9-1-15 – Less government stimulates economic growth

by Frank Mazur

Sam Adams, John Hancock and Paul Revere dumped tea into the Boston Harbor rather than pay a  three pence tax per pound of tea.  The total colonial tax burden was no more than 3 percent.  A century ago the total tax burden was 10 percent of income.  Today it’s 35 percent and when the cost of regulations is included it is over 50 percent.

When voters are asked to identify the most important problem facing them they say the Obama economy and not enough good paying jobs. Voters, according to Gallup Poll data, site reducing federal spending as a top priority and think tax cuts for lower and middle-income families would stimulate our economy.

Rather than address these problems Secretary Clinton and Senator Sanders are calling for increased taxes on the wealthy and boosting the minimum wage.  President Obama has already done that but his employment numbers are anemic, wages are flat, economic growth rates are limp and new business start-ups are weak.

Conservatives need to be more aggressive about the economy and tax burdens.  President Kennedy had an across the board tax cut, telling his party that “a rising tide lifts all boats.”  President Reagan had a similar tax plan that ended a severe recession and in a few years he had record job creation.

Gallup Polls also show only 26 percent are satisfied with the way things are going.  Our founding patriots weren’t afraid to take action that shaped our Country’s future.  Republicans have that same opportunity.

Frank Mazur is a former chair of the Vermont House Transportation Committee, and a former member of the EAI board of directors. 

 

{ 1 comment… read it below or add one }

Robert September 8, 2015 at 5:51 pm

Most taxpayers have no idea the amount of tax they pay as a percentage of their income. This is because most workers are W-2 employees who have federal and state tax withheld from their wages, and are focused on the net amount they receive, rather than their gross pay. Mr. Mazur’s estimate of tax burden is just income tax. Total tax burden includes property tax, sales & use tax, property transfer tax, gas tax, meals & rooms tax, entertainment tax, beer tax, utilities tax, etc. Then you have the Legislature raising taxes on the middle class without changing the tax rates with measures such as eliminating the tax deduction for state tax paid effective 2015. The government takes more from taxpayers every year, and outside of said taxpayers’ awareness significantly reduces their standard of living in so doing, but it’s done incrementally enough so that it escapes notice by those not paying attention, aka the majority. And politicians easily dupe voters into electing them time and again with promises of fiscal restraint and perhaps taxing the “rich” and offering free stuff, but once elected they strap the burden squarely on the middle class. And for their part, taxpayers seem vehemently eager to be duped. Bottom line? Expect taxes to increase.

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