They see the light
Last week Rhode-Island reformed its tax code and adopted flat tax rate of 5.5% , if giving up on all deductions. In addition the state cut property tax rate and modified its health insurance policy, making it more reasonable for small businesses. Amazingly all of this blessed cuts done with state legislature body control by the democrats.
It seems like the democrats start to see the light when New Mexico’s governor saying:
We have to be the party of growth and the American dream, not the party of redistribution.
The pressure on the states to not only cut tax rates, but to reform the code completely, by "competing" states and large movement of population to more welcoming states is blessed phenomena. I only wonder if the succses of these reformed will be the push for federal tax reform.
Link: Democrats for tax cut
No tag for this post.Just as impressive is the economic logic that Rhode Island Democrats used to justify the tax cuts. "Our high tax rates make us uncompetitive," says Democratic House Speaker William Murphy. "Business leaders with incomes of more than $250,000 look at Massachusetts and see a 5.3% income tax, Connecticut with a 5% tax, and Rhode Island with a 9.9% tax. They make a choice on where to move and create jobs, and that difference in tax rates is a big factor in where they go." Art Laffer couldn’t have said it better.
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They still are the party of redistribution, as well they should be.
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Any statement of politician need to be viewed in light of election, however this is very interesting statement mostly in the aftermath of "Caterina". It seems like the democrats start to realize that Tax reform, and mostly flat tax rate, are extremely important. (and probably will improve the bottom line of total tax collected".
As of the need of wealth redistribution
- well we have our little disagreement here:)
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Yes.
We certainly won't be the first liberterian vs. social democrat to disagree on things like progressive taxation.
I like Richardson for the nomination BTW. Something about southern gov'nors...
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