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Saturday, October 31, 2009

More Taxes = Deluxe Poverty

The big government, anti tax-control I-1033 forces have an advertisement airing which says more taxation will lead to prosperity. They want you to vote no on I-1033, so they can stick their hand down in your pockets again. Multiply government subordinates! This means you, bub!

They say this in a round about way. They assert that if taxes do not grow at the 4.8% rate, Washington State will experience a longer depression than the one we were already in. (Washington State has been in depression for about 5 years now, ever since the Left wing Democrats got control of both the legislature and the Governors Mansion.)

But, really, who will believe that more taxation lead to prosperity? Maybe the government employees think that, but by my own straw poll, even they don't buy it.

To be completely clear, some taxes will provide genuine improvement society; for example, city streets. There are some things which people have trouble organizing if it is not done in the public sphere. Economic studies show the rate of that sort of public capital formation is most productive when it is about 14%.

That means, in order to make the prosperity through taxation argument work, the total tax take of all levels of government should not exceed 14% of the total production of society.

The current level of government takings from society exceeds 50%. In short, we have at least one third of society's output being overused (or screwed up) by government.

What galls me is the anti-I-1033 people have an economist talking as if more taxes meas more prosperity. This clown must have been asleep when his macro-economics professor explained there was a maximizing rate of taxation. Beyond that rate (a mere 14%) and society's economic engine begins to crumble.

At this point, more taxation means more poverty.

3 comments:

  1. Good post. What do you think of the Fair Tax?

    ReplyDelete
  2. Couldn't agree with you more. Less government, less tax = better, richer, happier life.

    God bless & good shooting.

    ReplyDelete
  3. Fair Tax? I'm not too enthusiastic about a sales tax of any sort.

    How about a Much Less Tax? What are we being taxed for?

    More clearly, what is the proper role of government that we need heavy taxes? Hint: Proper government is when the government is used to supply services that no one else, under any circumstance, can supply. The private market always does a better job, despite the lies you hear from the Left.

    If government were the proper size, and proper invasiveness, we would have a much smaller tax burden. Fair taxes would be an academic interest.

    ReplyDelete

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