Thursday, March 31, 2011
Most No Corporate Tax States Are Not Providing Employment To Its Citizens
It was early evening and the trees were ready to go to sleep.The birds were also going to call it a day,for food was scarce on these hills today. House lights were on as I walked down the road thinking of corporate tax rates for various states in our great land of America.The road was filled with salt and garbage from a long winter.The deer sidestepped the debris and looked at me as if I was the jerk who threw the Miller Highlight cans into the woods.Nevada has no corporate tax, so the companies can come and settle like field mice do in your house during the long cold winter.The mice come up into the kitchen from the basement crawl space to digest cat food and bread crumbs from the famous Bread Alone bakery here in the Hudson valley.Many companies come to Nevada to avoid California taxes that have a flat rate of 8.84%.The happy citizens from Nevada must be swimming in new jobs because our Republican brothers have told us that low or no taxes will bring an endless river of high paying employment and generate revenue for the state.Unfortunately,Nevada has continued to register the highest unemployment rate in the country for February(13.6%).In that same time period,California had the largest increase in employment(96,5000).Pennsylvania has a flat rate state corporate tax of 9.99% but increased employment by 23,700,second best in the country.Washington is another no corporate tax state but they lost 8,500 jobs in February.The great state of Wyoming,with no corporate tax,had a 0.4% employment decline(5th worst in nation) in February,Kansas(4% corporate rate)had the highest at 1.0%.The only no corporate tax state that did well was South Dakota who had a low unemployment rate of 4.8%(North Dakota has a similar rate but has a 6.4% corporate tax).So,75% of the states that adhered to Republican dogma of no corporate taxes have been a disaster.Most of the low or no tax states have lost revenues from the recession to compound the state deficits that abound in our country.If that isn't enough,the Republicans plan to increase revenues on the backs of the working poor.
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