Who are these people, and how did they get to be so smart?
A new study has found that inverting state tax structures—whereby the highest income earners would be taxed at the current percentage of income for the lowest income earners, and vice versa—would collectively raise $490 billion in new revenue, immediately eliminating states’ budget deficits and avoiding the serious consequences of budget cuts.
The report, titled “Flip It to Fix It: An Immediate, Fair Solution to State Budget Shortfalls” was released today by Boston-based United for a Fair Economy and 13 state organizations around the country.
What’s being “flipped,” of course, is the current regressive tax system, which depends on getting more and more money from those who have the least of it—or, as a study co-author bluntly phrased it, “squeez[ing] water out of a stone.”
Is there any possibility that state legislatures will accept this sensible suggestion? Maybe not this minute; but the Nonprofiteer suggests we all wait until crime spikes this summer (not enough police officers) and schools open this fall with huge classes (not enough teachers). Maybe then our elected officials will get a clue that dismantling workers’ compensation and blaming public employee unions will be insufficient to preserve essential services.