At least according to Gov. Steve Beshear…
He seems remarkably calm about an issue that is actually very serious. We do need pension reform.
h/t: cn2 Politics
However, the general consensus in the academic literature confirms what common sense tells us: taxes affect incentives, and incentives affect decisions, especially those of job-creating businesses.
If a business can find better bang for its investment dollar in a neighboring region (say, in Tennessee where corporate income taxes are 1.7% lower than in Kentucky), then it will relocate to greener pastures.
According to a review of numerous economic indexes done by Cathy Carey, Ph.D. economist at Western Kentucky University, “The states that grow the fastest, both in population and in GSP (gross state product), and in payroll employment and GSP, tend to have more favorable business climates, including tax structures and lower corporate tax rates.”
KCEP’s call for Kentucky to “eliminate loopholes in its corporate tax and more closely scrutinize credits, subsidies and other tax breaks” would only increase the tax burden on businesses considering an investment in Kentucky, further impoverishing the state.
The unfounded implication of the KCEP study is that government is able to make more wise and efficient decisions with business profits than can private industry.
As the data (and common sense) would have it, lowering the corporate income tax in Kentucky would be a welcome invitation for new business, leading to new jobs and greater prosperity.
Atlanta teachers hosting parties to change incorrect answers to correct answers on standardized tests?
Did you know:
This video is a few years old but it just about sums up teacher union involvement in the school system.
This is the part that gets me (begins at 1:31):
“Closing achievement gaps, reducing dropout rates, improving teacher quality…need not and must not be achieved at the expense of due process, employee rights, and collective bargaining. That’s simply too high a price to pay”
Is this the dynamic we want at play in our school system?
CREDO, the group that brought you the methodologically flawed “Multiple Choice: Charter School Performance in 16 States,” recently released a follow-up report which focuses on charter schools in the state of Indiana.
Although sticking with the same quasi-experimental structure, CREDO finds that Indiana charter school students show significantly higher gains than their traditional public school counterparts in both reading and math. 98% of charter schools showed similar or superior academic growth in reading compared to traditional public schools, while a full 100% showed similar or superior growth in math.
Charter school detractors, such as KY Rep. Carl Rollins (D), may now think twice when using the dubious 2009 CREDO study as proof against charter school performance. If Rep. Collins wants assurance that charter schools “are really going to help us make progress,” he need only ask Dr. Margaret Raymond, Director of CREDO at Stanford University: “At a time where there is acute attention to quality in the charter sector, the charter schools in Indiana are proving to be a high quality option for students and parents.”
Click here for the full report on Indiana.
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