2.5.17

IT'S THE CULTURE, TOO.

Glenn "Insta Pundit" Reynolds likes the idea of removing the state tax deductions from the federal return.  Most of his column is about tax incidence, and the way in which the deduction reduces the tax burden, particularly to people who pay more state taxes.  But it's cultural, too.
States should be able to set their own levels of taxing and spending, but I see no reason why a Walmart cashier in Tennessee (which has no state income tax and low property taxes) should be subsidizing a hedge fund mogul in New York or a studio executive in Hollywood. It’s fine if blue states want to have higher state and local tax rates, as they do, but they shouldn’t be encouraged to do so by federal tax giveaways. And it’s the urban, coastal areas that have done best over the past 25 years, so it seems time for them to pay their fair share now.
The reckoning is coming, though.  Productive people have been leaving Illinois, where the best the legislature can do is hope for a new per-employee tax, selling the privilege to do business.  Nice bar you've got there.  Be a shame if anything happened to it.

In baseball terms, it's two strikes and nothing for Illinois at bat.  Connecticut is on deck.
Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years.

It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned to $2.2 billion.

It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.

It’s been ten full days since the April 18th tax filing deadline, and workers at the state tax department are still processing returns coming in the mail.  Even though about 90 percent of all Connecticut residents file electronically, many still send their checks for taxes due in the regular mail. It now looks like expected revenue from the final Income filing will be a whopping $450 million less than had been expected.
Yes, and isn't it sweet to see taxpayers playing the same sort of cash-flow games Illinois has been playing with vendors for most of this century?

I've been at baseball games where the announcer, perhaps as a way of helping people keep score, use the locution "in the hole" to refer to the next batter to go on deck.  (Phrase it that way, the naval aviation origins of the terminology stands out, doesn't it?)

It's something like this:  Illinois at bat, Connecticut on deck, California in the hole.

No comments: