3rd From Sol

~ Learn from before. Live now. Look ahead.

3rd From Sol

Daily Archives: April 3, 2018

Should Federal Dollars Go To States With Low Taxes?

03 Tuesday Apr 2018

Posted by Paul Kiser in About Reno, All Rights Reserved, Business, Conservatives, Donald Trump, Economy, Ethics, Government, Honor, jobs, labor, Nevada, Politicians, Politics, Reno, Taxes, Technology, United States, US History

≈ Leave a comment

Tags

capital gains tax, Colorado, corporate tax, federal dependent states, federal money, income tax, low tax states, low taxes, Nevada, Sierra Nevada Corp., state tax, tax, tax fairness, taxes

Nevada has no income tax, no corporate tax, no inventory tax, and no capital gains tax. Should the rest of the country be taxed to give money to Nevada? The idea that some State and local governments can avoid taxing their citizens, but expect to receive federal tax dollars is a question of fairness and equity. Perhaps the federal government should base allocations to States based on their willingness to act fiscally responsible?

Virginia State Line

Some States Pull Their Weight

Low Taxes Myth

There is a myth that low State taxes attracts businesses, that in turn, attracts jobs for the citizens. In Nevada, the tax haven does attract companies, but only those that seek to dodge taxes. The Sierra Nevada Corporation is a prime example. They are a private defense contractor that, among other things, seek to become the next privatized NASA.

The Sierra Nevada Corporation sounds like it would be a major employer in Nevada. It is not. Currently, it claims to have over 3,500 employees in 33 locations around the world.  In 2014, about one-third of its employees were in Colorado and the potential job growth is at its Colorado facilities.

However, its corporate headquarters is in Nevada. The company was founded in Nevada; however, the State does not have the caliber of workers needed for the high technology jobs. So why not move the company to Colorado? Because the corporate staff and the company enjoy the tax immunity of Nevada.

Freeloader States

According to WalletHub.com, the ten State governments that are most dependent on federal money are as follows:

  1. Louisiana
  2. Mississippi
  3. Arizona
  4. Kentucky
  5. New Mexico
  6. Montana
  7. Oregon
  8. Tennessee
  9. Missouri
  10. Alaska

These States are the top ten with the lowest taxes on their residents, (with the ranking of federal dollar dependency,) according to USA Today (Taxes on corporations are not included):

  1. Alaska (10)
  2. Wyoming (20)
  3. South Dakota (14)
  4. Tennessee (8)
  5. Louisiana (1)
  6. Texas (21)
  7. New Hampshire (31)
  8. Nevada (36)
  9. South Carolina (29)
  10. Oklahoma (26)

Three of the top five having the lowest State taxes are also among the top ten State governments most dependent on federal money. The residents of another three of the top ten States with low taxes are in the top fifty percent in dependency on federal subsistence.

Five of the top ten States (Alaska, Wyoming, South Dakota, Texas, and Nevada) with the lowest taxes have no State income tax.

Pulling Their Weight

Many States use federal money to supplement their own tax revenue. It is only fair that they should. It is unfair that some States tilt the tax revenue field and expect federal money to replace State revenue. Perhaps it’s time that federal money should be restricted from States that do not have an adequate local and State tax structure to provide a foundation for services for their citizens before federal money is given to them.

Other Pages of This Blog

  • About Paul Kiser
  • Common Core: Are You a Good Switch or a Bad Switch?
  • Familius Interruptus: Lessons of a DNA Shocker
  • Moffat County, Colorado: The Story of Two Families
  • Rules on Comments
  • Six Things The United States Must Do
  • Why We Are Here: A 65-Year Historical Perspective of the United States

Paul’s Recent Blogs

  • Dysfunctional Social Identity & Its Impact on Society
  • Road Less Traveled: How Craig, CO Was Orphaned
  • GOP Political Syndicate Seizes CO School District
  • DNA Shock +5 Years: What I Know & Lessons Learned
  • Solstices and Sunshine In North America
  • Blindsided: End of U.S. Solar Observation Capabilities?
  • Inspiration4: A Waste of Space Exploration

Paul Kiser’s Tweets

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

What’s Up

April 2018
S M T W T F S
1234567
891011121314
15161718192021
22232425262728
2930  
« Mar   May »

Follow Blog via Email

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 1,649 other subscribers

Create a website or blog at WordPress.com

 

Loading Comments...