So due to the response from the other post I figured I’d expand upon taxes here, and how they’re good, how they’re bad, and why I don’t agree with the Democrat tax increases they’ve proposed thus far.
Taxes can be good. It pays for good things. It helps build roads and bridges. It provides for the common defense (aka pays for the military), and it helps pay for educational costs. These things are worthy projects, however I feel like the money could be spent much wiser.
Taxes are bad when they allow for people to collect money for doing nothing. Now I understand that people will fall on hard times, and I don’t have any problems with the government giving a hand up (although that can usually be done better through the church or other private sector areas). The government should not give unlimited hand outs. Which the tax increases this session would be needed for welfare roll backs making more people eligible for welfare for longer.
Taxes are bad when they are unfair. The American Dream is to get a job, and to be able to have a home and provide for your family. When the government is taking 8%, 9%, or nearly 10% of your paycheck every week this allows for less money for you and your family. Let’s move to a flat tax, which gives one rate for all income taxes, or a fair tax which totally abolishes the income tax and gets a national sales tax. (I’ll get back to the fair tax and flat tax at a later time and post).
When the government taxes your paycheck you do not spend as much money. The more money people earn, the more money they spend, which means the government earns more in sales tax. It’s been proven that you don’t need high taxes to have a large state revenue. Right now MN has a $2 billion surplus, and our taxes aren’t over the top.
If we keep taxes low on businesses, we get more companies to move here, providing more jobs, providing for more people with money, providing for more money in the state coffers. It’s that simple. The JOBZ program in Minnesota does just that. It allows for tax incentives for businesses to go into rural areas and provide good paying jobs, with benefits, to people. If you tax businesses they’ll move out of the state, look at California. They’ve lost some big businesses, and some good jobs.
I think we need to require that our taxes are doing good. That’s how the private sector works. But the Democrats don’t want to see results, they just want to through more money at the problem. They want to gut the Q-Comp program which pays teachers for performance, making sure students get the best education they can.
They want to move to Universal Health Care, at a cost which will consume the entire state budget within the next 40 years. There are better solutions.
The State has gotten by just fine this past biennium with a $32 billion budget. This year the Governor has agreed to spend the surplus (instead of giving it back to the taxpayer), bringing the spending total to over $34 billion, or about a 9% increase in spending. That’s a much larger increase then the average family.
Looking at the bills there is no reform in any of them, and the taxes the Democrats want to raise money to throw it at the problems, instead of solving the problems.
The government budget should not grow faster than the family budget. We should not pay more taxes when there is a $2 billion budget surplus.
The Democrats are trying to tell people that they are fiscal moderates and they can be responsible. But they aren’t showing that with their actions. I think that the Republicans need to show their working for the common man and vote against the tax increases. They need to protect our wallets and protect our freedoms.
And with that I’ll leave it open to comments.