When you tax something more you get less of it: CT v GE … and SB

It’s in the news. GE is moving its headquarters from Connecticut to Boston. Lawrence Kudlow calls this A Sad Marker Is Set As GE Quits Connecticut in Wake of Tax Hikes.

Who suffers from anti-business tax and regulatory policies? Middle-class families.

One of the key points in the Connecticut disaster is that while big corporations can get $100 million in tax credits, the woman running a small struggling business in Naugatuck gets nothing. But she’s paying for GE’s tax credit.

Connecticut’s high-tax policies do not soak the rich. The rich leave. Meanwhile, exorbitant tax and regulatory burdens slam the middle-class wage earners who have been losing take-home pay for years.

Nevada is following suit. Tesla and Amazon have been lured in with the promise of massive tax breaks but business taxes, license fees, sales taxes, and bureaucratic burdens are increasing and it is the little guy, the small business, taking up the brunt of the burden. 

The effort to get the money for all the government goodies is a big issue in campaigns. The effort is to get the needed money from someone else. Successes in that area are what lead to the observation about socialism being a good thing until you run out of other people’s money (e.g. Soviet Union, Cuba, Venezuela, etc). For the left, the underlying presumption is that wealth is stolen, not created and that there is a fixed amount of wealth that should be dispersed equally. That rather ignores the lessons of history that those closest to the money flow tend to tap more of it. That is why socialist dictators tend to get rich and good salesmen get high wages.

Comments are closed.