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Tuesday, August 08, 2006

New Mexico: Proof Positive on Income Tax Cuts

First of all, kudos to Queen Laurin for her informative report today on New Mexico Gov. Bill Richardson.

As our loyal readers are no doubt aware, we here at FITS have sung this tax-cutting Democrat's praise on numerous occasions.

And why not?

Unlike closet liberals John Rainey, Bill Gillespie and the rest of the big spending Republican bozos in South Carolina's General Assembly - all of whom have conspired to kill Gov. Mark Sanford's would-be job-creating, investment-stimulating and revenue-enhancing income tax cuts for four years in row - Richardson is a true fiscal conservative with a proven commitment to cutting income taxes and growing the economy, not government.

In doing so, he has flown in the face of the typical "class warfare" and "we can't afford to cut taxes" arguments so frequently employed by Democrats, RINO's and our own state Board of Economic Advisors.

No wonder South Carolina's economic growth remains modest at best thanks to our non-competitive income tax rate, and New Mexico's economy is surging thanks to Richardson's visionary income and capital gains tax cuts.

Don't believe us? Check the numbers for yourself.

On February 14, 2003, Richardson signed into law a sweeping capital gains tax cut and five-year income tax rate reduction, taking New Mexico's top marginal rate from 8.2% to 4.9% over a five year period.

When Richardson signed that tax relief bill into law three-and-a-half years ago, New Mexico's unemployment rate stood at 5.9% and its income tax collections were sputtering - down 11.6% (or roughly $90 million) from the previous year.

Today, unemployment in New Mexico has dropped by nearly two full points - from 5.9% to 4.1% - and the state is enjoying a $700 million surplus that's projected to grow even larger this fiscal year.

For all you thickskulled, numerically-challenged Republican legislators out there, kindly allow us to translate that for you:

When income taxes were cut in New Mexico, jobs and state revenues went through the roof.

So how would South Carolina - and its astronomical 6.7% unemployment rate - have fared if a similar plan had passed here?

Sadly, we'll never know.

Gov. Sanford's 2004 proposal to cut our top marginal rate from 7% to 5% over four years was shot down in the Republican-controlled State Senate after the John Rainey-led Board of Economic Advisors attacked the plan as being too costly.

More recently, what would have happened if we had taken some of our dramatic budget surpluses from the past two years and devoted them to job-creating tax relief as opposed to more than a billion dollars worth of new spending?

Again, we'll never know.

Instead of cutting taxes, Republican Legislators in South Carolina instead pushed a populist, revenue neutral tax swap with little to no economic value en route to growing government by 22% over the last two years.

Talk about a tale of two states.

Richardson's tax cuts in New Mexico are proof positive that income tax relief does create jobs, stimulate capital investment, encourage entrepreneurship and yes, enhance revenue.

South Carolina's continued failure to pass job-creating income tax cuts, on the other hand, is proof positive of why our state's unemployment rate continues to climb and our personal income levels continue to lag behind the rest of the nation.

11 Comments:

Anonymous Anonymous said...

One day of Kuhm By Yah My Lord and Will Folks is back to cutting ass. Nice. You may want to try sticking to the gay love posts because this right wiing factless rhetoric is not only wrong but annoying.

10:11 AM

 
Anonymous Anonymous said...

Will: Not every member of the House and Senate "killed" the income tax cutting proposals. You used the Phrase "all of whom have conspired to kill....". You are deliberately trying to hurt some people who support the same causes you do. At least acknowledge that some people tried to do the right thing instead of painting all with one brush. And by the way, Rainey is a Sanford appointee, blame your old boss on that one.

10:42 AM

 
Anonymous Anonymous said...

Speaking of cutting ass:

http://www.boston.com/news/local/articles/2006/08/08/aide_insists_romney_is_just_being_civil/

Will probably got a pretty penny from his buddy Richard Quinn and the "Straight Talk" Expres to leak this story.

10:52 AM

 
Anonymous Anonymous said...

Will tried to get a job with McCain and failed. He tried to get a job with Romney and failed. He tried to get jobs with Huckabee, Pataki, Frist and Allen and failed. Now it looks like he is trying to get a job with Richardson.

Will it looks like none of the Republicans want you around so maybe the Democrats are your best bet. You sure have plenty of practice trashing Republicans, but I'm curious what will you say when they ask you about beating up your girlfriend?

11:02 AM

 
Anonymous Anonymous said...

You people are so stupid. Will goes around one week talking about Huckabee, the next week talking about Giuliani, the next week talking about Pataki. For example, at the NGA he would not shut up about how awesome ne thinks Chuck Hagel is and today we now have this kiss up for Richardson.

Grand dragon Richard Quinn is behind all of this and Will is just muddying the waters purposefully. It is so obvious this is a story was planted by the Quinns to try to embarass Romney because he is McCain's biggest competiter here. Will Foks and Rick Quinn are joined at the hip and his whole guessing game is just trying to shift blame from McCain for dirty tactics.

11:21 AM

 
Anonymous Anonymous said...

Careful to jump to conclusions -- Will Folks was "joined at the hip" with Leslie Gaines and the Romney people all weekend in Charleston.

It would not surprise me at all if he is in the Romney camp and did this just so they could pin the leak on McCain or one of the other campaigns. It is a nothing article and he even defended Romney in the quote. After all he went after the Quinns in the Rainey post.

11:34 AM

 
Blogger faithinsound said...

Dear Anonymous (the one actually talking about the substance of the article),

First of all, thank you for not offering a totally unrelated Will Folks conspiracy theory.

Second, you are right, the South Carolina House under the leadership of Speaker David Wilkins did pass the governor's income tax cuts in 2004, and they deserve tremendous credit for doing so.

Unfortunately, liberal Republicans in the Senate like Jakie Knotts and Luke Rankin effectively killed it, and there was no leadership from the big guns (Leatherman and McConnell) to get it passed.

Sadly, where Wilkins embraced the economic benefits of income tax relief, Speaker Bobby Harrell has utterly failed to do so, and not a cent of income tax relief has made it out of the House since.

You are correct, however, in pointing out that not everyone in the GOP majority has opposed the tax cuts, and Representatives like Ralph Norman, Nikki Haley, Murrell Smith and others indeed get kudos for continuing to support it today.

Unfortunately, most of the House GOP caucus was seduced by the property tax component of Speaker Harrell's tax swap (which has been effectively negated in many counties due to the public schools' money grab), completely losing sight of the underlying economic purposes for tax relief - jobs, investment and more revenue.

Accordingly, income tax cuts (and the economic growth that comes with them) was placed on the backburner, where sadly it remains to this day.

-FITS

11:47 AM

 
Anonymous Anonymous said...

methinks Sic Willie's presidential prospects are as real as the women who exist in his head

12:03 PM

 
Anonymous Anonymous said...

Speaking of Republican rhetoric, tax relief? Just call it what it is, tax cuts.

3:23 PM

 
Blogger SCPolitico said...

Last Anon on taxes...

Rasmussen’s latest tax issue surveys by state show that 64% of South Carolinians understand that tax increases HURT and 62% believe that tax cuts HELP. In short the majority of South Carolinians get it regardless of party affiliation. Hmmm…

8:27 AM

 
Anonymous Anonymous said...

I hear that Cynthia McKinney will be available to assist Quinn on the "straight" talk excess wiht her endorsement that the Senator wasn't in the lynch mob behind the Capitol Cop that she slugged...

along with the Lieberman endorsement of course

9:02 AM

 

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