Income tax destroyed Connecticut jobs
By Thomas E. Brewton
Fiscal conservatives, defined as those with some grasp of economic realities, have long recognized that taxing an activity tends to depress it. If the costs of a business increase, it becomes less feasible for that business to grow and to hire additional employees.
Cutting taxes, on the other hand, has demonstrably resulted in rapid and widespread growth of real economic output and the creation of millions of new jobs. First under President John F, Kennedy, then under President Ronald Reagan, and most recently under President George W. Bush, we have seen tax-cutting work as predicted.
Conversely, when President Franklin Roosevelt during the 1930s Depression hiked taxes from the 25% range to more than 80%, business was strangled. The Depression dragged on for eight years, until Japan brought us into World War II. The median level of unemployment never dropped below double figures under FDR's punitive taxes. Not until after World War II did the Dow Jones Industrial average regain its 1929 high.
"But a decade and a half after its passage, it is now clear that the income tax has failed. The income tax has not been an effective fiscal tool:
Neither has the income tax spurred economic growth:
It should be noted that the author of this calamity was nominal Republican, but deep-blue liberal, Lowell Weicker, who perhaps not coincidentally was born in Paris, France. Mr. Weicker served three terms as United States Senator from Connecticut, before being defeated in 1989 by Joseph Lieberman. Naturally enough, Mr. Weicker actively supported Ned Lamont in his recent defeat of Senator Lieberman in the Democratic primary.
The Democrats continue to dominate the State Assembly in Hartford and they are once again playing with fire, this time in the form of the so-called "millionaires" tax. This initiative is outright pandering, a call for the masses to stick it to the the only citizens who would be affected, wealthy denizens of Fairfield County who make their money in Wall Street and, increasingly, in Greenwich and Stamford, managing hedge funds and other private pools of money.
The latter can literally operate from any base in the world, given today's instantaneous communications. If the Democrats impose the "millionaires tax," look for erosion of the only dynamic work force in Connecticut.
Thomas E. Brewton is a staff writer for the New Media Alliance, Inc. The New Media Alliance is a non-profit (501c3) national coalition of writers, journalists and grass-roots media outlets. His weblog is The View From 1776.