As governor, Bobby Jindal, instituted "The Flat Tax" (three categories for personal taxes and fiive for business) and Cassidy wants to make it a national strategy. It removes taxes from business and the wealthy and places it on the Middle Class, Working Poor and Poor. It puts a tax liability on every individual equally.
While that sounds like a democratic principle it is proving to be a disaster to the states that implemented it, including Louisiana.
November 10, 2014
By Julia O'Donoghue
Just to get the record straight, Louisiana under Jindal ranks in the mid 40s out of 50 states for good business climate. In isolating just the southern states Louisiana ranks first in offering a business climate. That says a lot about the climate for businesses in the south, but, defines how Louisiana has become isolated for the country's methods of business and upward movement of citizens. Cassidy wants to expand this method to the entire country to bring Louisiana into a better rating. He wants to alter the success of other states in the country to improve the overall business environment for Louisiana. Cassidy is wrong for Louisiana and definitely wrong for the country.
The correct incentive for southern states, including Louisiana is to reach for higher values and improve employment and pay to their citizens, hence, increasing their economic outcomes. It is wrong to employ lower standards of quality simply to make the numbers look more attractive to business. It is ridiculous.
The states that have instituted the Medicaid expansion (click here) have also seen growth in employment. That growth is probably for several reasons, including the physical health of the work force, but mostly because medical bills are now paid adding circulating capital to the economy. People have more disposal income. Louisiana never accepted the Medicaid expansion for political reasons and it shows, both, in income and business climate.
Normal tax structure looks like this:
While that sounds like a democratic principle it is proving to be a disaster to the states that implemented it, including Louisiana.
November 10, 2014
By Julia O'Donoghue
...In an analysis of last year's state revenue, (click here) Albrecht has also called Louisiana's flat personal income tax collection worrisome overall. "Sustained growth in the overall revenue base requires sustained growth in [personal income and sales] taxes, and sustained growth has yet to be exhibited by either of them," he wrote in October.
State Treasurer John Kennedy has also sounded the alarm about state revenue collections possibly being lower than expected. His office is moving money around significantly more to cover basic expenses because not as much state income has come into Louisiana's general fund coffers at this point in the year.
At the end of October, the state general fund -- which pays for services like health care and higher education -- was running a $925 million deficit. Kennedy said this is the highest October deficit the general fund has run in at least five years, and $268 million more than last year's deficit tally....
The Flat Tax removes income from the poor and increases wealth to those with the most income. Realizing the best economy has to be attractive to all the people to move goods and services, the added burden of higher taxes on the Working Poor only reduces their ability to provide for their family. They have less income after payroll taxes are removed.
DEFINITION OF 'FLAT TAX'
DEFINITION OF 'FLAT TAX'
A system that applies the same tax rate to every taxpayer regardless of income bracket. A flat tax applies the same tax rate to all taxpayers, with no deductions or exemptions allowed. Supporters of a flat tax system propose that it would give taxpayers incentive to earn more because they would not be penalized with a higher tax bracket. In addition, supporters argue that a flat tax system is fairer because it imposed the tax on all taxpayers regardless of income.
The ideology of The Flat Tax depends on the ability of people to move up in income to have a better life. The ideology does not allow for the 'ability' of people to move up in income. It is just another scheme by the wealthy for the wealthy. It has nothing to do with increasing upward movement of the Working Poor. The Flat Tax is an ideology and that is where it should remain.
The correct incentive for southern states, including Louisiana is to reach for higher values and improve employment and pay to their citizens, hence, increasing their economic outcomes. It is wrong to employ lower standards of quality simply to make the numbers look more attractive to business. It is ridiculous.The states that have instituted the Medicaid expansion (click here) have also seen growth in employment. That growth is probably for several reasons, including the physical health of the work force, but mostly because medical bills are now paid adding circulating capital to the economy. People have more disposal income. Louisiana never accepted the Medicaid expansion for political reasons and it shows, both, in income and business climate.
Normal tax structure looks like this:
