Who pictures the IRS as Robin Hood and a state like Washingon as the Sheriff of Nottingham?
But, that's the way it is. The average state is undoing efforts to address income inequality, according to this Fed study.
Bernie Sanders wants more progressive taxes on the rich, and we also need less regressive taxes. The working poor pay too much in taxes and have no voice in government. Unfortunately, rich people rule, they get most of the tax breaks overall, and Romney's hedge fund buddies even get their own extra special tax break.
Most voters don't seem to distinguish between progressive federal income tax policies and regressive state taxes. But it makes a huge difference to the wealthy. Texas, Florida and other states have no income taxes and mainly use sales taxes instead. The poor pay a much higher percentage of their income on sales taxes and fees.
From the outrageous fees levied by the police in Ferguson to the ATM fee maximization in Kansas, state Republican governments are robbing the poor while providing tax breaks to the rich.
This regressive taxation is deeply unfair, profoundly corrupt, and morally reprehensible. And I don't understand how Republicans have gotten away with it. More about that below.
Voters complain that too much is being taken out of their paychecks and too much is being added to their shopping bills, and they vote against more taxes. And they hear stories about some rich people evading taxes and they vote for a flat tax candidate. They may not even realize that they're voting against their own interests in favor of billionaires.
The GOP has repeatedly used this voter confusion to benefit the rich (hey, don't look now, but Bush's billionaire estate tax repeal is back!). While Democrats risk voter anger by supporting regressive gas taxes. We're not going to win votes on climate change if the burden is mostly on the poor & middle class.
In the 2010 election (when Democrats lost the House), the voters in Washington state rejected a state income tax, in a nationalized election where Microsoft, Boeing & Amazon all campaigned against it.
During the Great Depression in the 1930's the Washington voters had passed an income tax, only to see it vetoed, then stymied in the courts, and finally defeated. I recommend reading that fascinating history. But the bottom line is that the voters ultimately rejected the state income tax in the 1930's in part because sales & excises taxes had already been passed.
This lesson that the rich can shed much of their tax burden onto the rest of us, simply by buying legislation and confusing voters about taxes, seems particularly relevant now, since Kansas is planning on replacing lost revenue from income tax cuts mainly with higher sales taxes.
Voters want the rich to pay more taxes and the less fortunate to pay less. Elected Republicans want the reverse, and use confusion to win elections. So Progressive Democrats need to be crystal clear on this issue and who is on each side. Know which states are robbing the poor to benefit the rich. I'll give you a hint, they're mostly Republican.
I'm tired of getting beaten with the tax issue stick, when the Republicans are wrong. We need to take this issue away from them, start using it correctly, and start beating them with it.
Mon Jun 01, 2015 at 8:56 AM PT: ITEP has a 50 state report with detailed profiles of the tax issues in each. Hat tip to Roadbed Guy for providing that link in the comments! :)