[speedgibson] Speed Gibson: What's In Your Wallet?

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Posted by Speed Gibson:
What's In Your Wallet?
http://speedgibson.powerblogs.com/posts/1229049706.shtml


   The Minneapolis Star Tribune has carried a couple of telling
   commentaries recently. Dane Smith of [1]Growth & Justice claims
   [2]undertaxing has weakened our local economy. Phil Krinke of the
   [3]Taxpayer's League claims that overtaxation is the reality.
   According to Dane Smith:

     During our decade-long experiment with disinvestment in the public
     square â¦
     Before we ⦠proceed to slash the commonwealth further â¦
     ⦠local and state governments already have been significantly
     downsized â¦
     ⦠as their share of the pie has grown disproportionately,
     [top-earning Minnesotans] can afford to pay modestly more.
     Minnesota, in its new status as an average-tax state â¦
     ⦠we shrunk our public sector.
     ⦠the signs of a shabbier community and public disinvestment are
     proliferating.
     We reached that lower standard in part through large and permanent
     income-tax cuts in the late 1990s â¦
     Taxes are lower than they have been for decades ...
     â¦. the unfairness ⦠is substantial and widening.
     ⦠those at the top have an unprecedented share of income and
     wealth, more than since the Great Depression.
     â¦. gains were being made by families at the middle and lower
     reaches of the income ladder ⦠during all those years when
     Minnesota stood out as a high-tax state.
     ⦠the state's economy has become more of a "jalopy" than the shiny
     new car we once boasted about.
     ⦠on indicators from income growth to unemployment, we have become
     more like other states in their lackluster economic performance.

   I will immediately confess that these snippets are a bit out of
   context, but do fairly represent the overall tone and theme of his
   article. It's a belt high hanging curve ball and Phil Krinkie gets all
   of it.

     Smith's call for another tax increase continues the cycle of
     government expansion in good economic times, tax increases to
     support that expansion in bad economic times and then even higher
     taxes due to bracket creep when happy days are here again.

   This was the point I so awkwardly tried to make earlier this week:
   spend, tax, repeat.
   Mr. Krinkie sets the numbers straight, and then exposes the false
   premise beneath Smith's entire argument:

     The fact is, the price of government [POG] as a percentage of
     income is economically irrelevant. Validity of a POG index assumes
     that government is entitled to some arbitrary percentage of private
     production. You work hard, earn more, and government is entitled to
     more of your income.

   In Smith's world, when you ask the butcher how much for that New York
   strip steak, he's entitled to ask "how much have you got?"
   Read both articles. I think you'll find that not only does Krinkie
   have a better command of the facts, he also was the better writer this
   round.
   Just remember that only at the government service counter do you hear,
   "What's In Your Wallet?" You're going to hear that even more come
   January 6th.

References

   1. file://localhost/var/www/powerblogs/speedgibson/posts/1229049706.html
   2. file://localhost/var/www/powerblogs/speedgibson/posts/1229049706.html
   3. file://localhost/var/www/powerblogs/speedgibson/posts/1229049706.html