5 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Andrew Szakmary
1 year ago

I know this observation does not agree with the prevailing narrative here, but from an economic perspective, albeit perhaps not a political one, data clearly indicates that states have plenty of room to raise taxes and pay their debts. Illinois is a case in point. In FY 2019 the personal income tax rate was raised to 4.95% from 3.75% in FY 2018, a 32% increase. Well, the numbers are in and state personal income tax collections rose 41%, the exact opposite of what the Laffer curve hypothesis predicts. And this happened despite the fact that the deductibility of state taxes… Read more »

Marcia
1 year ago

It takes time to sell houses and find new jobs….and the impact of the deduction reduction will not be felt by most until next April. Moving is a hard decision.

nixit
1 year ago

So tax collections rose at the same amount that contributions into my retirement/college savings funds decreased. Since both earn an average of 7.5% interest per year (the same rate as the pension systems), that’s future money lost that will never return.

Does that revenue increase take into account the opportunity cost for my children and/or my elderly self? Doesn’t look like it. Too bad my 401(k) doesn’t have confiscatory priority over my money like the government. But you keep doing those fiscal gymnastics if they make you feel better.

P M
1 year ago
Reply to  nixit

And remember you social security is not guaranteed and of course it has effectively and upward cap on the payout unlike these parasitic scum in the public sector.

nixit
1 year ago
Reply to  nixit

My issue here is that the money for any tax hike has to come from somewhere and that observations such as Andrew’s never take into account the balance sheet.