While the state-level rivalries in competitive economics may not enjoy the mass appeal of the World Series, The Voice, or Shark Tank, annual reports that rank each state’s economic position provide valuable insights for voters as we approach this Tuesday’s mid-term elections.
Each year, several national and state-based policy think tanks review fiscal policies by looking at a variety of measures, including state budgets, tax burden, growth trends, and forecasting, and then publish those results along with competitive advantage (or disadvantage) ranking systems. With about seven gubernatorial races being called as toss-ups and with 10 key state U.S. Senate races hanging in the balance, a clear analysis of one of this year’s pro-growth all-stars may help inform undecided voters.
Last week CATO Institute released its biennial Fiscal Report Card on America’s Governors, which provides some startling facts that should have voters across the country seriously considering how they vote on November 4 and in the coming years – and, quite possibly, where they will choose to live, operate their businesses, and raise their children.
With the exception of Virginia and Alaska (for reasons stated in the report),the CATO guide examines each state’s spending and taxing policies across three areas: spending, revenues and tax rates.
Tax revenue reports are tools that provide a useful, albeit narrow, snapshot of a state’s economic position each month. They are meant to be informative within a broader context of quarterly and yearly reporting instruments.
In a highly charged political environment, such as what we find in Kansas, Illinois, and a number of other primary elections across the country, short-term glimpses become highly politicized. As we approach the November election cycle, voters need to take into consideration the preponderance of evidence that shows that states with long-term, pro-growth tax policies perform better across all measurable indicators than high-tax, big government states.
by Rex Sinquefield Forbes.com Contributor
Last week, Illinois Governor Pat Quinn signed a bill that places on the November 4 ballot a non-binding tax referendum that has many of us scratching our heads. If Governor Quinn is truly interested in finding out how voters feel, then the fuzzy language of the referendum will not serve him well. What seems to be crystal clear is that, in light of the state’s economic crisis, the governor hopes to drive more of his supporters to the polls on Election Day.
And it looks like Governor Quinn has every reason to be worried. On the same day that Quinn signed the bill into law, a Rasmussen poll showed that the Republican challenger, Bruce Rauner, had a five-point lead, an additional two percentage points higher than in April.
by Forbes contributor, Rex Sinquefield
This week one of the key Democratic Party strongholds voted to reduce income taxes and expand the sales tax base. The District of Columbia Council, which in 2012 supported President Barack Obama over challenger Mitt Romney by a wide margin of 13 votes to 1 (in a city where 90.9 percent of voters selected Obama), passed a pro-growth tax reform package that, if signed into law will:
- expand the sales tax base,
- reduce income taxes for individuals and businesses,
- increase the Earned Income Tax Credit to 100%,
- recouple estate taxes to federal levels, and
- save taxpayers about $67 million per year.
Mayor Vincent Gray has until July 8th to approve or veto the bill. Considering the near-unanimous (12 to 1) Council vote, indications are good that this bill will become law in our nation’s capital.
Admittedly, it would be a far stretch to claim a sea change in the Democratic Party’s tax reform agenda, but 2014 has brought with it two indicators reflecting a meaningful shift toward pro-growth state tax policies. The first can be found in newsreports last week about the Maryland governor’s race. Historically, Maryland has been a stronghold of Democratic politics. The Maryland Democratic Party is one of the world’s oldest continuously operating political organizations. In fact, Baltimore was host to the first six Democratic National Conventions.
But, the tide is definitely turning in the Old Line State. Three years ago, there was a dramatic shift in majority power at the county level from blue to red, and now Democrats hold control in only eight of twenty-three county governments.
Of the half-dozen or so hotly contested 2014 gubernatorial races across the country, the one in the battleground state of Wisconsin clearly demonstrates the widening policy disparities that can be found in our nation. It is here in “America’s Dairyland” that Republican incumbent Governor Scott Walker is running neck and neck with Democratic challenger Mary Burke, setting the stage for this fall’s must-see political theater.
Wisconsin’s politics are as diverse as its geography. The current political battle is grounded in the basic question regarding government’s role and includes some of the most critical policy issues of our time: jobs, education, and the ability for states to compete nationally and globally. Governor Walker’s ideas about how to accomplish these goals have been made clear, especially in the last three years.
On May 6th Missouri’s state legislature voted overwhelmingly, by a vote of 109-46, to override the state’s Governor’s veto of tax cut measures provided by Senate Bill 509. After a two-year battle, the historic income tax cut marks the first income tax reduction that my home state has seen in nearly 100 years and, ultimately, will benefit the state’s small business owners and millions of individual taxpayers.
In fact, according to State Senator Eric Schmitt, 54,000 businesses could benefit in St. Louis City and County alone. Across the state, 400,000 small businesses and 2.5 million individual taxpayers will be eligible for the income tax cut.
Toyota’s decision this week to leave Torrance, California, for the pro-businessenvirons of Plano, Texas, sent shockwaves through the Southern California community where Toyota employs more than five percent of the workforce. According to MSN Money, the move brings to mind Nissan’s decision eight years ago to move 1,300 jobs to the no-income tax state of Tennessee. A former Nissan executive recalled how the move equated to the company’s employees “getting a 20-percent raise.”
According to the 2013 City of Torrance’s Comprehensive Annual Report, the city stands to lose more than $473 million in property taxes. Plus, just over a year ago, Moody’s downgraded Torrance’s credit rating, citing a weakened general fund and increasing public expenditures.