Archive for the ‘South Carolina’ Category

Another South Carolina Politician Guilty of Tax Charges

Monday, November 26th, 2012

There must be something in the water in the Palmetto State: Yet another politician in South Carolina forgot about filing his taxes.

This time it was a Democrat, State Representative Harold Mitchell (D-Spartanburg) who claimed he just filed late. He had been accused of felony tax evasion; today he pleaded guilty to a misdemeanor charge of not filing his taxes timely. He’ll owe the amount of the tax due (just under $6,000) and court costs. His three-year sentence will be suspended provided he makes the payment (which he has promised to do).

South Carolina voters appear confident about Mr. Mitchell. He was reelected…without opposition.

CPA Allegedly Practices Theft of Funds

Sunday, May 20th, 2012

A few years ago, there was a tax blog called The proprietor, William Murray, was a CPA in Sacramento. He had a “trust accounting” system. Payments were sent to him, and he supposedly forwarded those payments on. It was a lie. Millions were embezzled; Mr. Murray received 19 1/2 years at ClubFed. Unfortunately, Mr. Murray was apparently not the only person to practice such a system.

From Myrtle Beach, South Carolina comes word that Richard Voltz, a CPA, is alleged to have had clients forward payments to him. Those payments, supposedly over $480,000, didn’t make it to the tax agencies. Mr. Voltz is also alleged to have not reported the alleged defalcations on his own tax returns (illegal income is just as taxable as legal income) so he’s also been charged with tax evasion. He’s facing prison, fines, and restitution if found guilty on all the charges.

I haven’t met an accountant who want you to make checks for your taxes payable to the accountant. If that’s what your accountant wants, be afraid.

Finally, I’d like to point out that Mr. Voltz, like Mr. Murray before him, is a CPA. He presumably has taken his ethics requirements. That hasn’t stopped him from being accused of what would anyone would call a serious violation. I’m sure licensing every accountant will stop every accountant from committing a crime. (Sigh….)

Do Businesses Base Decisions on Taxes?

Sunday, November 1st, 2009

The answer to this question should be obvious, but many liberals believe that taxes can be hiked, and hiked, and hiked some more, and businesses won’t do a thing but verbally complain.

That’s wrong. Businesses will locate will locate their operations rationally. They will seek to maximize net income. That could mean locating in a high tax area if there will be additional revenue to offset the higher taxes.

I can think of an obvious example where a business relocated because of taxes. Nissan Motors of America moved their corporate offices from Torrance, California to Tennessee. Tennessee is a low tax state while California is anything but a low tax state.

Washington state discovered the truth behind this. Boeing will locate the final assembly line for its 787 Dreamliner in Charleston, South Carolina. Historically, most of Boeing’s airplanes have been built near Seattle.

Mish notes that the unions refused to give Boeing a ten-year no-strike pledge for work on the 787 in Seattle; this apparently led (along with grants and tax breaks offered by South Carolina) to the decision.

For those who still say that businesses won’t react to costs and move, think again. Taxes matter, and if you increase them too high businesses will relocate.