Whew. And I thought Alderman Bernie Stone’s defense of a $5,400 taxpayer-funded shower was bad.

No, the most ridiculous statement of the month — hands down — goes to Cook County Commissioner (D-Chicago) Deborah Sims who, in defending Cook County President Todd Stroger’s plan to make Chicago’s sales tax the highest among big U.S. cities, stated:

“This country was built on taxes.”

This country. The United States of America. Built on taxes.

Not hard work, innovation, minimal regulation and free markets.

Taxes.

Totally makes sense…I mean, think of the American Revolution. Here’s a situation where chaps are vocally begging for England’s tariffs. And the Industrial Revolution — how without the massive taxation? Yes, we are a country that embraces taxation. Needs taxation. Gimme. More!

Uh…no. But, please, do give Commissioner Sims a call at 312.603.6381. Or visit her in person at her office on 118 N. Clark Street, Room 567, Chicago, IL 60602.

She needs a history lesson. Better yet, we need her to get a history lesson.

The Sales Tax, Then and Now

26 September 2007

At the Sam office, everyone is squealing with excitement, anxiously awaiting tomorrow’s manifestation. Imagine a bunch of 6-year olds on Christmas eve.

Being the new guy, frankly, I’m a little freaked out. However, after giving some thoughtful reflection to the matter, I think I understand what all the hoopla is about.

No, it’s not The Office season premier. It concerns an individual. An individual historically important, vital in developing the liberty paradigm. So much so that some non-profit in Chicago felt compelled to adopt his namesake.

What is it already? Bring the balloons and light the candles – it’s Sam Adams birthday! And, as I’ve come to realize, Sam Adams was the man. Wait, scratch that. He is the man. The man, I think, politicians should be modeling their thought processes after.

An example? Okay. Let’s say you have these politicians, right? And let’s just hypothesize that they’re proposing to triple the sales tax. I know! I know! Like that would ever happen. A location? Oh, I don’t know, how about Cook County, Illinois.

So how would Sam Adams handle the situation?

A cool thing I learned in reading Mark Puls’s book Samuel Adams: Father of the American Revolution (a staple here in the office) was that Sam foresaw arguments Adam Smith would later develop in The Wealth of Nation. Sam knew the economics of taxation. So when the British imposed sales taxes on the colonists, Sam stressed that such actions would not only stifle private economic growth but also “reduce government revenues in the long run”.

The logic is simple. Consumers naturally avoid areas with high sales tax for those that lack such costs, and businesses naturally avoid areas that lack consumers. If there aren’t any businesses, and therefore, consumers to tax, there won’t be any government revenue. As Adams wrote, “It is the trade of the colonies that renders them beneficial to the mother country.”

I think we need to remind the “mother country”, Cook County, of that.

Happy birthday Sam! You know, I’m really feeling the office buzz.