Socialism v. Capitalist Free Markets

Obama’s home state of Illinois is like most other blue states.
Economically it is a basket case; an absolute wreck. Illinois
spends more than it takes in. Earlier this year, it had an
eight billion dollar deficit. So what did Illinois do? It
raised its state income tax from 3% to 5%; a 66% increase. It
also increased its corporate income tax from 4.8% to 7%. It
does not take a rocket scientist to figure out what happened
next. Since the tax hike, Illinois has lost almost 100,000
jobs. In July, Illinois lost 24,900 jobs. That is what you
call an economy in free fall.
Contrast Illinois with a couple of other states. Wisconsin
elected conservatives in 2010 and they enacted business
friendly legislation. Wisconsin added 9,500 jobs in June, a
month in which the entire nation only added 18,000 jobs.

If you want a real success story, look at Virginia. Under
Governor Bob McDowell, Virginia was facing budget problems.
Instead of raising taxes, he cut spending. When he took over
from Democrat Tim Kaine, Virginia had a $4.2 billion dollar
deficit. Kaine, in typical Democrat fashion, said the only way
the budget deficit could be closed was with a massive $2 billion
dollar tax hike on the citizens of Virginia. McDowell fought
back an attempt to enact that $2 billion personal income tax
increase. The result? Virginia has a $544 million surplus.
Virginia has an unemployment rate of 6.1 percent, as opposed to
the national rate of 9.1 percent.

Maryland is another state to take a look at. It is a solidly
blue state with a socialist governor. Martin O’Malley presided
over the largest increase in taxes in Maryland’s history,
including the “millionaire’s tax” he championed. This was to
close Maryland’s budget deficit. The millionaire’s tax that
O’Malley championed was a 6.25% tax on their income. Since
some cities in Maryland are able to impose city income taxes,
the highest rate in Maryland can be 9.45%. Of course, the
liberals predicted Maryland Millionaires would gladly pony up
their hard earned money. Do you know what happens when you
put socialists in charge of government? The “wealthy”
disappear. In 2008, the year before the “millionaire’s tax,”
there were about 3,000 millionaire tax returns filed. The
following year, there were only 2,000. In short, one third of
the rich disappeared from Maryland. Certainly the bad economy
knocked some out of the millionaire bracket, but a lot of them
simply left Maryland for friendlier states, such as Tennessee,
Texas and Florida, that do not tax personal income.
O’Malley’s policies have been such an abject failure that he
is now proposing yet another tax increase.
Meanwhile, in Maryland, the unemployment rate is over 7.2%.

If you look across the United States, the blue states are
economic basket cases while the solidly red states are doing
much better. There is a reason for that. Socialism does not
work.
If the National Republican Party had some sense, it would be
advertising across the nation the great successes conservatives
have had at the state level, cutting taxes, creating jobs and
mitigating the damage from the Obama depression.
The Fair Tax, a consumption tax on new goods rather than an
income tax, does not drive wealth from America. With the
prebate, it is not regressive. The Federal Reserve's policy
to devalue the dollar hurts the elderly and the poor the most.
Governor Perry has correctly labeled it treason.