Eliminate the North Dakota State Income Tax
This is an easy way of putting money back into the pockets of North Dakotans. Eliminate the ND State Income Tax. Combine that with Gov. Hoeven’s plan of property tax relief, I think that you could really do some good for the taxpayers of North Dakota. You might have to increase the corporate tax a small percentage, but that is a small price to pay in order to give the working people of North Dakota lower taxes that stimulates the economy and allows more people to spend money.
In 2002, ND state income tax receipts to the state were just less than $200 Million. Now in 2007, we are estimating a $500 Million surplus. Estimate that the state income tax receipts have grown to $250 Million. The reason that I said that you might have to raise the corporate tax is because of the education dilemma the state is facing right now.
I had never paid state income taxes until I moved to North Dakota in 2000. Let me tell you, paying state income tax just sucks. Since ND is almost last for all wages concerning jobs in the state government, it would be great if they could keep more of the money that they do earn.
Examples:
The average annual salary for Medical and public health social workers in North Dakota was $33,270 per year.
The average annual salary for Medical and public health social workers in The United States was $42,250 per year.
Meaning that a social worker in North Dakota makes an average of $8,980 less than the U.S. average.
The average annual salary for Probation officers and correctional treatment specialists in The United States was $43,020 per year.
The average annual salary for Probation officers and correctional treatment specialists in North Dakota was $35,340 per year
A difference of $7,680.
Now, I know that there is less crime and people and other factors that makes being in North Dakota a positive, but shouldn’t we try to keep those professionals here that want to stay here? There are many people after college saying that they need to leave North Dakota because of the pay that they can expect here. I understand that we are only talking around $700 for each family on a typical social workers salary in North Dakota. However, that is about $60 a month. I know that there are many people that would take any type of tax cut to help them through this economy. It wouldn’t force small businesses to fire people because of minimum-wage increases. (A bogus argument according to 650 economists, including 5 Nobel Prize winners for economics). However, the people would keep more of their money. Another good byproduct of this is that the government could shrink. The state of North Dakota wouldn’t have to worry about income tax enforcement. That could get rid of a couple of government jobs. Remember, government shouldn’t be in the job creation business, according to some Republicans. Overall it would be a win for North Dakota. Now all we have to do is convince the Republican leaders in Bismarck of this.
