I like Kevin, Really, But . . .
Alabama said No! to new taxes 67% to 33%. Good for them.
Kevin, who for some unfathomable reason thinks tax hikes are good, opines the following two points that strike me as odd:
1: So, for the time being, Alabama will remain a backwater unable to attract any decent jobs.
I fail to see how taxes negatively affect job creation. Companies like to operate in states with low taxes. In fact, many states offer companies exemptions to taxes for coming to the state. I think Alabama did that with Mercedes, but can’t find a source. And the other truth about taxes is that companies don’t pay taxes. They pass that cost on to their customers, plus a service charge.
2: The terms of the debate are shifting, and the “tax cuts will lead to nirvana” era is coming to a close.
Tax cuts do not lead to Nirvana, they lead to cash in people’s pockets. I am of the opinion that everyone gets screwed by taxes in this country, it just depends on the tax. For example, poorer folks are excessively burdened by gas taxes, sales taxes, employment taxes, and other fees. The wealthy are abused via the income tax. The middle class gets it from everywhere.
One truth remains, at the end of the day: it’s the spending, stupid. And by stupid, I don’t mean Kevin. I mean to rip-off a famous quote.
September 10th, 2003 at 1:09 pm
” fail to see how taxes negatively affect job creation. Companies like to operate in states with low taxes. ”
Well, no. Remmeber, please, that many business in the state were in favor of this plan. You need an infrastructure to run a business, from education to bricks and mortar, and Alabama doesn’t provide a good one. In fact, AL. taxes would sitll have been lower than the sourrounding states.
“I am of the opinion that everyone gets screwed by taxes in this country, it just depends on the tax. For example, poorer folks are excessively burdened by gas taxes, sales taxes, employment taxes, and other fees. The wealthy are abused via the income tax. The middle class gets it from everywhere. ”
Except in Al, the poor really got screwed. they had an effecgtive rate of 12%, compared to one of 3%. Over taxing the poor and the middle class, as Al does, is particuallrly bad, becasue they spend higher proprotions of their income on consuption than the well off. Consumption, for better or worse, drives the economy. This plan would have fixed that. Most of the tax increase, in fact, would have come at the expense of a couple of industries – primarly timber – that have not been paying their fair share of taxes in return for the benefits they recieve from the state.
“it’s the spending, stupid. ”
Sometimes yes, sometimes no. Modern society needs things like education, roads, police, ect. If you don’t want your state to be left behind, then you make sure that you are funding the right things, and funding them to the level they need to be funded, and funding them in a manner that is not counter-productive. Al. doesn’t do any of that, and this would have been a step in the right direction.
What I am opposed to is the idea that starving civil society is always good for everyone. it is not – it is very often only good for the most well off, and only good for them for a short period of time.
September 10th, 2003 at 5:03 pm
Actually it is erroneous to rely on the state to provide the necessary infastructure to create a good economy. The more state interference you have, the less free market you have. & Contrary to statist philosophy an economy does much better under its own power than with the ‘help’ of the government.
& in no state is an income tax necessary to provide the services that a state should provide (road construction, police/military, etc.)What an income tax is necessary for is to fund government programs that not only could be replaced more effeciently by the private sector, but should not be state operated concerns (welfare, various social programs)
Advocating that Alabama keep up with the joneses in terms of increased government spending & decreased net income of its citizens is in efect saying that massy needs more whips & the slaves need more chains.
September 10th, 2003 at 6:03 pm
“Actually it is erroneous to rely on the state to provide the necessary infrastructure to create a good economy. The more state interference you have, the less free market you have. & Contrary to statist philosophy an economy does much better under its own power than with the ‘help’ of the government.”
Then why does Al rank so poorly in terms of job creation? The interstate highway system, the port system, the air travel system, the electric grid, the internet, etc, etc, etc were all created by or with government help.
“& in no state is an income tax necessary to provide the services that a state should provide (road construction, police/military, etc.)What an income tax is necessary for is to fund government programs that not only could be replaced more efficiently by the private sector, but should not be state operated concerns (welfare, various social programs)”
Except, of course, that government programs like Medicaid or more efficient than private insurance and better at containing costs. Private industries only have to be efficient enough to survive their competition – and once they get large enough, there isn’t much competition. I dare you to tell me that Microsoft is an efficient company. Public programs on the other hand, must always respond to pressure, if for no other reason than politicians don’t like to look for real jobs. Saying that private industry is better at providing required services is just wishful thinking.
“Advocating that Alabama keep up with the joneses in terms of increased government spending & decreased net income of its citizens is in efect saying that massy needs more whips & the slaves need more chains.”
Now I know you are just being ridiculous. Yeah, the democratic choices of the people are a form of slavery. Down with democracy! Up with oligarchy! Yes, I have seen the light! The democratic process is just another form of slavery. Why, at this very minute, the government has come and placed shackles on my ankles to prevent me form leaving the country and sewn together my lips and chopped off my hands to keep me from complaining about the situation. Why, as we speak, I am sure that agents of the FBI are on their way to my house to sell my wife and children down the river! Oh, nobody knows the trouble I’ve seen!
Look, if you want to have a reasonable discussion about the size and scope of government and the proper way to finance it, fine. Those are legitimate areas of discussion. But if you are going to resort to cheap and utterly ridiculous statements like equating taxes with slavery, then I have much better things to do with my time.
September 11th, 2003 at 9:49 am
Remember – liberals don’t necessarily think tax-hikes are good, they think that sometimes they’re necessary and do more for the economy than a tax cut – which conservatives mostly think are necessary.
September 11th, 2003 at 11:13 am
The tax hike wasn’t for the fun of it, it was to finance better public schools. Poor public schools lead to poorly educated workers and unattractive locations, let alone relocations, for businesses.
That’s not to say you can never tax too much or spend too much on public schools, but Alabama seems nowhere near either of those problems to me. Guess I’m not an Alabama voter.
September 14th, 2003 at 8:01 pm
“Education now consumes 56% of the budget and contrary to popular perception, Alabama’s per capita spending on schools is well above the figures for neighboring Florida, Tennessee and Mississippi.” John Fund’s Political Diary