Comments on: Show Me a Tax Cut http://www.showmedaily.org/2010/01/show-me-a-tax-cut.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Thu, 24 May 2012 12:24:42 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Christine Harbin http://www.showmedaily.org/2010/01/show-me-a-tax-cut.html/comment-page-1#comment-5108 Christine Harbin Wed, 27 Jan 2010 05:40:43 +0000 http://www.showmedaily.org/?p=12690#comment-5108 According to the ALEC-Laffer State Economic Outlook Rank in <em>Rich States Poor States</em>, Missouri ranks 23. There is certainly room for improvement in creating a favorable environment for business in Missouri, and I agree that cutting the corporate income tax would be a step in the right direction. http://www.alec.org/am/pdf/tax/09RSPS/26969_REPORT_full.pdf States that have zero income taxes experience higher rates of growth as a consequence. Jenifer and Dave Roland recently demonstrated that the absence of an income tax caused Tennessee to outgrow Missouri. http://www.showmeinstitute.org/publication/id.203/pub_detail.asp Additionally, raising taxes has a risk of reducing revenues (not increasing revenues) because higher income taxes will encourage individuals and businesses to migrate to another state, thereby shrinking their tax base. California has a particularly hostile environment for business, and companies are leaving the state <em>en masse</em>. Dr. Laffer himself moved his office from California to Tennessee. As the most recent example, Toyota is shifting jobs from California to Texas. http://www.duttonreport.com/2010/01/jobs-continue-fleeing-to-business.html Also, cutting services is another way to balance the budget without raising taxes. According to the ALEC-Laffer State Economic Outlook Rank in Rich States Poor States, Missouri ranks 23. There is certainly room for improvement in creating a favorable environment for business in Missouri, and I agree that cutting the corporate income tax would be a step in the right direction.

http://www.alec.org/am/pdf/tax/09RSPS/26969_REPORT_full.pdf

States that have zero income taxes experience higher rates of growth as a consequence. Jenifer and Dave Roland recently demonstrated that the absence of an income tax caused Tennessee to outgrow Missouri.

http://www.showmeinstitute.org/publication/id.203/pub_detail.asp

Additionally, raising taxes has a risk of reducing revenues (not increasing revenues) because higher income taxes will encourage individuals and businesses to migrate to another state, thereby shrinking their tax base. California has a particularly hostile environment for business, and companies are leaving the state en masse. Dr. Laffer himself moved his office from California to Tennessee. As the most recent example, Toyota is shifting jobs from California to Texas.

http://www.duttonreport.com/2010/01/jobs-continue-fleeing-to-business.html

Also, cutting services is another way to balance the budget without raising taxes.

]]>