State Income Taxes Under Assault this Election by Fed Up Citizens

The tax system in the United States has been a topic of hot debate since the Boston Tea Party, when colonialists rose up against The Stamp Act of 1765 and the Townshend Acts of 1767 which further ignited passions against the British decisions of taxation without representation.

The citizens are fed up with excessive income taxes and getting nothing in return. Our counterparts in Canada and Europe for their taxes get in return great social services, such as free healthcare for all, public transportation, free university and college education, and much more.

So that is why you rarely see in European elections, taxes being an issue because the citizenry is getting many services in return. But in the United States income taxes are a perpetual issue because the public doesn’t see any tangible return in services for their hard earned taxed money.

I guess everything comes full circle, at a state level for now. On general election day, citizens of Massachusetts will vote on whether to end the state income tax. Advocates for the elimination of ‘income tax in Taxachusetts’ hope a victory would lead to similar initiatives in other states.

In other states there a measures on ballots related to federal income taxes as well state taxes. Oregon voters will go to the ballot to decide whether to permit unlimited deduction amount of their federal taxes on the state income tax returns.

In Nevada a constitutional amendment is expected to pass that would restrict property tax increases. North Dakota voters will be able to vote on whether to cut the state income tax by half. Also, in Minnesota, people can choose to vote on an amendment to its state constitution to increase the sales tax by three-eighths of a percentage point; the extra sales taxes will fund environmental protection and benefit the arts.

During these tough economic times states are struggling to fund state government and state services, many are projected to have shortfalls in tax collections. It will be interesting to see how the politicians and state government officials will react, if the above measures are passed. States must find alternatives to the state income tax to fund government; it is the right thing to do. The simplest and most progressive tax policy alternative would be to increase the sales tax; it is the only fair way to increase tax revenue without placing excessive burden upon the public.