From: spike66 (spike66@attbi.com)
Date: Sun Jan 12 2003 - 22:01:47 MST
Lee Corbin wrote:
> In 1900, Argentina was the 6th wealthiest country in the world.
> What happened?
>
> Does anyone know of a book that chronicles all the bad moves
> made by that nation?... Lee
Lee, I know the Europeans and Aussies would prefer
we refrain from comments about local politics, but the
state of Taxifornia in which you and I reside is
about to demonstrate some important universal truths
about politics.
We see here a regime that has been very generous with
other people's money. In the next few months we will
need to deal with a state debt of 34 billlllllion
dollars. Taxamento has suggested three solutions:
increase income taxation of the rich, increase sales
tax and increase tobacco tax.
My notion is that in two of these cases, increasing
tax rates will actually result in a reduction of
capital flow. Increased income tax of the top income
bracket will cause capital to flee the state. Increases
sales tax will stimulate internet sales, from which
tax cannot be collected. Tobacco tax, well, the silly
proles will still smoke I suppose. But I expect
tobacco revenue alone will not even offset the
loss of revenue from the other two tax increases,
never mind the 34Gd deficit.
What do you suppose will happen?
spike
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