American Elephants

So you say you want to raise taxes? by The Elephant's Child
August 15, 2007, 4:50 am
Filed under: Domestic Policy, Economy, News, Politics | Tags: , , , ,

The late Walter Wriston, former CEO of Citibank remarked in The Twilight of Sovereignty,

“Capital will go where it is wanted and stay where it is well treated. It will flee from manipulation or onerous regulation of its value or use and no government can restrain it for long.”

A message that should perhaps be engraved on small plaques and distributed to the members of Congress. Or perhaps pages could be bribed to scribe it on congressional desks.

Nicolas SarkozyWhen France’s Nicolas Sarkozy was campaigning for president last spring, he went to London where over 300,000 French ex-patriots are working. This makes London one of France’s largest cities.

In France, the top income-tax rate has been 48.1 percent—one of the highest in Europe. On top of that, France has had a “fortune” tax of 0.5 percent on assets greater than 760,000 Euros that rises as the assets increase. Despite political expectations, the tax has been unsuccessful at raising revenues. Apparently the successful decided to be successful in London instead.

Unfortunately, it is often the most creative and entrepreneurial who, while not yet rich, are hoping to get there and go where they can accomplish it.

Democrats who are anxious to raise taxes—especially on “the rich”—need to explain just where they think the money to finance new businesses comes from.

3 Comments so far
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Those tax cuts in Minnesota sure worked out well, didn’t they? I guess the free market can’t keep bridges up, can it?


Comment by Brad

Oh dear. This is how it works. There are 3 equal branches of government: the Legislative, Judicial and the Executive. Each branch is granted certain powers by the Constitution. It is Congress–the legislative branch–that appropriates money. The federal government is responsible for building bridges and other interstate infrastructure, but President Bush does not appropriate money for this. Congress does.

States maintain the infrastructure, managing funds from federal sources and the local tax base. If not enough funds are spent on infrastructure, it is a question of what state priorities are. The 2005 highway bill increased federal funding to Minnesota by 46% over its 5 year span. Minnesota state had a 2.2 billion budget surplus in Nov. of 2006. Minnesota politicians knew there were problems with the bridge as early as 1990, but chose to rely on patches and fixes because bridge repairs just aren’t very sexy. They thought patches and fixes would solve the problems, and built fancy stadiums instead. You can look this kind of thing up, or you can just mouth off and appear foolish.


Comment by The Elephant's Child

lol. He’s a Democrat, of course he doesnt know what hes talking about.


Comment by American Elephant

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