ALEC spreads destruction of public services, risks economic growth with budget and tax proposals

February 12, 2013
By
ALEC-explained

image: endthelie.com

The Center on Budget and Policy Priorities has released a damning report on American Legislative Exchange Council and their attempt to ruin states’ public services with their slanted tax and budget proposals.

These policies would cut taxes deeply for wealthy individuals, investors, and corporations; shift tax burdens substantially from well-to-do to middle- and low-income households; and impose strict constitutional or legal limits on revenues or spending that would severely limit states’ ability to provide adequate funds for education, health care, and other priorities, and impair state economic growth.

ALEC is doing whatever they can to cater to the wealthy while putting major burdens on the middle and poor classes of America.

ALEC’s studies and reports claim that its agenda would boost economic growth and create jobs, but they are disconnected from a wide body of peer-reviewed academic research on public finance.  The “ALEC-Laffer Economic Outlook Index,” for instance, is heavily biased toward states with low taxes and limited government, and the index has failed to predict how well state economies actually perform.  In addition, the preponderance of mainstream research refutes core elements of ALEC’s argument, showing that state tax cuts or lower state taxes generally do not boost the economy, state tax cuts do not pay for themselves in the form of higher economic growth that generates more revenues, progressive taxes and corporate taxes do not inherently damage the economy, and taxes generally do not cause people to flee a state.

The full 18-page report can be downloaded here.

For more on ALEC, please visit The Center for Media and Democracy’s ALEC Exposed.

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