Debunking John Kasich’s myths that taxes undermine economic growth John Kasich swears without taxes cuts to the rich Ohio’s economy will not grow. John Kasich is wrong. The Progressives States Network reports raising taxes to fund services in a state is not harmful to the economy. Research consistently show that, contrary to right-wing rhetoric, there is no link between tax increases and job loss. States with higher personal income tax rates experienced significant job growth in the past decade, as the Fiscal Policy Institute and Center for Working Families point out in their report, Back on Track and as the Center on Budget and Policy Priorities found in a similar report. Moreover, according to a 2008 Information Technology & Innovation Foundation analysis, states with some of the higher marginal income tax rates, including New York and Maryland, have more innovative new economy industries. Likely as a result of larger investments in infrastructure, education, and technology, these states are better suited to foster economic growth that is sustainable and well-paying in an increasingly fierce global competition for jobs. This builds on analysis by the Institute on Taxation and Economic Policy (ITEP) detailing that states the collect the highest percentage of personal income in taxes actually sustain higher income growth. Similarly, an older study by the California Budget Project (CBP) analyzed state economies and concludes, [s]tates that enacted large tax cuts between 1994 and 2001 - reducing revenue by at least 7 percent - subsequently experienced weaker growth in jobs and personal income and larger increases in the unemployment rate, on average, than other states. John Kasich also likes to argue that tax increases cause wealthy residents to leave a state. In fact, states that have increased the top rate in recent years have not experienced any significant out-migration of wealthy residents: New Jersey: A Princeton University report discovered that the passage of a higher top rate in 2002 had little effect on migration patterns among half-millionaire households. New York: After the state temporarily raised income taxes on the wealthy from 2003 to 2005, the number of high income tax returns grew 30 percent, from 250,000 to 325,000. A New York Times article, entitled Taxes Not Seen as Making the Rich Flee New York succinctly articulates: [T]here is surprisingly little evidence to support the proposition that rich New Yorkers would bolt if forced to pay higher income taxes. Though tracking the movement of wealthy taxpayers from state to state is difficult, experts on public finance and migration say they have yet to document a substantial rich drain in states that have raised income taxes in recent years. ------------------------------------------------------------------------------- Dont believe everything John Kasich tells you about tax cuts. They dont work! Dennis Spisak -Green Party candidate for Governor
Posted on: Sat, 18 Jan 2014 14:29:57 +0000
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