Wednesday, February 16, 2011

The new voodoo economics

Process Story has a piece up on how SC municipalities want more taxing power and then comes the usual meme about job and small business destruction.

When the state prostrates itself to land a BMW or a Boeing or a Starbucks or a Google- with enormous sacks of tax relief, who picks up that deferred tab?

Small business and regular people individually. When you give away vast sums of future tax revenue, what happens? Local governments run out of money.

SO what's the Columbia Ruling Class's answer: Governor Haley wants to repeal the corporate income tax, which provides one third of the state's tax revenue. It's part of the fantasy that if business pays no taxes, it will create news jobs, which is why US corporations are sitting on trillions of dollars in cash and not creating any jobs.

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