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Monday, March 27, 2006

Things Going Round & Round: A Tax Increase; or how to encourage more Iowans to leave the workforce

Excerpted from this post at Things Going Round & Round

"Poison pill" politics aside, this is bad public policy. The Senate Democrats are offering up the pension and social security tax cut to seniors in exchange for the removal of federal deductibility on state income taxes for families with incomes over one hundred grand.

They might get a little class warfare mileage out of it, but it's obvious that nobody in that caucus seriously considered the interaction of tax rates and labor economics.

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Mike Schramm
Andy Szal

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