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The Coming Blue State Collapse
Edgelings/Pajamas Media ^ | February 26, 2009 | Rich Karlgaard

Posted on 02/26/2009 4:26:05 PM PST by giant sable

Here’s a quick and dirty guess: Upper-middle-class families in blue states–those President Obama calls “the rich”–will soon be paying 20% more a year in state and federal taxes. If you pay $100,000 off of a $300,000 income now, look for $120,000 in a couple of years.

Federal income taxes are going up, and deductions are going down.

That much we know. What we don’t know yet–but I would bet money on it–is if the 7.65% Social Security and Medicare tax ceiling will be lifted from $102,000 to $150,000 or so.

Taxes are headed up at the state and local level too. Residents in blue states like California and New York will be socked hardest.

(Excerpt) Read more at pajamasmedia.com ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: bluestate; bluestates; edgelingscom; forbes; karlgaard; taxandspend
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An interesting commentary on Edgelings.com/Pajamas Media by Forbes publisher Rich Karlgaard suggesting that the very people who elected President Obama are likely to be hurt most by his economic policies.
1 posted on 02/26/2009 4:26:05 PM PST by giant sable
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To: giant sable

One can only hope they bear the brunt of their short sided stupidity.


2 posted on 02/26/2009 4:27:27 PM PST by Danae (Amerikan Unity My Ass)
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To: Danae

Sigh, we live in a blue state, but didn’t vote for obama :-(


3 posted on 02/26/2009 4:29:36 PM PST by psjones (u)
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To: giant sable

Obummer is making the classic liberal mistake of thinking he can transfuse blood taken from his right arm into his left arm after spilling 50% of it in the process in an attempt to invigorate himself.


4 posted on 02/26/2009 4:33:06 PM PST by MIchaelTArchangel
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To: giant sable
Drat. It's already hard enough being a conservative in California.


5 posted on 02/26/2009 4:33:07 PM PST by PERKY2004 (Proud Military Wife -- my DH is in his 26th year of military service! PRAY 4 OUR TROOPS!)
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To: giant sable
Fox news says Obama is going to raise 1,000,000,000,000 (trillion) in taxes on the wealthiest Americans.

Only a moron would believe he can raise that much money on the top 5 % of income earners in this country.

Wealth will be defined down, way down,

6 posted on 02/26/2009 4:34:37 PM PST by Popman (One useless man is a shame, two is a law firm, and three is a Congress - John Adams)
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To: giant sable

They better not come to Texas! Just sayin.....


7 posted on 02/26/2009 4:35:26 PM PST by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: Danae
The fly in the ointment is, the very vermin that voted Hussein into office and provided the catalyst for this mess may well become a migrant outflow that starts to saturate the red states, and that is unacceptable under any circumstances. Leftists have become the Typhoid Mary of Western politics and culture.


8 posted on 02/26/2009 4:35:27 PM PST by Viking2002 (The Occupation has begun. God help America.)
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To: giant sable

Let’s see....

the driveby etc. see their accountants, who say “so sorry you can’t sent your kid to Harvard cuz you can’t pay the $$$tuition”...

OH, NO! Messiah scr*** us!!


9 posted on 02/26/2009 4:38:34 PM PST by Mrs.Z
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To: giant sable

That $250K figures seems the arbitrary, finger in the air, definition of rich.

People making 250k in NYC for example are comfortable, but by no means rich just because of the cost of living there. What seems like alot of money to some people could be paupers salary somewhere else just simply because of the area they live in.

Additionally, they are using the middle-class tax cut to offset the economic cost of cap and trade. In other words, they give you money so you can then just pay it to the utility for the price increase imposed over compliance with additional environmental regulation. So don’t go spending your 13 bucks a week on anything extragavent.


10 posted on 02/26/2009 4:39:30 PM PST by dajeeps
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To: Popman
Only a moron would believe he can raise that much money on the top 5 % of income earners in this country.

Do you know of any website which lists the number of taxpayers by amount of earnings and the amount of federal taxes they paid for last year?

11 posted on 02/26/2009 4:40:39 PM PST by ProudFossil
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To: giant sable
And these liberals will leave their blue state worker's paradises and wreck low tax red states...
12 posted on 02/26/2009 4:40:52 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: PERKY2004

I’ll one up ya. It’s hard being a conservative in Hollywood. We had to develop a ‘code” so the “tolerant’ ones wouldnt blacklist us.


13 posted on 02/26/2009 4:47:46 PM PST by max americana
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To: MIchaelTArchangel
Obummer is making the classic liberal mistake of thinking he can transfuse blood taken from his right arm into his left arm after spilling 50% of it in the process in an attempt to invigorate himself.

So that would make it classic blunder/mistake #3 ...after not getting into a land war in Asia and not going in against a Sicilian when death is on the line?
14 posted on 02/26/2009 4:48:36 PM PST by tanknetter
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To: ProudFossil
Look on Rush's page (Link on Drudge) and he has the IRS figures along with a link too. (I think)

Nam Vet

15 posted on 02/26/2009 4:49:56 PM PST by Nam Vet (This space for rent............Hard currency only)
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To: tanknetter

Rampant inflation will make the kid at the drive-in window at McDonalds a millionaire in a couple of years anyway, so even the pain will be spread around pretty good.


16 posted on 02/26/2009 4:53:43 PM PST by mathurine
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To: Danae
One can only hope they bear the brunt of their short sided stupidity.

One can only hope they WE DON'T bear the brunt of their short sided stupidity.

17 posted on 02/26/2009 4:54:04 PM PST by tflabo
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To: giant sable

Then they move and make red states purple. Ruining it for everyone.

Can we switch back to red being communist and blue being normal?

Who dictates the colors?


18 posted on 02/26/2009 4:55:11 PM PST by 1010RD (First Do No Harm)
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To: tanknetter

The Sicilian one is a bit exaggerated if you ask Rogers. Plus, you can win a land war in Asia, but not after a Watergate break in.


19 posted on 02/26/2009 4:57:39 PM PST by 1010RD (First Do No Harm)
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To: ProudFossil

http://www.ntu.org/main/page.php?PageID=6


20 posted on 02/26/2009 4:58:22 PM PST by Popman (One useless man is a shame, two is a law firm, and three is a Congress - John Adams)
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To: giant sable
I was able to find the latest statistics from the IRS summarized by The Tax Foundation and listed on their website at: http://www.taxfoundation.org/news/show/250.html

The interesting item is the accumulated income of the top 5% of AGI (Adjusted Gross Income). It is $2,977,714,000,000 or 2.978 trillion dollars. The top ZERO released his budget for 2009 of 3.855 trillion dollars and he plans to tax the rich to help pay that.

Now if he were to tax the top 5% of AGI at 100% he would still be short around 877 billion dollars. And what is even more interesting the top 5% earned from $153,542 up. That is a long way from the $250,000 he keeps saying will be the breakpoint.

In order to get his almost 4 trillion dollars he would have to tax the top 10%, earning at least $108,904, at 100%.

In order to get his almost 4 trillion dollars he would have to tax the ENTIRE TAX PAYING POPULATION, all 135,719,160 of them, with a tax rate of 50%.

The great ZERO is a fricking liar of the biggest magnitude.

21 posted on 02/26/2009 5:08:17 PM PST by ProudFossil
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To: max americana
I’ll one up ya. It’s hard being a conservative in Hollywood. We had to develop a ‘code” so the “tolerant’ ones wouldnt blacklist us.

I still win. Try being a Christian and a conservative in a hard core blue state as a university professor.

22 posted on 02/26/2009 5:11:47 PM PST by FateAmenableToChange
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To: giant sable

Well, it could be a good and instructive thing if some of the big blue states go bust. Why? Because they, unlike the Fed govt, cannot just print money. They will be forced to admit they need to CUT SPENDING!!! And lower taxes to improve their economies!


23 posted on 02/26/2009 5:14:41 PM PST by mtrott
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To: psjones

We need to think revolution. The founders included the second for such a reason. zer0 is going to tax us to the dirt. We can’t just lay down for it.


24 posted on 02/26/2009 5:16:26 PM PST by reefdiver (How do you keep the Conservative a Conservative, in Washington DC ?)
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To: giant sable

Yes, Connecticut with the highest income of any state will be the hardest hit by BO’s vendetta against the Evil Rich, with New York a close second. I’m sure they won’t mind subsidizing the fine conservative red states in the South where incomes for even professionals are lower because of the lack of unions.


25 posted on 02/26/2009 5:18:52 PM PST by kittymyrib
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To: FateAmenableToChange

How many reprimands so far?


26 posted on 02/26/2009 5:24:41 PM PST by max americana
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To: dajeeps
seriously, the $250k/yr number has nothing to do with rich.

if you lived in CA and made $250k/yr, this is how it would break down today:

salary $250k
fed tax 35%
state tax 10%
medicare + matching 3%
ss + matching 12% on first $100k

60% on first $100k .. $60k tax due and 48% on the remaining $150k... or $72k.

total tax ~$132k
net (take home) ~$118k

assuming you have a mortgage, a mortgage of $500k isn't out of the question in CA. assuming 6% over 30 years, you're paying $3,000/month.

mortgage $3k
property taxes $1k
home insurance $1k
electric $250
car payment $400
car insurance $100
cable tv + internet $100
water + sewage $50
phone $100
food $500
--
total household monthly expenses $6.5k

total expenses without leaving the house: ~$78k / year

this would leave about $40k / year, or ~$3300/month for spending.

this would not get your rich

raising the max fed rate from 35% to 40% would raise the total taxes due from $132k to $144.5k/yr. this would leave $27.5k / year, or $2300/month for spending

this would take $1,000 every month away from consumer spending and adding it directly to the wallets of washington fat cats.

you never see those asshats eating oodles of noodles and driving clunkers.

27 posted on 02/26/2009 5:33:04 PM PST by sten
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To: Danae
One can only hope they bear the brunt of their short sided stupidity.

MUCH more concerned that they can learn from it.

Proverbs 26:11 -- As a dog returneth to his vomit, so a fool returneth to his folly.

28 posted on 02/26/2009 5:35:40 PM PST by Clint Williams (Read Roto-Reuters -- we're the spinmeisters | Impeach Obama!)
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To: penelopesire

Dont mess with Texas


29 posted on 02/26/2009 5:35:47 PM PST by Former MSM Viewer ("We will hunt the terrorists in every dark corner of the earth. We will be relentless." W 2001)
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To: PERKY2004
Drat. It's already hard enough being a conservative in California.

Why I left in 1983.

30 posted on 02/26/2009 5:36:52 PM PST by sionnsar (Iran Azadi | 5yst3m 0wn3d - it's N0t Y0ur5 (SONY) | REAL Stimulus: Apply paddles, shout "CLEAR!")
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To: giant sable

Better the main burden fall on Blue States than on Red States. I left Michigan for Texas for a reason.


31 posted on 02/26/2009 5:38:52 PM PST by No Truce With Kings (The opinions expressed are mine! Mine! MINE! All Mine!)
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To: Viking2002

Way back in time the state of Florida created a market for orange juice by a well-run promotion campaign. What we need to do now is create a major market for alligator meat, we can raise alligators in large quantities by feeding them in enclosed pens. The meat is delicious and will sell well if we can keep the price down. The major expense is the feed, now here comes the kicker, what do we feed them? All them damned left wing fools that keep movin’ south, that’s what! There is an endless supply.


32 posted on 02/26/2009 5:40:28 PM PST by RipSawyer (I have scant HOPE for the PRESENT absent a major CHANGE.)
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To: RipSawyer
Brother, I have a gas grill, a wood smoker, and a convection grill, and all three of them love to give wild game a makeover. I'll be first in line in the gator market.


33 posted on 02/26/2009 5:45:35 PM PST by Viking2002 (The Occupation has begun. God help America.)
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To: Former MSM Viewer

You got that right.This is where the first revolts will start if all hell breaks lose and you wouldn’t want to be a liberal in Texas looking for a job or living on the dole when it starts...just sayin....LOL!


34 posted on 02/26/2009 5:47:52 PM PST by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: No Truce With Kings

“Better the main burden fall on Blue States than on Red States”

You got to start thinking like Obama and the marxists think. See...the plan is to ruin the blue states..then ship the blue state liberal yuppies to prospering red states looking for work. Then the dems have a take over of red states too and all that is left back in the failed socialist blue states are dependent democrat looters living off of our taxdollars.

See how that works?

Decades of marxist control of America. They will also make it hard now for people to afford to send their children to private K-12 schools(because the gov is taxing them to death)...so they are all forced into liberal/marxist run school systems to be indoctrinated. They will close the homeschooling programs as well.

It is all coming to pass fasted than anyone realized.


35 posted on 02/26/2009 5:56:09 PM PST by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: penelopesire
“You got to start thinking like Obama and the marxists think. See...the plan is to ruin the blue states..then ship the blue state liberal yuppies to prospering red states looking for work. Then the dems have a take over of red states too and all that is left back in the failed socialist blue states are dependent democrat looters living off of our taxdollars.

See how that works?

Decades of marxist control of America. They will also make it hard now for people to afford to send their children to private K-12 schools(because the gov is taxing them to death)...so they are all forced into liberal/marxist run school systems to be indoctrinated. They will close the homeschooling programs as well.

It is all coming to pass fasted than anyone realized.”

There's a $5.00 fine for whining.

It ain't gonna happen. I believe in the basic common sense of the American people.

If you really believe what you are saying — rather than just doing some venting — do yourself and the conservative movement a favor and kill yourself now. Defeatism has lost more wars than any other single factor. What Obama is giving conservatives and Republicans is the world's biggest Christmas present, all wrapped up in a big red bow. *IF* conservatives have the gumption to take advantage of the opportunity.

That's gonna take hard work — not whining. Liberal whine. Conservatives work. If you're going to just whine either become a liberal or kill yourself. Roll up your sleeves for the next two years because we can have the type of turnover we had in 1992 come 2010.

To quote Patton “We're going to hold ‘em by the nose and kick ‘em in the rear.”

Or maybe Danton is a better source of advice “de l’audace, encore de l’audace, et toujours de l’audace.”

Or maybe the old “Lead, follow, or get out of the way.”

Regardless, I don't need to hear more whining.

36 posted on 02/26/2009 6:18:34 PM PST by No Truce With Kings (The opinions expressed are mine! Mine! MINE! All Mine!)
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To: sten

Be sure to adjust for inflation (the stealth tax). For 2008, it would have been an extra 3.5-4% haircut.


37 posted on 02/26/2009 6:29:59 PM PST by dajeeps
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To: tanknetter
So that would make it classic blunder/mistake #3 ...after not getting into a land war in Asia and not going in against a Sicilian when death is on the line?

That would be entirely, completely, and in all other ways, INCONCEIVABLE.

38 posted on 02/26/2009 6:46:07 PM PST by Migraine (Diversity is great... ...until it happens to YOU.)
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To: giant sable

The Dems may end up screwing themselves.


39 posted on 02/26/2009 7:29:56 PM PST by Free Vulcan (No prisoners. No mercy. 2010 awaits.....)
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To: MIchaelTArchangel

I’m stealing that!


40 posted on 02/26/2009 7:30:32 PM PST by Free Vulcan (No prisoners. No mercy. 2010 awaits.....)
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To: No Truce With Kings

A little stressed tonight? You have no idea what I do for the conservative movement..do you?

No you don’t...so keep your stupid assumptions to yourself!

I do plenty and our family foundation gives hundreds of millions away to conservative groups fighting for free enterprise, our constitution, property rights and education in this country every year! I usually don’t like to talk about it....but you have acted like a snarky little jerk.

So...from now on....don’t assume.

BTW...are you going to any of the Tea Parties this weekend to do YOUR PART?

What do you do to help conservatism?


41 posted on 02/26/2009 7:43:59 PM PST by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: Viking2002
Leftists have become the Typhoid Mary of Western politics and culture.

IOW... 'Rats spread the plague.

42 posted on 02/26/2009 7:55:58 PM PST by uglybiker (AAAAAAH!!! I'm covered in BEES!)
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To: giant sable
Taxes are headed up at the state and local level too. Residents in blue states like California and New York will be socked hardest.

Actually, taxpayers in whatever state with the requisite income, will be hit equally.

Are there more of them in these states? Perhaps.

But it isn't exclusive to blue states.

43 posted on 02/26/2009 8:03:40 PM PST by Ethrane ("semper consolar")
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To: giant sable

Living in a really Blue State surrounded by many 7% types, I just don’t think they are paying attention. Wait till they see the new reduction in mortgage deductions and charity. My guess is the shit will hit the fan around January of 2010 when they visit their accountants and actually see the bill.


44 posted on 02/26/2009 8:23:53 PM PST by Dens Sales
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To: penelopesire

“I do plenty and our family foundation gives hundreds of millions away to conservative groups fighting for free enterprise, our constitution, property rights and education in this country every year! I usually don’t like to talk about it....but you have acted like a snarky little jerk.”

Doesn’t seem to track with your paeon of despair, but whatever. Your words don’t match your claims. You were whining. (Still are.)

Better a snarky jerk than a whiner.


45 posted on 02/26/2009 8:26:58 PM PST by No Truce With Kings (The opinions expressed are mine! Mine! MINE! All Mine!)
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To: No Truce With Kings

You still didn’t answer my question. What do you do to help the conservative cause(other than jump down other conservatives throats online that you don’t even know)?

Are you taking part in the TEA PARTY’s today?


46 posted on 02/27/2009 5:02:08 AM PST by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: giant sable

Problem is the blue states control the legislation going thru congress. they can insert provisions which protect their constituents. such as the financial sector, automakers, etc.


47 posted on 02/27/2009 5:37:28 AM PST by bestintxas (It's great in Texas)
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To: max americana
How many reprimands so far?

In my permanent personnel file? None. It's hard for them when my scholarship and my politics are perfectly aligned, and I make a point of making clear that politics are not allowed in my classrooms because the students aren't paying for my political opinions.

Phone calls from the dean and other powers that be--plenty. The biggest problem I see on my horizon is my admonition to the students that they should file grievances against other faculty for using the classroom as a tool of political indoctrination. The surreal events occur at conferences where people who don't know me assume that everyone in the room is a liberal. I assume you're intimately familiar with the phenomenon given your similar circumstances.

48 posted on 02/27/2009 6:21:02 AM PST by FateAmenableToChange
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To: penelopesire

“Are you taking part in the TEA PARTY’s today?”

Yup.

And you are still a whiner. My going to a tea party doesn’t change that.


49 posted on 02/27/2009 6:22:24 AM PST by No Truce With Kings (The opinions expressed are mine! Mine! MINE! All Mine!)
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To: MIchaelTArchangel

Yep, taking water from the deep-end of the pool and dumping it in the shallow end does not make the water level rise.


50 posted on 02/27/2009 6:23:38 AM PST by Hat-Trick (Do you trust a government that cannot trust you with guns?)
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