A Tax With No Revenue?
There are many things to appreciate about America’s decentralized, federalist system. One is the fact that we can all learn from the mistakes of another state or local government without having to bear the bad consequences. Arizonans, Texans and Coloradoans, for example, have benefited from New Mexico’s experiment in socialism-lite. They have seen that New Mexico’s high tax rates and bloated government spending have made the state one of the poorest in the nation.
But even New Mexicans can learn from others. This county in North Carolina has recently decided to impose a hotel tax. Never mind the fact that the county has no hotels. They put the tax in place for “down the road,” according to Jeff Jennings, the Chairman of the County’s Board of Commissioners. How many hotel managers do you suppose will be eager to move into this county? I’d guess that the commissioners will have to look WAY down the road before they see any tax revenue from their new tax.