Democrat Lawmaker Accidentally Proves High Taxes Hurt Business
by Warner Todd Huston (9/3/09)
You see it all the time, Democrats in any particular state or county government proposing to raise sales taxes to raise “much needed” revenues—I say “much needed” because spending cuts are never considered an option for what ails a government budget. But these money-hungry Democrats never once consider the harm they are doing to the businesses in their own jurisdictions especially when surrounding states (or counties) happen to have lower sales taxes than the new, higher level being introduced by Democrat tax hikers. These tax-mongering Democrats simply assume that raising the taxes will raise the revenues and that people will not flee business in their own area and travel to where things might be bought cheaper.
The reality is, though, even as such tax-loving Democrats raise taxes on their fellows and with wide-eyed innocence claim they are doing right by their constituents, businesses lose business to surrounding communities that have lower taxes. Naturally, tax raising Democrats refuse to acknowledge this singular economic fact.
It turns out that we can thank State Rep. Michael Rodrigues of Westport, Massachusetts for giving us one of the most perfect examples of how states lose business due to tax raising Democrats.
Oh, it isn’t because Rodriques was economically astute enough to understand reality. No, it’s because this tax-raising pol proved that even he will flee his high tax state to buy goods in a neighboring state where taxes are lower.
It happens that Representative Rodrigues thought it was a great idea to vote “yes” to raise sales taxes by twenty-five percent in his home state of Massachusetts. Of course, that didn’t mean he intended to pay those taxes himself, of course.
This week alert citizens caught the tax-hiker across the border in New Hampshire loading his state vehicle with cheap booze so that he could avoid Massachusetts State sales taxes.
Meanwhile as this tax avoiding Mass. Pol spirits cheap spirits across the border in his state vehicle, his constituents are losing business due to higher taxes.
Mike Cimini, owner of Yankee Spirits liquor stores in Sturbridge, Attleboro and Swansea, said he’s lost about 10 percent of his business since the booze tax went into effect Aug. 1.
Yep, and among that ten percent seems to be one of the guys that forced the higher taxes on business!
Proof once again that higher taxes hurts everyone and does not bring in more money to the state anyway.
Democratic Party fail again.
Warner Todd Huston
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