Exploring the Dangers of Tax Hikes and Price Controls: Jonathan Williams on The Hugh Hewitt Show
Here we have the solution from the 50 laboratories of democracy that bring positive free market change versus the fantasies of the land of make believe here in Washington.
ALEC Executive Vice President of Policy and Chief Economist Jonathan Williams was interviewed on The Hugh Hewitt Show and discussed key economic policies impacting Americans such as taxes, housing, and price controls. Williams provided an insightful analysis of the economic policies proposed by Governor Walz and Vice President Kamala Harris, shedding light on their potential consequences.
Minnesota’s Economic Outlook and Tax Policies
According to Williams, Minnesota has consistently ranked poorly in Rich States, Poor States’ economic outlook rankings, largely due to aggressive tax hikes. The state, he argued, has burned through a budget surplus funded by federal COVID relief without addressing long-term financial stability. Williams noted that many Americans are “voting with their feet” by leaving states like Minnesota for more economically favorable environments.
In Minnesota, it’s been one of the worst states for economic outlook in our state’s four states report, Minnesota has had a horrible track record. They spent like drunken sailors on a 48-hour furlough through their entire state budget surplus that caused, in many cases, he by the funny money coming from Washington, DC. It’s no surprise now that we’re starting to see Americans vote with their feet and move away from Minnesota.
Price Controls and Inflation
One of the central topics discussed was the impact of price controls, which Williams criticized as ineffective in controlling inflation. He referenced historical examples from the U.S. and abroad, noting that price controls tend to create economic distortions, leading to shortages and inefficiencies. He pointed to Argentina’s recent turnaround as an example of how removing price and wage controls can stimulate economic growth and increase housing supply.
I think it’s important to go back to the track record every time wage and price controls are tried, whether it’s the United States, Europe, or countries from antiquity, we find that basic economics comes out at the forefront…this is going to be moving the country in the exact opposite direction, including more costs and more shortages when it comes to housing across the United States.
Housing and Regulatory Barriers
Williams emphasized that regulatory costs, which can add up to $100,000 per new home, are the real obstacle to increasing the housing supply. Instead of large federal projects, Williams advocated for local-level reforms like those in Montana, where zoning reforms have improved the housing market.
Governor Gianforte has led the bipartisan Montana miracle when it comes to zoning reforms and actually increasing opportunities to have better supply and reduce prices. That’s the real solution. Here we have the solution from the 50 laboratories of democracy that bring positive free market change versus the fantasies of the land of make believe here in Washington.
Taxation on Business Profits and Unrealized Capital Gains
Williams expressed concern over proposals to raise the corporate tax rate, arguing that it would make the U.S. less competitive globally, even compared to countries like China. He pointed to the positive impact of the 2017 federal tax cuts, which increased profitability in the U.S. and led to wage increases.
One of the most controversial proposals discussed was the potential tax on unrealized capital gains, which Williams called “unconstitutional” and economically dangerous. He warned that such a policy would drive capital out of the U.S., stifling investment and hurting economic growth.