The Thing About Taxation
Low tax states are more violent, have higher rates of teen pregnancy, somewhat higher poverty rates, and lower median incomes.
Do low taxes cause these problems? No. Correlation is not causation.
Rather, to me, what is emerging is the description of an attitude. Low-tax proponents favor “Stand on your own” rhetoric, which is really a coded term for letting the rich shirk their civic obligations. The result is that the bulk of the population is noticibly worse off in low-tax states: more violence, more teen pregnancy, more poverty, lower incomes.
Now, explain to me: why this is an attractive paradigm?
I repeat: The argument for taxes in Rhode Island isn’t that low rates are the decisive factor in a given region’s economy, and adding social data doesn’t change the fact that people and businesses do take the cost of government into consideration.when they plot their financial lives. The question that Rhode Island’s progressives are so studiously striving to ignore is that taxation must be judged based on a given state’s circumstances, and Rhode Island is overburdened with them, as with other manifestations of big government like mandates and regulations. “We will let you operate your business as you see fit and to keep more of what you earn” need not be innuendo for gun violence and teen pregnancy.
Lower taxes and lightened regulations would encourage economic activity and improve the earning potential of all residents, which I’m reasonably certain would correlate positively with improved social markers in the state, as well. (Krell doesn’t provide his sources, so I’ll simply offer the hypothesis that Rhode Island fares poorly, by such measures, compared with similar states.)
That’s a suggestion that RIFuture-owner Brian Hull should consider, as well:
The recession effect is having a profound impact on the state’s economy, but the long-term financing of the state would be better served if the General Assembly would make the “tough choices” and restructure the tax code, shifting the burden away from the vast majority of Rhode Islanders who have seen their incomes shrink and are struggling to make ends meet.
For perspective, don’t lose sight of the fact that, in the name of improving the economy, Hull wants both to raise taxes and to shift them toward a particular group. Apart from being manifestly unjust, such a strategy would be economically devastating. What, pray tell, would Hull like to change about this picture:
Me, I’d like to see less red across the board.