Vermont’s Going Galt

If the Vermont Legislature thinks they can tax their way out of the shortfall, they might take a peek at the Federal take.

When push comes to shove, the Feds have more push for getting money. They’re not doing well; the taxpayers are “going Galt” which will be reflected in Vermont’s collections too. In fact, sales, income and fuel taxes are down.
I wonder how New Hampshire is doing, want to guess?

April 2008 saw an all-time record for federal tax collections of over $400 billion, largely buoyed by final 2007 tax payments and first-quarter 2008 estimated tax remittances from business owners, investors, and entrepreneurs who pay taxes as individuals. It was a performance I characterized at the time as a “supply-side stunner,” because it showed, five years on, that George Bush’s investment-related tax cuts of 2003 still had growth-generating legs.

This is the POR (Pelosi-Obama-Reid) economy as seen by the threats of windfall taxes on energy, higher taxes on the “rich” and, as Obama promised “to bankrupt the coal industry.”

TANSTAAFL* is a great acronym, not believed in Vermont, but soon to proven VERY true.
As taxes go up on productive individuals, they cut back on hours worked.
Why work more when taxes take away the extra to be given to others.
Cut back, take the time for oneself, buy less or go on the underground economy via tag sales and odd jobs. That’s going Galt!
And it’s going on more and more!

The chart shows the results:

Maybe the Speaker of the House and Senate can explain how they beat this downward spiral. That explanation should make Carroll’s “Jabberwocky” lucid.

TANSTAAFL*–There ain’t no such thing as a free lunch!