Yesterday's news headlines neatly juxtaposed higher employment rates reported in 30 states with record highs in sales tax levels along with more talk of taxes on internet commerce.
The sales tax piece is courtesy of FORBES --
The highest sales tax rate is in a tiny hamlet in Alabama... a whopping 12.5%. Well, what is a poor local government to do when the residents can't support it properly with income and property taxes?
12.5% is also the reported unemployment figure for California. Maybe the nearly-10% sales taxes around the state need to be bumped up a couple percent to match? That should help. You know, patch some of those irritating "budget shortfalls" so that public headcount, salaries and benefits can remain largely untouched.
Maybe the Greeks have something to tell us if we'll listen. To wit, if you allow the public sector to become corrupt and fat, you will bankrupt your country. They are farther down the slippery slope than we are; we should pay heed to the warnings from their rear-view mirror. A bloated public sector is one of the surest ways to lose national competitiveness and increase total poverty. "Poverty doesn't cause corruption; corruption causes poverty."
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