Americans are a hard-working bunch and should keep what they earn. Our ideas for tax reform reduce the burden of taxes while ensuring governments have the resources to focus on core responsibilities.
On March 12, the state senate in Oklahoma passed a bill that would immediately turn the state’s income tax into a flat tax, cut the tax rate in half, and strip away the extraneous tax credits and special carve-outs. Then, over a 10-year period, it would slowly phase the income tax out of existence by cutting the rates each year until they reach zero.
Arizona could be on the verge of strong economic growth. Right now the state House of Representatives is considering HB 2815 which, among other things, phases-out the capital gains tax over four years for assets purchased in 2012 and after. The governor has declared that she is interested in signing a bill that cuts taxes on capital gain income.
This year, Arizona policymakers have a chance to do something that no other state with an income tax has done: eliminate the tax on capital gains.
Somebody hit the panic button too quickly at the Arizona Republic. A couple of weeks ago, its editorial board declared plans for a Regulatory Tax Credit would result in “regulatory Armageddon.”
It’s like a bad re-run. A few legislators are trying to revive Arizona’s film production tax credit (SB 1170) that lapsed in 2011.
Part one of Ayn Rand’s Atlas Shrugged ends in despair, as the oil fields of entrepreneur Ellis Wyatt burst into flames. Wyatt Oil, once a successful business that created jobs and launched an economic Renaissance in the western United States, had fallen victim to stifling taxes and government regulation. No longer willing to surrender to bureaucrats, Wyatt abandons his once-thriving business.
An important driver of job growth is investment. Without investment, new businesses may not flourish or even see the light of day. And venture capital investment in technology start-ups is one of the highest-profile sources of new business births.
At least one Arizona city understands that the key to economic growth is more freedom and lower costs levied on businesses.
Tuesday's Wall Street Journal editorial page engaged in a bit of triumphalism. The editors showed that their 2003 predictions of where monetary policy was leading were better than those of Ben Bernanke. Bernanke's comments at a 2003 meeting of the Board of Governors make clear that lots of detailed knowledge can just as easily addle a brain as create clear thinking.