Thursday, July 06, 2006

Well, it’s about time! Governor Taft-and-Spend finally decided to cut taxes, which will save Ohioans $390 million. All this while continuing to contribute to the $617 million “rainy-day fund.” The acceleration of a five-year 21% income tax cut means an 8.2% reduction in state income tax withheld from workers’ checks starting in October. This means Ohioans will have more money to spend and save as they see fit. It also means Democrats don’t like the idea at all and are using 19th century class warfare to discredit it.

With the refrain that hasn’t been changed in at least forty years, Democrats claimed that this new tax cut would only benefit “the wealthiest Ohioans” and urged state leaders to reduce college tuition and raise the minimum wage instead. “If they really cared about middle-class Ohioans,” says House Minority Leader Joyce Beatty, “they would be . . . proposing fair tax policies that put middle class families first.” This from a party that knows as much about the middle class as Brent Musburger knows about soccer. And it’s staggering how little Democrats know about economics. If they had even a basic understanding of the subject they would realize that raising the minimum wage causes unemployment to rise. I learned that in Econ 200.

When this tax cut for working and middle-class families is combined with a cut on investment taxes, Ohio’s economy can begin to grow- and state revenue with it. The sad and simple truth for Democrats is that no society in the history of western civilization has ever taxed itself into prosperity. Take the past 16 years as proof where taxes continually went up and Ohio faced unprecedented economic stagnation. When employers have more money to do with as they please and aren’t burdened by high taxes and unnecessary restrictions they can afford to expand their business and hire more employees. With Ohio’s economy as it is, one would think our state’s leaders should be commended for finding new ways to employ their citizens than finding new ways to make them dependent on the state.

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