By re-capturing taxes and returning them to the people, Robin Hood earned his place among literary heroes. Robin Hood and his band of merry travelers believed high taxes were unjust. A recent column by Richard Ruelas seems to offer a new twist on the old classic: Sheriff is actually a good guy.
On the theory that cutting taxes encourages businesses to relocate and expand, Ruelas writes, “As a theory, it’s attractive. But it doesn’t match reality.” Ruelas goes on to argue for policy by anecdote, instead of evidence.
History is replete with evidence showing lower taxes attract businesses and are strongly correlated with economic growth. A recent Goldwater Institute report found high tax states lost 1.7 million residents whereas lower tax states gained 1.3 million between 1995 and 2000.
Likewise, economist Richard Vedder found income grew almost 50 percent more in states with low taxes than in states with high taxes over a 40 year period.
Lacking a stitch of evidence, Ruelas then resorts to class warfare, criticizing the board members of the Arizona Free Enterprise Club for owning “luxury cars, Paradise Valley mansions and front-row tickets to the Phoenix Suns games.” Class envy is not an argument, and having tickets to Suns games does not repeal the laws of economics.
Whether you already have tickets to the Suns games or are just dreaming of them, lower taxes make it easier for all Americans to get where we want to be.
-Goldwater Institute: “The Tax Man and the Moving Van”
-Joint Legislative Budget Committee: “Arizona Economic Forum Presentation”
-Nevada Policy Research Institute: “A Review of the Literature on the Size of Government and Economic Growth”
- National Review: “Evidence, Evidence, and More Evidence”
- Arizona Republic: “Theory on cutting taxes doesn’t hold even for its proponents”