Posted on 02/10/2006 8:27:03 AM PST by 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."
(Excerpt) Read more at online.wsj.com ...
ping
Why not go all the way and eliminate income taxes like Texas, Florida, Tennessee, Nevada, etc?
Do you expect thieves not to steal?
This won't fly. In the end, Rhode Island legislators care more about the socialism than they do about the survival of the state.
That would be nice. Why not work within the system and grab a little piece of real estate at a time? That seems to be what is happening with tax reform. One of these days we may wake up and find a pre-1913 America where wealth creation is much easier.
fair tax bump
http://www.fairtax.org
A journey of a thousand miles starts with a single step.
Why does Rhode Island exist? Can't we merge everything between New York and Maine into one big leftist state?
Reminds me of this one:
Late one night in the capitol city a mugger wearing
a ski mask jumped into the path of a well-dressed man and
stuck a gun in his ribs.
"Give me your money!" he demanded.
Indignant, the affluent man replied, "You can't do this
...I'm a US Congressman!"
"In that case," replied the robber, "give me MY money!"
Didn't some of the folks from RI pretty much sort of start the Revolutionary War way back when??
Maybe they're starting another now that will lead us to the FairTax nationally.
I agree. States should get rid of their corporate and personal income taxes, and exclusively use sales taxes and for revenue.
So they can house all those red roosters.
Actually, I'm not sure it still exists. I was in the Navy there but I haven't received a phone call from RI in over 20 years.
No, that was Massachusetts, which has an even higher tax rate, but only on "unearned" income -- in other words, investment.
It was interesting to see the WSJ invoke the example of the former Communist countries. The basic difference is, that they are no longer one-party states; Mass and RI still are.
What is sinking in in RI is that is they keep tax rates high, tax receipts will not grow. Since everything in a legislator's power base hinges on redistribution of tax receipts, they have a definite interest in reducing rates. However, the very idea is blasphemy against various liberal golden calves, and so the brighter libs are having a tough time convincing the dimmer ones (who are a preponderant majority) of this.
d.o.l.
Criminal Number 18F
Actually, RI declared independence from England way before everyone else. Also, they burned and sank a British ship (the revenue schooner HMS Gaspee) in 1772, several years before "the shots heard around the world" at Lexington/Concord.
RI was founded by people that left Mass because it was too intolerant there. Now it appears that most of NE is that way except NH.
Well, no, RI had quite a hand in things too evem before the Boston T Party. Check the Gaspee Affair sometime - in 1772 - where an English officer was shot on one of His Majesty's revenue-enforcing ships by an American ("colonists") raiding party.
King Geo. offered big rewards for information to unearth the raiders (but none were unearthed) so they could be taken to Jolly Ole' England and hanged. This incident led to the Committees of Correspondence by the 13 colonies which in turn became the First Continental Congress, etc., etc.
I see you know your history ...
The Brit ship captain (Lt. Dudingston) who was shot in the Gaspee raid later returned to England for court martial (where he was, of course, found blameless) and later bbecame an admiral in the British Navy.
That would be Roger Williams and pals - and their Baptist Church still stands in E. Providence not too far from the Old North Burial Ground.
Did you know that at one time RI had over 3,000 cemeteries???
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