Now we have to add on to what was written just the other
day.
Look how prolific this become suddenly!
What happens when there is a new tax on millionaires? After all, taking more of their money should improve roads, health care, and launch a brand-new unicorn sanctuary in every state where that happens, right?
Here is one example from Maryland, where failed Presidential candidate Martin O’Malley tried this in 2009.
What happens when there is a new tax on millionaires? After all, taking more of their money should improve roads, health care, and launch a brand-new unicorn sanctuary in every state where that happens, right?
Here is one example from Maryland, where failed Presidential candidate Martin O’Malley tried this in 2009.
Here is one of the important paragraphs…
“One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.”
I wonder if socialist/progressive/economically liberal/communists reading that take a moment to let that soak in to the processing center of their brains.
“One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.”
I wonder if socialist/progressive/economically liberal/communists reading that take a moment to let that soak in to the processing center of their brains.
NJ Governor, and now failed Presidential candidate, Chris
Christie mentioned that the same thing happened in his state before he took the
reins of the Garden State Sled. In this past Saturday’s debate he stated that
70 BILLION dollars of wealth left the state in a five-year period as a result
of that state’s millionaire tax. That meant that NONE of any of those people's incomes could have generated any revenue for NJ.
I sort of doubted that number at first but found it quoted in this piece...
I sort of doubted that number at first but found it quoted in this piece...
Here is an important paragraph from that story…
“Last year, a report by the Morristown-based Regent Atlantic wealth management firm released a report entitled "Exodus on the Parkway" that claimed so-called "tax migration" began in 2004, with the state's passage of the "millionaire's tax." The report found that a couple with an income of $650,000 who moved to Pennsylvania would save some $21,000 per year in taxes, adding up to $1.65 million over 25 years, if invested. Most families with incomes of $500,000 per year or more were departing New Jersey for either the Keystone State or Florida, the Regent Atlantic authors added.”
“Last year, a report by the Morristown-based Regent Atlantic wealth management firm released a report entitled "Exodus on the Parkway" that claimed so-called "tax migration" began in 2004, with the state's passage of the "millionaire's tax." The report found that a couple with an income of $650,000 who moved to Pennsylvania would save some $21,000 per year in taxes, adding up to $1.65 million over 25 years, if invested. Most families with incomes of $500,000 per year or more were departing New Jersey for either the Keystone State or Florida, the Regent Atlantic authors added.”
Now, what lessons can we learn from this?
One- In this country we have a certain amount of freedom and a certain amount of economic freedom.
I say certain amount of economic freedom because while the US was ranked #2 just as recently as 2000, it has dropped to 16th with its decline beginning in 2010 under this current administration.
One- In this country we have a certain amount of freedom and a certain amount of economic freedom.
I say certain amount of economic freedom because while the US was ranked #2 just as recently as 2000, it has dropped to 16th with its decline beginning in 2010 under this current administration.
Within that summary is the 257 page report. Here is an
important pull…
"Economic freedom breeds prosperity and economically
free countries like Canada offer the highest quality of life while the
lowest-ranked countries are usually burdened by oppressive regimes that limit
the freedom and opportunity of their citizens."
“Oppressive regimes.”
Now other factors are considered in the US such as the war on
terrorism and the drug laws but over and confused regulation was one of the
biggest factors for the US.
Anyway…so we have a certain amount of economic freedom in
this country. One of those freedoms is the ability to move to another state
which has more favorable tax rates.
When I become a billionaire, rest assured that I am going to
move to the state where I will pay the lowest amount of taxes. Why? Because it
will be MY money. Not yours, not the states, not Bernie Stalin's. (Thanks Bob.)
So moving to a state which actually wants me to live there and won’t steal from me because they believe I don’t deserve to make so much or somehow I have acquired it illegally, is what I will do.
Now, I haven’t forgotten the FEDERAL tax rates here, no…no…no. Remember that if I make a million dollars a year (lowering my bar just a little) my federal rate would be 39.6%. That is currently unavoidable.
So moving to a state which actually wants me to live there and won’t steal from me because they believe I don’t deserve to make so much or somehow I have acquired it illegally, is what I will do.
Now, I haven’t forgotten the FEDERAL tax rates here, no…no…no. Remember that if I make a million dollars a year (lowering my bar just a little) my federal rate would be 39.6%. That is currently unavoidable.
But what if Barnie Stalin increases that 39.6% to a 45% rate
or even the 90% rate he has thrown out there? What do you think will happen
then?
That’s right, I’m gone. I will move to a country which will not steal from me.
So, that is really lesson number two for this post.
Here is the basic math. If I make a million dollars a year and get taxed at 39.6% I will owe 396,000 in federal taxes, which goes to all sorts of causes with which I don’t agree after military expenditures.
That’s right, I’m gone. I will move to a country which will not steal from me.
So, that is really lesson number two for this post.
Here is the basic math. If I make a million dollars a year and get taxed at 39.6% I will owe 396,000 in federal taxes, which goes to all sorts of causes with which I don’t agree after military expenditures.
Now, if I get taxed at 45%, how much does the Federal
government get?
450,000?
WRONG. They will get ZERO, because I will be gone.
See the difference?
Now think about a big business for a moment. Have you ever heard anyone complaining about how businesses keep moving out of the United States and taking jobs with them?
Why do you think that happens?
ITS FOR THE SAME REASON!!!!!!!!! ARARRHGHGHHGHGHGHGH!!!! What don’t these economically illiterate fools understand about this?
450,000?
WRONG. They will get ZERO, because I will be gone.
See the difference?
Now think about a big business for a moment. Have you ever heard anyone complaining about how businesses keep moving out of the United States and taking jobs with them?
Why do you think that happens?
ITS FOR THE SAME REASON!!!!!!!!! ARARRHGHGHHGHGHGHGH!!!! What don’t these economically illiterate fools understand about this?
We have the highest corporate tax rate in the world right
now. We have a government that believes they know how to spend everyone else’s
money better than you and other companies do.
Yes, we know there has to be taxes to take care of things
like the military and infrastructure (oh that reminds me that Obama wants to
add a $10 per barrel tax on oil…that’s a whole other blog post) and we can take
care of those who CAN’T take care of themselves.
But let’s say we lower that tax rate to 20% and place it somewhere in the middle of the other rates in the world. NOW it might be stupid to leave the US. NOW the US can get $200,000 of my million every year instead of zero. Maybe at that rate other companies from higher taxed countries move HERE and bring their JOBS with them.
But let’s say we lower that tax rate to 20% and place it somewhere in the middle of the other rates in the world. NOW it might be stupid to leave the US. NOW the US can get $200,000 of my million every year instead of zero. Maybe at that rate other companies from higher taxed countries move HERE and bring their JOBS with them.
THAT is how it works. It has NEVER worked successfully at
those confiscatory tax rates. Communist and socialist countries know two things
when they do this…that most of the people in their countries CANNOT afford to
move so their people have no choice but to take what their country does to them
(or they can flee on cars made into boats like they have done in Cuba.) Or,
their military will make sure that no one leaves…like Cuba, the old Soviet
Union and other Utopian unicorn havens like North Korea.
It’s all basic math and basic human nature and it still baffles me that I have to read…every day…that people are feeling “The Bern” or “Climbing the Hill.”
Without this economy being the strongest it can possibly be with the most economic freedom possible, EVERY single social issue becomes secondary in importance. I know many people who are single-issue social-issue voters and will even argue otherwise DESPITE the basic truths. But I will state, categorically, that until these monetary concerns are fixed and we have tax rates and tax codes that provide opportunity to earn and keep wealth, and our regulatory systems are revised, that not a single social issue will ultimately matter. Not gay marriage, not abortion, not having unicorn painting classes in school, nothing…because there are going to be far more people jobless, homeless and helpless and even more dependent upon the government which did that to them and that will create far more difficult problems than we have right now.
Done.
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