Loading ...
Sorry, an error occurred while loading the content.

State Sales Tax

Expand Messages
  • Jim Bennett
    Dear Ed, I received several research papers from our Fair Tax regional director, Bill Rollyson, and I wanted to share this one with you and the group. The
    Message 1 of 1 , Dec 5, 2006
    • 0 Attachment
      Dear Ed,
      I received several research papers from our Fair Tax
      regional director, Bill Rollyson, and I wanted to
      share this one with you and the group. The paper has
      potential value as a state and local tax reform
      proposal based on the Fair Tax. It may be of interest
      to the members of the Summit Taxpayers Association.

      The author of the research paper, Dr. Karen Walby, is
      the chief economist for the State of Florida and is
      responsible for maintaining most of the Fair Tax
      research. You will note that she discloses her data
      and methodology at the end of her paper.

      Dr. Walby launches into several substantive economic
      arguments beginning on Page 3. Her first chart
      compares personal income growth between the ten states
      with the lowest or no income tax and the ten states
      with the highest income tax. States with little or no
      income tax experienced more than twice as much
      percentage growth in personal income over the 30-year
      period between 1957 and 1997 compared to the states
      with the highest income taxes.

      At Table 1 on Page 4 Dr. Walby demonstrates that state
      income, sales and property taxes of four states could
      be absorbed into a broadened state consumption tax
      based on the Fair Tax model without increasing the
      sales tax rate. State income and property taxes would
      be eliminated.

      At Table 2 on Page 5 Dr. Walby demonstrates that state
      - and local - income, sales and property taxes of four
      states could be absorbed into a broadened state
      consumption tax at a slight increase in the rate,
      except in Texas, where the rate would go down. State -
      and local - income and property taxes would be
      eliminated.

      Both models assume a rebate similar to the Fair Tax
      rebate.

      One problem here in New Jersey with property taxes is
      that they penalize communities with low property
      values and high population density by raising rates
      (though not absolute dollars) and driving away
      rateables. A replacement consumption tax shared with
      municipalities on a per capita basis would address
      this problem without necessarily penalizing wealthier
      communities.

      Let me have any comments or questions.

      ~Jim

      ~Jim Bennett
      38 Fairview Ave
      Summit NJ 07901-1728
      USA
      (609) 984-2901 Daytime
      (908) 273-4578 Evenings
      (908) 598-2888 Home Fax
      (908) 578-4975 Mobile Phone
    Your message has been successfully submitted and would be delivered to recipients shortly.