Wednesday, February 14, 2007

Ctrl+Alt+Delete State Income Taxes 

Filed As:  Budget and Tax

Missouri Speaker of the House Rod Jetton openly embraced a recent Show-Me Institute report, “Repealing the State Income Tax by 2020.” According to a Columbia Tribune blog, Jetton commented at a mid-January press conference, “That is the goal that I share, and I’d like to try to push for it.” A January 25 Wall Street Journal article, “Rich States, Poor States,” says South Carolina Gov. Mark Sanford dreams of reviving his plan for phasing out that state’s income tax -- in 18 years. (Eighteen years? What ever happened to, “Git ‘er done”?) The same article reports, Georgia’s House Republicans are thinking similarly. From The Peach State, House Republican Majority Leader Jerry Keen told the WSJ, the debate is between a flat-rate income tax and a plan that would "do away with the personal income tax but broaden the sales tax by eliminating 107 exemptions.” All this income tax system slash-and-burn talk would sound sweeter if it were accompanied by true reductions in spending, which seemingly would make the elimination of income tax systems easier. And, even if spending cuts didn't make it easier to eliminate income tax systems, at least we'd have less spending, hence lower taxes.

 

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