360° Coverage : State Tax Reform Advice For 2014 -- Think About Spending

2 Updates
State Tax Reform Advice For 2014 -- Think About Spending
Photo Credit: Forbes Business

State Tax Reform Advice For 2014 -- Think About Spending

Jan 1 2014, 12:05pm CST | by

Writing for a tax magazine, I have always focused on the revenue side of public finance. I believe that there is either a right way or a wrong way to raise money to pay for public services. Everyone...

Filed under: news

 
 
 

37 weeks ago

State Tax Reform Advice For 2014 -- Think About Spending

Jan 1 2014, 12:05pm CST | by

Writing for a tax magazine, I have always focused on the revenue side of public finance. I believe that there is either a right way or a wrong way to raise money to pay for public services. Everyone assumes that any significant changes to the tax system must occur in a revenue neutral way – that is, we will be spending the same amount of money after reform as we did before reform. I have written about this before, making the point that there is no reason to limit changing the tax system in this manner. Neutrality is a political contrivance – designed to show that liberals and conservatives are nice people.

But in thinking about tax reform efforts in the past year, I am more convinced than ever that our refusal to rethink the size of government makes fixing problems with the tax code impossible. Here is what we know. Cutting government programs is difficult because each program has a constituency that will fight like a gladiator to protect its access to public money. So when the topic of tax reform comes up, conservatives and liberals vow to find a fix that will neither raise nor decrease spending. But we also know that politicians – the majority anyway – generally hate raising taxes. This reflects the fact that most of their constituents hate the idea of paying more taxes. But the costs of government continue to increase. And that leads to worse tax policy as states look to gimmicks, excises, gambling, and other junk ways of collecting revenue. It also ensures that some horrible tax policies are never fixed.

For example, business entities pay about 50 percent of all sales taxes in the United States. They should probably pay zero. Repealing the sales tax on business inputs would cost billions of dollars. No one has the guts to call for such repeal because it would require that other taxes be raised or government services be cut. One can make the same argument for repealing the state corporate income tax and the state estate taxes, neither of which work well in an open, global economy.

My advice? If you are not willing to pay for a certain level of government with broad-based taxes on personal income, consumption, and property, reduce your spending.

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of 20,00 ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Russia seeks to keep out foreigners from media business
Moscow, Sep 18 (IANS) Russia will soon introduce a bill in parliament to restrict foreign ownership in Russian media, a media report said Thursday.
 
 
France to help set up hospital in Guinea to fight Ebola
Paris, Sep 18 (IANS) French President Francois Hollande Thursday said his country would help set up a military hospital in Guinea to assist in the fight against the deadly Ebola virus in west Africa.
 
 
No plans to punish West with retaliatory sanctions: Putin
Moscow, Sep 18 (IANS/ITAR -TASS) Russia will not pressure the West with sanctions but will pursue its own interests, President Vladimir Putin said Thursday.
 
 
Pakistan aiming over 6 percent economic rise
Islamabad, Sep 18 (IANS) Pakistan is eyeing an economic growth rate of 6 percent by 2017-18 as it is believed the country's geo-political and strategic location can open up new vistas to make it a trade hub, a Pakistan minister said Thursday.
 
 
 

Latest from the Network

Kendall Jenner 'bullied' at NYFW
Kendall Jenner was allegedly ''bullied'' by fellow models at New York Fashion Week. The 18-year-old star was reportedly targeted by other runway professionals at the glamorous event last week as they were jealous of...
Read more on Celebrity Balla
 
Chris Brown will always remain friends with Rihann
Chris Brown believes he'll always remain ''great'' friends with Rihanna. The 25-year-old singer was sentenced to six months community service and placed on probation for five years for assaulting his former girlfriend...
Read more on Celebrity Balla
 
Russia, Serbia are brotherly nations: Serbian president
Belgrade, Sep 19 (IANS) Brotherhood of Serbian and Russian nations is sealed by joint fight for freedom in the First World War, Serbian President Tomislav Nikolic said Thursday, Xinhua reported. He said it while...
Read more on Politics Balla
 
France ready to launch air strikes in Iraq: Hollande
Paris, Sep 18 (IANS) French President Francois Hollande Thursday said his country was ready to launch air strikes against the Islamic State (IS) militant group in Iraq "soon". He, however, ruled out any plan to deploy...
Read more on Politics Balla
 
Russia seeks to keep out foreigners from media business
Moscow, Sep 18 (IANS) Russia will soon introduce a bill in parliament to restrict foreign ownership in Russian media, a media report said Thursday. The bill seeks to put a 20-percent ceiling on any foreign stake in...
Read more on Ad Balla
 
Stalked by ex-boyfriend Indian-origin woman falls to death
London, Sep 18 (IANS) A Indian-origin woman in Britain died after falling from a motorway bridge following weeks of harassment by her stalker ex-boyfriend and seeing him on a night out, an inquest was told Thursday....
Read more on Politics Balla
 
France to help set up hospital in Guinea to fight Ebola
Paris, Sep 18 (IANS) French President Francois Hollande Thursday said his country would help set up a military hospital in Guinea to assist in the fight against the deadly Ebola virus in west Africa. Hollande...
Read more on Business Balla
 
IS releases video of British hostage
London, Sep 18 (IANS) The Islamic State (IS) has released a video of a British hostage delivering a propaganda message on behalf of the militant group, a media report said Thursday. In the video titled "Lend Me Your...
Read more on Politics Balla
 
New iPads and OS X Yosemite Reportedly Releasing in October 2014
Apple might be not done yet to reveal new products, as a report claims that the Cupertino company is very likely to release new products in the next month.The news has been published by Apple Insider, stating about the...
Read more on Apple Balla
 
Jony Ive Talks about the Designing Difficulties of the Apple Watch
Designing the Apple Watch was not an easy task, as Jony Ive, the design head of the Cupertino company, states that it is one of the hardest assignments in his career.When asked about the particular task, Ive replied, “...
Read more on Apple Balla