Here’s some free market red meat for ya:
Gov. Bobby Jindal is proposing to eliminate Louisiana’s income and corporate taxes and pay for those cuts with increased sales taxes, the governor’s office confirmed Thursday. The governor’s office has not yet provided the details of the plan.
“The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity,” Jindal said in a statement released by his office. “It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs.”…
I’ve always been wary of a sales tax and have preferred a flat income tax but lately I have been coming around to the sales tax – and not just to eliminate the income tax, but also to eliminate property taxes (at least on single-family homes: it irks me that after working hard to buy himself a home an American only gets to keep it as long as he shovels money at the government). There is a lot to be said for going to a sales tax, but I like it best because it discourages consumption and encourages savings – and savings, not spending, is what leads to genuine economic growth.
Our current model, of course, is spending – spend, spend and then spend some more. And when people don’t have enough to spend, get the government to borrow and/or print up some money to spend because all spending is good, all the time. To those who still hold to this as correct, I answer: Greece. If spending works, then Greece should be prosperous…but they’ve got 26% or so unemployment. By saving money we set aside genuine wealth which can then be invested – with great care – in the creation and expansion of successful enterprises. Investment would become real investment, not Wall Street gambling where pinheads try to guess which way the market will go.
While I know our liberals will go ballistic over the concept of eliminating corporate taxes, this is simply because liberals are too blind to understand that every penny of corporate taxes is paid by the consumer. Corporations don’t pay taxes – even if you see a corporate check made out to the IRS, rely on it that whatever they paid this year will be tacked on to next year’s products. They can also wiggle out of tax burdens by bribing politicians and regulators to set up the tax code in the corporation’s interest. By eliminating corporate taxes we’d not only get lower prices on corporate goods and services but we’ll also make our nation a magnet for foreign investors looking to park their money in a low-tax haven.
Jindal is clearly trying to round out his profound reforms of Louisiana politics – but I also hope he’s got an eye on 2016.