Bell Curve The Law Talking Guy Raised by Republicans U.S. West
Well, he's kind of had it in for me ever since I accidentally ran over his dog. Actually, replace "accidentally" with "repeatedly," and replace "dog" with "son."

Monday, December 06, 2004

Red State Blue State Your State Screwed State

Hi Everyone,

If you guys thought that the Republicans were ONLY about God, Gays and Guns, here is some evidence that they may be just as much about robbing from highly educated, thriving economies in largely Democratic and swing states to subsidize public subsidies and services in their under educated, uncompetitive agricultural economies.

Now, it is well known (or should be) that the states that depend most on Federal handouts tend to be in the Deep South (plus Alaska) and tend to vote for Republicans. States like California generate far more revenue for the Federal government in the form of taxes than it receives back in Federal money. So what we have is a situation where Democrats are subsidizing Republicans' life styles while those same Republicans publicly espouse an ideology of self-reliance and small government.

One of the features of our tax code that takes some of the bite out of that is the fact that we can deduct some of our state income taxes from our federal income tax bill. However, the Bush administration is currently looking at ending that deduction in an effort to raise revenue without appearing to raise taxes.

This move would mostly hit people in Democratic leaning states and swing states. Many of the solidly Republican states have very low or non-existent state income taxes (why would you need a state income tax when you get such a disproportionate share of the Federal money!?). So this move would have the effect of increasing the tax burden on voters in Democratic and swing states without first looking at reducing things like agricultural subsidies (which are at record breaking highs now) or raising the overall federal income tax rate.

This is nothing short of a naked and cynical attempt to pick the pockets of political opponents to finance pork barrel projects for your political supporters. Its nothing new in politics and I'm far from shocked. But as a resident in a Democratic state - who will almost certainly never live in a state with no or low state income tax because they have crappy public universities (Texas being the lone star exception to this because of the oil probably) - I'm outraged.

Keep in mind that if you voted for Bush but live in a state where most of your neighbors did not, you are also going to get screwed by this move! In that case, it serves you right!

I encourage you all to write your congressional reps and Senators. If this gets blocked it will be by the House - where the population advantages of the so called "Blue States" are most important. The Senate favors agricultural interests which would benefit from this.

2 comments:

US West said...

Somewhat on the topic: yesterday I was in Macy's at the perfume counter. This older, over makeuped lady was purchasing some rather pricey perfume. She had quite a southern-type accent and was apparently from Idaho. She informed the clerk that this perfume was going out of state, back to Idaho, and thus she wasn't to be charged sales tax. In Idaho, they don't have sales tax and she isn't to be charged since the purchase isn't going to stay here in California.

Now call me crazy, but when was the last time you even thought about buying something while on a trip to say DC or Nebraska, or where ever, and asking to be exempted from the local taxes since it was a gift for someone back home? I had all could do to leave the countery without saying something mean to this lady. The clerk, as she rung up the purchase simply responded, "well, we'll have to see about that." I am going to try that trick the next time I buy something. "Hey, I don't live here. I am from Oregon. So you can't charge me taxes."

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