craze is Twitter. Through Twitter, you can update 160 character messages that post to one website. These messages are called tweets. Movie stars tweet about new projects they're working on, musicians tweet about their concerts and regular folks tweet about everyday events of their lives. When you post a tweet on your Twitter page, it is updated automatically and others can read about what you update instantly. The National Grange's Twitter page has been used to instantly update followers about when registration forms are due, deadlines extended, new programs and links to articles of interest. You don't have to be a member of Twitter to follow the National Grange.
Don't think your Grange can join the technology bandwagon and get connected online? Think again! Look at how these Granges stay connected online!
Schley Grange's website
Cape Fear Grange's blog
Southern Wake Grange's Facebook page
Think it's too expensive to do all of these things? Nope! While it does cost money to host a website, there are free sites. However, these sites don't offer very many options with what you can post or upload online. There has been an effort on the part of the National Grange to set up a website which will allow local Granges to host their own website. I'll keep you updated on that information as it becomes available! Starting a blog and joining Youtube or Twitter is completely free! How can you sign up? Click the following links to take you to the "Sign up" page for each website.
Blog
Youtube
NEED HELP DOING ANY OF THIS?? Call the State office! Allison or Jessica can help you get started!
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