Economics 101

Okay, I want you to repeat after me. Raising taxes does not mean more tax money is collected. Raising taxes does not mean more tax money is collected.

Raising taxes does not mean more tax money is collected.

Read this story. It’s about Maryland deciding the way to solve a budget deficit is not to even consider cutting spending, but by raising taxes on (of course) only the wealthy. So they raised the tax rates on millionaires.

Pay very close attention to this section of the article.

“Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."

“One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.”

Go back and re-read that last sentence. Here is your economics 101 lesson. Raising taxes discourages spending and investments, and results in lower tax revenues.

This has been proven time and time again. If only those who have the attention span of a gnat would digest this and quit voting for tax-and-spend lefties who are taxing our country into ruin.

You want more tax revenues? LOWER tax rates, encourage spending and investments, and watch as the revenues flow in.

You want to run achievers and earners out of your state? Then by all means, raise taxes and watch the exodus of the people who actually pay taxes, leaving you with all those whose main goal is to get more handouts.