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Hm: Should states subsidize business’ federal tax burdens?

Jan. 28, 2013 3:09pm Meredith Jessup

As businesses like Hobby Lobby who’d rather swallow ObamaCare fines than compromise their principles, some at the state level are looking for ways to help.

As you’ll recall, the craft store giant Hobby Lobby has vowed to pay potential fines of up to $1.3 million per day in protest of the Obama administration’s “morning-after mandate” which requires employers to provide employees with insurance that covers the costs of birth control. But while many object to the regulation and the effect it will have on such a business, is there anything else that can be done to protect businesses and their religious beliefs from the government?

Hm: Should states subsidize business federal tax burdens?

(AP)

In Texas, state Rep. Jonathan Stickland, a Republican, has filed a bill to grant state tax breaks to any company fined by the federal government for not covering contraception costs in its health insurance plan. The legislation — House Bill 649 — would exempt Hobby Lobby and other “religiously based businesses” from state sales and franchise taxes if they are fined by the federal government. According to the Austin Statesman, the state tax credit would be limited to the amount of the federal fine or the amount of state tax the company owes.

“When a business is being stressed nearly to the point of bankruptcy by punitive federal taxes, of course the state should give them relief,” Stickland announced in a statement.

Really?

While I support Hobby Lobby and its ongoing battle for religious freedom, I do not support using the tax code — state or federal — to protest.

Full disclosure: I’m a bit of a crafting fiend and I love the Hobster Lobster. But such an act amounts to a transfer of wealth from the state to the federal government. While this tax break might help a few privately owned businesses, it ultimately hurts the state and its residents who will have to forego the tax revenues by cutting funding or raising other tax rates.

What do you think? Do you think it’s a good idea for the state to cover the costs of a business’ non-compliance? Sound off with a comment!

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Comments (6)

Danivorytx
Posted on January 29, 2013 at 8:00pm
I think the bill is a great idea. The fallacy you’re thinking under, Meredith, is that Hobby Lobby’s tax money is the property of the citizens of Texas rather than the property of the owner’s of Hobby lobby. What they are offering is a tax cut, not some kind of direct subsidy. They’re only getting to keep what they should be allowed to keep in an ideal world anyway. Not to mention that they pay far less in taxes than they will ever pay in penalties to the federal government. The federal government is attempting to destroy these businesses. If the state doesn’t do anything (and possibly even if they do) these businesses are going to have to close their doors, and in that case the state is going to lose all of that tax revenue anyway.

Like I said, it is a great idea to give a business that is hurting, for whatever reason, a tax cut so that they can weather the storm. It’s especially a great idea when it is an opportunity to stick it to the federal government when they are trying to kill Christian businesses. I love the bill and I appreciate Rep. Strickland for offering it.

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RK
Posted on January 28, 2013 at 10:41pm
Why can’t companies just offer insurance that only covers $1 of the costs of the morning after mandate? Does the OhhhbaammaCare dictate to that level of coverage requirements?

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Lachoneous
Posted on January 28, 2013 at 9:10pm
I am sure the federal government will hike the penalty up a little extra since they know the people of Texas will be footing the bill. This is not good legislation. Why not propose something along the lines like ,”no business, person, or organization shall be required to obey a law that violates the inalienable freedom of conscience…”

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Cavallo
Posted on January 28, 2013 at 5:22pm
No, don’t bother. Hobby Lobby should force the IRS to shut them down. Refuse to pay the fine. Before the Feds show up to seize the property, give it all away. Deny the feds anything. The feds are one of the greatest evils on this planet. They are not your friends, they are not your protectors, they are your enslavers.

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crystalsky
Posted on January 28, 2013 at 4:00pm
I don’t think any business should have to give out birth control or abortions etc in there insurance.Christians should be exempt. By the way all the stores owned by the Muslims don’t they have to pay for abortions like Al Jezara. and these businesses and they will have to be able to give this out to the muslim women who work. for them because they have to hire women in those businesses and gays or it will be discrimanation. Maybe Joy can talk to her new boss Al about this when she is picking out her favorite color Burka.

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travlman77
Posted on January 28, 2013 at 3:19pm
Hell No!!

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