The GOP Plan to Flush Your State’s Economy Down the Toilet
Continued from previous page
GOP pols are vying to out-do each other in extreme red-state programming. NC state senator Bob Rucho is pushing a plan to eliminate the state's income taxes altogether. Such plans go hand-in-hand with calls for increasing the sales tax. Because low-income people pay a higher proportion of their income in sales taxes, abolishing income taxes and raising sales taxes shoves tax burdens onto them. Obviously, the Republicans will not give up on their passionate desire to cut taxes on the wealthy and stick it to the poor and the middle class.
Pope’s ideological opposition to public investment is ringing alarm bells. North Carolina, a state where progressives have fought conservative forces tooth and nail to achieve an enviable university system and a reputation for high-tech and research, is now in danger of being thrown into a period of regressive darkness. University of North Carolina sociologist Andrew Perrin put it this way: “Public investment is part of what has set North Carolina apart from our neighbors in the South.”
But Pope is hell-bent on turning North Carolina into Mississippi.
The GOP economic plans not only subvert common sense and the lessons of history (being played out right now in places like the U.K., where austerity has failed dramatically), they also flip a giant middle finger at the American voter. Unable to win support at the national level for their foolhardy economic programs, Republicans have turned their attention to state-level action because that’s where gerrymandering really works wonders.
Red-state model proponents claim that their maneuvers will spark economic growth. But that was basically what George W. Bush had in mind when he supported a similar program for cutting taxes on the rich. That didn’t work out so well, and increased the very deficits Republicans decry.
But here’s the really scary part. Slashing taxes, squeezing workers and throwing out environmental protections can indeed lure businesses to states where they won’t have to pay their fair share and can get away with all sorts of abuse. If a state like North Carolina promotes such policies, businesses from nearby states like Virginia may indeed move their operations down the road. Unless you believe in the “Confidence Fairy,” as Paul Krugman calls the naïve GOP faith that making everybody poorer is the way to become rich, then you know that what results is simply trade diversion, not genuine growth. In other words, one state’s gain is another state’s loss. The result is a headlong race-to-the-bottom whereby the states losing business will be pressured to slash their taxes and burden their workers and ordinary citizens, too. Nobody wins in that game -- except the 1 percent.
The blue-state model, evident in high-income states like Massachusetts, has long been associated with high levels of state investments in education, transportation and other public goods. And guess what? It's also associated with economic strength. The red-state model, on the other hand, is linked to backwardness, second-rate educational systems and economic weakness.
What the GOP wants to do is create an image-problem for blue states where taxes have been raised to balance budgets and continue vital services and jobs by crying “Look, Ma! No taxes!” in the states where they’ve taken control.
They’ll soon be able to say, “Look, Ma! No economy.”