Tuesday, January 27, 2009

What kind of state do you want?

With Governor Pawlenty's pronouncements on the Corporate tax rate, I thought it would be interesting to do some comparisons since this plan, like most Republican thinking, makes a number of assumptions without consulting that abstraction called the real world. The source of his numbers is this corporate think tank. For 30 years, tax rates and loopholes for corporations and the wealthy have been expanded to where the they only pay 6% of taxes collected in the U.S. The first question might be to examine where tax rates are by state; Minnesota is at 9.8 % and the rate is high, but it does not tell you what breaks and subsidies there are. It also does not say why it is a much more succesful state then such tax paradises like South Dakota, home of the poorest county in the United States. But let us compare this with states with much lower rates, then look at this to how a society might be contrasted rationally, such as by social measurements like access to health care, education, literacy and poverty rates. There it is a bit more confusing, but we can look at states that compare completely opposite of Minnesota by social measurements; For example Alabama, Louisiana, Mississippi or Kentucky. These are states with many conditions like the third world, yet have some of the lowest corporate tax rates. In short the world is much more complex than the governor lets on; handing breaks or having low corporate rates is not connected to advancement. In fact, it might show a connection between low rates and low quailty of life. The governor's beliefs, like most of republican thinking, does not work with the real world. After years of budget cutting on the backs of working people, we now have this tired old bucket of drivel. You would think they would come up with something new. In short, it appears the governors model is from down south, with hordes of poor people and a small elite, with no worker's rights and conditions like the third world for much of the population.

No comments: