One state that gets it
The 50 sovereign states of the United States of America have been called "laboratories of democracy," and the "lab work" Texas did this past week should inspire imitators.
But it may take time because too many governors and legislators in other states don't get it yet.
Luckily for us, our leaders do, as evidenced by the passage and signing of a tax cut for small businesses in Texas. The bipartisan measure increases the existing tax exemption for companies making less than $300,000 annually. As of January 1, 2010, the exemption will apply to 40,000 additional small businesses making as much as $1 million annually.
"Texas small businesses are the essential gears of our economic engine. They employ millions of Texans," Gov. Rick Perry proclaimed at last Tuesday's bill signing ceremony.
So they are, and so they do.
The tax cut will enable those businesses to invest more profits, to build the companies, and to hire more workers. That means more jobs and more tax-paying citizens. That's good news for the economy, good news for the unemployed and underemployed, and good news for the state budget. It adds up to progress and growth.
Tax something and stifle it. Remove the tax and watch it multiply. It's that simple. Economics 101. Imagine if Texas had less corporate tax. Our economy would grow faster; we Texans would prosper more.
It's common sense, but common sense, as G.K. Chesterton noted, is a rare commodity -- one not widely dispersed among some state and national leaders. Presently, the more common approach to our struggling national economy and dwindling tax revenues has been to raise taxes, making matters worse by increasing the burden on those supporting the economy.
With the extension of the tax exemption for small businesses, Gov. Perry and our state legislators showed common sense in abundance. They get it. And they deserve our appreciation.