If Raising Taxes Hurts Your Main Industry, Why Do It?
June 5, 2009
That’s the question. I was told by a contact in Hawaii who runs a vacation rental company about this story. Republican Governor Linda Lingle is opposed to any tax increases and vetoed a bill to raise taxes on the hotel industry. In spite of her efforts, the Democrat controlled state legislature overturned the veto by a two-thirds majority which is required by state law.
As with most states run by Democrats, Hawaii is in the hole big time. Why people keep voting them in time after time when their track record is so abysmal is beyond me.
So who are the bad guys here? The state’s tourist industry is already in trouble and the increase in sales tax will only hurt those businesses that deal with tourism… almost everything in Hawaii! And these tax increases will hurt the hard working people of Hawaii by causing tourists to cancel trips or spend fewer days on the island. Weren’t Democrats supposed to be for the little guy?
Ronald Reagan showed that by lowering tax rates, revenues go up. Why do Democrats not learn this lesson? Do they even care?
Here is the story.
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