Adding, Brunell is probably right that it’s bad to excessively tax capital and research investment with a sales tax.
So what does that tell you about the tax system in this state? That’s right, it’s so stupid, regressive and beyond broken that we have to create special tax exemptions to lessen the stupid brokenness. It helps a lot if you have lobbyists.
It’s not just the bidness guys and gals who are impacted by the regressive nature of our tax system, it’s everyone. Now go to the Legislature in January and see if they will give you a sales tax exemption to invest in your house or car, and good luck with that. What, your personal lobbyist is not available? Sucks to be you.
Shhhhh! I know you’re thinking “gee, there must be some other kind of tax that isn’t regressive, could apply to both individuals and corporations and be graduated based upon how much money an individual or business actually earns.” For shame.
You’re not allowed to think about that, because then we might wind up having a realistic discussion of the tax system rather than the usual “divide and conquer” situation pitting labor versus business, private versus public and so on. What kind of Legislative session would that be?
I’m looking forward to whatever sex offender-NASCAR stunts the Republicans will dream up this time, like tying public sector unions to the Tate murders or High School Musical 3.
Besides, our sales tax should work wonders in a continued deflationary spiral. As prices and wages fall, sales tax revenue takes a double hit!