Business and Inventory Tax
I would like to get rid of the business and inventory tax, which is an insane tax. The idea is that if you have things on your shelves which you purchased, for which you paid sales tax when you purchased them and which you will charge sales tax for when you sell them, you still have to pay sales tax on them while they are sitting on your shelf. The idea of having to pay taxes on inventory you have sitting on a shelf, insane. That has to go away. It is crippling to our economy.
The simple fact of the matter is, you earn your income by the investment of yourself, your time, your effort, your capabilities, your creativity, therefore it belongs to you. The government has no right to confiscate it.
If you study the writings of the Progressives from the beginning of the 20th century, they actually talk about how great it would be if the government simply confiscated everything and then rented it back out to you. They are very straight forward about it. That idea was not very popular to people who were not dedicated Progressives, so they changed the name of that concept and they called it property taxes and they got it passed.
Effectively what you’ve got now is, the government owns your property. So, if you buy a house and you pay the bank off and you’ve got the title and you’re free and clear you own the place, right? No, try not paying your property tax. What happens? The state or the local jurisdiction will actually confiscate your property. Based on what? What are they taxing? And, it goes back to the progressives at the beginning of the 20th century who said that the state should own all property and it should rent it out. Not the state as in WV, but the state as in the established government should own all property and then rent it all back to you and that’s exactly what happened.
So this leaves us with the ultimate question, which is how should the government fund itself? Well, the only service that the government provides effectively that is taxable, as far as I’m concerned, is that it upholds and defends our individual natural rights and it maintains the institutions that allow us to freely exercise our individual natural rights. So, what does that mean? To me, in my mind, a sales tax, a consumption tax, is the only valid and moral tax that there is because effectively you’re paying a fee for the right to engage in that market, that free and secure market, that government is maintaining the freedom and security of. Basically what you are doing when you pay a consumption tax is you are literally paying for the opportunity to engage in a free and secure marketplace. And, that’s it.
Quite frankly I am convinced and, I know this is a little radical, I am convinced that the only valid, the only moral and ethical tax is a consumption tax, a tax on engaging in the free marketplace, which should be level across the board.
If a consumption tax is the only valid tax, there is one other benefit to that which is that you as an individual citizen or you as a business owner can choose to limit the amount of tax that you pay by limiting your engagement in the free marketplace. Now, of course, there are certain things you have to engage in the marketplace for such as food and medicine. I don’t believe food and medicine should be taxed at all. There should be no sales tax on food and medicine. That’s one of the things that I think West Virginia does right.
I would love to act like Jim Justice does and issue an edict that changes all of this, but that’s unconstitutional, it’s unacceptable, and so you will have to engage in this process via your elected representatives, your delegates and your senators, to change the legislation and thereby change the paradigm of taxation in the State of WV.
The changes I am proposing are not going to happen in the next few years. It’s going to take years and years, decades of working through the morass of tax regulations that we’ve got. Because it took decades to establish this.
As far as I am concerned, the way to allow West Virginians to organically start, grow, and maintain businesses is to lower the tax burden and the regulation and the interference of the government in your business and just let you innovate.