Other states getting rid of state income taxes

Jan. 16, 2013

By John Seiler

California is going backward again. Our state income tax rate just jumped to 13.3 percent, by far the highest in the nation.

By contrast, Nebraska is the latest state to consider getting rid of its state income tax entirely:

“Gov. Dave Heineman proposed an ambitious plan Tuesday to scrap Nebraska’s income and corporate taxes while eliminating as much as $2.4 billion in sales-tax breaks for businesses, with all industries except for food on the bargaining table….

“‘Are we going to be satisfied with a mediocre tax system that won’t create the jobs of the future for our sons and daughters?’ Heineman asked. ‘Or, are we willing to consider reforming the tax code so that we have a modern, simpler and fairer tax code? Are we willing to consider a bold, innovative and strategic tax reform plan that would create a top ten business climate in Nebraska?'”

It’s too bad the plan would increase sales taxes. They should just end the income tax and replace it with nothing, making up the difference by cutting waste and bloat in government.

Earlier, Louisiana Gov. Bobby Jindal (pictured nearby) called for abolishing his state’s income and corporate taxes.

And Oklahoma at least tried to get rid of its income tax under Gov. Mary Fallin, although it failed.

The trend is that some states realize they can best create businesses and jobs by imitating Texas, which already has no state income tax and whose economy is booming.

It’s also worth noting that all these tax-cut governors are Republicans. In California, our Republicans have been the clownish Gov. Arnold Schwarzenegger, who increased taxes a record $13 billion; and Meg Whitman, who had no credible tax-cut plan, just vague pro-business meanderings.

As to California overall, we used to lead America on pro-business, pro-jobs policies, such as Proposition 13; now we’re going in reverse.