Saxton Knows Business, For True!
We're setting aside for now Saxton's penchant for giving different audience diametrically opposed positions on the kicker, but don't worry - it'll make an appearance soon enough.
But overlooked from Ron's Friday appearance on Lars was his blinding ignorance about who actually will receive the benefits of the corporate kicker.
Ron loves to tout his experience in business as qualifying him for office. But for someone who wants to overhaul the state tax system he seems woefully uninformed about it.
Here is the part in the interview where they spin the tax credit as primarily benefiting mom and pop family businesses:
LARS LARSON: I guess part of what I find frustrating about the corporate kicker is that - I’m not a corporation, I don’t have a corporation, but when people think corporation a lot of times they think Enron, they think Nike, they think Pepsi Co. or Coca Cola they don’t think that it-
SAXTON: This is about the corner store and the gas station owner and all the little private small business people.LARSON: Yea, the guy that cleans your carpets or the guys who were up at my place the other day cutting a retaining wall in half for me.
SAXTON: Right, and let’s be clear those people are struggling to buy the new equipment struggling to reinvest, to make the investments to allow their business to succeed if they get some kicker money back and this allows them to invest in their business great that’s wonderful, then I’m thrilled.
Despite Saxton's claims that this is about the little guy, the data shows otherwise. As this analysis by the Oregon Center for Public Policy shows, 93 percent of the corporate kicker will go to businesses with profits over $250,000 - leaving just 7 percent for small business owners.
Moreover, most small businesses are S corporations, and as a business expert like Saxton should know, most profits from S corporations are taxed as part of an individual return - not corporate.
It's great that Saxton pulled a page from the Bush playbook, but he might want to get his facts right first.
Posted on September 5, 2006
Ron vs. Reality



