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Monday, January 14th, 2013

U.S. States Flirt With Major Tax Changes

Author:     NANETTE BYRNES
Source:     Reuters
Publication Date:     Sun Jan 13, 2013 10:06am EST
 Link: U.S. States Flirt With Major Tax Changes
Stephan:   We are entering into a very interesting period of transition moving power back to the states. This is part of the Great Schism Trend. The Theocratic Right, unable to control national policy in the way they would like, have realized that they can get control at the state level -- in certain states. And they have. As a result they are implementing their social vision. In some Red value states it is now almost impossible for a poor woman to get reproductive healthcare or a pregnancy termination. And, as this report makes clear, in those same Theocratic Right value states they are now going to impose their Randian economic vision. It is going to be interesting to see how this turns out. So far Red value states are generally recipients not donors; their programs are made possible through the underwriting of Blue value states.

CHAPEL HILL, NORTH CAROLINA — 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 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.

‘When it comes to getting pro-growth tax reform done this year, the only real opportunities are at the state level,’ said Patrick Gleason, director of state affairs for Americans for Tax Reform, the Washington-based anti-tax lobbying group headed by small-government conservative activist Grover Norquist.

His group and other conservative pressure organizations, such as Americans for Prosperity, have targeted state capitals for tax reform campaigns.

Cutting income taxes and shifting the overall tax burden to consumption through higher sales taxes is a long-standing goal of some tax theorists. Critics […]

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