Now that the debt-limit fight is basically over (the Senate will join the House in approving it later today), we need to immediately prepare for the next stage in the fight to stop big government and restore economic liberty.
President Obama and other leftists clearly have signaled that they want the new “super committee” – which will recommend $1.5 trillion of deficit reduction before Thanksgiving – to be a vehicle for “balance” and “shared sacrifice.” But if you look in a Statism-to-English dictionary, you learn that “balance” is a code word for higher taxes and “shared sacrifice” means class-warfare taxation.
I’ve already explained that a truly balanced approach requires nothing but spending restraint. And I’ve explained why Obama’s class-warfare taxation is misguided.
Today, let’s look at three real-world examples. We’ll start with the President’s home state. Early this year, using sneaky maneuvering, Illinois politicians raised the state’s income tax rate. I warned that this would drive jobs and businesses out of the state. That was an easy prediction, of course, and we’re already seeing results.Here’s a blurb from a Chicago Sun-Times story.
It’s becoming a habit around here — another day, another stalwart of financial services in Chicago threatening to leave town. On Thursday, it was the Chicago Board Options Exchange suggesting that higher corporate taxes in Illinois could cause it to take jobs out of state. The CBOE’s warning came a day after CME Group Inc. said the same thing. CME owns the Chicago Mercantile Exchange and the Chicago Board of Trade. The options market, with its headquarters and trading floor at 400 S. La Salle, employs about 580 people, not including traders who use its facilities. A CBOE spokesman said in a statement that “economic realities” could force a move.
Because the CME and CBOE are so high profile, I suspect Illinois politicians will provide some sort of one-off tax holiday or back-door subsidy to prevent this from happening. That won’t solve the problem, of course, which is that high tax rates inexorably will undermine the state’s competitiveness and that ordinary people will pay the highest price.