Taxes

Ahhhh...taxes. You know what they say about death and taxes. According to a web memo I read titled The Historical Lessons of Lower Tax Rates written by Daniel Mitchell, PhD for The Heritage Foundation dated way back on August 13, 2003 :

"There is a distinct pattern throughout American history: When tax rates are reduced, the economy's growth rate improves and living standards increase. Good tax policy has a number of interesting side effects. For instance, history tells us that tax revenues grow and "rich" taxpayers pay more tax when marginal tax rates are slashed. This means lower income citizens bear a lower share of the tax burden - a consequence that should lead class-warfare politicians to support lower tax rates.
Conversely, periods of higher tax rates are associated with sub par economic performance and stagnant tax revenues. In other words, when politicians attempt to "soak the rich," the rest of us take a bath. Examining the three major United States episodes of tax rate reductions can prove useful lessons."

I admit that I haven't thoroughly researched the platforms of each of Californias gubernatorial candidates, so I may not have all the facts. If what I understand is correct, Meg Whitman proposes to eliminate the factory tax. According to her website, California is only 1 of 3 states which taxes manufacturing equipment without offering a tax credit or exemption. I whole-heartedly believe that if California eliminates this tax, it will be a boon to the California economy. Now, if she manages to get elected, will she be able to get this passed? This is something yet to be seen. As my favorite radio personality, Lee Rodgers, always said, "Never fall in love with a politician. They will always break your heart." How true!

It seems to me that if taxes are lowered in this state, it will create an incentive for companies to set up manufacturing facilities, create more jobs and increase our tax base. But then again, that's just me thinking again.

What do you think?