GOP governors taking the lead on lowering income taxes, raising sales taxes
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.
“The question of whether we should tax income or whether we should tax spending is really a proxy for a different debate,” said Joseph Henchman, vice president for state projects at the Tax Foundation, a conservative-leaning research organization. “Everyone agrees we’ll get more growth with consumption taxes. It’s just that some people prioritize fairness.”
Beyond citing economic growth, the governors and their supporters say their plans would help make their states more competitive in attracting employers and high-skilled workers, simplify their tax systems and curb pressure for more government spending.
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Lower taxes, dummies. Don’t lower some and raise others.
Armin Tamzarian on January 25, 2013 at 6:02 PM
A fair tax would be a flat dollar amount for ever man and woman. Fair is not from each to each. That is socialism and communism.
astonerii on January 25, 2013 at 6:02 PM
As long as citizens can tax other people and get benefits, they will always vote for more benefits. Changing the tax structure such that those who benefit from it pay for that benefit might cause them to go find a more place to spend their money than on government programs.
I personally think everyone not paying taxes should be paying taxes. Thus I am totally for increasing taxes.
astonerii on January 25, 2013 at 6:04 PM
Wait, this line was written in the NYTs? Yes, savings and investment drives growth. Are they suddenly becoming supply siders or are they laying down the ground work for the VAT?
jhffmn on January 25, 2013 at 6:05 PM
With the number of people out of the labor market (hence no income taxes), this is only clear way to obtain funds for governmental operations. Not to mention all the people seeing their work weeks getting chopped to by-pass O-care.
Welcome to the new normal.
[The solution: one has to increase, the other has to decrease.]
Yeah, I know… good luck with that, with the current regime in charge.
CPT. Charles on January 25, 2013 at 6:11 PM
Notice how the pols never mention cutting spending.
viking01 on January 25, 2013 at 6:14 PM
Except just about every adult in America pays taxes, of some sort, to the US Government. Gasoline, tobacco, liquor, payroll… it’s really tough to avoid them.
If you are talking income taxes… to hell with that. Every
personindividual who is paying income taxes should not be paying them.Thus, I am totally for lowering taxes. Like I thought conservatives were supposed to be…
JohnGalt23 on January 25, 2013 at 6:23 PM
For conservative states, much of the over spending that goes on is mandated by the federal government.
astonerii on January 25, 2013 at 6:24 PM
As much as I hate taxes of all kinds, good for them.
Let the sponges pick up some of the slack.
cozmo on January 25, 2013 at 6:25 PM
Proposal, end all income taxes. People still demand government provides benefits. Proposal if implemented would fail.
Proposal, end all net drains on federal spending (AKA no one may receive a penny more than half the money they have contributed to federal taxes over their lifetime.) People stop demanding inefficient government solutions and spending goes down. Proposal if implemented would succeed.
But that is the problem with people like you, you never consider your end results, it is the feelings that are important.
astonerii on January 25, 2013 at 6:28 PM
All the more reason for the New Confederacy.
viking01 on January 25, 2013 at 6:29 PM
They really should be working to eliminate sales taxes. Actually, the best they could do would be to eliminate all taxes except income taxes, and let local municipalities set there own income taxes instead of property or sales tax.
Count to 10 on January 25, 2013 at 6:40 PM
Even some of the most Conservative Southern states such as Alabama still have a tax on groceries (8% to 10%) as a hold over relic from decades ago when the Dimocrats and their Klan handlers pushed it through.
viking01 on January 25, 2013 at 6:49 PM
I disagree completely. Taxes should be levied on consumption and not income. I do agree that property taxes should be unconstitutional across the board.
astonerii on January 25, 2013 at 7:16 PM
Sales taxes cause all kinds of problems, not the least of which are the campaigns to exempt various products from them. There really is not no “should” on consumption vs. income in a moral way — the real difference is that income typically comes from one place and has a higher threshold for avoidance than sales taxes for most people. What really needs to be eliminated entirely is corporate profit taxes — they serve no purpose other than forcing businesses to lobby politicians for deductions.
Count to 10 on January 25, 2013 at 7:25 PM
LOL and here in WI there is talk of a mileage tax. TAX tax tax is all politicans can think about… at least most of them.
watertown on January 25, 2013 at 7:33 PM
Why don’t Democrats want a consumption tax? They can then tinker with the rates to get the exact behaviors and reward their preffered constituents exactly as they wish. Income taxes are a machete – satisfying to hack the head off of the petite bourgeoisie every April 15 but ultimately not as effective as the scalpel of consumption taxes; by making it too expensive to live any other way, Democrats can make sure everybody gets in line.
ramesees on January 25, 2013 at 7:44 PM
I look forward to the day that we have mileage charges — as in, private owners and maintainers of roads charging your account for the miles you drive on their property. The more we can get government out of, the better.
Count to 10 on January 25, 2013 at 7:52 PM
What do you think they are trying to do?
Count to 10 on January 25, 2013 at 7:53 PM
The thing about consumption taxes is that they are levied on everyone equally. Like you said, large threshold for income taxes. That is a FLAW. I causes people to demand more government, because they are not asked to pay for it.
Food should be taxed, medical should be taxed, everything should be taxed. The nice thing about it is… if income taxes are the only ones, exempting one class off items makes others necessarily skyrocket, and then people who buy those will fight back.
what do we do now? We tax the have 50% of the population effectively untaxed and the other 50% paying for everything, but the reality is that it is even worse, 75% are mostly exempted from paying income taxes and they raise taxes on the 25%.
astonerii on January 25, 2013 at 8:20 PM