State Income Tax an Abject Failure

Paul Mulshine has an interesting commentary in his blog today:

This was the week it all fell apart. The state budgetary system based on the income tax, I mean.

It began in 1976 with a promise that a small income tax, with rates of a mere 2 percent and 2.5 percent, offered a permanent solution to the state’s property-tax crisis. The money generated by that tax would not only solve our school-funding problems but also fund generous rebate checks to help homeowners with local property-tax bills.

Today not only do we have the highest property taxes in the nation as the income tax has failed to fund the school system, Corzine has come up with gimmick after gimmick to staunch the steady flow of revenue as the state sees continuous annual shortfalls.

The fact is, higher taxes almost always equate into less revenues.

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