Democrat Lawmaker Accidentally Proves High Taxes Hurt Business

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.

Exactly proving this point was another story that was posted here a few months ago. Taxes discourage whatever activity they are placed upon.

There was a Portland or Seattle story where the city was proposing to put a registration fee on all bicycles for $15 or $25 for two years at a time. The liberals there went apoplectic (ape-poopy).

God’s truth, they quoted one irate liberal saying that this tax “will discourage cycling” in the city.

See the reality is that liberals EXACTLY KNOW taxes decrease whatever commerce or activity they are targeting. They DO know it. They only get upset about it when taxes are aimed at liberal sacred cows.

They know that higher gun and ammo taxes cut down on people shooting more often. THey know it means people cut back on driving, when gas taxes skyrocket. They know it cuts down cigarettes and smoking that annoys them when cig taxes jump high.

On one level they know it stifles the targeted activity. Especially when it’s an activity THEY like to do, or its a POLITICAL CORRECT sacred cow they are supposed to support.

At the same time many libs can’t make the connection that when you raise taxes and fees on non-critical things (like smoking), tax reveune will decrease due to the higher taxes. And they are always surprised their tax revenue projections are always a lot higher than what actually is collected. They think people will keep smoking at the same rate and the revenues will be the same, while also believing that higher taxes will force some to quit smoking. They somehow don’t connect the two and can’t make that mental leap.

It is one reason (there are a lot more) why they call for higher taxes. They increase taxes on a non-PC activity, expect tax revenue to increase, people do the activity less due to higher taxes, tax revenue is less than expected, liberals scratch their heads at the shortfall, and say those taxes need to be raised to cover the shortfall, thus increasing the shortage cycle. And taking away people’s freedoms through excessive taxation.

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