Monday, July 14, 2014


The thing is, state taxes in most states are trivial. Obviously they're important in that they bring in revenue which is at least in part used to pay for useful and even occasionally nice things, but even if you believe in Supply Side Jesus, the idea that knocking down taxes by a percentage point is going to have a huge positive economic impact is absurd. I'm one who thinks that the negative impacts of, say, raising the top federal tax bracket rate to 60% would be negligible, but I don't think that arguing the other side is crazy. But a minimal reduction in state tax rates in most states is just a giveaway to the rich, especially when you're actually increasing taxes on the poor. Who spend all their money.