I know I’ve been a little absent lately, but not because I haven’t been paying attention to what’s going on. I’ve been so completely stunned by the bullshit coming out of Washington, that I needed to form my thoughts and do my research. And boy, did I research!
I’m going to disspell every stupid fucking thing that republicans have said in regard to the budget over the past three weeks, and I’m going to do it without sharing a single opinion.
Ready?
The first thing that I looked at was states’ GDP relative to their corporate tax rates. The tax rates among states range between 0% and 12%. I was surprised to find that Iowa had the highest tax rate by far at 12%. The next closest state was Minnesota with a 9.8% flat corporate tax rate. Here are the top ten states with the highest corporate tax rates (for the purpose of this post, I used the highest rate in states that have tiered tax rates):
Iowa – 12%
Minnesota – 9.8%
Illinois – 9.5%
Alaska – 9.4%
New Jersey – 9%
Rhode Island – 9%
Maine – 8.93%
California – 8.84%
Delaware – 8.7%
Indiana – 8.5%
Then I looked at the states with the highest GDP:
California – 1847B
Texas – 1224B
New York – 1144B
Florida – 744B
Illinois – 634B
Pennsylvania – 553B
New Jersey – 475B
Ohio – 472B
North Carolina – 400B
Georgia – 398B
That’s interesting, the state with the highest GDP (by far) is also one of the states with the highest tax rates. In fact, three out of the top ten states for GDP are also on the list of states with the highest corporate tax rates.
So that made me want to look at the states with the lowest corporate tax rates to see what their GDP is:
Washington – 0%, 323B
Nevada – 0%, 131B
South Dakota – 0%, 37B
Wyoming – 0%, 35B
Texas – 1%, 1224B
Ohio – 1.3%, 472B
Kansas – 4% – 123B
Colorado – 4.6%, 249B
Michigan – 4.95%, 383B
Mississippi – 5%, 92B
That’s weird, only two of the states with the lowest corporate tax rates are in the top ten for highest GDP. And one of those two states is Texas, where the oil developed before the low corporate state tax rate did.
Why aren’t any of the companies that put California at the top of the GDP food chain in any of the four states with no corporate taxes? Paying less taxes is what creates jobs, right? Shouldn’t all the jobs be in Washington, Wyoming, Nevada, and South Dakota? Washington ranks 14th for GDP. Nevada, South Dakota, and Wyoming rank 36th, 41st, and 48th. Why are Wyoming and South Dakota so unproductive, given their nonexistent corporate income tax rates? Weird.
Another weird thing that stuck out at me as I was compiling this data, is that five of the top ten highest states for GDP are solid democratic states. Three are republican and two are purple. Six of the lowest states for GDP are solidly republican, while four are democratic. That’s going to be relevant further down in this post.
The numbers clearly debunk the bullshit myth that low taxes = job creation so let’s move on.
The next thing I looked at was per capita income in each state. Seven of the top ten states with the highest per capita income are decidedly blue states. The other three are solidly red. Of the ten states with the lowest per capita income, seven are solidly red, one is blue, and two are purple.
I found it interesting that the top and bottom earners have an inverse proportion in political leanings. That inverse relationship led me to look at some other statistics, which produced some fascinating data;
Of the ten states that spend the most on K-12 education, eight are blue, while only two are red.
Seven of the states that spend the most on K-12 education are in the top ten for highest GDP.
Of the ten states that spend the least on K-12 education, nine are red, one is purple, none are blue.
Only one of the ten states that spends the least on K-12 education even cracked the top twenty for GDP.
What does any of this have to do with the title of this post? I’m finally getting there. Look, you know when you live in a shitty place. When you’re in a poor state or a poor neighborhood, you know it. There’s are no illusions about your lot in life. The biggest difference between republicans and democrats is that republicans fundamentally believe that shitty is normal, and that there’s no such thing as a government that can change that. They believe that government will only fuck things up more. Democrats believe (despite overwhelming evidence to the contrary) that government exists to serve the people. And it turns out that democrats were right. I say were because all of that is evaporating before our very eyes, but that’s another post.
So why do republicans keep voting for shitty government? Because it allows them to be right in their belief that government blows and on a visceral level, being right is all you need. They expect government to blow, so they’re not let down when it does. They keep voting for people that offer them more of the same non-governance bullshit that keeps them poor and uneducated because they’re sadomasochistic. They’re sadomasochistic, but they’re right!
The data here is clear; the democratic way is better. It’s better for you because it’s better for your neighbor. When your neighbor’s kid has a shot at a good education and a bright future, they won’t grow up, having to resort to robbing and killing you in order to survive. It makes sense to tax corporations and the mega-fucking-rich because they use more taxpayer resources than you do. This way works!
There’s no fucking reason to vote for the “screw your community, it’s each man for themselves” platform, unless satisfying your sadomasochistic tendencies is more gratifying to you than watching your kid graduate for college is.
The budget cuts that passed this week are going to speed up our race to the bottom. Make no mistake, Obama made this happen. He backed himself into a corner when he agreed to extend the Bush tax cuts. And if you didn’t see this week coming when that happened, you just weren’t paying attention.
The most fucked up thing about this, is that Obama is turning me into a sadomasochistic voter. When 2012 rolls around, despite my best efforts in the primaries, Obama is going to be our nominee. And in November, I’m going to have to hold my nose and vote for him for one single reason; the supreme court. The only thing that Obama is going to do for me, is to appoint a non-whacko to the court.
And what’s worse than the forced sadomasochism, is that I don’t get to enjoy the upside that republicans get. There’s no satisfaction in shitty government for me. It’s all pain and no gain for bitchy.
I need to figure out a way to make this sadomasochism thing work for me. Does anyone have any advice they can give me? What type of equipment should I invest in? Nipple clamps? And when I cut myself, where’s the best place to do it? Any and all suggestions are welcome!
What about unemployment numbers per state? If low corporate taxes create jobs, then the lowest unemployment should be in the states having the lowest corporate tax rates, right? Where can get those numbers?
I didn’t look at those numbers for a few reasons.
First off, the current state by state unemployment rates don’t mean much without state by state historical context.
Secondly since this last crash was real estate driven, I knew that 2 things were probably going on that were equally impacting unemployment. States like Florida and Nevada that are in the bottom 50% in almost every measure that I looked at, were going to suffer job losses because of how badly the real estate markets bottomed out in those states. And concurrently, the states with the most jobs were going to spike in unemployment rates because corporations made straight percentage of workforce cuts. In other words, (I’m making up a hypothetical) Google’s losses in their stock market investments forced them to lay off say 5% of their work force. 5% of 20,000 people is a much bigger number than 5% of 1000 small companies combined. States that employ more people have much bigger investments in the economy than states that employ smaller numbers of people. A company that has 500 employees likely isn’t diverting a portion of profits into investment.
I just didn’t think that those figures would be relevant since in this economy particularly, the unemployment rates don’t have much to do with government investment in the population.
Oh, I forgot. I can email you a spreadsheet that contains all of the data I used, as well as a huge amount of fascinating data I couldn’t use without writing a VERY long novel!
Yes, I see your point about the unemployment factors. And, yes please email the other stuff. Thanks. Keep up the good work.