Back in January, golfer Phil Mickelson made a comment about the rate of taxation he pays for his success. Not only is he paying high federal taxes, but his home state of California is gouging him as well.

When the Federal Government desires less of something, they tax it. This is an effective solution to curbing behavior that the government has deemed unhealthy or undesirable. When the government wanted to reduce smoking, it placed high fees upon cigarettes as a deterrent.

Democracy and Power 104: Future Debt BurdenA government debt is a government claim against personal income and private property – an unpaid tax bill. —Hans F. Sennholz

No matter how many times it is proven, there are those who refuse to accept that high rates of taxation reach a level of diminishing returns.Rich people often vote with their feet. Recently, this was in the news in France when actor Gerard Depardieu decided to escape the 75% tax rate under the new socialist government. Now we have a high-profile case right here at home.

The fiscal cliff is looming, and as FreedomWorks' President Matt Kibbe pointed out, “The $16 trillion monstrosity that is our current national debt is a product of spending too much, not taxing too little.” We need a plan that includes sequestration as well as reforms to taxation and entitlements. Senator Marco Rubio took to the airwaves last night to discuss just this. 

Fans of smaller government and lower taxes will hardly be surprised that financially successful people in France are leaving in the face of new 75% income tax rates on the highest earners. Under Socialist President François Holllande, this new rate will become effective in 2013 and has led many of the highest earners to leave the country- with their money. Now, this punitive tax rate has hit the limelight. 

September 10th, 2012 is National Deficit Day. That means that September 10th is the date on which the United States government is out of money for the year. Every single penny they spend for the rest of the year, explain economists James Harrington and Antony Davies, will be added to our debt. Deficit Day should ideally be on January 31st.

Democracy and Power 103:  Government money The money taxed and spent by the politicians comes from the labor and ingenuity of millions of working persons.  Politicians spend other peoples’ money.

On Tuesday, Governor Rick Perry issued his first veto of the year, vetoing HB 2403, an Internet sales tax bill which FreedomWorks opposed. By vetoing HB 2403 Governor Perry has saved taxpayers and business alike from burdensome regulations and new taxes. In vetoing the legislation Perry cited that a key reason for his veto was that there was no consensus between lawmakers, tech experts, consumers and retailers.