Income Tax Could Be Eliminated By Many Republican-Controlled States
January 13, 2013

Hopes for overhauling the federal tax system are fading in Washington, but in some state capitals, tax reform experiments – some far-reaching – are fast taking shape.

Across the U.S. South and Midwest, Republicans have consolidated control of state legislatures and governorships, giving them the power to test long-debated tax ideas.

Louisiana Republican Governor Bobby Jindal, for instance, called on Thursday for ending the state’s income tax and corporate taxes, with sales taxes compensating for lost revenue.

A similar plan is being pushed by Republicans in North Carolina. Kansas, which cut its income tax significantly last year, may trim further. Oklahoma, which tried to cut income taxes last year, is expected to try again.

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  • labman57

    Republicans once again attempt to squeeze blood from a stone.
    Apparently they lack the ability to foresee simple causal relationships — if you remove purchasing power from those with lower incomes via increased sales taxes, then you will negatively impact the retail market, thus harming the overall economy.

    In addition, the increased sales tax revenue will not make up for the loss of income tax revenue, resulting in larger state budget deficits. So what will be the net effect?

    Step 1 — cut or eliminate taxes, thus greatly reducing revenue to the state.
    Step 2 — observe signs of an impending deficit
    Step 3 — take action to prevent said deficit by slashing social programs and public education funding
    Step 4 — encourage the privatization of K-12 education throughout the state

  • Jack Levitt

    Works great for us here in Florida.