Similar to what I said in my original post in this thread:
"Progressives just love Ms. Warren because she feeds them red meat.
Her position that successful entrepreneurs need to fork over a bigger hunk of their earnings because the government helped them earn it underscores the essential difference between free-market conservatives and big-government liberals.
But letâs get to the specific point Ms. Warren was trying to make.
She said that the factory owner should pay more in taxes because the firemen and policemen keep him safe. But what came first, the factory or the firemen?
I could make a very convincing argument that these policemen and firemen owe their jobs to the factory owner. After all, it was the success of his business that expanded the local economy, increased the local population and created the need for new policemen and firemen.
In fact, I might even argue that the entire city owes the factory owner. His choice to build the factory and locate his business in the community created an infrastructure that benefited everyone in the community. In other words, the infrastructure didnât create the factory, as Elizabeth Warren would have you believe, but rather, the factory created the infrastructure.
Ms. Warrenâs selfish factory owner example contains just two facts: 1) The factory was built; and 2) the builder made a killing. Her story conveniently ends there. But itâs really just the beginning of the story. Hereâs how the rest of it goes:
The building of the factory created jobs; these jobs increased the money supply of the local community; this increase in the money supply allowed other local businesses to increase their sales; this increase in sales allowed local businesses to hire more people; this increase in hiring further increased the money supply; and⦠I could keep going, but I think you get the picture?¹
So the truth is, if anyone is indebted to anyone else, the local government and the residents of the city are indebted to the factory owner.²
In fact, the factory owner should be given a key to the city because,
He chose to locate his factory in their city;
He created and sustained local jobs;
He stimulated the local economy; and, perhaps most importantly,
He risked his own capital and the future well-being of his own family to do so.
Footnotes:
¹ The factory owners creation of jobs and the consequent increase in the money supply will have attracted more people into the community, which, in turn, will have increased local tax revenues via sales tax, property tax and city income taxes. Sorry Ms. Warren, the government owes the factory owner, not the other way around.
² Many states and cities give tax breaks to businesses that relocate within their borders. Now, Ms. Warren, why would local governments do this if a net benefit did not redound to their residents by virture of the businessesâ presence there?"
From: blog.pappastax.com