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GOP Governors Rollout Regressive Tax Plans

  1. You have chosen to ignore posts from UserName99. Show UserName99's posts

    GOP Governors Rollout Regressive Tax Plans

    Governors Push Bigger Reliance on Sales Taxes

    WASHINGTON — Republican governors are moving aggressively to cut personal and corporate income taxes, including proposals that would increase reliance on state sales taxes, setting up ambitious experiments in tax reform that could shape what is possible on a national level.

    Even as Washington continues to discuss, if not act, on ideas for making the federal tax system simpler and more efficient, governors, some with an eye on the next presidential race, are taking advantage of the improving economy and a gradual rebound in revenues to act.

    In Louisiana, Gov. Bobby Jindal is pushing to repeal the state’s personal and corporate income taxes and make up the lost revenue through higher sales taxes. Gov. Dave Heineman of Nebraska is calling for much the same thing in his state. Gov. Sam Brownback of Kansas wants to keep in place what was supposed to be a temporary increase in the state sales tax to help pay for his plan to lower and eventually end his state’s income tax.

    Along the way these governors are taking small first steps into a debate over what kind of tax system most encourages growth in a 21st-century economy. In particular they are focusing attention on the idea, long championed by conservatives but accepted up to a point by economists of all stripes, that the economy would be better served by focusing taxation on consumption rather than on income.

    Taxing consumption has the potential to lift economic growth by encouraging more savings and investment. But the shift could also increase inequality by reducing taxes predominantly for the wealthy, who spend a smaller share of their income than middle- and lower-income people.

    http://www.nytimes.com/2013/01/25/us/politics/republican-governors-push-taxes-on-sales-not-income.html?pagewanted=1&hp

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    If these governors feel their states don't need to tax their citizens at current rates, I would suggest they don't need to tax other Americans either. Most of these states take more federal money than they contribute. It would follow that any state that doesn't need to tax its corporations doesn't need federal money either. We should allocate these funds back to the states that contribute more than they have taken back from the federal government, the ones form which these "lower state income tax" states are expecting to take jobs.

     
  2. You have chosen to ignore posts from GreginMeffa. Show GreginMeffa's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    Along the way these governors are taking small first steps into a debate over what kind of tax system most encourages growth in a 21st-century economy

    ------------------------------------------

    Terrible!

     

    I'm guessing you would deny New Hampshire federal funding right?

     
  3. You have chosen to ignore posts from UserName99. Show UserName99's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to GreginMeffa's comment:

    Along the way these governors are taking small first steps into a debate over what kind of tax system most encourages growth in a 21st-century economy

    ------------------------------------------

    Terrible!

     

    I'm guessing you would deny New Hampshire federal funding right?



    Well.....NH doesn't take more federal funds than its residents pay in, so thats not a good comparison.

    Make no mistake. When these states cut their revenue intake, guess what these "anti tax" political weaklings will do? They will cry and moan that they need more federal tax dollars to cover their costs. Which means that the rest of the states will pay more. This is nothing more than the de facto creation of a entitlement for the careers of Tea Party Politicians.

     
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  5. You have chosen to ignore posts from UserName99. Show UserName99's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to Newtster's comment:

    Maybe you will figure it out when we start losing more jobs and high income taxpayers to these states. Heck, why do think Rose Kennedy suddenly became a citizen of FLorida when she died??

    Look at the disaster that is California. The revenues go down, they increase rates and the revenues go down further. People and business are leaving that state in droves. And behind are left a higher and higher percentage of low income earners and others that are a burden on state services.

    I cannot remember the exact dates but California's population has grown by 1 million in the last ten years with only 100,000 more people paying taxes - the way you would want it - "progressive" income taxes.

     




    Are you sure you want to use California as an example?  The state is booming since its cleansed itself of republican lawmakers who have been obstructing governance there for years.

     

     

     
  6. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    California "booming"? LOL.. The booming sound is the sound of millions of hardworking self reliant folks leaving the state, and millions of illegal immigrants and government dependents of all kinds flocking in...

    Imagine, GOP Governors actually reforming  the arcane tax system and changing and proposing  new ideas!

    Meanwhile, in Washington, the Democrats who control things havent had a new idea in 50 years, other than more taxes on those who work, and gumming up the tax code with presents for their special interests...

     
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  8. You have chosen to ignore posts from GreginMeffa. Show GreginMeffa's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    There are several states with no income tax that are decidedley blue

     
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  10. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    Username, like all good liberal Democrats, is first and foremost concerned that the Government is kept fat and happy. Fatter and fatter.

    The Party of Government cares not about people but about bureaucracy.

     
  11. You have chosen to ignore posts from UserName99. Show UserName99's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to GreginMeffa's comment:

    There are several states with no income tax that are decidedley blue




    Oh really?  Aside from NH (which I wouldn't say is 'decidedly blue')  Name 2 blue states without an income tax.

     
  12. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    Heh, heh, heh.... the whacko wingnuts continue on in their self-delusion.

    They conveniently ignore the fact that their mythological hero, Ronnie-Raygun, signed into law the largest income tax increase in CA history. And of course he then went on to raise taxes in 7 out of 8 years as president.

    And these nimrods keep up the projection that it's the Dems while their ideological ignorance doesn't allow them to admit to reality.

    Hilarious!!!

     
  13. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    Hmmmm....

    VA has a state income tax higher than MA - 5.75% and 5.25% respectively.

    VA has proposed raising the sales tax to 5.8%, MA proposes lowering it.

    VA taxes everything including food and clothing, MA does not.

    VA wants a $100 yearly fee just for owning a certain type of vehicle, hybrids.

     

    And yet the wingnuts conveniently ignore the former while attacking the latter.

    I guess in the whacko wingnut world it only matters who does it.

     
  14. You have chosen to ignore posts from UserName99. Show UserName99's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to 12-Angry-Men's comment:

    Hmmmm....

    VA has a state income tax higher than MA - 5.75% and 5.25% respectively.

    VA has proposed raising the sales tax to 5.8%, MA proposes lowering it.

    VA taxes everything including food and clothing, MA does not.

    VA wants a $100 yearly fee just for owning a certain type of vehicle, hybrids.

     

    And yet the wingnuts conveniently ignore the former while attacking the latter.

    I guess in the whacko wingnut world it only matters who does it.




    Sales taxes are inherently regressive; the greatest burden falls on those with the lowest income.  I'm always amazed that the middle-class falls for this ploy.

    These plans will only work in Red states, where public education has historically been underfunded and wages minimized, where the poor and illiterate are easily duped into believing that trickle down economics works. 

     

     
  15. You have chosen to ignore posts from GreginMeffa. Show GreginMeffa's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    REd States like Washington, Nevada, NH and Florida?

     
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  18. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to Newtster's comment:


    Yeah, give me some of that trickle up poverty you are selling. Love living on those government benefits! So generous! Living the high life on food stamps and section 8!! WOOOOOOOOOOO HOOOOOOOOOOOOO!! 




    Heh, heh, heh... that's about as good of a response as one would expect from a liberal arts chickenhawk.

     

     
  19. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    "NH doesn't take more federal funds than its residents pay in, so thats not a good comparison"

    The stupid idiotic debunked "red states pay less in federal taxes than the fed govt spends in the state"...that meaningless stat was debunked in 2004, but facts never stand in the way of a good stereotype for moonbats ...

     
  20. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    In response to ComingLiberalCrackup's comment:

    "NH doesn't take more federal funds than its residents pay in, so thats not a good comparison"

    The stupid idiotic debunked "red states pay less in federal taxes than the fed govt spends in the state"...that meaningless stat was debunked in 2004, but facts never stand in the way of a good stereotype for moonbats ...




    Remember, nose-to-buttocks and ignore the reality all around you....

     
  21. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    Reality: Virginia unemployment rate 5.5%..Mass 6.7%

    The Council on State Taxation (COST) has rated Virginia sixth in the nation in a new study ranking states by tax burden on new investment. The study, "Competitiveness of State and Local Business Taxes on New Investment," was compiled by Ernst & Young in conjunction with COST.  

    "Virginia continues to be recognized for its pro-business environment. The Commonwealth is the best place in the nation for private-sector economic investment," said Governor Bob McDonnell. "This latest top-ten ranking prepared for COST by Ernst & Young, recognized leaders in business analysis, joins a long list of accolades that Virginia has earned for its low taxes, skilled workforce, limited regulation and favorable quality of life. Virginia is wide open for business and these experts are recognizing what many private businesses and job-creators have known for a long time-that there is no better place to invest than Virginia

     
  22. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    There are 25 states with the legislatures and governors’ offices both under the control of Republicans, which tends to produce a Red State model. There are 15 completely ruled by Democrats, which brings out the Blue State model. Guess which states are doing better? The seven states with the biggest debts are all Blue: Rhode Island, Connecticut, Massachusetts, Illinois, Hawaii, New Jersey and New Hampshire. The states with the least debt are all Red: Nebraska, Georgia, Texas, North Carolina, North Dakota and Tennessee. The nine cities with the most underfunded pensions are in Blue or Purple (a mixture of Democratic and Republican rule) states. Income is growing much faster in Red States. The comparisons can go on and on.

    The good news is that fiscal responsibility is important not just to keep government at a sane level; it also promotes a healthy economy.

     
  23. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    SOME American states receive more in federal spending than they pay in federal taxes; others receive less. Over twenty years these fiscal transfers can add up to a sizeable sum. From 1990 to 2009, the federal government spent $1.44 trillion in Virginia but collected less than $850 billion in taxes, a gap of over $590 billion. But relative to the size of its economy, Virginia derived a smaller benefit from America's fiscal union than states like New Mexico, Mississippi and West Virginia, where the 20-year transfer exceeded 200% of their annual GDP. Transfers to Puerto Rico, which is a US territory not a fully incorporated state, exceeded 290%. Where did these transfers come from? New York transferred over $950 billion to the rest of America's fiscal union from 1990 to 2009. But relative to the size of its economy, Delaware made the biggest contribution, equivalent to more than twice its 2009 GDP. These calculations are based on tax figures provided by the Internal Revenue Service (which used to bracket Washington, DC, with Maryland) and federal spending numbers provided by the Census Bureau, which ignores spending on international programmes and interest payments.

    http://www.economist.com/blogs/dailychart/2011/08/americas-fiscal-union

     
  24. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    ...to what extent are the tax burdens that states impose on new investment associated with the differences in their economic performances? Do states with higher investment tax burdens show lower rates of innovation, economic output, and innovation compared to those with lower tax burdens? With the help of my colleague Charlotta Mellander, I took a quick look at the associations between state investment tax burdens and key measures of state economic performance.

    The overwhelming result was that we could find no connection at all between a state's investment tax burdens and a state's economic performance. There was no statistical association between state investment tax rates and such key indicators of economic performance as economic output (gross state product) per capita, state income, or wages. Similarly, we found no association between state investment tax burdens and unemployment rates. Likewise, we discerned no association between a state's investment tax burdens and its levels of human capital or knowledge based and creative class jobs. Nor was there any association between states' investment tax burdens and the well-being and happiness levels of their citizens. Interestingly enough, there was no association between a state's political complexion (whether it voted for McCain or Obama in 2008) and its investment tax burdens--in other words, conservative states did not have lower tax rates.

     

    http://www.theatlantic.com/business/archive/2011/05/do-state-business-taxes-really-matter/238941/

     
  25. You have chosen to ignore posts from 12-Angry-Men. Show 12-Angry-Men's posts

    Re: GOP Governors Rollout Regressive Tax Plans

    There are two major take-aways. First, a "state's fiscal policies have a measurable relationship with per capita income growth, although not always in the expected direction." Tax impacts, they report, are "quite variable"; "expenditure impacts are more consistent."

    Second, they find "moderately strong evidence" that a "state's political orientation, as indicated by whether the governor is Republican or Democrat, whether the state has enacted tax and expenditure limitation legislation, and whether the state frequently elects a governor of the same party as the incumbent, have consistent, measurable, and significant effects on economic growth."  

    And then they drop their bombshell: "Having a Republican governor," they conclude, "is associated with lower rates of growth."

    Taken together, these findings seem to support the spending orientation favored by liberals and pose a rather stark challenge to Republican governors who are embracing austerity.

     

    http://econ.tulane.edu/RePEc/pdf/tul1107.pdf

     
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