Victoria Heller wrote:
When did self-sufficiency become a "conservative" view?
Does that mean that the "liberal" view is dependency?

Many states including Texas, Florida, Nevada, and others have NO INCOME TAX
at all.  I wonder how they survive.


[Jack Kryst]

Poorly.  

Here are some excerpts from Governing magazines current state by state
analysis. For those who like to spice their arguments with facts the full
article and state by state analysis can be found at: www.governing.com
follow the links.

[Texas]
I think we're heading for a train wreck in Texas," Bill Ratliff says. A
state senator and former lieutenant governor, Ratliff is known for his
candor. But even so, it is a startling thing for a powerful official to say.
. . .

- Texas may be short by as much as $10 billion to $12 billion.

Texas has no personal income tax, and its sales tax sits uncomfortably near
the top of the U.S. charts. As a result, its structure is extremely
regressive. A loophole in the business franchise tax allows corporations to
evade it with relative ease by restructuring into limited partnerships. The
combined result is a state fiscal system whose problems stretch far beyond
any current ones caused by the national economic slump. "We're starting to
hemorrhage," Ratliff warns.

[Florida]
. . . The state constitution prohibits enactment of an individual income
tax, so Florida depends on general and selective sales taxes for about
three-quarters of its revenue. This, inevitably, means the state is
extremely regressive.

Meanwhile, corporate taxes have declined, the estate tax is being phased
out, and ballot initiatives and court decisions have mandated billions in
additional spending. Forty years ago, when the state's population was about
5 million, tourism provided enough sales tax money to finance most of what
the government wanted to do. Now, with triple the population, milking hotel
guests and restaurant diners won't balance the budget anymore. "It's pretty
darn hard to run the 2002 state government on a 1949 engine," says John
McKay, Florida's former Senate president.

[Nevada]
Nevada has long been aware that there's something out of whack in its tax
system. "If you look in the dictionary under structural deficit," the
state's director of administration mused a couple of years ago, "I guess the
state seal of Nevada ought to be right there by the definition." 

Jack Kryst
King Field
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-==
"Violence is the last refuge of the incompetent." ~ Salvor Hardin 



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