Posted on 01/13/2013 11:01:41 AM PST by sheikdetailfeather
(Reuters) - Hopes for overhauling the federal tax system are fading in Washington, but in some state capitals, tax reform experiments - some far-reaching - are fast taking shape.
Across the South and Midwest, Republicans have consolidated control of state legislatures and governorships, giving them the power to test long-debated tax ideas.
Louisiana Republican Governor Bobby Jindal, for instance, called on Thursday for ending the state's income tax and corporate taxes, with sales taxes compensating for lost revenue.
A similar plan is being pushed by Republicans in North Carolina. Kansas, which cut its income tax significantly last year, may trim further. Oklahoma, which tried to cut income taxes last year, is expected to try again.
"When it comes to getting pro-growth tax reform done this year, the only real opportunities are at the state level," said Patrick Gleason, director of state affairs for Americans for Tax Reform, the Washington-based anti-tax lobbying group headed by small-government conservative activist Grover Norquist.
(Excerpt) Read more at reuters.com ...
In the 70’s the Hippies proclaimed,”What if you gave a war and no one came?’ We should proclaim,”What if you set a tax and no one paid it?” FU BO and Washington, District of Corruption.
There is much talk here about fixing this nation. Invariably it lightening rods right to the Presidency. That’s a major error many conservatives make.
This is a Republic of divided powers, one of those is the states. It is the states where we must take our battle in order to restore the nation.
1. Voter ID
2. Crushing the public unions
3. Creating a low tax environment for business
4. Balancing budgets.
5. Protecting gun rights
6. Making sure our kids our efficiently and effectively educated.
All these can be done at the state level, and doing so would do a great deal to destroy the Dem party. This is where we need to focus our efforts.
Amen! That is going to be the focus of necessity in the years to come and we already have made progress and will continue to do so.
Just exactly when were they EVER thinking of overhauling the federal tax system?
Yep, just as I thought.
We want them to lower the tax burden, not shift it to higher sales taxes on everything.
Fixed it for you:
1. Defend, follow and uphold the Constitution
2. Minimizing the ‘safety net’ for the able bodied
3. Voter ID
4. Crushing the public unions
5. Creating a zero-tax environment for business, as biz/corp don’t pay taxes
6. Balancing budgets.
7. Making people responsible for their own actions and consequences.
8. Getting gov’t smaller, less intrusive and out of the way of We the People.
Excellent. Federalism is the Founder’s cure for despotism in DC. Perhaps Obama and his Cook County economics will be the last hurrah?
Wrong. You’re thinking short term, like a Democrat. From the article:
“Rucho’s plan would remake the North Carolina budget, which now derives 65 percent of its $18.5 billion in total tax revenues from individual income and corporate taxes.”
“To make up for that much lost revenue, the state sales tax rate would have to rise to 6.53 percent from 4.75 percent, according to a supportive study done by a consulting firm run by Arthur Laffer, a former adviser to Republican President Ronald Reagan and one of the fathers of “trickle-down” economics.”
Trickle-down makes a mockery of what’s really happening with pro-growth policies. It is an intentional slur and a phrase invented by the left.
Let’s take the above numbers:
At 4.75% and 6.53% the state sales tax on $100 is $4.75 and $6.53 respectively. That’s nearly a 38% tax increase, but what happens to NC? It grows attracting more businesses, more jobs, and thus the tax base grows.
A growing tax base made up of both businesses and individuals broadens the tax base thus bringing in more revenue. Secondly, higher costs on consumption increase savings and investment - lowering the cost of capital and driving even more growth.
Couple this with spending caps and you’re on your way to dynamic growth. Slowing or cutting spending is the easiest and least economically harmful way to grow the economy - see Texas.
Moving from a 3% growth rate to a 5% given the above lowers the cost of the sales tax to the equivalent of the old sales tax in about 5 years. 6% growth would do it in 4 and 8% growth would do it in just over 3.
Couple a move like this with further restrictions on welfare and disability benefits and hold the budget flat for the same time period and you can begin to cut even the sales tax back down.
You’ve got a virtuous cycle of growth that can only be harmed by actions at the federal level. Relative to other states you’re better off no matter what. 5 years at 8% growth and you could cut the sales tax down to 3.5% all else equal.
This will be a wonderful proving ground for our ideas. All Obama has is Cook County politics and economics. Democrats have controlled this county for nearly a century.
It’s not the Emerald City nor a People’s Paradise by a long shot. Let’s beat them by implementing our ideas, winning back the FedGov and turning things around.
Go Team, Go, Go, Go!
I am calling for a lower tax burden, which means a smaller weaker, less intrusive government, I’m not looking to keep funding the government at the same rate, or even higher.
You think that raising the sales tax, will lower the sales tax? It doesn’t in California.
Then you might as well hold your breath, because until you stop the fraud and cut off the union ATM machine for the Dems, elections are going to be hard to win.
OK, once you’re elected you can do what you want. Until then what course will you take?
Anyone know why states rights and state activism is labeled “Federalism”? I’ve done a little googling and have yet to find a definitive reason. I think it may be a little confusing for those low information folks and novice political junkies.
We don't have a national government like in Europe, but a Constitutionally limited federal government made up of the fifty states and the people. The radical idea behind federalism is a continuation of the separation of powers at the federal level into executive, judicial and legislative by using the states as a stop on the centralization of power in a national government.
By not having all-encompassing national laws you get a dynamic laboratory of 50 state governments working to maximize the liberty/property (wealth) of their citizens. So when people complain about he nationaization or federalization of drug crimes, health care, welfare, etc. they're complaining about the inappropriate federal role given the limitations placed on the federal government in the Constitution. All other rights not enumerated or implied belong solely to the people and the states respectively. See the 10th Amendment.
Jacquerie have I erred or do you have more to add or clarify?
Vote against tax increases.
Then you’d love the plan I laid out.
I thought your plan was to raise sales taxes?
We started with a Confederation, a quasi government among independent sovereign States. Delegates were appointed by the state legislatures, could be recalled, and were term limited.
The Senate of the Constitution kept that structure in modified form. Instead of a single house legislature derived from the corporate States, we had two, one of which retained state input reminiscent of the (federal) Confederation.
It is fair to say our federal nature disappeared with the 17th, and we moved toward consolidated government (largely a democratic tyranny) the Anti-Federalists warned of.
Likewise, when States hopelessly assert a 10th amendment power, it reaches back in time before the 17th.
I try to catch myself from describing our government as federal. When the great Mark Levin can only say it is post-Constitutional, it must truly defy definition.
Yeah, but it was fun to dream, no? :)
Here, read it again. From the article:
“Rucho’s plan would remake the North Carolina budget, which now derives 65 percent of its $18.5 billion in total tax revenues from individual income and corporate taxes.”
“To make up for that much lost revenue, the state sales tax rate would have to rise to 6.53 percent from 4.75 percent, according to a supportive study done by a consulting firm run by Arthur Laffer, a former adviser to Republican President Ronald Reagan and one of the fathers of “trickle-down” economics.”
Trickle-down makes a mockery of what’s really happening with pro-growth policies. It is an intentional slur and a phrase invented by the left.
Let’s take the above numbers:
At 4.75% and 6.53% the state sales tax on $100 is $4.75 and $6.53 respectively. That’s nearly a 38% tax increase, but what happens to NC? It grows attracting more businesses, more jobs, and thus the tax base grows.
A growing tax base made up of both businesses and individuals broadens the tax base thus bringing in more revenue. Secondly, higher costs on consumption increase savings and investment - lowering the cost of capital and driving even more growth.
Couple this with spending caps and you’re on your way to dynamic growth. Slowing or cutting spending is the easiest and least economically harmful way to grow the economy - see Texas.
Moving from a 3% growth rate to a 5% given the above lowers the cost of the sales tax to the equivalent of the old sales tax in about 5 years. 6% growth would do it in 4 and 8% growth would do it in just over 3.
Couple a move like this with further restrictions on welfare and disability benefits and hold the budget flat for the same time period and you can begin to cut even the sales tax back down.
You’ve got a virtuous cycle of growth that can only be harmed by actions at the federal level. Relative to other states you’re better off no matter what. 5 years at 8% growth and you could cut the sales tax down to 3.5% all else equal.
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