One member of the General Assembly has already introduced legislation for next year to provide a tax credit (that would be a tax cut/break/reduction for those of you following at home) to small businesses that hire Virginia college grads. Their reasoning:
“If you’re hiring more people, there are more payroll taxes, so we [the government] have more revenue.”
Sound like the words of supply sider Ronald Reagan, no? Almost McDonnellesqe. After all, it has been the contention of many conservatives since say, Adam Smith, that if you have policies that reduce the tax burden on businesses, they will invest their profits in expansion to build more stuff, hire more people, who will in turn pay more taxes and voilà, more revenue for government to burn through.
It certainly isn’t the philosophy of Obama/Saslaw/McEachin liberals who see every dollar that could be/should be/would be tax revenue as part of their very own personal bank account for the government to “invest” and save us all from, well, business owners. After all, government bureaucrats certainly know better how to spend that money.
Which means that liberal Democrat Charniele Herring has a lot of explaining to do to her caucus and her friends on the left, since she seems to have tip toed into the cool, refreshing waters of supply side freedom by introducing this tax cut, without even knowing how much it will “cost the state.”
So, we’re either winning the battle of ideas and Delegate Herring is on to something, or this is nothing more than a brochure bill she knows is doomed but will fit nicely on a direct mail piece during next year’s state elections.
Hmmm….wonder which it is?