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Now, thanks to recent tax cuts in Kansas and tax hikes in California, we have real-world tests of this idea. So far, the results do not support Laffer’s insistence that lower tax rates always result in more and better-paying jobs. In fact, Kansas’ tax cuts produced much slower job and wage growth than in California.
Tax hikes did not hurt California job growth because the taxes were not on jobs but on high incomes. A stiff state payroll tax that made each worker costlier would have dampened hiring because it would raise the overall cost of labor. But quitting California because the state takes $30,000 more out of each additional million dollars that top earners make would be penny wise and pound foolish: They can make more money staying in California
the results do not support Laffer’s insistence that lower tax rates always result in more and better-paying jobs.
Tax hikes did not hurt California job growth because the taxes were not on jobs but on high incomes. A stiff state payroll tax that made each worker costlier would have dampened hiring because it would raise the overall cost of labor.
If I have to pay income taxes I would be willing to pay state taxes before Federal taxes. The state taxes create more benefits for people and as far as I know there are no states at 'war' and actively killing people.
Taxes take money out of the economy.
Taxing the wealthy does not take money out of the economy.
I favor abolition of the income tax since it has been bastardized in to paying the peoples bills where the power of taxation was given to the state to pay it's own bills.
Sam Brownback has been a Tea Partier since before the Tea Party was born. When he became governor of Kansas in 2011, he set about making the state a testing ground for conservative principles, including cutting funding for some public education and the eventual elimination of the state’s income tax. “Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy,” he wrote in a 2012 op-ed. He predicted cutting taxes would “pave the way to the creation of tens of thousands of new jobs, bring tens of thousands of people to Kansas, and help make our state the best place in America to start and grow a small business.”
A little more than a year has passed since the first phase of the Brownback tax cuts went into effect on Jan. 1, 2013, so it’s possible to make a preliminary assessment of their effects. The early verdict: not too good. The jury is still out on whether lower taxes will stimulate businesses to expand and hire over the long term. But the immediate effect has been to blow a hole in the state’s finances without noticeable economic growth.