What To Expect: Republicans Fighting the Unarmed Union Army

This is Part 4 of a series this week of what to expect from the Mississippi Legislature this session.

Republican leadership in Mississippi and the rest of the country has a deep fear of unions. Leaders in our state have been doing everything they can to prevent them from forming (i.e. the Nissan plant in Canton), and around the country, they’ve been taking every opportunity to destroy and destabilize unions. It’s not that they fear some sort of criminal element developing from unions – what they fear is their friends not making every possible cent off the backs of hard working Mississippians. 

But an interesting article in the Washington Post in December highlighted the not only the day-to-day issues families in low-wage manufacturing jobs are facing, but the clearly laid out tactic of corporations to capitalize on the unskilled and poorly educated workforce in the South. 

These companies go to rural areas with staggeringly high unemployment rates and make promises of pay and good fortune. Of course, the state has to offer insane incentive packages that clearly benefit the company and not the state or workers.

And what happens when these promises and pay don’t materialize, and people working 40 hours a week at a manufacturing job have to live on welfare or lose their job if they become injured or are really never hired by the company because they’ve been employed through a temp agency for a full-time job? 

Nothing. Absolutely nothing. 

We’ve seen it for years at the Nissan plant in Canton, and the Washington Post article highlights the issues facing other rural areas. But, people are taking a stand. They want to be paid a good wage to earn their two cars and a boat. I’m sure Republicans will do everything they can to prevent it, but when the National Labor Relations Board calls you out for violations, your company is not on the right path. 

What may prove to be even more interesting in these labor and wage issues, as well as development of new jobs, is how it ties in to all these promised tax breaks to businesses, which Republican leadership swears we can 1) afford, 2) will produce more jobs and better pay for Mississippians. But, I wonder what Wal-Mart will do with it’s newly saved inventory tax dollars – will they hire more workers, pay them better, or offer everyone health insurance? Or, will they pocket it and continue raking in the profits?

What To Expect: Mississippi Roads and Bridges Falling Through the Cracks and Potholes

This is Part 3 of a series this week highlighting what to expect from the Mississippi Legislature this session.

For the past few years, legislative leaders and business leaders have been sounding the alarm at the deteriorating condition of Mississippi’s infrastructure. Article after article has highlighted the problems with our extensive network of state highways and bridges. It’s so bad that PEER is recommending an official chain of command to alert bus drivers and school districts of faulty bridges.

Last year seemed to be the year – this was it – the Mississippi Economic Council pounded the war drum and called on their legislative friends to make this happen. But, when Republicans realized they were going to have to raise the gas tax… gasp… during an election year… plans were curtailed to letting MEC has a study committee.

While many study committees become a place where ideas go to die, MEC has in fact “studied” the issue, and they are looking at the legislature to make it happen this year. Their plan includes making people who use the roads pay for the roads – in other words – a regressive increase in the gas tax. 

If this all comes to fruition through a gas tax increase (or some other tax or fee because there just isn’t money lying around to fix all the infrastructure needs), Republicans will have to vote for it. There will be no way to politically manipulate the situation as in year’s past and force the Democrats and safe Republicans to vote for it and then assault them in mail pieces come election time. 

In the meantime, safe driving. Watch for other cars, watch for animals, and watch for falling bridges.

A tax increase coming to Mark Formby's Pearl River County?

It seems as though Pearl River County is having difficulties running their government on the revenues they're currently getting, so their Board of Supervisors is seriously considering a tax increase.  WDAM is reporting that the Pearl River County Supervisors are set to decide June 18th whether or not they will place a non-binding referendum on the November ballot that would allow voters to call for a 1% sales tax increase.

If the voters approve this increase, the Legislature will have to pass local and private legislation to enact it.  That's where it gets interesting.

Governor Bryant signs first bill (and it's a tax increase)

As the legislature nears completion of its second month of "work", Governor Phil Bryant has signed his first piece of substantive legislation, a tax increase.  House Bill 9 is now law.  As of this report, no press conference is expected to celebrate this milestone for Mississippi's new leadership team.

NEMS360.com covers Deborah Tierce's residency issue, but misses the elephant in the room

There's an article on NEMS360.com about the Deborah Tierce, the Republican nominee in House District 21. The problem is, they focus only on Tierce's residency problem, and not on what appears to be tax fraud.

If you'll recall, Rickey Cole, Executive Director of the Mississippi Democratic Party, held a press conference yesterday and presented documents showing that Republican candidate Deborah Tierce had filed for homestead exemption on two separate pieces of property at the same time. Yes, one of the parcels of land is inside District 21, and one is outside of it. And yes, there should be an investigation as to whether or not she actually lives in District 21.

But the important thing is that she is apparently committing tax fraud. THAT'S the question that needs to be asked of Deborah Tierce, and frankly, I'm shocked that the reporter covering it didn't flat out ask her.

In fact, it's so obviously problematic that the article quotes the head of the local Republican Party as having reservations about the tax issue:

Digby said that while he agreed there are questions regarding Tierce's homestead exemption status that should be answered, the Mississippi Democratic Party should direct those questions to the office of the secretary of state.

And questions surrounding her homestead exemption should, I guess, be directed to the Department of Revenue?

Some interesting info on Mississippi corporate income tax (I swear that sentence doesn't contain an oxymoron)

I mentioned the Mississippi Economic Policy Center's paper on our unfair tax code a few days ago, and I failed to talk about another huge problem: our corporate income tax structure. Bill Minor, in an article from last week, covers it pretty well:

It’s because the state has a thin, outmoded tax structure whose burden depends too heavily on the state’s huge poorer population and doesn’t make its more affluent population pay its fair share. Symptomatic of the latter point was the report of the PEER staffers showing that 91 of the state’s 130 top corporations paid zero corporate tax.

...

State Tax Commission annual reports have shown for some years, corporations only pay one-third of the income taxes collected by the state. Individuals pay two-thirds of the taxes collected. That proportion is badly out of whack. In most other states the ratio between individual and corporate taxes paid is the reverse.

A major reason for Mississippi’s income tax revenue imbalance is that corporations pay the same rate of tax as individuals. The top bracket of the income tax is 5 percent for both individuals and corporations, whereas most states have a separate – and higher – tax bracket for corporations.

...

Seven years ago, the John C. Stennis Institute in a study funded by the W.K. Kellogg Foundation found that by just increasing the top bracket 1 percent, the state would realize a minimum revenue increase of $248 million. Obviously, 1 percent would yield even more now. (Emphasis added.)

If you are interested at all in our state's government, this article is a must read. Not only does Minor talk about the corporate income tax problem, he goes into detail about how we got in this mess and why it will be difficult to get out of it.

Mississippi's tax system unfair to poor; is anyone surprised?

The Mississippi Economic Policy Center has a two page PDF up that's rather disturbing. In it, they reveal how the top 20% of Mississippi earners pay the lowest share of taxes.

So how did we get here? Well, for starters, we haven't updated the Mississippi tax code in 25 years. That means that a family of four that pulls in more than $29,600 is in the highest tax bracket. Yes, you read that correctly. Then there's been skyrocketing income growth among the top 20% of income earners as opposed to everyone else. To the point, there has been a 49.4% increase in annual income for the top 20% of earners over the last 20 years, while the bottom 20% has seen their income rise only 23.1%. Factor in that the 49.4% increase for the wealthy is exponentially greater than the 23.1% increase for the poor, and the gap keeps expanding. For example, 49.4% income growth for someone making $100,000 means a new income of $149,400, while a 23.1% income growth for someone making $30,000 is a new salary of $36,930. What was once a $70,000 income gap is now a gap of $112,000. And the kicker? They're both in the same tax bracket.

It is past time for us to examine our tax code and make it current. Doing so would allow us to better fund our state budget and ease the burden on Mississippi's working and middle class. And that would make Mississippi a more attractive place to live, work, and play.

Jerry Mitchell writes article for C-L on Steve Simpson's tax woes, David Sansing calls tax problems "outrageous"

In today's Clarion-Ledger, Jerry Mitchell has an article summing up what's been covered here at Cottonmouth. The story is titled "GOP AG hopeful late on tax bill" with a subtitle of "Steve Simpson indicates payment made before it was." The story covers the tax lien sold to Farrell-Roeh Liens, LLC, Simspon redeeming his home after being called out on it, Simpson saying the taxes weren't in his budget (even though a yacht was), and Simpson later saying on SuperTalk Radio that he was current on his taxes when he wasn't.

The Mitchell story also adds that Simpson, after saying he was current when he wasn't, has now paid his property taxes and late fees. In addition, we have Simpson getting testy with Jerry Mitchell: "Reached for comment Friday, Simpson said, 'I'm not commenting on that story any more with you.'"

Where Mitchell really excels is in getting comments from Professors David Sansing of Ole Miss and Marty Wisemann of Mississippi State. Sansing says nothing upsets voters like politicians not paying taxes, calling it "outrageous." Wisemann says "There's going to be plenty to watch" as far as the Attorney General's race goes.

Wisemann's right. Don't expect this to be the only thing about Simpson voters will consider "outrageous."

Taxes apparently weren't in the budget for Simpson, but look what WAS

In this morning's Clarion-Ledger, Republican Attorney General nominee Steve Simpson said he hadn't paid his property taxes because he's "a lot like other people." And that "When you're a state employee, that's not in the budget."

Well, look at what IS in the budget:

Republican Attorney General nominee Steve Simpson
and his yacht, Seaquestered, off of the Mississippi barrier islands

If you scroll down to the fifth entry in the PDF below, you'll find the Coast Guard registration info on Simpson's 44 foot, 14 ton yacht Seaquestered:
Simpson Yacht Documentation

The Simpson Tax Documents

Here are the documents that show that GOP Attorney General nominee Steve Simpson's house was sold for taxes last year.  We've covered this before, and it's not what we mentioned last week.

Simspon tax documents

Republican AG candidate Steve Simpson in tax trouble

Simpson partying down

According to Harrison County tax records, Republican Attorney General candidate Steve Simpson and his wife, Elizabeth, own a residence in Gulfport valued at $377,509. On Aug. 30, 2010, the house was sold for taxes at auction because Simpson failed to pay the nearly $6,000 in 2009 taxes owed on the property. As of Feb. 28, 2011, Simpson owed $5,759 in county, city and school taxes, along with damages and interest from his failure to pay.

According to state law, if a landowner does not pay his property taxes for any given year by the end of August, the land is sold for taxes. (Taxes are due by Feb. 1 of each year.) To redeem the property, the landowner must pay taxes and penalties within two years of the date of the tax sale, or the tax purchaser can claim title to the property.

In Simpson’s case, his house was sold for taxes to a company called FRTL-US2010, LLLP, which is a subsidiary of Farrell-Roeh Liens, LLLP, a firm that buys real property tax liens throughout the country. In addition to the 2009 tax problems, Simpson had not yet paid taxes for 2010 totaling $4,637 as of Feb. 15.

I guess that explains why Simpson held onto his Public Safety Commissioner paycheck as long as he could, Hatch Act or no Hatch Act.

There's a hole in our bucket

Shockingly, 80% of Mississippi corporations pay no income tax. Yes, you read that correctly, only 1 in 5 corporations operating in Mississippi pay any income tax whatsoever. In a post on the Mississippi Economic Policy Center's blog, Sarah Miller passes along the staggering figures from the PEER Committee.

MEPC offers the possible solution of combined reporting, which would prevent companies from shifting their profits to related companies outside of Mississippi. It's this shifting of profits that allows 80% of corporations, and 67% of large corporations, to avoid paying any Mississippi income tax.