Fair Tax Tuesday

May 7, 2013 10:13 am

by Buzz Brockway · 2 comments

From this morning’s Peach Pundit Daily (click here to subscribe):

Tax Reform Coming Next Year? We’ve heard that one before, but this time it may be serious. State Rep. Tom Kirby (R-Loganville) told the Chattanooga Times Free Press that 2014 may be the year to “kill off Georgia’s income tax.” Have fun storming the castle! Bonus: the article also mentions “Tax Reform, the Game” put together by Christine Ries, an economics professor at Georgia Tech.

You also might want to listen to this edition of Coffee and Markets. They talk to Wayne Allyn Root about his book “The Ultimate Obama Survival Guide.” One of his suggestions is to move to a State with no income tax. Indeed three of the top five and six of the top ten fastest growing cities in America are in States with no income tax.

Discuss.

griftdrift May 7, 2013 at 10:21 am

From the Wayne Allyn Root vault:

“Here’s my gut belief: Obama got a leg up by being admitted to both Occidental and Columbia as a foreign exchange student. He was raised as a young boy in Indonesia. But did his mother ever change him back to a U.S. citizen? When he returned to live with his grandparents in Hawaii or as he neared college-age preparing to apply to schools, did he ever change his citizenship back? I’m betting not.”

http://www.theblaze.com/contributions/obama%E2%80%99s-college-classmate-the-obama-scandal-is-at-columbia/

My favorite part is where he brags about having a star of the Las Vegas Walk of Fame.

Root is so nutty, even libertarians avoid him ( although that didn’t prevent them from nominating him as their VP candidate in 2008 )

sockpuppet May 7, 2013 at 11:48 am

“Indeed three of the top five and six of the top ten fastest growing cities in America are in States with no income tax.”

Exclude San Antonio, Dallas-Fort Worth, Houston, and Austin because they are in Texas, who can afford to not have an income tax without a massive increase in sales taxes because of their oil and natural gas revenues, for which Georgia does not have, nor does it have an equivalent. And exclude Orlando, because Florida has tourism revenue which – again – Georgia cannot tax in order to make up for the lack of sales tax revenue. (And by the way, as someone who once lived in Florida, when Florida’s tourism industry takes a hit, that state’s budget picture bottoms out.) And wow, the same goes for Las Vegas, a state where nearly half their economy is tourism and tourism related.

How about comparing apples to apples and comparing states that are actually similar economically to Georgia that don’t have a state income tax? Let’s see … that would be Tennessee. Who has no names on this list, and never will have any names on it. Tennessee’s 10 largest metro areas combined don’t have the population of metro Atlanta alone. Tennessee also has far fewer high paying jobs, especially when government-related jobs like their universities and TVA/Oak Ridge National Laboratories and the entertainment/publishing sector are excluded.

But do you know who IS on there? Our actual #1 economic competitor in areas like engineering, computer science, IT, transportation, banking/finance, tourism etc. … North Carolina. Who A) has a sales tax and B) invests much more in transportation and higher education than we do. And oh yeah, they have a sales tax.

If you want to get rid of the sales tax, then we had better come up with beaches like Florida, legalized gambling/prostitution like Nevada or oil/gas reserves (not to mention beaches and plenty of other tourist spots) like Texas. Otherwise, our economy will be more like that of Tennessee. And North Carolina will go from being our #1 competitor to racing us by. As a matter of fact, even South Carolina will surpass us. We will be competing with Kentucky, Tennessee, Alabama and Mississippi economically.

Do you want to implement good economic policy? Or do you merely want to be able to claim an ideological victory and then worry about all of the economic problems that it will cause later? Eliminating the income tax and having to drastically raise the sales tax as a result would A) drastically reduce revenue to the state and B) significantly reduce discretionary spending by working and middle class people. It is even debatable whether the lower tax bills of the higher income people will create more jobs in Georgia. Will they take that money and use it to increase their discretionary spending at Georgia retailers? Or will they use it to take vacations to Texas/Florida/Nevada and put the rest into their mutual funds? Nobody knows and no one can pretend to know.

Cutting marginal tax rates works. Cutting income tax rates only to have to wind up raising sales tax rates to make up (some of) the difference doesn’t.

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