That's why my top priority is to overhaul our tax code and eliminate income taxes. This is our moment to eliminate the income tax and unleash major economic growth and opportunity in our state that will keep our sons and daughters here at home to find jobs and raise a family.
Eliminating income taxes will help make Louisiana the very best place to start a business. This is the best way to grow our economy and create good-paying jobs throughout the state.
Over the last ten years, more than 60% of the 3 million new jobs in America were created by the nine states without an income tax. Over the past decade, states without income taxes have seen nearly 60 percent higher population growth than the national average.
Partisan gridlock and political posturing take us backwards. Trampling the Constitution and jeopardizing our freedoms, like our right to keep and bear arms, takes us backwards. Tax increases and reckless spending also take us backwards.
Those are the Washington ways that weigh this country down--that propel us towards fiscal cliffs, recessions and depressions, and give us more of the same.
But the Oklahoma Way is different--we know the best place for taxpayer dollars is in the pockets and bank accounts of Oklahoma families, not funding bigger government or more bureaucracy.
Giving $100 million back in the form of a tax rebate will return $400 to everyone with their primary residence in the state. If you take the $100 million and use it to cut property taxes, instead, the average Montana homeowner would receive just $44 this year, not $400. Think about that--it will take 10 years for the taxpayer to get as much money back as they'll get this year with the rebate.
Yet, if you are a company like PP&L, the proposed tax cut would reward you with over $1 million this year alone--23,000 times more than what the average homeowner would receive. If we consider who stands to benefit from our actions, the path we should take becomes clear.
To support our education initiatives, my budget will propose that we increase the income tax by 1 percentage point--to 6.25 percent. To make that increase fair to all according to their ability to pay, I will propose that we double the personal exemptions for every taxpayer and eliminate a number of itemized deductions. Making those changes gives us a tax code that is simpler and fairer. These changes our sales, income and business taxes will be competitive with other states in the region.
This year, I propose that we eliminate the six percent tax bracket. This reform cuts taxes for the overwhelming majority of people who pay income tax, and not a single South Carolinian will pay more. Other states have seen the successes we've had in South Carolina and are nipping at our heels. Look around the nation and see all the governors, the legislators, the states that are proposing slashing or even eliminating their income taxes. We have to keep up.
By eliminating progressivity, and rebalancing capital tax credit payments, we can create a simpler 25 percent tax. Gone will be the old arguments about what qualifies for the capital expenditure credits. Gone will be the need to calculate progressivity each month.
What will remain will be a more balanced, more competitive, and more predictable tax system, one with greater protections for Alaskans at lower oil prices, in exchange for lower taxes at higher oil prices.
Imagine if we eliminated just half of the current exemptions. Nebraska wouldn't need to have an individual income tax or a corporate income tax.
I have asked business leaders if they would give up their sales tax exemptions if we could eliminate the individual income tax and the corporate income tax or at least lower the individual and corporate tax rates. You may be surprised, but many are willing to have that discussion. They want simplicity and fairness. They want a modern tax code that rewards productivity, profits and job creation rather than having their lawyers and accountants spending time mining the tax code for exemptions. Our tax system shouldn't favor one industry over another. Change is not easy, especially when it involves taxes, but this is the discussion that our state needs to have.
Not long ago, we were facing the worst housing collapse in our history. Now, our housing market is on-the-mend, recovering faster in metro Phoenix than anywhere in America. We're adding jobs at the swiftest clip in years. In fact, Arizona ranked 5th in the nation for job growth during 2012. The Kauffman Index recently declared Arizona the country's premier place for entrepreneurs. Our budget is now balanced, and we've set aside $450 million in the state's rainy-day fund for the next time crisis strikes.
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| Candidates and political leaders on Tax Reform: | |||
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Retired Senate as of Jan. 2015: GA:Chambliss(R) IA:Harkin(D) MI:Levin(D) MT:Baucus(D) NE:Johanns(R) OK:Coburn(R) SD:Johnson(D) WV:Rockefeller(D) Resigned from 113th House: AL-1:Jo Bonner(R) FL-19:Trey Radel(R) LA-5:Rod Alexander(R) MA-5:Ed Markey(D) MO-9:Jo Ann Emerson(R) NC-12:Melvin Watt(D) SC-1:Tim Scott(R) |
Retired House to run for Senate or Governor:
AR-4:Tom Cotton(R) GA-1:Jack Kingston(R) GA-10:Paul Broun(R) GA-11:Phil Gingrey(R) HI-1:Colleen Hanabusa(D) IA-1:Bruce Braley(D) LA-6:Bill Cassidy(R) ME-2:Mike Michaud(D) MI-14:Gary Peters(D) MT-0:Steve Daines(R) OK-5:James Lankford(R) PA-13:Allyson Schwartz(D) TX-36:Steve Stockman(R) WV-2:Shelley Capito(R) |
Retired House as of Jan. 2015:
AL-6:Spencer Bachus(R) AR-2:Tim Griffin(R) CA-11:George Miller(D) CA-25:Howard McKeon(R) CA-33:Henry Waxman(D) CA-45:John Campbell(R) IA-3:Tom Latham(R) MN-6:Michele Bachmann(R) NC-6:Howard Coble(R) NC-7:Mike McIntyre(D) NJ-3:Jon Runyan(R) NY-4:Carolyn McCarthy(D) NY-21:Bill Owens(D) PA-6:Jim Gerlach(R) UT-4:Jim Matheson(D) VA-8:Jim Moran(D) VA-10:Frank Wolf(R) | |
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