Wednesday, March 10, 2010

Clueless in Colorado-Internet Tax Policy Bites Legislature

Our Democratic-led State Legislature is mostly clueless when it comes to tax policy.

Exhibit A today is the newly minted online internet tax signed several weeks ago by Governor Ritter.

What our Democratic friends have stumbled into is the well known "law of unintended consequences."

This law goes like this: actions have consequences. When it comes to taxes and economic growth, too much tax kills growth. When you impose taxes on businesses, they pass the tax (increased costs) along to their consumers or lessen production and cut jobs.

Exhibit B: as a result of this new Colorado internet tax, has dropped its retailing network in Colorado, hurting Coloradans who rely on that company for income.

Our state Democrats who lead our legislature by and large do not understand this concept. It just bit them in their tail feathers.

See this story regarding Amazon retailers in today's Denver Post.

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