Taxing Your Way to the Poorhouse

Some of the states in the union are getting pretty desperate—or pretty greedy. Like California, which is now finally facing the consequences of its self-imposed high-tax-welfare-state way of doing business, a number of states are seeking to maintain their profligate ways by looking for new taxes to shore-up their sagging revenues in the face of the recession. A quick look at US history will show what a bad policy this is, but the lessons of the past seem lost on this generation of politician. They seem far less concerned with the impact their new taxes will have on the people of their state than on getting their hands on the money. Case in point: North Carolina. According to the Greensboro News & Record: As part of the effort to bridge that gap, House members broadened the number of items to which state sales tax would apply and have to be collected by retailers. The tax on the category “digital click-throughs” under which the Amazon agreements fall would raise $13.2 m... [Read Full Article]