Meaningful Tax Relief

The newly published 3rd edition of Rich State, Poor State is a treasure trove of information that actually works because it compares each of our 50 states as a separate laboratory in regards to fiscal responsibility. ‘ South Carolina is successfully implementing what they call “meaningful tax relief” that provides economic stimulus which in turn perpetuates itself through job creation.

What did the South Carolina legislature vote 105-9 to implement in 2010? To eliminate their corporate income tax.

As South Carolina Speaker Bobby Harrell explained,  “Our state’s future hinges on the strength of our economy and the private sector’s ability to grow and create jobs.”

Why is eliminating corporate income tax such a good idea? The economic professors and authors of Rich State, Poor State teach that:

Businesses don’t pay taxes, people do. Real people—not inanimate business entities— pay the true burden of business taxes. This transfer happens in three ways. The first to pay are the employees—people who make lower wages or perhaps lose their raises, or even their jobs. Next are the millions of Americans who have investments in corporations—people who earn a lower return in their 401(k). Finally, and inevitably, millions of consumers pay more for products they purchase.

What keeps every legislature from passing such logical legislation in an effort to stabilize their state’s economies through good times and bad? Because the emotions of class warfare rather than economic realities guide both the voter and the elected legislature.

When emotions run amok, reason is the first casualty.

It costs no more to teach reason than it does to perpetuate emotional lies – the news still runs 24/7.

The Tea Party Movement is about asking everyone to spend their time teaching reason and its successful attributes, rather than the lowest common denominator of the ugly side of democracy. Civil society depends upon the rational appreciation of logic and truth.

Note: The information for this post came from Rich State, Poor State, Chapter 1 page 14.

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