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There is No Free Lunch

Unemployment insurance has been turned into a form of welfare for the middle class. As an owner, though I am responsible to pay this tax, should I become unemployed, I cannot collect.

I am part owner of a taxi company. Taxes were due Jan. 31, 2012 for income earned in the fourth quarter of 2011.  In the packet I received, there was a new tax to be paid. Even though ours is a small company, it will cost us hundreds of dollars. This is to repay the Federal Government what New York State had to borrow to cover the extension of unemployment insurance.   

That's right. Every time the Feds extend unemployment insurance, New York has to borrow the money. New York is broke. The money has to be borrowed, with interest. Who is on the hook for this borrowed money? Private sector businesses. 

It is yet another unfunded mandate that businesses are expected to pay. It is yet another drain on disposable income businesses could use to buy inventory or hire people. It is yet another cost passed down to the consumer.  It is yet another example of political compassion with other people's money. 

[Read on by clicking here]

DO YOU AGREE WITH BAZZO? TELL US BY CLICKING ON THE "COMMENT" BUTTON.

Maggie24 February 17, 2012 at 11:51 am
Whoa, whoa, WHOA. I beg to differ, Ms. Claire. A "real" business is ANY business an individual chooses to spend their time and money growing, to whatever size it becomes. It doesn't matter if it's a one-person shop or a one hundred thousand person operation. You are being incredibly snarky with that point of view. And, while I may or may not agree with Mr. Bazzo--it doesn't mater, in terms of this reply--for a small business person, $325 can be a lot of money. I suggest you stop seeing the world only through your own experience and try to have some compassion someone else's. It is not for you to define "real".
Frankly, by your definition, any creative person--struggling to make a living writing, painting, making music--is also not in a "real" business. Where exactly does your definition end? What's "real" is what satisfies ones own need for self-actualization and put bread on the table.
Thomas N February 17, 2012 at 12:37 pm
What does textbook economics have to say about almost two years of unemployment benefits? Here is a passage from a textbook called "Macroeconomics":
Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker's incentive to quickly find a new job. Generous unemployment benefits in some European countries are widely believed to be one of the main causes of "Eurosclerosis," the persistent high unemployment that affects a number of European countries. That textbook was written by none other than Paul Krugman, Obama’s de-facto economic advisor and intellectual father of the $800,000,000 stimulus (remember that?). Before we continue to liberate Bazzo from his hard-earned money, perhaps we could stop and consider whether Bazzo's money is best spent by the government this way, or if Bazzo could do a better job.
Ross Revira February 17, 2012 at 01:36 pm
Why don't YOU stick to the issue at hand. YOU called me a coward because YOU feel I am using a false name. If anything You seem to be obsessed with me. I promise I will never mention your name again as long as you do not advocate spending more taxpayer dollars to assuage your guilt being that you do not pay any Federal or State income tax. I think you should have some "skin" in the game . Anything property taxes pay for, comment all you like. Have a good day Jeff Meyer from Tuckahoe.
jeff meyer February 17, 2012 at 01:48 pm
Are you losing it completely? You previously admitted numerous times that "Ross Revira" is a phony name. Whatever the case if I am going to continually consume you just remember that you have my phone number and I will gladly accommodate you with a meeting and we can deal with the matter like gentlemen. Or perhaps in your case like a lady since I don't even know your actual gender. JM Tuckahoe, NY
CK February 17, 2012 at 01:52 pm
Not to mention the $780,000,000 of "Bazzo's money" the government spend on the war in Iraq (remember that?) so that he can spend 4$ a gallon on gas.
Spruce Bringsteen February 17, 2012 at 02:19 pm
According to the rules of the Code Duello, the duelists must be of equal rank. That is why Preston Brooks refused to challenge the drunkard Charles Sumner to a duel and instead just thrashed him with his cane. If Mr. Meyer and Mr. Rivera are of equal status in the social order, we may proceed with the duel. Since Mr. Meyer threw down the gauntlet, Mr. Rivera may choose the weaponry. Each duelist must select a second to work out the arrangements between the parties. Gentlemen, go with God.
Ross Revira February 17, 2012 at 02:37 pm
It would seem you are obsessed with me Jeff Meyer from Tuckahoe. I see you went crying to Lanning and got my 100% factually based comment expunged(but you got it).
I have never said my name is false as it is a violation of the terms for the Patch. I do not need to speak to you because to waste my time on a "taker" like you reduces my time to "produce". Unlike you I pay taxes and provide employment for a number of people. You only consume and contribute to the amount of greenhouse gas by spewing your hot air. Judging from your past documented actions you are incapable of dealing with anything like a "gentleman".mytownrepowww.rt.com/index.php?option=com_content&view=article&id=1216:village-races-wrap-up&catid=34:news&Itemid=53
Pat February 17, 2012 at 04:01 pm
Again.
Let me get this straight. When a homeowner loses their job they should never have to leave their homes "under any circumstances" even if they can no longer afford to pay for them?
Frank J February 17, 2012 at 07:33 pm
Pat, I don't think anyone is saying that. Most compassionate people understand that there are times in many peoples lives when they need a safety net. Unemployment is paid if you are willing and able to work and if you were terminated only because there is lack of work and not some disciplinary problem. The net gives you time to find another job or if necessary sell your house so you can downsize and move into something less expensive. The alternative is to give people nothing and they will lose the house back to the bank who really doesn't want it in the first place. The perception that unemployed people hang around the house sleeping in a hammock and drinking beer is simply not true. I've been unemployed and I know that when I was it was a full time job to look for another job. The 405 a month was helpful but living in Westchester it is not enough to live the life of riley, especially when the average tax burden is close to 12K a year.
Hopefully, you will never know what it's like to face these financial challenges but many others aren't that fortunate.
Wonderboy February 17, 2012 at 07:34 pm
What I'm disgusted at, is how many able bodied people collect from the system and work off the books. It makes an unlevel playing field for those of us in low salaried, unskilled jobs.
People throughout New York pay taxes, whether it be for a pack of gum, a gallon of gas or a shirt, they (we) pay taxes. That money then goes towards people who live in low income housing while under-reporting their incomes, if reporting them at all. They are then able to sustain in these $6-$8 per hour off the book jobs, instead of the employer paying the $12-$18 per hour needed to survive. Unemployment should be limited to 1 yr. Then, when people "run out" the realism of this serious situation will set in and the Governemnt will have to fix this whole economic mess they've got us into.The Government keeps giving, giving, giving, soon it will run out, hyper-inflation will set in as the American dollar sinks in value, and I'll say "I told you so".
Pat February 17, 2012 at 07:45 pm
So where do you draw the line on the safety net? Give me a number because being compassionate cost everyone a lot of money and although I doubt the majority of the unemployed are laying in hammocks, a great many do not seek employment because they do not want to take a job that only pays a bit more than what the safety net provides for not working.
Seriously, 2 years of collecting unemployment is ridiculous.
John Q. Public February 17, 2012 at 08:02 pm
Bazzo, for crying out loud, get a new accountant. You claim you don't care about the $330 / year charge for unemployment insurance, but you're complaining about the $21.25 special assessment to cover NYS's loan from the Federal Government? You got bad advice about the corporate entity you do business under. Most self-employed people do not pay unemployment insurance, those that do can collect.
jeff meyer February 17, 2012 at 09:38 pm
Quite a leap Pat. I certainly never said that a person should never leave their house under any circumstance even if they can't afford them. Never, ever said that. What I did say and will continue to say is that no one should live on the street. NO ONE! Government should provide and fund emergency housing for those all who find themselves in such dire circumstances for as long as it takes until they get back on their feet. Also, it is not ridiculous to be unemployed for 2 years. It is the reality that people face. Like it or not government and our Houses of Worship have a moral and ethical responsibility to care for those who are in need. Period! Jeff Meyer Tuckahoe, NY
Pat February 18, 2012 at 02:05 am
What do you mean by emergency housing for as long as it takes? Public shelters and section 8 housing or staying indefinitely in their house that they can no longer afford and having the government pay their mortgage?
Anthony J. Bazzo February 18, 2012 at 06:28 am
You are still a fool who knows nothing about my situation or my expenses and tax liabilities.
Bazzo 02/18/12
John Q. Public February 18, 2012 at 08:02 am
Bazzo, it's your right to take bad advice from the guy who killed the North County News. You're right I know nothing of the bad advice he's given you. But I also know that anyone with half a brain wouldn't spout misinformation like you do. You give self-employed people a bad name because you mismanage your business and complain about it.
Chris Clement February 18, 2012 at 12:30 pm
Though I may not always agree with Bazzo, his article was interesting and thought provoking. There are 2 points I want to make. Food stamps, unemployment, Section 8 housing, WIC, free medical care, and everything else our govt gives out for EXTENDED periods of time is breaking the bank, and the backs of the middle class, and small business owners. I'm personally aware of people collectiong unemployment who work off the books (don't pay taxes). I'm aware of people getting their housing paid for (Section 8) who have girlfriends or boyfriends living with themand have incomes. The corruption with these free-bees is mind-boggling! Worse, it's near to impossible to turn these people in as cheaters.
Second point: I notice posts have been deleted by the editors of Patch. It's their choice if a post violates their terms of service. However, often their rules are selectively enforced. Examples: On 02/14/2012 someone wrote: You sir are a fool. ... You insinuation otherwise tempts me to flag this as inappropriare. However I will just flag you as a jerk afraid to use their own name ... " Then on 02/18 it was written: "You are still a fool ... " Sometimes there is no other way to say "You're a jerk!" And posts such as these I find someone's being human and should not be removed.
Bob Ogden February 18, 2012 at 04:48 pm
AB, don't make those assumptions. Public sources estimate your company's annual income at $120,000 and state that you have three employees. If that information is accurate, all your other expenses can be arrived at pretty easily.
Ross Revira February 18, 2012 at 04:50 pm
John Q. who quotes Lady Gaga with regards to the economy? Since when do you have to be raped by the tax man before one loses the "moral argument" on the amount of taxes paid? Why do you assume that all cash business owners under report their income? Is it not just as ignorant to assume that all people on unemployment insurance are not actively looking for work? Maybe instead of looking up to the likes of Lady Gaga you could "see the forest through the trees".
Anthony J. Bazzo February 18, 2012 at 05:14 pm
Peekskill Pete:
Your info. is totall incoorect. No wonder you don't use your real name, then every one would know you to be a dunce. Bazzo 02/18/12
Ross Revira February 18, 2012 at 07:48 pm
John Q. I will agree with you that the tax rates punish the "producers" and in many cases reward the "takers". That said you lambaste Bazzo for spreading misinformation but you seem to be doing the same. You say you pay 48.875% of your income in taxes. That is an impossibility unless you use the same tax adviser as Bazzo. Do you? The top Federal tax rate is 35%, State 6.85%, and NYC 3.648% (if you live or work there). These are marginal rates so you are not paying the total of 45.53 % on 100% of your income. Even if you add the approx. 8% FICA and Medicare tax you still don't pay the 48.875% rate because the FICA portion is only for the first $110,000 of income which would put you in the 28% Fed tax bracket. You further lower your Fed taxes by deducting state and local taxes . Now if you counted your property taxes they are also deducted from your total taxable income which would result in a smaller total tax bite (not to mention the mortgage deduction) So John Q. make sure when you live in a glass house pull the drapes before you to take a bath.
John Q. Public February 18, 2012 at 08:30 pm
Ross -- Nice try but you miss that we live under 2 tax systems, the Alternative Minimum Tax and what most people pay. It's silly that you are quibbling about 3%. When you add my property tax in, I'm well over 50%. I am denied the deductions most people have because of AMT -- lots of middle class Westchester people suffer the same fate. Sorry you don't get it. I'm glad you can read, but sad you draw hasty and incorrect conclusions. Hopefully your kids will learn what you don't know.
Ross Revira February 18, 2012 at 10:32 pm
John Q. I too have paid the AMT. The top rate is 28%. I have included the link so even you and your kids will understand. http://en.wikipedia.org/wiki/Alternative_Minimum_Tax
Get a new accountant H&R block does not cut it for such a BIG taxpayer.
Bob Ogden February 18, 2012 at 11:14 pm
Really? Ask Tom about it
Ross Revira February 19, 2012 at 01:53 am
John Q read veeery sloooowly I paid (past tense) you pay (present tense) so who is Obama collecting from...yooou!
jeff meyer February 19, 2012 at 02:28 am
C'mon Rosey, It is not President Obama who is collecting rather it is the government on all levels of society who collects taxes so society can function and be maintained. It sounds like you are asking JQP to be a lawbreaker. Far be it that lawbreakers should have the right to comment. Taxes are paid Rosey because THERE IS NO FREE LUNCH!!! Don't you feel the irony. Jeff Meyer Tuckahoe, NY
John Q. Public February 19, 2012 at 03:55 am
Jeff and Ross its time for you to become fully human and join me at Church tomorrow. Or listen to Sister Vickie Winans --Long as we got king Jesus we don't need nobody else -- Amen -- http://www.youtube.com/watch?v=lyAMCkHOb8U
jeff meyer February 19, 2012 at 11:12 am
JPQ, I have seen The Winans in concert numerous times. I actually saw them with Whitney Houston in 1989 in Ocean Grove, NJ. with my wife and other friends. Amen to what you say. www.christianleft.org. Jeff Meyer Tuckahoe, NY
Issy February 19, 2012 at 12:34 pm
Are you saying that people who do not go to church are not fully human?
jeff meyer February 19, 2012 at 03:35 pm
Sorry for the error JQP. The actually site is thechristianleft.org. Hopefully different paths lead to the same road. Peace, Jeff Meyer Tuckahoe, NY

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