Growls

Thanks to Norm Leahy, blogging at Tertium Quids, we learn of some good news for travelers via the Tax Foundation. According to the Tax Foundation blog:

“Southwest Airlines will soon be flying through Charleston, South Carolina. That's good news for travelers looking for cheap airfare. Even better news: Southwest has declined the incentives that were being offered by the Charleston County Council. The business incentives would have been funded by a new 5% excise tax on car rentals.

[. . . ]

“Basically the tax would have subsidized the airline industry at the expense of rental car customers. Some politicians like rental car taxes because they believe it allows them to tax out-of-towners who can't vote them out of office (even though many cars are rented by locals), a phenomenon known as tax exporting. Tax exporting should be avoided because it disconnects voters from the cost of government and leads them to demand more government services than they are willing to pay for. (Emphasis added)

“Likewise, business incentives are poor policy. Businesses should make decisions for fundamental economic reasons, and lawmakers should avoid using subsidies to lure business to a location that would otherwise be unprofitable. Southwest should be commended for declining such offers. There are reports, however, that there is another low-cost carrier being courted, and this car rental tax may resurface as a means of luring them.”

In an age of crony capitalism, it’s good to learn there are still companies that still believe in capitalism and free markets. Enjoy your stop in Charleston, South Carolina. The Tax Foundation blog provides links to several stories on car taxes.