Here from Andrew Ducker. I haven't finished your entire piece, but I hit this part and stopped:
The US corporate tax rate is pretty high. I expect left-leaning well off states (eg California) will replace the federal tax with local taxes. Their services won't be de-funded. Poor (Republican leaning states) will have less federal money to spend and less option to raise their own taxes. So this is basically a shift in wealth to rich liberal states from poor conservative states.
You've got two major, very large, yoooooge errors in your thinking here.
#1: The US corporate tax rate is very low. And Trump wants to lower it. #2: California *literally* cannot raise taxes. They're constitionally prohibited from doing it. It's why their infrastructure is so awful and their services are so perpetually underfunded *right now*.
New York, well, they could raise state taxes. But there's a thing about New York: It's next to a whole lot of other places, where you can travel to and send money in and out of without need for paperwork. Delaware is already the corporate capital of the USA because of their tax policies, and they've basically cornered the bottom of the market: any other state that tries to undercut Delaware to attract business has to undercut them SO MUCH that they make less than the effort costs. So New York raising state taxes only punishes businesses who can't move their incorporation out of New York, which are the businesses who don't have the desirable top earnings to tax.
The same problem would apply to California, but, well, see my first line here: California literally cannot raise taxes.
And, I mean, I didn't quote it, but Trump's claim of a middle class tax cut is, to put it politely, a lie. His plan lowers taxes only on the ultra-rich. The middle class get nothing.
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timeasmymeasure
no subject
Date: 2016-11-10 10:45 pm (UTC)The US corporate tax rate is pretty high. I expect left-leaning well off states (eg California) will replace the federal tax with local taxes. Their services won't be de-funded. Poor (Republican leaning states) will have less federal money to spend and less option to raise their own taxes. So this is basically a shift in wealth to rich liberal states from poor conservative states.
You've got two major, very large, yoooooge errors in your thinking here.
#1: The US corporate tax rate is very low. And Trump wants to lower it.
#2: California *literally* cannot raise taxes. They're constitionally prohibited from doing it. It's why their infrastructure is so awful and their services are so perpetually underfunded *right now*.
New York, well, they could raise state taxes. But there's a thing about New York: It's next to a whole lot of other places, where you can travel to and send money in and out of without need for paperwork. Delaware is already the corporate capital of the USA because of their tax policies, and they've basically cornered the bottom of the market: any other state that tries to undercut Delaware to attract business has to undercut them SO MUCH that they make less than the effort costs. So New York raising state taxes only punishes businesses who can't move their incorporation out of New York, which are the businesses who don't have the desirable top earnings to tax.
The same problem would apply to California, but, well, see my first line here: California literally cannot raise taxes.
And, I mean, I didn't quote it, but Trump's claim of a middle class tax cut is, to put it politely, a lie. His plan lowers taxes only on the ultra-rich. The middle class get nothing.