I would rather have low tax rates than let politicians hand out tax credits

My state congressman asked me — in a survey — what I thought about tax credits.  This is what I wrote (with some editing for typos):

…I’m skeptical of tax credits.  I think they give arbitrary powers to government officials to pick winners and losers and lay claim to ‘saving the day’ in campaign speeches.  Rather, I believe the best way for the state to encourage economic development is with minimal government intervention and low tax rates.  Officials should seek to minimize tax rates for all.  In the words of Harry Browne,

Government is good at one thing: It knows how to break your legs, hand you a crutch, and say, “See, if it weren’t for the government, you wouldn’t be able to walk.”

Tax rates are ‘breaking your legs’ and tax credits are ‘handing you the crutch.’  I know that for elected officials it’s much harder to make the case that does more good than specific anecdotes of ‘bringing’ or ‘saving’ jobs, but that’s what good communications people are for.

A suggestion for the communications people, use Harry Browne’s quote.

Comments

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s