Lawmakers in GOP States Push Tax Hikes on the Poor

Higher sales tax, elimination of income tax would unfairly burden poor and middle class

It appears lawmakers in Washington won’t actually overhaul the federal tax system to bring needed relief for middle class and poor families – at least not any time soon. But Republicans who control state legislatures around country are looking at reforms, which critics say will unfairly burden the poor and middle class. With 37 states under single-party GOP rule, many are pushing to do away with the income taxes and increase sales taxes. In Louisiana, that’s precisely what Republican Governor Bobby Jindal, on Thursday, proposed to spur job creation in the state. The working idea is that wealthier Americans will create more jobs if they keep more of the money they earn. Similar plans are being pushed in North Carolina, Kansas and Oklahoma. Because poor and middle class Americans generally spend a higher percentage of their income on consumer goods, a hike in sales taxes would have a disproportionate impact on them. “Trickle down” economics, which have been popular since the Reagan era, and call for lowering the tax burden on the highest earners, have yet to show conclusive evidence that they push the poor into the middle class. (Reuters)

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