The dominant refrain among many individuals today is how the political class can apparently allow all the abuses of the tax system and pile more and more taxes and regulations on the segment of the community that pays their taxes. On top of which government makes the statement that they cannot lower taxes on those that pay until there is better compliance.
Think about that for a moment. Government officials have said they cannot lower taxes on those that pay until there is better compliance from those that do not pay.
To wit, 40% of property owners pay their taxes and 40% of businesses pay their business license tax. In other words, 60% of taxpayers are allowed to not pay their taxes! This coupled with continual borrowing by the government and an ever increasing burden on those that try to do what’s right could be the policies that are leading people to “Going Galt”.
Anecdotal evidence suggests that as a result of these deliberate government actions students are not returning home in ever greater numbers. Businesses are closing in ever greater numbers. Business people cannot/will not expand or invest in their business to help enhance economic growth in ever greater numbers. People talk about leaving our fair shores in ever greater numbers.
Fear of damaging government policies is the epidemic confronting many. Ayn Rand’s prophecy in Atlas Shrugged in living colour.
So what can be done?
Randall G. Holcombe suggests:
“The evidence shows that economic freedom leads to economic growth even where countries have limited political freedom. The reverse is not true: political freedom, without economic freedom, does not bring growth. Therefore, it is vitally important that emerging democracies encourage free markets, protect property rights, provide a stable currency, and minimize the government’s role in the economy. There is also evidence that nations with higher incomes tend to be more democratic and more protective of civil liberties and political freedoms. Thus, indirectly, economic freedom leads to political freedom.
“The evidence clearly shows that without an environment of economic freedom, growth will not take place. Economic freedom contains a number of components, all of which must be in place for an economy to grow. An economy must have a stable monetary system, secure private property rights, an impartial legal system, low taxes, minimal government, and low barriers to international exchange. If any of these components are missing, an economy will not grow.”
In closing it’s worth watching “Going Galt: A Short Film for the Beleaguered American Taxpayer” that highlights this issue.