Emboldened GOP Wants To Abolish State Income Taxes | Fox News
Ok, this is an interesting concept. Could see it working in states where the populations are generally industrious have high percentages that pay income taxes (i.e. strong work ethic, tend to have greater sense of personal responsibility, clear commitment to education and local business). The people in those regions know how to create value, attract business customers, and attract money from other places. How will it work in states with large urban populations on state subsistence, huge reliance on state solutions for basic life problems, and low educational commitment?
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Nine states already get by without an income tax, mostly by tapping other sources of revenue. Nevada and Florida rely on sales taxes that target the tourism industry. Alaska has taxes on natural resources, and Texas imposes substantial property taxes. The other five states are: New Hampshire, South Dakota, Tennessee, Washington and Wyoming.
But in the rest of the country, income taxes pay for bedrock government services, including roads and bridges and schools and prison systems.
In Oklahoma, Republican Gov. Mary Fallin says gradually cutting the top income-tax rate of 5.25 percent will make the state more attractive to businesses, help spur economic growth and ensure Oklahoma is competitive against neighboring states such as Texas. Although the personal income tax does not apply to corporate earnings, supporters say company executives and employees will prefer to live in a state that doesn’t tax personal income.
http://www.foxnews.com/politics/2012/01/31/emboldened-gop-wants-to-abolish-state-income-taxes/
Publius Prime 