Pray that liberals never get into power in your state. If they do you are in for an expensive tax hike and a dose of inner rage. Here in Minnesota we have a left wing governor and a majority of liberals in the legislature. This week they sprang their new tax proposal on the unsuspecting business community.
Income taxes are raised to almost 10%. Sales taxes are added to everything from haircuts to oil changes. A new sales tax on business services includes accounting, legal and advertising. This will drive off business, make our state less competitive and ruin some companies. If this taxing trend keeps up in our country there will be 200 million people on food stamps.
Social programs are running away and rather than cut them our taxes go up. However, it’s a catch 22. The higher the taxes the worse business does causing more people to lose their job and rely on the government. This causes the government to further increase social spending and raise taxes again which further destroys more business and puts more people on the dole. Basically the government is eating the seed corn, causing unemployment, destroying capital and eliminating wealth creation.
The government and its minions fail to understand that gouging the productive workers can only go so far before the well runs dry. There is no endless source of money for social spending. That’s why government programs must be cut. Otherwise we will learn the hard way that the Santa Claus Principle of government liquidates itself. Eventually, the nation goes bankrupt.
Our socialist governor added something called a Snowbird tax. Many Minnesotans spend six-months out of the state and become residents of Florida or Texas which have no state tax, inheritance tax or capital gains tax. The new tax law requires that you be out of the state at least ten months to avoid Minnesota’s onerous taxes. This will lead to the extinction of the once common Snowbird.
Governments are now running out of control. They are a pox on the land destroying the prosperity of the nation. Meanwhile a growing mob of slackers and shirkers fatten off the struggling taxpayers while their vices reach to the stars.
The government’s insatiable need for money means that taxes will continue to rise at every level. Even the least intelligent Nobel prizewinning liberal economist admits that high taxes harm business. As business declines so do living standards. Combine bad business with massive money creation and you have a lethal combination leading to much worse than an ordinary stagflation. This will be the much dreaded hyperinflationary depression.