Tuesday, October 28, 2008

Lower taxes equaled more revenue--in Liechtenstein

While looking up information about Liechtenstein during WWII (don't ask), I chanced upon this paragraph in a seventy year old issue of TIME magazine.
If Liechtenstein now becomes part of Greater Germany the inhabitants will almost certainly lose their most cherished liberty—freedom from taxation. The ruling Prince, having long footed the Government bills himself, discovered in 1926 a way to relieve the strain on his own diminished income. Watching the rise of confiscatory taxes on corporations, wealthy citizens in Europe and the U. S., he smartly invited foreign corporations and private citizens to incorporate in his state and pay minimum taxes. Since then these foreigner-paid taxes, small as they are, have paid some 45% of the nation's expenses. The Liechtenstein family, owning virtually all the nation's wealth, graciously pays the rest.

Mit anderen Worten: lower taxes = more revenue. In these days before The One ascends to the seat of power to make us all equal, it's interesting to hear how a basic conservative precept was anticipated decades ago, in soon-to-be socialistic Europe. If the libs are determined to imitate their Continental mentors, let them start here.

1 comment:

Anonymous said...

Ok, so where do we get all the needed foreign corporations and citizens? Liechtenstein is a small country and was able to get lots of new taxpayers from abroad, so they could lower taxes. How does the US do that?

jah