Reply #5: Federal Income Tax Cut + Inflation + Recession = Higher State & Local Taxes [View All]

Less money coming to the state from the feds. Less money coming in from the people because of recession. And everything costing the state & local governments more because of inflation.

The thing about inflation in the 70s is that wages went through the roof in response. I wonder if we'll see that this time around? Or if everyone will just bite the bullet for Wall Street in their ideologically blind hatred of unions.

I wonder how much revenue the State of Illinois could raise by taxing unearned dividend income at the federal earned income tax rate. Since W decided the feds should stop ALL taxes on dividend income, I would assume he meant to make that revenue available to the states for direct taxation.

Right?

And if we write that particular tax law as Federal Earned Income Tax Rate -minus- Federal Dividend Income Tax Rate, then in the event the feds someday make the dividend tax higher than the earned income tax rate, the State of Illinois would pay the difference for us. Making this the ...

PROTECTION FROM EXCESSIVE TAXATION TOWARDS YOUR DIVIDENDS (P.R.E.T.T.Y DIVIDENDS) ACT

Not that the feds will ever tax unearned income as much as they do earned income. But it'd be a nice spin.