Keep the corporate income taxLeaving aside the argument that reducing tax rates grows tax revenue dollars - which Newt Gingrich proved valid - there is the more important point: Virginia corporate taxes are only "modest" in comparison to other U.S. states. Compare them to a host of foreign countries and they're not modest at all. They're confiscatory.
Virginia consistently ranks as one of the best states for business and has a modest corporate income tax rate. The anti-tax set thinks we can do even better. They take it as an article of faith that what is good for business is good for everyone else.
Don't worry that the commonwealth would lose $650 million or more when it already faces a $4 billion budget hole. The commonwealth would more than make it up in just a couple of years with greater economic activity, they claim.
That sort of thinking -- that the best way to raise tax revenue is to slash taxes -- doesn't work. Yet conservatives trot it out with disturbing regularity. Next they will ask Virginians to believe companies would pass along the full tax savings to their customers instead of padding profit margins and executive salaries.
"It's an innovative idea and something that we are looking at," Eric Finkbeiner, Gov.-elect Bob McDonnell's director of policy with the transition team, told The Richmond Times-Dispatch. We hope he was just being polite. [link]
In addition, a simple look at the economic well-being of those states with the highest - and lowest - corporate tax rates tells a person all he needs to know about the how advantageous taxes are to economic growth. Just look at New York, New Jersey, and California - basket cases all - and then compare them to low tax Texas - a veritable powerhouse. "nuff said.
As for Virginia's successes, all of them - ALL OF THEM - can be attributed to the burgeoning government sector in our northern counties. Businesses there - and only there - are thriving because of the billions of tax dollars that are being dumped on them by the federal government. Southside and Southwest Virginia experience none of it.
Look around, fellas. It ain't working. So many jobs have left for China.
Doing more of what we've been doing is suicide.