Sunday, January 17, 2016

The Experiment of Federalism

Connecticut has the second-highest property tax in the nation, ranking 49th out of 50. The Tax Foundation ranks Connecticut 42nd out of 50 in terms of tax climate (Massachusetts ranks 24th), and second highest in terms of state and local income-tax collections per person.
Massachusetts? It dropped its corporate tax to 8 percent from 9.5 percent and has a flat income tax of 5.15 percent. Connecticut, on the other hand, jacked its corporate tax to 9 percent from 7.5 percent and its top income-tax rate to 6.99 percent from 5 percent.
These are sizeable differences in favor of Massachusetts. Taxes don't matter?
And the dirty little secret is that the pension and health-care benefits of the government unions -- which dominate Democratic state politics -- are roughly 50 percent unfunded. This spells many future tax hikes. GE's Immelt knows it.

A great test case - burden the citizens with a union for government workers that extracts punitive benefits from the citizens they "serve", which forces tax increases, and then watch and see what happens.  Growth?  Innovation?  High paying jobs?  Figure the odds.

No comments:

Post a Comment