Willisms
Navigation

Buy WILLisms

XML Feed


Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Donate





Links

Blogroll Me!







Search



Archives

July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004




Social Security Reform Thursday.
March 13, 2008

Caption Contest: Enter Today!
Due: July 29, 2008

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006




Credits

Powered by Movable Type 3.17
Site Design by Sekimori




WILLisms.com June 2008 Book of the Month (certified classy):











The WILLisms.com Gift Shop: Support This Site

giftshopbanner.gif











This Week's Carnival of Revolutions: carnivalbutton.gif



Carnival Home Base: homebase.gif

























Willisms

« Pundit Roundtable | WILLisms.com | Quotational Therapy: Part 56 -- Winston Churchill. »

Trivia Tidbit Of The Day: Part 208 -- State Income Tax Comparisons.

States Benefit From No State Income Tax-

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income taxes.

New York, California, Oregon, Rhode Island, Vermont, Ohio, New Jersey, Maine, and Hawaii have the highest state income taxes.

Notice a pattern?

In 2004, Bush won 7 of 9 of the states with no income tax, but just 1 of 9 of the states with the highest marginal income tax rates.

There are more patterns at play than mere politics. How about economics?

stateincometaxes.gif
States with no or low-rate personal income taxes also tend to have more stable budgets and fewer revenue shortages, a seeming paradox which is simply the natural result of the combination of tax progressivity (or lack thereof), politics and human nature....

These trouble signals, all of which are often the result of revenue streams that are volatile and difficult to forecast, consist of: i.) mid-year budget cuts to an already-passed budget, ii.) legislated increases in taxes and/or fees, and iii.) year-end “rainy day” balances as a percentage of expenditures below the U.S. average....

In each and every case, for all four years examined, the nine states with the highest personal income tax rates experienced many more budget difficulties than did the nine states without personal income taxes.

So often, we hear from liberals here in Texas that our occasional budget troubles (and the creative ways to deal with them) would all go away with a simple, magical state income tax. They would smooth things over and allow us to finally become a first rate state, like... California.

While the 9 states with no income tax do experience "warning signs" or "trouble signals" from time to time, indicating budgetary crises, the 9 states with the highest income taxes experience these problems FAR MORE.

The government will always spend the money it receives from taxpayers. It will often spend more. Giving the government more just means it will spend more-- and then some, obviously.

So no more talk about how states with no income tax NEED the income tax in order to prevent deficits, stave off after-the-fact budget cuts, or prevent siphoning off some of the rainy day fund.

No more.

Thanks.

Source:
Texas Public Policy Foundation (.pdf).


-------------------------------------

Previous Trivia Tidbit: Lower Taxes, Faster Economic Growth.

Posted by Will Franklin · 6 November 2005 10:02 PM

Comments