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Look how precious - another tiny red state that can't survive without subsidies from the blue states is "boldly" thinking of doing away with their state income taxes!  Aww, you just want to squeeze them, and their microscopic state GDPs.

Leave the public policy experiments to the "earners" in the big blue states that keep you solvent.

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Comment Preferences

  •  Oklahoma's governor (8+ / 0-)

    want's to gradually fade our income tax out. reduce a little bit each year until it's gone.  of course, other taxes and fees will go up that'll mostly hurt the lower and middle class

  •  How do I get info on which states (1+ / 0-)
    Recommended by:

    receive the most federal aid vs submit the most federal taxes? I'm trying to examine that on a percapita basis.

  •  I'm glad the diarist (0+ / 0-)

    finds this so amusing. I guess they didn't consider that local districts will have to raise property taxes and sales taxes to make up for the difference, which always hits poorest people the worst.
    Kansas, now called Brownbackistan, wants to eliminate the personal income tax (they've already cut business income taxes) and then put the burden of paying for schools on local districts. Oh, and to make up for the budget shortfall, Brownback will allow the "temporary" sales tax hike they passed last year to become permanent.
    All to give corporations a "business friendly environment" to come here.

    “We are not a nation that says ‘don’t ask, don’t tell.’ We are a nation that says ‘out of many, we are one.’” -Barack Obama

    by skohayes on Wed Jan 16, 2013 at 03:36:57 AM PST

    •  Presumably that's what the people in the state (0+ / 0-)

      voted for.  Who am I from far away to object and/or help ameliorate the situation?

      •  No, they didn't vote for Brownback (0+ / 0-)

        to slash taxes to businesses and corporations and lay the burden down on individual tax payers and the education budget.
        Brownback's attempt to slash school spending by more than $400 million dollars was just blocked by a court, because it violates the state's own Constitution.
        Brownback is owned by the Chamber of Commerce and the legislators are owned by ALEC.
        The Republicans who voted for the current state government did so with the lowest voter turnout in 20 years. And the Democrats who live here certainly didn't vote for them.

        “We are not a nation that says ‘don’t ask, don’t tell.’ We are a nation that says ‘out of many, we are one.’” -Barack Obama

        by skohayes on Wed Jan 16, 2013 at 06:36:34 AM PST

        [ Parent ]

  •  While I agree that the red state changes (0+ / 0-)

    are regressive (sales taxes in particular hit the poor the hardest), there is a real problem with depending too much on income tax to balance a state budget.

    The California experience (where we have quite high income tax, but our property taxes are weirdly low due to proposition 13, especially for businesses or anyone who doesn't change residence much) is that the state revenues are highly variable...and plunge whenever there is a recession.

    Which means we hit an austerity trap every time incomes go down....govt services have to be cut, causing less jobs causing a ripple effect.

    Progressive income tax is a good idea, but a state does need a certain amount of reliable income in order to budget in a realistic manner.  The most reliable tax is property tax...and that tends to be only moderately regressive (as the truly poor have no property to tax, and the rich have a lot more valuable property than the middle class).   One way California shot itself in the foot was the drastic slashing of the car registration fees in the 90s.  (this is a property tax on cars).   That put a hole in the budget so large that only years nearly as good as the dot-com years kept us from a crisis (only a few years in a 15 year period).

    Hopefully this year we can fix some of the problems with the CA tax code.  But when analyzing such changes in other states, it's a good idea to see how much of their revenue is income tax.  If it is a lot, some of the motivation might not be the pure evil it appears to be.  It might be a desire to stabilize the revenue stream in good times and bad.

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