Soak the rich lose the rich

[ALS]

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.


Chad Crowe
.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.

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.



Full Story online.wsj.com/opinion

[adymond]

That's why they need Directive 10-289.

[GHogHarvester]

You can tax them 100%, it still will not be enough to undo a $20,000,000,000,000 public debt. Opps, sorry, congressional accounting, add another $54,000,000,000,000 for unfunded medicare. Yes, average Joe, you are next...

[GuyMontag]

Who is John Galt?

[ksig1869]

Who is John Galt?

We'll soon be seeing our captains of industry and great minds disappear from the face of society as a means of punishing mankind for their irrationality and their obstruction of free thinking.

nice Rand reference, that was a phenomenal novel. Miss Rand visualized the consequences of a government that abhors free thinkers and instead encourages mediocracy.

[Dannytheman]

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.


Chad Crowe
.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.

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.



Full Story online.wsj.com/opinion

I know many people who happily lived in NY City, have escaped for the Florida and Arizona Home locations. Now understand these folks can own many homes, and only one can be claimed as primary residents. Don Trump might even fly out of NY as a resident, if the Mayor and Governor get there pound of Tax flesh!! Technology now allows for Virtual working.

I think the rich will always have the money to avoid additional taxes. It's the Upper Middle class and SMALL business owners that get no Vaseline with this screwing.

[original gunner]

Income tax doesn't accurately reflect taxation; there are credits and write offs and all sorts of complex tax code to hide money in that the average joe doesn't know about or have enough invested to take advantage of.

[BSH]

New York does not have a shortage of income - their taxes are already quite high. What they lack is responsible spending, due to NYC. Ditto Illinois & Chicago.

[Morel42]

Some good points, alot of valid ones. But there are alot of other factors too..

I'd laugh my ass off if I saw someone move to NH from PA because they have a 1% lower income tax.. Once you factor in cost of living, moving expenses, sales tax, and a great other many things the numbers get alot more complex.

Of course CA is an abomonation of Left Wing ideal's taken to extremes. CA is liberal Idea's like Texas is to Right wing Idea's.

When you take any philosphy to it's extreme end, it stops working.

Common sense taxes, enviromental controls, business regulation, with measured and fair criminal codes.. Protect what needs protecting, regulatate what needs to be regulated, but do nothing so much that it prevents the system from functioning.

It's not so friggin hard, but you have lobbyists and extreme groups wanting to essensially destroy the other sides viewpoints. Even if those groups have valid ideas and reasons.

It's all getting really sickening.

[adymond]

Some good points, alot of valid ones. But there are alot of other factors too..

I'd laugh my ass off if I saw someone move to NH from PA because they have a 1% lower income tax.. Once you factor in cost of living, moving expenses, sales tax, and a great other many things the numbers get alot more complex.

Of course CA is an abomonation of Left Wing ideal's taken to extremes. CA is liberal Idea's like Texas is to Right wing Idea's.

When you take any philosphy to it's extreme end, it stops working.

Common sense taxes, enviromental controls, business regulation, with measured and fair criminal codes.. Protect what needs protecting, regulatate what needs to be regulated, but do nothing so much that it prevents the system from functioning.

It's not so friggin hard, but you have lobbyists and extreme groups wanting to essensially destroy the other sides viewpoints. Even if those groups have valid ideas and reasons.

It's all getting really sickening.

I don't know if Texas is really a Right Wing version of CA. Texas is booming with industry right now. I heard that in the last year Texas has created more jobs than all other 49 states combined. I think the point I would make is that following the lead of states like Texas with no or very low income tax and a similarly low business tax spurs economic growth. While high taxes on both the individual and businesses drives individuals and business to other locations.

I don't think it's so much business or people moving from PA to NH as it is them moving from NJ, NY, IL, CA to places like TX, NH, UT, and MT.