Quote:
Originally Posted by Robbie
Isn't dropping state taxes on industries exactly what should be done to stimulate job growth?
I know that when I lived in South Carolina...the state gave BMW a huge tax incentive to build that plant there. And it created jobs and kicked up the economy in the upstate where I lived enormously.
Seems to me that if you are taxing the hell out of an industry that you are kinda pushing them somewhere else aren't you?
I know I moved to Nevada simply because I got tired of paying 20 grand every year in state income tax in South Carolina.
And if I were a big company I would definitely look for the most cost effective way to do business in the U.S. (and no, I'm not talking about going to Mexico for cheap labor). So if I were an industry that could save millions of dollars by moving to another state...that's what I'd do.
In my opinion a state will cripple itself in the marketplace if it doesn't lower taxes on businesses. You need business to want to come to your state and bring jobs and prosperity.
As far as the State budgets go...they need to stop spending so much money. Just like the feds.
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Dropping State or even Income taxes, has NEVER sparked job growth... EVER! Just because you make an extra 2% this year, are you going to rush out and hire people? Of course not... and nobody else would either.
Job growth happens for two reasons, companies are FORCED to do it OR they have a so many buyers, they have to hire people.
Forced happens on Capitol Gains Taxes... Which is where Job growth happens. This is investment money brought in to produce industry, jobs, etc and is normally the highest actual tax a company can have. But when they cut it, sooooooooo much money comes in, that they actually end up collecting more.
Honestly... I have no idea why this hasn't been slashed across the nation.
The few times they've cut this tax, shortly afterward everything turned around.