What a Surprise: Low Taxes Means Faster Growth!
People who know what they’re talking about have been trying to impart this message to democrats forever. Mostly to no avail. So now comes the census, and the reality that states with no income tax are growing faster than those which take a heavy toll from their citizens!
Overall, the resident population of the U.S. grew 9.7%, we hear, from the 2000 level. But where was that growth? Not in the Northeastern states which, reports the Washington Examiner, was growing faster than average in the mid-20th century. And not in California – another jurisdiction, of course, known for some of the highest taxes in the country.
Maybe that’s why California will be getting no new House seats this time around, while Texas will gain four, Florida two and Nevada one. See any trend here? No income taxes seems to translate into more representation because of more growth. It’s just that simple.
California’s ignominy in all of this is even more pronounced, when you consider that this will be the first time since the Golden State’s admission to the Union that it gets no additional House seats!
You see, seven of the nine states that don’t assert an income tax grew faster than the national average during this last decade. The Examiner goes on to note that 35% of the nation’s total population growth occurred in the nine states which have no income tax.
Are you listening, Nevada legislature???
And if you’re in a hurry to file that 2010 income tax return, hang loose for a while.
So saith the Revenooers themselves, who have told folks planning to file Schedule A (Itemized Deductions), or claiming above the line deductions for higher-education tuition and fees or educator expenses, to wait until mid to late February before submitting their returns.
The problem, of course, is that Congress dilly-dallied all year (all decade, for that matter), and didn’t get around to finalizing the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” until almost Christmas Eve.
Seems the IRS just won’t be able to get its forms and computers together before another month or two, so if you file early you might just gunk up the works.
Wait for the blokes to announce when they will be ready (which they have said they will do). Mean time, just go on vacation – but don’t spend all of those tax savings in one place!
Happy New Year.
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He is also a contributor to the recently published 14th edition of Tax Savvy for Small Business, published by Nolo. He can be reached at 831-7288, and welcomes comments below.