GO TO RENO
In Daniel Weintraub's webblog "All The Way To Reno" He writes about Apple computer creating a Nevada subsidy to manage its cash flow diverting tax money out of California. It comes as no surprise to me. What is a surprise is that more companies don't do the same. In Steve Forbes Principles of Prosperity, Principle 3 states "The third principle of economic prosperity is low taxes. Taxes are not just a means of raising revenue for the government. They are also a price. Income taxes are a price paid for working; taxes on profits are the price paid for being successful in business; taxes on capital gains are the price paid for taking risks. In light of this, the importance of low taxes is easy to see: When you lower the price of good things - things like work, success and risk-taking-you tend to get more of them. Raise the price of these good things and you get less. In 2003, we lowered tax rates in the U.S. and the economy started to grow again. As we've seen time and again, tax cuts do not mean a loss of tax revenue. By increasing incentives, the government comes out ahead. Washington's revenues in the last fiscal year were up 15 percent a $100 billion above expectations. Washington's problem is not revenue, but spending." Maybe its time we try this in California.
posted by pappy @ 2:00 PM
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