[Marxism] "Globalization" --another rationalization for attacking progressive tax structure
lshan at bcn.net
lshan at bcn.net
Sat Feb 21 17:12:32 MST 2004
Common sense would seem to dictate that if the federal government is
reducing its social programs by cutting taxes to the wealthy that the states
should at least counter that by getting back some of the money. In other
words, they should progressively increase the taxes of the rich. South
Carolina, probably followed soon by other states, may soon go the other way.
And if the capitalist structuring of "globalization" is hurting South
Carolina, then it also would seem that a campaign against NAFTA, the World
Bank and the WTO would be in order. Instead, the South Carolina section of
the ruling class sees this as an opportunity to continue the squeeze on its
struggling working class by reducing its level of social programs. As you
can see below, there's a high level of excitement about this.
"Globalization" is only the newest catch word. "More competitive" in order
to "attract capital" is trotted out again. To become "more competitive" all
the sectors of the rich pretend to compete with each other. Thus, one town
must compete with another and give tax breaks to attract or hold
businesses--likewise for the states. And, of course, for the United States
to be "more competitive" it has to reduce taxes. This is emulated by France,
Germany, etc., who have to reduce services, pensions, health benefits to
become "more competitive."
Governor Sanford acknowledges that revenues will be reduced. But because
there will be 2 percent growth, there will be more revenue. He doesn't say
whether this is in comparison to those other states that will lose the
capital investment, or whether this is just in general, a la the monetarist
myth that decreasing taxes generates growth automatically.
from Brian Shannon
"Globalization has changed our world," [South Carolina Governor (R) Mark]
Sanford said during a press conference at the Statehouse. "It is vital that
we become more competitive as a state in growing small businesses,
attracting investments and attracting capital to our state. That's what this
bill is all about."
The measure calls for reducing the state's highest income tax bracket by
.225 percent annually for the next 10 years, dropping the rate from 7
percent to 4.75 percent. . . .
Sanford said the cut would reduce state revenues by $62 million annually but
that 2 percent growth would add $100 million to state coffers. "This is
something we can do that would help the job and economy situation in South
Carolina," he said.
Sanford and [House Speaker (R) David] Wilkins were joined Tuesday by dozens
of legislators from the House and Senate, all supporting the proposed tax
cut. Wilkins said 90 representatives, more than a dozen of them Democrats,
already have signed on. Senate President Pro Tem Glenn McConnell,
R-Charleston, also has voiced his support for the plan.
"Rather than talking about raising taxes, we're here talking about raising
the standard of living for all South Carolinians by creating jobs and
opportunity and growing the economy," Wilkins said. . . .
House Ways and Means Chairman Bobby Harrell, R-Charleston, worked closely on
the plan. He said he would support a tax cut regardless of growth because it
is a long-term approach to economic health.
"This tax cut will be an engine to fuel economic growth for the next
decade," he said.
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