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It is a thing - good or bad is relative. Is there any evidence to support the claim that state and local governments would raise taxes to a level that harm the economy? I’m sure you could find some examples, but does the evidence support that claim in more than a few outlying cases? There’s ample logical reasoning (The Federalist Papers, for example) that state and local governments are more responsive to their populations and that the federal government should be the culprit that “shoots itself in the foot”. Outliers can exist in the inverse as well, as Kansas showed us that it’s possible to reduce taxes so much that it harms the economy! Also, and I don’t want to come off as too nitpicky here, but I’m pretty sure governments already have absolute power to raise taxes. That is, a non-government organization cannot levy a compulsory fine on you. And don’t take this as a personal attack, but if people don’t know those sorts of things, they are not a very engaged citizen. Since the government is elected by the people, if we have uninformed and disengaged citizens, we should distrust the government. The best way to gain trust, in my opinion, is to be an engaged and informed citizen (and encourage others to be as well!), and to only elect “the best”. edit: I may have misinterpreted your “absolute power to raise taxes”. I think now that you meant the power to raise taxes with no regard for its consequences vice meaning that another entity could raise taxes. Sorry if I put words in your mouth. In that case, yes “voting with your feet” can influence tax policy, but there are still other methods of doing that which do not require moving. I also want to point out that there’s an injustice in the ability to move in order to lower tax burdens. For example (and IANAL so someone please correct me if I am wrong), Bob’s LA Auto Shop, LLC can’t pick up and relocate its headquarters to Delaware to take advantage of lower taxes like a multinational corporation can to the Isle of Man. Is it moral that a large MNC can, but a mom and pop shop can’t? |