After our fantastic win over the school levy, I was asked to run for city council.
I have no idea why.
But, I am considering it. We don’t declare parties in our election, there is no reason to, everyone is a democrat.
Shocker, I will be running as a fiscal conservative, if I do decide to get into the mudslinging business of politics.
(Thank you, btw, to so many of you for helping me develop a thick skin. Your below the belt blows and name-calling have helped prepare me for this.)
So, here is my platform. I am going to run it by you because you have absolutely no problem giving me your thoughts and opinions.
When you increase a tax RATE you don’t always see a corresponding increase in REVENUE. Tax and spend politicians think that if they just keep raising tax rates, more money will come in and they can spend their way out of all our city’s woes.
There are two sides to the equation – income and expenses. Tax and spenders look only to the income side and seem to ignore the expense side. You can’t really control how much income comes in, but you can control expenditures.
When tax rates increase, the truly wealthy move away, taking their money with them, to avoid high taxes. The middle and poor are left because they can’t afford to get away from higher taxes. They are overburdened with excess taxation and, often, default.
When people, who can’t afford their taxes, default and lose their homes, that decreases our tax base. So, higher tax rates don’t make more revenue, higher tax rates do the opposite and hurt everyone.
Cue the bright, sunny day music.
Lower tax rates actually increase government revenue. People have more money in their pockets, they can then turn around and spend that money at restaurants and buy shoes. All of the businesses make revenue and pay taxes on that revenue.
The wealthy flock to areas of lower taxation, bringing in even more revenue. Yes, the rate is lower but because more people pay in on more dollars, tax revenue actually increases.
Because tax rates are low, more people move in. Property values increase. People are paying a lower percentage, a lower tax rate, but on more income and more property values. Government tax revenue goes up.
Does that make sense?
Can I count on your vote?
The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com