Low Taxes Stimulate Entrepreneurs, Not Government Stimulus Packages
In September, we discussed the favorable corporate tax rates of Ireland, describing its massive positive effect on the economy. With all the bailout programs and government spending in the works to stimulate our economy, we really need to get back to the fundamentals of lower taxes and increased opportunity.
This month, Steve Forbes opined in his “Fact & Comment” that Ireland Gets It. Steve says, “Government spending does not create prosperity. If it did, the Soviet Union would have won the Cold War. Low tax rates positively change incentives: Entrepreneurs, venture capitalists and investors are induced to take more risks; businesses become more expansion-minded; and individuals positively adjust their own behavior, knowing that they can keep more of what they earn and that success will not be punished.”
I find it interesting that low taxes and an environment generally supportive of new business development usually works. Good example at one time was Conn.with low taxes no income tax. The first thing new leadership did was impose an income tax and raise other taxes. This was the end of new business development.A fairly simple formula is blasted and not left to suceed.