June 3, 2018

Less Spending & Lower Taxes

 

Less Spending & Lower Taxes

Government, in its continual expanse has become quite bloated. Our founding fathers had a vision where government was limited and people were free to succeed or to fail based on the effort that they put into themselves, their educations and or their jobs. I believe we need to get back to the basics and provide limited government so that the cost of government goes down. Reduced government means more money left in the private economy to allow more individuals to seek and retain wealth.

Of course, there are some legitimate government spending that requires some form of taxation. I believe that the best way to tax individuals is not on income but on consumption. A flat sales tax rate with no income tax will spread the tax base which has proven in other states to be the best way to raise revenue. An income tax has a negative effect on the economy and tax revenues. This is because an income tax puts a penalty on those seeking to work more. When someone works longer hours but then sees a bigger chunk come out of their check it dis-incentivizes them to work those extra hours. Less hours worked ultimately means that less taxes are paid to the state. Conversely, when people make and keep more of their money, they will spend more. Not only does this help the tax base, it spurs growth in businesses and jobs.

A consumption sales tax eliminates the loop holes that many people use to get around their income taxes. A sales tax will greatly simplify the tax code ending the confusion every tax season and the fear of audits that an over-reaching government can impose. Simply said, I have seen the success that other states have had by eliminating income taxes and going to a sales tax and I intend to push our state to this same model. In 2018 we made the first step to this when the income tax was lowered and the sales tax was broadened to include some services. Future reductions in the income tax will be made in the coming years as we move to a sales tax only tax for our state.