The Power of Inertia and Taxes

This is what I believe happens. You raise some taxes on the rich and they continue to work hard, or work harder. They stay where they are, they may raise some prices, they may spend a touch less, but really, they continue to press forward. They don’t view taxes as an impediment.

This is a report from Minnesota. They’ve done better as a state since raising taxes and the minimum wage. Certainly taxes aren’t all of it, but they don’t crush the economy, despite what some would have you believe. Some of the very prosperous times in this country occurred despite taxes being much, much higher than they are now.

Mark Cuban spoke at an entrepreneur event recently and asked the audience, “who thinks about taxes?”

Crickets.

Taxes don’t drive business decisions. They are a factor, but if income taxes were a big deal, everyone would be in Texas and Florida and then other states would eliminate them. The place you live, you choose that for many other reasons. The effort you put into business, you do that for reasons other than taxes.

Do I think we should have 90% rates? No. However I think we can have reasonable rates, work to cut our budgets, raise minimum wages somewhat, and find ways to stimulate the economy.