DEMOCRATS FOR TAX CUTS
July 5, 2006
Democrats in Congress should look outside of the capital, where some of their fellow party members are embracing tax cuts, and even supply-side economics, says the Wall Street Journal.
A handful of blue states and Democratic Governors have put tax cuts in motion:
- Rhode Island, with Democrats holding 70 percent of the state legislature, have allowed residents the choice of a flat tax that cuts the top tax rate on high income earners to 5.5 percent from 9.9 percent.
- Arizona governor Janet Napolitano agreed to a 10 percent across-the-board cut in income tax rates
- Oklahoma governor Brad Henry signed into law a budget that will cut rates by nearly 20 percent, from 6.25 percent to 5.25, percent and abolish the state estate tax.
- New Mexico governor Bill Richardson has cut the state's top income tax rate to 4.9 percent from 8.2 percent and cut the capital gains tax in half.
"This was our way of declaring to the world that New Mexico is open for business," says Richardson. "After all, businesses move to states where taxes are falling, not rising."
And contrary to the belief that tax cuts produce budget deficits, New Mexico has grown a half-billion-dollar surplus and seen tax revenues soar by 27 percent this year, faster than any other state over the past year, according to the Rockefeller Institute state revenue report.
Source: Editorial, Democrats for Tax Cuts, the Wall Street Journal, July 5, 2006
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