Supporters of lower taxes in Kentucky got more ammunition yesterday with news of a 50 state report card rating states on how they treat their manufacturing and logistics companies.
Kentucky got one of seven F's in the nation, ranking 45th overall. Low grades in education attainment and corporate and unemployment taxes dragged the state down. High grades in sales taxes and manufacturing's percentage of the economy kept us from from joining West Virginia at the bottom of the rankings.
The report was prepared by the Bureau of Business Research at Ball State University.
Very interesting comments from the man responsible for the report:
"Mike Hicks, director of the Bureau of Business Research, notes that manufacturing and logistics industries in most of the nation are actually expanding, despite a general belief these sectors are declining.
"The condition of manufacturing and logistics remains remarkably misunderstood," he said. "Despite record production levels, expanded investment and growth in both wages and productivity, the shrinking or static demand for workers results
in a mistaken caricature of these industries as dying. Nothing could be further from the truth."
The 2008 State of the Industry Report found that 2007 was a record year for American manufacturers, with inflation-adjusted values higher than in any previous year. Nationally, growth in the production of goods continues to be robust."
Probably won't see any of this in the mainstream media.
2 comments:
So why would high grades be given for an eminently unfair sales tax? The sale of race horses is exempt from the sales tax.
But what else could you expect from the Bureau of Business Research at Ball State University?
Are they clueless that for taxes to be fair, there has to be proportionality?
Hempy, are you high on something currently against the law? Sales taxes ARE proportional because they apply the same 6% tax on everything subject to the tax. If your complaint is that Frankfort exempts too many favored activities from the sales tax, you've nailed it. Frankfort leaves half of the potential sales taxes in the barnyard by not taxing every product that is bought or sold in Kentucky. If Frankfort levied this tax uniformly, it could get rid of the most unfair tax - the one that ruins the incentive to be more productive - the income tax.
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