TEN REASONS NOT TO RAISE TAXES
Private business and entrepreneurs make much better use of their profits than government. Bureaucrats can’t introduce new products and services, create jobs or wealth. Every dollar taxed off by government hurts economic growth. High taxes are a penalty on progress
Low taxes spur growth. The fastest growing economy in Europe is Albania with a 10% tax rate. Texas, with no state income tax, is creating 45% of the new jobs in America. There is no known example of higher taxes improving an economy. However, lowering taxes invariably increases prosperity.
Taxes are already high. It’s a fabrication to claim that high income earners do not pay their fair share. There is no escaping the requirement to pay 42% of ordinary income to the government. By historical standards this is punitive. It’s close to the highest in the world.
High taxes erode charity. The generosity of the American people is legendary. Now charitable acts are taken over and directed by the government. Our charitable givers increasingly let the government fund the giving. Furthermore, high taxes mean less money for donations.
There is a moral issue. Why does someone who is down on his luck have a right to the earnings of others? What moral right does a corn grower have to my money? Isn’t it wrong for one person to benefit at the expense of another? Helping people should be a voluntary act free of government coercion.
Business has its ups and downs. High taxes make it difficult for a company to build cash reserves. Without a cushion in downturns more companies go out of business. The government has eroded their staying power and thereby increased unemployment.
The government cannot measure the results of their taxing and spending. Private corporations measure success through profit or loss. Government has no such objective standard. The tendency in government is to equate success with spending more while private companies cut costs.
For profitable companies and big earners reducing taxes became an obsession. Too much time is wasted on this exercise, deductions are stretched, and unworkable tax shelters are sometimes employed.
High taxes act as a barrier to companies opening branches, distribution centers or offices in a state. Low tax states are winning the competition for businesses that are expanding.
It takes hard work and struggle to make a profit. Nevertheless, the tax system punishes successful, productive people and rewards those who are unproductive. No nation can prosper for long with such perverse incentives. Yes, a certain level of taxes are necessary but the current high tax regime is misguided, unfair and counterproductive.