Posted on 01/20/2006 7:29:19 AM PST by SirLinksalot
Low-Tax Tiger
By Lawrence Kudlow
A year ago Gov. George Pataki asked me to chair a commission on tax reform that would improve New York state’s outlook for investment, job creation and economic prosperity. After numerous meetings, a review of the existing tax literature, and lengthy deliberation, we have come up with a statement of principles and a series of policy recommendations to promote an investment-friendly state tax structure that could, if implemented, restore New York to a preeminent economic position.
First and foremost, we concluded that there is a clear relationship between state tax burdens and state economic health. States with high and rising tax burdens are more likely to suffer economic decline; those with low and falling tax burdens are more likely to enjoy strong economic growth. Academic studies, as well as real-world experience, show clearly that low-tax states consistently outperform high-tax states.
Economic behavior, whether measured in terms of employment, work effort, saving, investment, risk-taking, entrepreneurship, or capital formation, is highly responsive to changes in marginal tax-rates. In other words, incentives matter. The economic power of lower tax-rate incentives has been proven at national and state levels. It is also borne out by the results of lower tax-rate systems put in place internationally. Allowing people to keep more of the extra dollar earned or the extra dollar invested by providing new incentive rewards is a tried and true prescription for economic growth. Raising after-tax rewards for work, investment and risk-taking is the surest path to long-term prosperity and competitiveness for the state of New York.
(Excerpt) Read more at realclearpolitics.com ...
Question : WHAT ARE THE CHANCES HIS RECOMMENDATIONS WILL BE HEEDED ? OR IS THIS JUST ANOTHER FEEL-GOOD COMMISSION ?
Any state in the US could turn itself into an economic powerhouse if it eliminated all property taxes, income taxes, franchise and corporate taxes, as well as import/export taxes. And combined the tax eliminations with a strong property rights amendment to their state constitution.
Businesses would be falling over themselves to get to that state.
So when did NY start taxing cocaine???
How would that state continue to fund necessary programs such as infrastructure maintenance and emergency services? Sales taxes?
exactly, sales tax.
Overall, the State of New York is not in terrible economic shape. But when you look outside the entertainment-driven and pathology-driven economy of New York City, the place is an economic basket-case.
When people have more disposable income, they shop, eat out, spend money on entertainment, etc.
Back in days of yore, the states contented themselves with tolls, excise and capitation taxes and the like, plus fees and fines. It could still be done. New Hampshire still essentially does it.
The biggest hurdle is eliminating the free schooling mentality that has detroyed the allodial right to real property.
...And subsidies to big labor in the form of union requirements for contract bidding, and the guaranteed healthcare for life of all those teachers and civil servants, and the continuation of double digit growth in medicaid and medicaire spending, and special interest group subsidies in the form of government owned reduced rate public housing, and free medical care for all those illegal immigrants, and whatever other nursemaid program or pay to play scheme the state legislature may come up with next.....
Dammit ...we need to RAISE taxes not lower them... how will we pay for all this?!!!
The state can only get revenue through taxes, tariffs, etc. If you cut off all the sources of revenue (which the above poster advocated), people will spend more money, but none of it will go to the state. I don't like taxes any more than anyone else, but having some taxes is a necessary evil. I am for limited government, not no government.
I used to live in NH. They have some of the highest property taxes in the country. True, they collect few other taxes, but much of NH's infrastructure is in poor shape. There are always tradeoffs. I agree on the idea of returning to the idea of real private property, but it isn't schooling that killed it, it is the notion of making citizens pay for owning property. If we never had public schooling, the legislatures would still institute property tax, they'd just allocate it to something else.
FLorida has no state income taxes and, if you are a homeowner, a 3% rate cap on property taxes. We're funded primarily by sales taxes. And we are growing like crazy!
I never advocated keeping those things around. States do have an obligation to provide for things like roads, bridges, fire and police services, etc.
And yet just yesterday you were trashing a proposal to build a $6 billion dollar road using 99% private funding instead of the usual 100% taxpayer funding. Are you actually for lowering taxes and public spending, or just tossing out trite soundbites?
BOOKMARK FOR LATER PRINTING
Civil servant unions should be illegal.
Overall, the State of New York is not in terrible economic shape.
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Have you been anywhere 50 miles north and west of New York City? The only people making a decent buck are govt bureacrats, medicalcrats, and educrats. The population has declined and there has been net job loses in the last 10 + years.
Every state collects payroll taxes. More people spending money more jobs more payroll taxes. To say nothing of state income taxes.
Conservative Physics (the poster I responded to originally) advocated eliminating income taxes and corporate taxes (which I would interpret to mean payroll as well).
What you've said is absolutely correct. Geographically, most of New York is in pretty bad shape. But you have to remember that the New York City metropolitan area represents something like 65% of the total population of New York State.
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