Wednesday, May 04, 2011
It's always the delta
The Repooflican brand has exactly one Prime Directive: Zero Tax Is The Purpose And Meaning Of Life. Zero Tax Means Infinite Revenue.
Of course that's nonsense. In certain circumstances a cut can bring in a burst of revenue, but it's the delta that matters, not the rate itself. As with every aspect of life, steady-state sensations are adapted to zero, and only changes are salient.
The same is true with regulations, as Wash State found out with a pleasant surprise.
And that ain't peanuts. The state is trying to close a $5 billion deficit, and an extra $200 million is a big part of that number. ¶ 6:17 AM
Of course that's nonsense. In certain circumstances a cut can bring in a burst of revenue, but it's the delta that matters, not the rate itself. As with every aspect of life, steady-state sensations are adapted to zero, and only changes are salient.
The same is true with regulations, as Wash State found out with a pleasant surprise.
An amnesty program for Washington businesses with overdue taxes has brought in a surge of funds that far surpassed state expectations.
Gov. Chris Gregoire said Tuesday that the three-month program brought in $263 million for the state. That's about 10 times the amount that officials had initially projected. Gregoire says more than 10,000 businesses applied to pay their back taxes while waiving any penalties and interest. This included unregistered businesses that the state may not have ever identified.
The amnesty program also brought in $57 million for local jurisdictions.
And that ain't peanuts. The state is trying to close a $5 billion deficit, and an extra $200 million is a big part of that number. ¶ 6:17 AM
