Rhode Island Revelation (flat tax)

The Wall Street Journal ^ | 2/10/2006 | Editorial

[groanup]

REVIEW & OUTLOOK

Rhode Island Revelation

February 10, 2006; Page A18

Let's hope James Carville, Robert Rubin, Nancy Pelosi and other national Democrats are all sitting down for this one: The Rhode Island legislature is considering a flat tax, and the proposal comes from its majority Democrats.

That's right, last week Ocean State Democratic leaders proposed an optional flat rate income tax of 5.5% as an alternative to the current "progressive" tax schedule, which imposes rates ranging from 3.75% to 9.9% for the highest earners.

(snip)

And listen to how House Speaker William Murphy pitched the idea at a news conference: "The ultimate goal is to put more money directly into people's pockets both by giving relief to those who need it and by making Rhode Island a more attractive place for business that will provide high-paying jobs for more Rhode Islanders." What's going on here? Have the state's liberals all taken Art Laffer happy pills?

The answer is tax competition, and the discovery that Rhode Island's high tax burden is damaging its economy. Just as the countries of the former Soviet bloc have passed flat taxes to make themselves more competitive, Rhode Island politicians are hoping the idea can help them stop their most talented workers and growth industries from going elsewhere.

(snip)

The Democrats noted in their press release that Rhode Island's current top marginal income tax rate of 9.9% is among the highest of the 41 states with broad-based income taxes. They also cited a study that showed this high marginal rate "might be having an effect on the retention of wealth in Rhode Island by causing retirees and companies to move to states with lower taxes, and causing large companies with multiple locations to put their highest earners somewhere other than Rhode Island."

[Panzerlied]

Could it be that the Democrats are beginning to realize that the concept of "The Greedy Rich" is an elitist falsehood and that it is immoral to force some people to pay for the needs of others?

NAH!

[Criminal Number 18F]

I had quite forgotten the Gaspee affair, and yeah, that was a year before the much more famous (and less violent) Tea Party.

Rhode Island is an interesting state. Mobstas and Lobstas, as another Freeper said. Lots of Italians; and then there's "Woon-sock-ette where da house, she grow side-by-each, Pierre. T'row da baby down da stairs, some blank-etts."

Lots of shore with old-money snobs sharing the scenery with the much snobbier new-money snobs. The same dead and dying mill towns you see throughout New England. Blue Collar people voting for Democrats, as if they were still expecting the New Deal. Interesting.

d.o.l.

Criminal Number 18F

[pigdog]

Thass funnee (Mobstas & Lobstas etc.) ... and right too about the sharing the shorline.

I think there is little realization that the New Deal has expanded beyond all reason and is helping ruin our country, though.