No/Low Taxes Create Wealthier States

I wonder what you're thinking right now, dear reader. I wonder if you're looking at that title and saying to yourself, "Yup, that's obvious," or "That doesn't make any sense." That's ok. Not everyone reading this blog agrees with my ideology and I respect that, but please keep an open mind and an ear to listen how no or low taxes creates better states and governments.

Now, I'm not going to take down any other nation that has high taxes like Germany or Canada. Their system works for them, and that's all right. They built their governments from the ground up and they are designed for high taxes. Why, then, that in the good ol' US, taxes seem to work in the opposite direction? Look at California, what with its multi-billion dollar deficit. They have one of the highest state tax rates, highest paid teachers' unions, the worst test scores and largest state deficit. When compared to Texas (another state I hold dear to my heart) with no income tax, non-unionized teachers, high test scores, and no deficit, then you have to stop and wonder...what's going on?

Well, moving's going on. People are moving away from such high-tax states to lower tax states. My lovely Florida does have high unemployment currently and a bit o' debt, but we're still seeing an influx of people. Better yet, some of these people are business owners that decided to pack it up and come to where business taxes are low. Florida, Nevada, and Arizona are some of the friendliest states to business. With more businesses created, there will be more jobs and more money to pay what minimal taxes there are. There won't be evasion as is wont to happen in high-tax states.

Ah!! The libertarian argument bites us on the butt again. You see, our state governments in general, and our federal government, specifically, are designed to play minimal roles and provide minimal services. You see that picture at the very top? The government uses force to take the fruits of your labor and we hope that good will be done, but more often than not, it goes to corrupt purposes (bridge to nowhere, bank bailouts, auto union workers). Bullshit! When expansion occurs, as is happens when economic times are good, or taxes increase, to cover the expansion in lean times, the governments tend to fail at their intended purposes. The governments want to take power and do more, protect us more, tax us more, and intimidate us more.

Do you know how long the Texas legislature meets every year? About 90 days over two years. California is non-stop, the federal government is non-stop. Maybe there's something there. The Constitution even mentions that the delegates from every state should meet at least once every year because it was not supposed to be in constant session (Article I, Section 2). They were supposed to meet, fine tune this or that law and leave it to the states and the individuals to decide. Sheesh, I want responsibility, to dictate my life on my own terms, don't you? The more the government meets, perhaps the more the plot to give you more service (welfare) and take from your labor (taxes).

So dear reader, I hope could shed a little light on how lower taxes generate prosperity and how the opposite is true. If you say that Germany and Denmark are prosperous in spite of taxes, then I say to you, how much more prosperous would they be if they had only minimal taxes? Hmmmmm.