https://www.nysun.com/national/biden-scorning-the-secret-formula-of-american/91514/
Taxed to the max. In this world, nothing is certain but death and taxes. That famous quote, of course, is from Founding Father Benjamin Franklin. Among all the problems with the Biden administration’s policy, they even want to raise taxes on your death.
That’s a poke in Ben Franklin’s eye. Today’s column is not about Ben Franklin, though it’s worth noting that he, like many of the Founders, was an avid follower of the free market theories of Adam Smith, published in “The Wealth of Nations” in 1776.
Think about that (we can talk later about whether it’s a coincidence). The real point of this column is to press the question of why taxes matter. They do. A lot. And incentives matter. To quote Art Laffer many years ago: Tax something more, you get less of it. Something less, you’ll get more of it.
Why? Because in a free economy, which is certainly in line with our Founders’ legacy, we should reward success, not punish it. At the margin, if the extra hour worked, or the extra dollar invested, or the extra business risk taken, pays more after tax, that will propel an economy into prosperity.
More work, more investment, more risk, this is why America’s democracy and its founding principles have created the best economy in history. Taxes are not the only factor, but they are a big one. I would suggest five factors right at the top that are a useful intellectual model leading to prosperity.
