The Wall Street Journal’s Political Diary [subscription only] provides a piece today on the Speaker’s tax plan. I’m all in favor of tax reform and if Arthur Laffer is for it, I am inclined to be. However, it might just be too tough a sell. From the Politicay Diary:
Under the plan, all state and local property taxes would be eliminated. So would the estate tax, unemployment insurance and worker’s compensation taxes, business and occupational fees, intangible taxes and insurance taxes. The entire structure would be replaced with a flat rate income tax of 5.75% and a flat 5.75% sales tax. The state’s income tax is currently 6% and the sales tax is 4.5%.
The architect of the plan is the famous Reagan economist Arthur Laffer. “This would bring the focus of the entire country on Georgia,” Mr. Laffer said in an interview. “States compete; they’re like puppies bouncing around in a box at a pet store to get noticed. This is a way for Georgia to get noticed and set itself apart from all the rest of the states when it tries to sell itself to businesses and families.”