Unintended consequences

Unintended consequences

I was appalled by some of the comments of the clergy quoted in “Local rabbis back end to Bush era tax cuts” (Dec. 13). What the rabbis apparently don’t understand is that lower tax rates would likely increase government revenues over time.

Let me cite a simple example close to home: How many of the rabbis’ wealthier congregants have left New Jersey and become residents of Florida for just over six months a year? Probably quite a few. That’s because   unlike New Jersey, Florida has no state income tax and no estate tax. Our state would have higher employment and better business conditions with those rich folks remaining here full time and spending their money here.

The same phenomenon holds true on a national level. Nothing moves quicker than capital. What this country needs is lower corporate and individual tax rates to get our economy moving.

Fifty years ago, President John Kennedy gave a famous speech at the Economic Club of New York extolling the virtues of lowering both individual and corporate tax rates, in order to stimulate economic growth. We subsequently cut those rates, and the economy — and the amount of taxes collected — both grew nicely.

Unlike the rabbis in your article, I believe the route to social justice isn’t through higher tax rates, it’s  through incentives to create economic growth . Beware of the law of unintended consequences.

Joe Rosenberg

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