Talk about run away taxing? California wants to tax Space Ship launches, robots and more. Check out this piece from Tom Del Beccaro.
California is at it again!
In pursuit of its workers’ utopia and green sanctuary state, California has passed a massive cap and trade program. It effectively becomes the second, large gas tax increase this year and when matched with its recent large minimum wage increase, presents more than a challenge to California businesses looking to make green – money that is.
Long ago, Sir Isaac Newton established his Third Rule of Motion, which says that for every action, there is an equal and opposite reaction. While generally applied to physics, it applies to economics to a certain degree. The economist Henry Hazlitt zeroed in on the connection when he counseled us that economics is not just the study of primary effects, i.e. a minimum wage increase, but secondary effects as well, i.e. the jobs lost because of mandated wage increases.
The secondary effects of political laws, of course, are largely ignored by liberals in pursuit of fairness – it is their intentions that matter, not the actual results.
With its new Cap & Trade Program, California stretches its lead as the most regulated state in the World. Of course, for years now, California has boasted the nation’s highest income tax – at a whopping 13.3%, it dwarfs most Western states’s rates, i.e. its geographical competitors. Combined with the high income tax, the dual tax increases on gas (a regulatory tax in Cap and Trade) and an outright new gas tax, overall California is one of highest taxed states in the Country.
The primary effect the Sacramento politicians seek, with Cap & Trade and new gas taxes, is to reduce pollution in the state. However, as I wrote recently, the secondary economic effect is to drive business out of California to less regulated places like India and China. As a result, California Regulations Are Polluting The World. They do so in the short term by pushing business to unregulated environments.
This piece is co-written with Doug Haaland – a former Chief Policy Consultant to Republicans in the California Legislature.
Read the rest at: California Caps