U.S. states flirt with major tax changes

[Freewill]

I guess the red state governments will have to do what the majority party has failed to do, go, go Bobby!!!!!


U.S. states flirt with major tax changes | Reuters

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.

 

[AmyNation]

Well, it will be a great way to see if regressive taxes work to promote growth.

 

[Freewill]

Well, it will be a great way to see if regressive taxes work to promote growth.

Always nice when people have nothing to say they say it.

 

[AmyNation]

I especially love this part

"North Carolina's Rucho acknowledged the argument that the poor would be hit disproportionately by higher sales taxes....He said low-income people got more government assistance that could help offset higher tax costs. "

Don't worry! We'll make sure they get welfare to compensate!

 

[Darkwind]

Affordable Healthcare Act. The most regressive and largest tax increase in American History.

 

[AmyNation]

Well, it will be a great way to see if regressive taxes work to promote growth.

Always nice when people have nothing to say they say it.

They are betting on trickle down economics. It didn't work on a national scale but they are hoping it works on the state level.

I don't live in those states, so I don't really care how they decide to tax people. However it will be interesting to watch and see if it spurs growth or causes serious problems.

 

[LordBrownTrout]

We have a progressive tax model, California, on display, 13 billion in the hole and counting.

 

[OODA_Loop]

Affordable Healthcare Act. The most regressive and largest tax increase in American History.

The tax and diminishing quality of care starts to hit home right about the time Obama starts banning guns and magazines ...........while States are enacting legislation asserting sovereignty.

Stacking the tinder. Stick by Stick.

He may get to be black Lincoln afterall.

 

[AmyNation]

We have a progressive tax model, California, on display, 13 billion in the hole and counting.

California has a lot bigger problems than progressive taxes.

 

[Dont Taz Me Bro]

Well, it will be a great way to see if regressive taxes work to promote growth.

There is nothing regressive about a sales tax, Amy. Those of you saying how this is going to hurt the middle class and the poor have no idea what you’re talking about. I work in North Carolina, am middle class, and pay a 7% income tax to the state. If they got rid of the income tax that would increase my paycheck by about $350 a month. There is no way I would spend that much in the additional sales tax.

Furthermore, I am actually moving out west next month for my job. I had my pick of places to live: California, Nevada, Oregon etc. I chose Nevada specifically because they have no income tax. That is a huge incentive.

If you do your research you will also find that the states with no income tax are in the top tier of growth in this country, while the highest states (California, NY, Illinois, NJ) have been in decline for some time.

 

[Ernie S.]

Well, it will be a great way to see if regressive taxes work to promote growth.

Compare unemployment in Connecticut and Alabama. Alabama get the vast majority of its revenue from sales tax.

Connecticut has a fairly high sales tax, an incredibly high property tax structure, and a state income tax.

Connecticut = 8.8
Alabama = 7.5

 

[AmyNation]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

 

[Dont Taz Me Bro]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

Tennessee is right next door with no income tax and a 9.25% sales tax instead. The poor and middle class don't appear to be any worse off there than in Oregon with their 10% income tax and no sales tax.

 

[Ernie S.]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

So you're saying that the poor spend more money?

 

[FJO]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

If the FOOD is taxed, then, yes, the poor is more burdened.

If food is not taxed, the ONLY fair way of taxation is either everyone paying the same rate on income or everyone pays he same rate on whatever they buy.

 

[Mac1958]

.

The weak dollar has already placed a significant de facto regressive tax on the poor at the gas pump. Some of the sales tax ideas I've seen were set up to not be included on stuff like food and medications, I didn't see a reference to that in the article.

.

 

[OKTexas]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

If the FOOD is taxed, then, yes, the poor is more burdened.

If food is not taxed, the ONLY fair way of taxation is either everyone paying the same rate on income or everyone pays he same rate on whatever they buy.

Texas has no income tax and a 6.25% sales tax, other sales taxes in certain areas can bring the total sales tax to 8.25%, food and meds are not taxed. Seems to work pretty well here.

 

[Ernie S.]

Everything but prescription medicine is taxable in Alabama at 9 -12% depending on the city and county.
Here in Foley, we pay 9% that is 4% state, 3% county and 2% to the City of Foley. In Mobile, the city rate is 5% meaning 12% overall rate.

The good news is that the property tax on my 2 br home on 3.5 acres in $297 this year.

 

[saveliberty]

"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases."

So yes, the sales tax is regressive. The fact that it will impact the poor more is not even being denied by Rucko, he states in the article that government welfare will help offset the burden for the poor.

Whether it works better that the state income tax, *shrug* it might.

You live in a state with lower sales tax rates as you spend more?

Michigan just announced the governor would like to raise license plate fees by $125 a year. On the up side, it appears it will be dedicated to road repairs.

 

[OKTexas]

Everything but prescription medicine is taxable in Alabama at 9 -12% depending on the city and county.
Here in Foley, we pay 9% that is 4% state, 3% county and 2% to the City of Foley. In Mobile, the city rate is 5% meaning 12% overall rate.

The good news is that the property tax on my 2 br home on 3.5 acres in $297 this year.

The Texas Constitution limits sales tax to a max of 8.25%, otherwise cities would go wild.