Skip to comments.Soak the Rich, Lose the Rich
Posted on 05/17/2009 8:39:49 PM PDT by St. Louis Conservative
With states facing nearly $100 billion in combined budget deficits this year, we're seeing more governors than ever proposing the Barack Obama solution to balancing the budget: Soak the rich. Lawmakers in California, Connecticut, Delaware, Illinois, Minnesota, New Jersey, New York and Oregon want to raise income tax rates on the top 1% or 2% or 5% of their citizens. New Illinois Gov. Patrick Quinn wants a 50% increase in the income tax rate on the wealthy because this is the "fair" way to close his state's gaping deficit.
Mr. Quinn and other tax-raising governors have been emboldened by recent studies by left-wing groups like the Center for Budget and Policy Priorities that suggest that "tax increases, particularly tax increases on higher-income families, may be the best available option." A recent letter to New York Gov. David Paterson signed by 100 economists advises the Empire State to "raise tax rates for high income families right away."
Here's the problem for states that want to pry more money out of the wallets of rich people. It never works because people, investment capital and businesses are mobile: They can leave tax-unfriendly states and move to tax-friendly states.
And the evidence that we discovered in our new study for the American Legislative Exchange Council, "Rich States, Poor States," published in March, shows that Americans are more sensitive to high taxes than ever before. The tax differential between low-tax and high-tax states is widening, meaning that a relocation from high-tax California or Ohio, to no-income tax Texas or Tennessee, is all the more financially profitable both in terms of lower tax bills and more job opportunities.
(Excerpt) Read more at online.wsj.com ...
Soak the rich, lose jobs too....
And that is a good thing, otherwise people would be discussing the actual editorial...
The Atlases of America are starting to shrug.
Wow, who’d a thunk it?
Well, they'll just have to fix that, now won't they?
In 1932, Franklin D. Roosevelt was elected; and he immediately pumped in massive amounts of money to "stimulate" the economy.
The higher taxes implemented by Hoover, and the huge government spending initiated by Roosevelt stifled innovation and entrepreneurship.
...a great deal of damage was done to the economy, and a recession that started out no worse than the recession of 1920-21 became the Great Depression.
Not only did FDR raise the top income tax bracket to 79%, but he also proposed to Congress raising it to 99.5%. This proposal did not get through Congress. In April of 1939, after more than eight years of the New Deal, the unemployment rate was 20.7%.
Cynics have said that World War II ended the Great Depression, but Professor Folsom dismisses that theory. He indicated that the economy did not start to recover until Franklin Roosevelt died.
Who is John Galt?
Obama’s about to find out.
Well, we’ll just have to remedy this little tax “loophole”, won’t we?
So long, state sovereignty.
Atlas shrugged ping!
What can we do about it? http://pushbackuntil.com
Now that the libs control the federal govt, their solution will be to take increasing amounts of revenues at the federal level, then parlay these to those states which support the liberal agenda.
you will then have to move away from the USA to keep taxes down.
Problem is, they move away from those states to places like Texas but don’t leave their liberalism behind.
Heh, it's not only the 'rich' who do that!
Me for one !