Government spending does not create wealth
“If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck,” right? This is often said when you are making a point. You can identify an unknown situation by merely observing the characteristics of that situation. Well, in 2015, 56 percent of conservative Louisiana voters believed John Bel Edwards looked, swam and quacked like a “conservative Democrat,” which is really an oxymoron – kind of like being an “honest thief” or a “wise fool,” because there’s really no such thing. No, John Bel Edwards is just a plain, oldfashioned, bitterly partisan, tax-and-spend liberal, and there’s nothing accidental about him or Louisiana’s “fiscal cliff.”
Yes, it’s true that the state budget was around $25 billion when Edwards was elected into office. But today, under Edwards, he’s grown Louisiana’s budget to $29.6 billion. Even if you make the point that Bobby Jindal underfunded many state departments
and programs in order to maintain state services, fund TOPS, etc., and
that Edwards had no choice but to restore the necessary financing,
should that be nearly $4 billion? I mean, not only did the budget grow
nearly 20 percent in a state whose population growth is among the lowest
in the nation, but he added insult to injury by raising $2 billion with
sales tax increases.
Louisiana
now has the highest sales tax rates in America, an “accomplishment”
that only Edwards can lay claim to, because that wasn’t true before he
took office.
"Louisiana now has the highest sales tax rates in America, an
‘accomplishment’ that only Edwards can lay claim to, because that wasn’t
true before he took office.”
With
the 2018 legislative session on the horizon, and a $1 billion-plus
deficit in the state’s budget, what is Edwards’ plan? Well, businesses
and wealthier folks will pay higher taxes, if Edwards gets his way, and
one way he’ll do it is by limiting tax deductions.
Really? But look around the country.
Since
President Trump signed tax reform into law on Dec. 22, over 80
companies have publicly announced bonuses, wage increases or other kinds
of benefits they’re offering employees. AT&T: $1K bonuses for
200,000 U.S. employees, Southwest Airlines: $1K bonuses for 55,000
employees, Waste Management: $2K bonuses to 34,000 eligible employees,
and the list goes on and on. Gov. Edwards, don’t you realize that
decreasing the tax burden on the American people – the promise of
cutting unnecessary regulations and reducing the size of government –
has resulted in the lowest
unemployment rate in over 18 years? The stock market has rallied, home
prices are rising, and manufacturing jobs have rebounded – across the
country.
And yet, here in Louisiana, our governor is just rearranging the deck chairs on the Titanic, instead
of looking at what is ALREADY working around the country, and then just
doing more of that, instead. After all, we can't solve problems by
using the same kind of thinking we used when we created them, can we?
Oh,
it’s more complicated than that? But why does it have to be? Because
some oldfashioned, big-government, tax-and-spend legislators in Baton
Rouge say it is?
OK,
that’s fine, then. Keep your decades of charts, Excel spreadsheets and
long lunch meetings in Baton Rouge that have produced little more than
bowel movements, and let’s just feed off common sense for a moment.
You know what strengthens an economy and creates jobs?
The free market economy and small businesses. When you REDUCE taxes and
regulations, businesses hire more employees, they expand their
facilities, and then purchase new goods and services to meet the market
demand.
That
means they go out and buy trucks and tools and computers and anything
else needed to meet the demand. And when those businesses start hiring,
that means folks from out of state will come (home) to Louisiana because
they want a good job and not just another government check from the
state.
Governments
do not create wealth. They can influence the distribution of wealth by
providing financial incentives, but they do not create it, regardless of
how much they spend. They just move it around.
And
the reason government spending does not create wealth is because the
source of government spending is tax revenue, right out of the pockets
of taxpayers.
This
deluge of poor fiscal management, and higher and higher taxes, from the
governor on down, isn’t just running off our backs anymore, like it
would on any good duck – and unless we’re willing to drain the bayou
here at home, it’s surely going to drown us first.
Louis R. Avallone is a
Shreveport businessman, attorney and author of “Bright Spots, Big
Country, What Makes America Great.” He is also a former aide to U.S.
Representative Jim McCrery and editor of The Caddo Republican. His
columns have appeared regularly in The Forum since 2007. Follow him on
Facebook, on Twitter @louisravallone or by e-mail at louisavallone@mac.com, and on American Ground Radio at 101.7FM and 710 AM, weeknights from 6 - 7 p.m., and streaming live on keelnews.com.