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Once upon a time there was a farmer who found a lone gosling on the banks of a lake. He nurtured it until it was full grown. One morning, he went to the goose’s pen and found a golden egg. The goose began to lay a golden egg every day and the farmer sold them, using the proceeds to purchase land and equipment, and to build a farm house. He was able to employ many of the townsmen to work in his fields, cultivating and harvesting his crops. This allowed the workers to support their families and improve their living standards.
One day a government official visited the farmer to notify him that the town council had voted to use his goose for a Christmas dinner which the town council members had promised the underprivileged.
“But this is my goose! I raised it and cared for it myself,” exclaimed the farmer. The government official responded, “I understand, but you will feel good when you share it with the less fortunate, just as the town council members promised to do during the last election.”
The farmer argued with the official that he had already tried to help them. “I offered to hire anyone in town who wanted to work on my farm but many refused, telling me the town government was supporting them. If you would quit feeding them, they would have to work,” insisted the farmer.
The government official responded, “Farm labor would hurt their self-esteem. That’s not what they voted for.”
So the government official killed the goose that laid the golden eggs and gave it to the Town Equalization Committee whose members ate the goose at their Christmas party. The leftovers were boiled with rice and fed to the needy who had not accepted the jobs offered to them by the farmer.
The farmer no longer had the golden eggs to finance his operations. So he laid off his workers, sold his farm and moved away.
Businesses have produced economic prosperity for Texans. Businesses are the geese that lay the golden eggs, but business taxes slowly kill the geese.
The state government produces nothing. It has only what it confiscates from taxpayers and businesses. The politicians use these taxes to pay for the entitlements which they promised their constituency.
The Perry Business Tax, passed by the Republican dominated state legislature during the special session in May 2006, was revised and further complicated during this past legislative session. It is the largest tax increase in the history of Texas. The average business will pay 10% of its income in new state taxes.
The Perry Business Tax took effect on January 1, 2007, but the first payment is not due until May 2008, after the Republican Primary. When business owners discover this new business tax, they will be ready to cook the Republicans’ goose in the 2008 General Election.