Tuesday, March 16, 2010

taxes and rants

What would happen if logic, common sense and decency prevailed over greed?

Strange stuff would happen. Stuff that would be great.

What if you got a tax credit or exemption for rescuing a pet? Just think all the tax dollars that would be saved if shelters were not needed. The fact that Congress through IRS does not allow tax credit for pets is mind boggling. No- it is a true case of taxation without representation.

First of all, realistically we, pets, are dependents in the truest sense of the word.

Second, if you doubt that pet ownership creates jobs and contributes to commerce and trade in the labor market, ponder this:

According to Laura Bennet who wrote an article titled Pet Industry Trends for 2010

"1. Pet parents continue to spend on supplies and OTC medicine thoughtfully

Spending on pet supplies and over-the-counter medicines was projected to increase 5.1% in 2008 from $9.8 billion to $10.3 billion according to the American Pet Products Association (APPA) but it turned out to be more modest growth of 2% to $10.0 billion, a major slow down from the 6+% increases of the recent past. The APPA projects continued growth of 2% in 2010, although I would not be surprised if it bounced a little higher in the range of 4%.

2. Pet services for your pets continue to grow

According to the APPA, $3.2 billion dollars was spent on pet services in 2008, projected to grow over 6% to $3.4 billion in 2009. I don’t think anyone will be particularly surprised to see this growth continue for several years to come, particularly as retail behemoth Wal-Mart expands its pet grooming facilities further into its stores.

3. Growing interest in pet health care

While growth in pet supplies might be “languishing” in the 2% range, veterinary services are projected to grow 9.9% in 2009. I wouldn’t be surprised to see actual growth a little lower (veterinary inflation slowed significantly in late 2009 according to the US Bureau of Labor Statistics from about 7% early in 2009 to just over 4% 6 months later) but I still expect growth in the 6-8% range. Pet lovers continue to want the same treatment options for their pets as they can get for themselves and veterinarians are able to supply it.

4. Pet insurance continues to move towards the mainstream

We estimate the size of the US pet insurance market to be $332 million in premium in 2009, up from approximately $272 million in 2009 (a 22% increase) and I expect it to reach $400 million in 2010. We project that the market will grow to $600 million in 2013. There are 10 pet insurance companies in the US selling under 14 brands. The pet insurance market is seeing an increase in interest from private equity investors looking to get in early on the huge market potential. It remains to be seen if any of them open their check books in 2010 though."

Mh. Notice that no numbers show up for pet health care? From the stock boy to the clerk to the vet tech, vet, groomer, trainer, etc, pet ownership is a HUGE BUSINESS and it provides jobs and economic benefit that are conveniently and willfully ignored by Congress when it comes to reciprocating and allocation of benefits and credits. Let me correct that. Pet products are taxable goods. Pet services are taxable. In that respect we are not ignored. But when it comes to reciprocating and allowing credits or exemptions for pet ownership... then we are ignored.

It stinks. It is really unfair taxation.

Really America?

1 comment:

bichonpawz said...

Don't know how I missed this one!! 'vie I learn SO much from you!! I do believe that people spend ALOT of money on pets. I can't even total up our pet spending for last year....husband would freak out! Think about grooming in general...for bichons...who MUST stay beautiful at all times!!