I look with dismay at the frequent newspaper articles of plant and store closings. Apparently Spartanburg County is gouging some of its retailers and probably manufacturing facilities with its taxing and appraising practices. In a recent article I read, the January 17,2003 edition of the Spartanburg Herald Journal, it seems that some County officials have a bit of a flippant attitude towards the Kmart store Developer's charge that the decision to close the East Blackstock Super Kmart was due to excessive taxes.

All over the country government officials are either considering or raising taxes. Lately we are hearing about government proposals nationwide to raise taxes to cure their budget shortfalls. They think this is cure all. Some well-meaning citizens write letters to the local newspaper arguing that lowering taxes now is a bad idea that would create larger government deficits. Well please understand, if anyone, including those writers are borrowing money to buy a car or a house they are doing the same thing. President Bush and others on the other hand want to lower taxes to stimulate the economy. Many people don’t understand or don’t believe that lowering taxes will stimulate the economy. Well consider the following.

I was taught in grade school that studying history was a guide for us to the future so lets look at some history. The old timers will remember an event not too long ago called "The Great Depression". This was a time of massive layoffs and closings. As unemployment increased, tax revenues decreased. In 1933 unemployment peaked at 24.9% and tax receipts were at 3.5% of Gross Domestic Product. To get the economic train rolling again, Roosevelt began the new deal with deficit spending. He began federal construction programs that created jobs and put people to work. By 1937 unemployment had fallen to 14.3% (an astounding 57% drop!) and revenue had nearly doubled to 6.2% of GDP.

The current economic slowdown and increased unemployment translates to fewer paychecks and therefore fewer shoppers at Kmart. Governments everywhere are doing just the opposite of FDR. They are burdening businesses with their taxation policies to the point of oblivion and its population to starvation and homelessness. If tax rates are too high, businesses cannot stay in business. With Kmart closing and over 200 people looking for work, assuming they averaged $7.5 hour or $300 per paycheck, that translates to $60,000 per week, or over three million dollars per year! That is money that won’t be spent in Spartanburg. What will that do for Spartanburg County revenues? Yes, tax relief now will add to a deficit short-term, but cutting taxes allows companies more opportunities to build, invest in new equipment, give raises etc, all of which puts more money in circulation. More money in circulation means more spending and more spending creates jobs. A growing job market creates even more jobs!

As an Electrical Contractor in the Upstate, I am struggling to get contracts because there aren’t many jobs out there to get. Thanks to my regular customers, I am getting by day to day. I am at home now writing this letter due to the fact that I don’t have enough work to occupy my time. Everyone I talk to is having the same problem. Many contractors have lain off workers and if things don’t improve soon it will continue. In the last two years I have lost customers who have had to either relocate or close shop. Each business that shuts down is one less employer and one less customer for contractors and all of its vendors. Kmart’s vendors supply things like food and beverage coolers (Beverage Air), computers (several companies), office equipment and supplies (several companies), and utilities in addition to their truckloads of daily inventory, some of which is made locally.

Just like a growing job market feeds on itself and creates more jobs, a declining job market feeds on itself as well. Raising taxes now is about as intelligent as using gasoline to put out a fire, a surefire way to trample the job market! Folks, you need to write or call your government officials and voice your concern about the economy and high taxes. You can find many of their addresses on the Internet. You may be working now but that could change before the day is over! As President Bush has said, "You’re either with us or against us". Doing nothing is a vote for more of the same. Many legislators need to see this letter and know that you feel the same way and want to see taxes lowered or eliminated. Print a copy of this and mail it to them.

One final note taken from a Citizens Against Government Waste online article about Governor Mark Sanfords' tax plan. "Over the past four years, Florida, which does not impose a state income tax, welcomed 15,000 new small businesses into the state, while South Carolina lost 2,300 small businesses."   Governor Mark Sanford is committed to eliminating income taxes but some elected officials are not convinced or don't understand how cutting taxes will create jobs. This article was written giving historical facts as proof that cutting taxes works!