NC Budget and Tax Center

ALEC’s Tax & Budget Proposals Jeopardize Economic Growth

A new report from the Center on Budget and Policy Priorities released yesterday assesses the American Legislative Exchange Council’s (ALEC) agenda for state budgets and tax policy.  Their findings are that the specific proposals promoted by ALEC–elimination or deep cuts to income taxes, repeal of estate taxes, constitutional limits on revenues and spending among others–limit a state’s ability to provide adequate funds for education and other priorities and impair economic growth.  Moreover, because the proposals rest on faulty analysis and questionable assumptions, they are disconnected from a body of peer-reviewed academic research on public finance that demonstrates the important role of taxes to long-term prosperity.

Here are their key findings from mainstream research:

  • State tax cuts (or lower state taxes) generally do not boost the economy.
  • State tax cuts do not pay for themselves.
  • Progressive taxes (taxes with higher rates on higher incomes) and corporate taxes do not inherently damage the economy.
  • Taxes don’t cause people to flee a state.

Check out the report for more details.

One Comment

  1. david esmay

    February 14, 2013 at 1:18 pm

    ALEC is an insidious organization, domestic terrorists, actually.