Monday, April 24, 2006

Thinking Dangerously

“Seeking to create more Connecticut jobs, “the lead line ran, “the state Senate voted unanimously Friday night for tax cuts for manufacturers and incentives for movie-production companies.”

The tax cuts for manufacturers and incentives for movie production companies, senators reasoned unanimously, were necessary because businesses in Connecticut are going south – no pun intended – and start struck legislators have realized that the best way to encourage start-up industries is to create a climate in which industries do not feel preyed upon by rapacious state governments.

For Connecticut, this is a revolutionary perception and a significant admission. Practically speaking, it means that the proclivity of our state legislature to tax everything that breaths is, as the film stars might say, a real drag: Less taxes good, more taxes bad.

Economists who graduate from one of our state’s ivory league colleges might put it this way, “Whatever you tax tends to disappear” – including state businesses and millionaires. And unfunded mandates, the labyrinthine regulatory structure favored by local in-the-closet socialists, count as taxes.

So, should we assume that state legislators have had a Damascus Road experience? May we now count them among he converted?

Don’t bet on it.
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