Did you know that Fed Ex started in Little Rock? Entrepreneurs like Fred Smith need to be encouraged, not discouraged by government. Here is a funny Fed Ex Commercial from the 1980’s.
On July 3, 1981, I was in Prague, Czechoslovakia in the middle of a 20 country student tour. Our group of 48 American students had the opportunity to speak to a Communist government official for over an hour. We asked him several questions. My questions were quite direct and I share some of them at a later time.
However, I did want to share one question that I asked. I told the official about an entrepreneur from Memphis named Fred Smith. Back in the early 1970’s we heard about how Smith had this crazy idea about delivering overnight packages from LA to San Francisco via Memphis. Sounded like it would not work, but Smith was able to invest all his money and eventually it paid off. His idea was successful.
I asked the simple question: Could something like this happen here in Communist Czechoslovakia? He responded, “No. That is because no private citizen is allowed to own that much capital. The government must do things like that.”
There was no chance for entrepreneurs to exist in communist countries. I was simply pointing out that economic freedom allows an environment for entrepreneurs. Why would someone put the time and energy in putting together a grand plan like Fed Ex when the benefit and reward would just go to a communist government? Entrepreneurship should be encouraged, but many times today in the USA we find that our lawmakers pass laws that discourage entrepreneurs.
In this series on the Estate Tax I will be quoting portions of the article “The Economic Case Against the Death Tax,”(Heritage Foundation, July 20, 2010) by Curtis S. Dubay. Dubay is a Senior Analyst in Tax Policy in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.
Stifling Entrepreneurship
Entrepreneurship is vital to economic growth. Entrepreneurs who start businesses create new jobs that help expand the economy. The death tax stands in the way of entrepreneurs. When a person weighs the risk of a new business venture, he takes into account all the costs he will face in order to determine the final return he will earn. He then weighs whether the return he could earn is worth the risk of losing all he invests in the enterprise. The death tax raises the costs an entrepreneur will pay because it promises to confiscate a portion of his business upon his death. The prospect of their children or other family members being forced to pay a hefty tax in order to keep the business they have rightly inherited causes many entrepreneurs to refrain from starting a business. That means fewer jobs are created and economic growth is slower than it would have been in the absence of the death tax.
Successful entrepreneurs who create the most jobs pay high marginal income tax rates throughout their working years. When the top federal income tax rate is combined with the average federal rate and federal payroll taxes, those who take the risk to start a business often pay marginal tax rates of close to 50 percent. The death tax is yet another tax an entrepreneur must pay if he uses the disposable income left over after paying taxes to grow the business and increase its value
I am Josh Johnston, and I am a Republican candidate for State Representative of the Arkansas 59 th District. I would like to share who I am, and why I want to be your State Representative.
I was born and raised right here in Cleburne County. I am married to Jennifer Wildman Johnston, and we have two children. Our son Jacob is 10 years old, and our daughter Jenna is 2 years old. My family and I attend Clearview Baptist Church in Heber Springs, where I serve as a Deacon and Jennifer teaches elementary students in the Christian school.
In 2003, I started my first business, Quality Rock. We now currently employ 25 people with operations in Hopewell, Letona, and Jerusalem. We plan to open another operation in Drasco in the near future.
I believe this country was founded as a Christian nation, and to this day, still is a Christian nation. The growth, prosperity and protection of this country comes only from God. I cannot stand by any longer to see our heritage, and rights of freedom of religious expression, being disassembled under the guises of political correctness.
I believe that in order for our government to properly function, our governing bodies must realign with the foundations set forth in our Constitution. I also believe that the people elected to these governing bodies be accountable to only one entity, their constituents. I believe in a government that is “of the people, by the people, for the people”. In our current day, we are watching the Federal government overstep its boundaries, and infringe upon statesʼ rights.
I believe that small business is the catalyst that drives our stateʼs economy. All levels of government must work to become more understanding of small business, and work to meet the needs of small businessmen and women. Burdensome regulations and over-taxation must cease for small businesses in Arkansas in order for them to survive and flourish.
Lastly, I want to talk about our military and veterans. I am a proud supporter of those that have served, and are currently serving in the military. It is the sacrifice of our military men and women, as well as their families, that upholds the foundation and freedoms of our great country. As your representative, the military members, and their families, will have my voice and support to meet their needs.
I believe this is a time that we truly need change in our governing. The change that needs to occur if our government is going to get back on track, starts here, in Cleburne County. I look forward to meeting you and sharing with you my ideas.
The Daily Hatch 