I have a letter to the Sanford Herald that is published in today's (Thursday, 8/9) edition. And it explains what I feel is a perfect example of behavior modification. Also, it goes right along with our Gubernatorial Candidate Pat McCrory's message in this video:
See if you agree:
From the Sanford Herald:
LETTER: A perfect example of behavior modification
Sunday’s editorial proclaimed NC’s tax-free weekend a win-win event because consumers have more cash in their pocket by the 7 percent sales tax elimination on certain purchases. And by default, businesses had more customers. True. But the editor left out a very important analysis.
Why do I say this? Because I believe the tax-free weekend is a perfect example of behavior modification, and our leaders should learn from it. If saving 7 percent in a Friday-Sunday event spurs this much purchase power, what would an across-the-board tax cut from the janitor to the CEO do? Would someone in a 900 square-foot home do anything differently than someone who lives in a 2000 square-foot home if property taxes were lower? No. They would spend just like the other guy.
There would be more money for groceries and medicine, to eat out more often, to see more movies and maybe take the family on a vacation. They could possibly buy a new car — or simply build their “nest egg.”
In return, what happens? Look no further than last weekend for the answer. Economic activity increases, and jobs are created. Lowe’s can’t sell nails if someone doesn’t stock the shelves. Burgers don’t flip themselves on a grill, and cars don’t sign leases. Real people do these things.
North Carolina sales taxes are minuscule compared to other taxes that we pay. Property taxes in Lee County are 75 cents per $100 value while city taxes are 54 cents per $100. That means a single family home worth $200,000 will cost the homeowner about $2,100 a year — just on the home! In a typical year, I pay city and county property taxes on my home and vehicles, gas taxes, DMV taxes, inspection fees, income taxes and whatever else our esteemed officials decide. And I am just one citizen.
So when you get all excited about saving sales taxes on those notebooks, backpacks and jeans, ask yourself how much more could you do with lower taxes across the board and more money in your wallet?
This isn’t rocket science and it’s not a “rich people” concept. If government takes less, I am able to spend more — simple as that.
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