“…but there’s no money” or other lies the business community and conservatives want …
Have you ever heard this one from people? “But there is just no money. How are we going to spend tax dollars on (insert name of needed program here) when there is just no money?” Now sadly I hear this from just as many Democrats as Republicans, but that is another story. Of course there is plenty of money; we have just decided as a nation not to collect it in tax revenue anymore, believing somehow that now, unlike in the past, when hard work and putting people in actual jobs that make things like roads and bridges and schools or intellectual property for innovation and intellectual advancement, was necessary; now all you need is libertarian fairy dust.
Of course, for those who rant that they are Taxed Enough Already…for some of us… you are right! And the reason why is because, as was pointed out here on the pages of RIFUTURE, folks in the CEO class used tax scams like the Flat Tax in Rhode Island to shift the burden of paying for the government that every citizen is part of (see comment below for more information and link). Oh, but’s right….they are the “job creators.”
written by peterasen, May 21, 2009 Ken’s Tax Liability
if it’s 23 percent higher than in Massachusetts, than his tax liability above Mass is 18.7 percent of his total Rhode Island tax (0.23 divided by 1.23). If this difference is a five digit number, then it must be no less than $10,000. That means his total tax bill must be no lower than $53,400. And his total income for 2008 must be no lower than $762,857 ($53,400 divided by .07, the flat rate for 07). Those of us who make less than 10 percent of what Mr. Block does can be forgiven for our frustration for having to pay higher sales and property taxes, not to mention fees, etc., to make up for his flat tax bonus.
Its a day that ends in Y. You know what that means…
That’s right! Its time for another “Flight of the Earls” story in the Rhode Island media! This time it is from Eddie Achorn Junior, AKA, Stephen Beale of GuLP (that’s GOLOCALPROV for those of you who don’t know. You really have to GuLP it down when you read something Beale writes). Anyway, EJ hits the Rhode Island economic theory trifecta today! He
He cherry picks data to claim rich people are leaving the state, aka the “the Flight of the Earls.”He refers to the OSPRI Study on Wealth Migration that even the Wall Street Journal lampooned as worthless and Projo’s “Politifact” has discredited.He quotes from Len Lardaro, the economic guru of the Carcieri years who brought us the wisdom behind the tax strategy that got us into the fiscal mess that we are in in this state.
And for honorable mention…John Hazen White? Now there is a go to guy for policy analysis. What, was Travis Rowley too busy raising money for Mr. Hinckley?
Here on RIFUTURE we have long railed against the Flight of the Earls simply because this fallacy that we need to base our tax policy decisions on keeping a handful of people in state so we keep their tax dollars is based on faulty assumptions.
Assumption #1: they are not leaving the state. The numbers change. Sometimes up, sometimes down, but fleeing they are not, especially as a class of wage earners, and especially not as an economic class.
Assumption #2: if we keep them in the state, we will keep and or create jobs ( look around!)
Assumption #3: by lowering taxes on the elite, we increase our overall revenue collection, thus benefiting all of Rhode Island.
None of these assumptions have worked, and in fact, have contributed mightily to the downfall of our economic system, both here in Rhode Island and nationally and internationally. This isn’t even an argument between capitalism and socialism or market economies and command economies (that last one is communism for you tea party folks…it’s very different than socialism. I know…. that blows your mind, right? Who knew?) Free Market Capitalism, for all of its flaws, has a certain logical science behind it. With this new economic philosophy that is emerging, there is no connection to economic activity and economic outcomes. It is the chief reason why wage growth, for example, has been decoupled from productivity gains. American workers are the most productive they have been in years….yet they see no way to wrestle wage gains based on their productivity. Adam Smith would blanch at such injustice.
But I digress……
The key thing here is despite all the evidence the rich guys in town keep pushing the Flight of the Earls mythology no matter what the evidence say. We live in a fact free world, and with reporters like EJ at places like GuLP ready and willing to simply do the bidding of the elite is it any wonder the banksters feel free do what they want, say what they want, and buy whomever they want? Who, after all, is going to stop them?
And the consensus is…for H6095!
Today, the House Finance Committee heard testimony on H6095, the ’95/5′ tax that would solve our state’s budget deficit in a responsible way by asking those who can best afford it to join all the other Rhode Islanders who are “sharing the sacrifice.”
And it was pretty clear which side Rhode Islanders came down on. Nearly twenty small business-owners, activists, college and high school students, and community members turned out to speak about the vital importance of generating new revenue in a fair way that doesn’t hurt the working families and small businesses on which our economy depends. And the opposition? They seemed pretty lonely, the three of them–a Tea Partier, a lobbyist for the Chamber of Commerce, and Ken Block (who attacked H6095 but, when asked if there were a better way of raising the revenue necessary to balance the budget, said the personal income tax was indeed the fairest possible way…I guess he just doesn’t want a balanced budget?).
In fact, nearly every member of the Finance Committee present at the hearing expressed support for the bill. But we’re not in the clear yet–we’ve still got a ways to go, so please call your state legislators today to ask them to support H6095, for a fairer and stronger Rhode Island.
95/5 Civic Responsibility!
Yesterday, Rep. Valencia held a press conference for his new income tax reform bill, H6095, which he’s calling the 95/5 Civic Responsibility bill. The 95/5 bill would raise an estimated $130 million in FY2012 and protect our state’s working families from even more painful and irresponsible service cuts. As the Projo reports:
“It asks the most fortunate among us, a mere 5 percent of Rhode Islanders, to chip in a little more,” said Valencia, a Richmond Democrat who has filed a bill that would put the proposed changes into state law. “To date, only the other 95 percent of the people have been required to pay their fair share.”
NOW is the time to let your legislators know about the importance of supporting H6095. Please take a minute to call your state representative and state senator, and then call Speaker Gordon Fox at 401-222-2466 to tell him to include H6095 in this year’s budget!
And if you really care about responsible revenue generation, please join RAFT at our next fair tax canvasses around this bill, this Saturday 11am-2pm and Sunday 12-3pm at 69 Brown Street. RSVP at rifairtaxes@gmail.com.
Want to repeal the Bush tax cuts in RI and solve our fiscal crisis? We can.
With our $295 million deficit, cuts looming on the horizon, and the only other revenue-raising plan (a relatively regressive sales tax) now seeming to buckle under public outcry, Rhode Island is in desperate need of a real solution to our fiscal situation.
Well, we have one! State Rep. Larry Valencia is currently drafting a piece of legislation that would function as a state-level repeal of the Bush tax cuts on the wealthy by raising the state income tax for Rhode Island’s highest-earners by the same amount George W. slashed their federal income taxes.
In this time of need, when small businesses, students, and working families are being asked to sacrifice, it is illogical that we wouldn’t also ask a little more from those citizens who have been receiving an immense windfall for the past decade thanks to President Bush’s tax cuts.
Representative Valencia’s bill is the only responsible answer to RI’s budget gap, and I sincerely hope our Democratic leaders in the Statehouse see this instead of working to defend the policies of George Bush.
But if this common-sense solution going to make it into the budget, it needs a strong organizing drive behind it. That’s where we need your help. Whether you’re interested in canvassing or phonebanking, helping with graphic design and literature, setting up a house party for your friends to spread the word, research, strategy, WHATEVER you can contribute, we NEED your involvement.
So please, shoot me an email at aaron.regunberg@gmail.com. I would love to sit down to talk about how you can best fit into our campaign. You can also ‘like’ our Facebook page (Rhode Islanders for a State Repeal of the Bush Tax Cuts) for campaign updates on actions, press coverage, and research.
Together, we can bring some sanity back to Rhode Island’s tax structure.
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