Government needs tax revenue, but officials need to remember that excessive tax rates can stunt the economic growth that produces that revenue.
Taxes are the primary source of income for the state of North Carolina," writes Sarah Curry, John Locke Foundation director of fiscal studies. Personal and corporate income taxes make up half the state's total revenue.
"With over 90 percent of the state's income coming from tax revenue, it is a major component not only of government, but of our state's economy," she writes. But she cautions that, while necessary, taxes can become overly burdensome, and in many cases stifle the state's economy by making work and investment more expensive.
From the The Liberator Online, newsletter of the Advocates for Self Government
There are two significant Bill of Rights milestones to celebrate this week. Today (Dec. 5) is the 81st anniversary of the repeal of the 18th Amendment, prohibition. Dec. 15 is Bill of Rights Day, commemorating the day in 1791 when the Bill of Rights went into effect.
Just three years before repeal in 1933, the “Father of National Prohibition” and author of the 18th Amendment, Texas U.S. Sen. Morris Sheppard, had said, “There is as much chance of repealing the 18th Amendment as there is for a hummingbird to fly to the planet Mars with the Washington Monument tied to its tail.”
"I love that quote," said Sharon Harris, Advocates for Self Government president. "Those of us fighting to end the War on Drugs can take heart from it."
When Sen. Morris made his declaration, Prohibition had been a part of U.S. law for nearly a decade. It must have seemed to many to be a permanent fixture of American life.
In a Cato Institute study "Alcohol Prohibition Was a Failure" economist Mark Thornton sums up the bitter fruit of this disastrous policy:
"Although consumption of alcohol fell at the beginning of Prohibition, it subsequently increased. Alcohol became more dangerous to consume; crime increased and became 'organized;' the court and prison systems were stretched to the breaking point; and corruption of public officials was rampant. No measurable gains were made in productivity or reduced absenteeism. Prohibition removed a significant source of tax revenue and greatly increased government spending. It led many drinkers to switch to opium, marijuana, patent medicines, cocaine, and other dangerous substances that they would have been unlikely to encounter in the absence of Prohibition."
This is an exciting time for the Libertarian Party of North Carolina. Our dedication to realizing a free, peaceful and prosperous North Carolina is striking a chord with people from the mountains to the coast.
Where do we focus our limited resources? How do we engage and motivate voters? What can we expect to accomplish, and by when? Those were the questions put to a select committee created a few months ago. And their report was eye-opening.
Go here to watch a video about the report.