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ENLARGE
By Ed Iverson
Tax policy has a reputation of being as dry as dust. Attendance at tax hearings averages about the same as the monthly meeting of the Gay Nation in Muskogee, Okla. This is really unfortunate. About tax hearings, I mean.
Tax policy has a reputation of being as dry as dust. Attendance at tax hearings averages about the same as the monthly meeting of the Gay Nation in Muskogee, Okla. This is really unfortunate. About tax hearings, I mean.
There are few things that affect citizens more directly than do taxes. How much money is extracted and the vehicle used for extraction varies dramatically from place to place, with significantly different results.
Three states with booming economies have one thing in common. Nevada, Texas and Florida, while experiencing economic growth that is the envy of the nation, have no state income tax. These states do not penalize people for high productivity by discouraging income. Across the Atlantic sits Ireland. With unemployment at 4 percent and a "reverse brain drain," Ireland has by far the best economy in Europe. According to the Louisville Courier Journal Online, Ireland has the lowest tax rate in Europe. Ireland's income tax rate is about one third that of the United States. Corporate income is taxed at a low 12.5 percent. Low taxes and a healthy economy are not unrelated. Tax policy in Ireland underwent radical transformation in recent decades. It is being transformed into a land of rare opportunity - and a powerful magnet for ambitious people from around the world.
These are but two examples of how tax policy influences a society. Tax policy that is truly progressive affords the citizenry direct control of more income. It is logically predictable that when a society penalizes income producing activity there will be less productivity. You get less of what you penalize and more of what you subsidize. No tax policy penalizes productivity more than the graduated income tax. Here is another thing: If there is a better instrument for penalizing saving and investing than the capital gains tax, it is surely the estate tax, often referred to as the "death tax."
Three states with booming economies have one thing in common. Nevada, Texas and Florida, while experiencing economic growth that is the envy of the nation, have no state income tax. These states do not penalize people for high productivity by discouraging income. Across the Atlantic sits Ireland. With unemployment at 4 percent and a "reverse brain drain," Ireland has by far the best economy in Europe. According to the Louisville Courier Journal Online, Ireland has the lowest tax rate in Europe. Ireland's income tax rate is about one third that of the United States. Corporate income is taxed at a low 12.5 percent. Low taxes and a healthy economy are not unrelated. Tax policy in Ireland underwent radical transformation in recent decades. It is being transformed into a land of rare opportunity - and a powerful magnet for ambitious people from around the world.
These are but two examples of how tax policy influences a society. Tax policy that is truly progressive affords the citizenry direct control of more income. It is logically predictable that when a society penalizes income producing activity there will be less productivity. You get less of what you penalize and more of what you subsidize. No tax policy penalizes productivity more than the graduated income tax. Here is another thing: If there is a better instrument for penalizing saving and investing than the capital gains tax, it is surely the estate tax, often referred to as the "death tax."
Unfortunately, we live in a society where compassion has been allowed to silence logic. Liberals defend the graduated income tax as a tool of compassion. They love to be seen in the marketplace as champions of the poor. What they will never tell you is that high income taxes, high corporate taxes and high minimum wage laws historically function to oppress the poor. They will never cite the example of Ireland, where unemployment dropped from 18 percent to a little over 4 percent when income taxes and corporate taxes dramatically declined.
It is enough to make one wonder, "Do liberals really want low unemployment?" Let's see, 14 percent fewer unemployed citizens in Ireland resulted in 14 percent fewer poor people. Liberal politicians profess to want reduced poverty; but mainly they understand that a healthy reduction in poverty results in a fewer number of clients for the custodial state. Ultimately, when there are fewer clients of the custodial state there are fewer votes for the sycophants who make a killing manipulating the custodial state for their own power and wealth.
It is enough to make one wonder, "Do liberals really want low unemployment?" Let's see, 14 percent fewer unemployed citizens in Ireland resulted in 14 percent fewer poor people. Liberal politicians profess to want reduced poverty; but mainly they understand that a healthy reduction in poverty results in a fewer number of clients for the custodial state. Ultimately, when there are fewer clients of the custodial state there are fewer votes for the sycophants who make a killing manipulating the custodial state for their own power and wealth.
Tax policy is also important because it makes a statement of ownership. By taxing property, the civil government lays claim to the ownership of property. There is no property in America that is actually "private" property. Government taxing authorities own everything and "rent" it to private individuals and corporations for an annual fee. Lest you imagine that I overstate the case, resolve to not pay the "fee" for the next four years. It will then become clear who actually "owns" the property.
In a similar way the income tax makes a statement of ownership. By taxing personal income, the civil government claims ownership of the labor and productivity of citizens. People who refuse to acknowledge this ownership go to jail. They lose their personal freedom and become functional non-entities.
While all taxes come with some issues, the sales tax has the advantage of encouraging saving while at the same time not penalizing productivity. The sales tax comes with another advantage. When consumption is taxed by various means, the government has a harder time laying claim to ownership.
In a similar way the income tax makes a statement of ownership. By taxing personal income, the civil government claims ownership of the labor and productivity of citizens. People who refuse to acknowledge this ownership go to jail. They lose their personal freedom and become functional non-entities.
While all taxes come with some issues, the sales tax has the advantage of encouraging saving while at the same time not penalizing productivity. The sales tax comes with another advantage. When consumption is taxed by various means, the government has a harder time laying claim to ownership.
