Anyone that has even the most minimal understanding of economics knows that taxing an activity (or overburdening that activity with regulation) results in less of that activity. For example, over-taxing and over-regulating our manufacturing industries have caused them to largely go overseas - along with millions of our jobs. This is not only BASIC economics, but it is also common sense.
Apparently, the state of Maryland didn’t get the memo and decided that it would be wise to “tax the rich”. So, they instituted higher taxes on the rich with the stated intention of raising an additional $106 Million. Guess what happened - the number of rich taxpayers decreased as the rich left Maryland and instead of an additional $106 Million in taxes being generated, tax receipts DECREASED by $257 Million. Maybe there’s a lesson here that the socialists in Washington D.C. could learn!
Here’s the article:
http://online.wsj.com/article/SB10001424052748703976804575114241782001262.html?mod=WSJ_newsreel_opinion
We had something similar happen in one town in Oregon.
They needed money for the schools and decided to get it by adding a new tax on business.
Well, what do you know. It’s pretty easy to move out of the city limits. So businesses simply left, causing tax revenues to go down; not only business taxes, but personal taxes, because many jobs were lost.
Same as the individual cities who imposed a city gas tax. People just drive outside the city limits to fill up, driving the gas stations inside the city out of business and costing jobs.
Exactly right.If it does’nt work on a small scale,it won’t work on a gigantic scale.SOme people point to other nations where these entitlements work.Well are they taxed as much as america??What’s their population compared to america??Do they have a fraction of the worhtless able-bodied freeloaders america has??When exactly hac the govt. ever stuck to a budget?
Simple questions that won’t get answered,as usual.
You are right with your statement about taxing activities except manufacturing did not go overseas because of high taxes and regulations it was high costs.
I will put a plant anywhere I can make a profit. That is hwy there are still companies in Venezuela where they are subject to the government nationalizing their operations (talk about excessive regulations)
Dear President Obama,
Thank you for helping my neighbors with their mortgage payments. You know, the ones down the street who, in the good times, refinanced their house several times and bought SUV’s, ATV’s, RV"s, a pool, a big screen TV, two Wave Runners and a Harley. I was wondering, since I am paying my mortgage and theirs, could you arrange for me to borrow the Harley now and then?
P.S. They also need help with their credit cards; when do you want me to start making those payments?
P.P.S. I almost forgot - they didn’t file their income tax return this year. Should I go ahead and file for them or will you be appointing them to cabinet posts?
Here is another area where I will agree with Mike…
http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1
50% of household pay NO federal Income tax.
40% make money from the government
The top 10% of wage earners ( the rich ) already pay 73% of the federal taxes.
Come on now, I don’t think the wealthy are doing their share. Why shouldn’t the rest of us get the money they earn.
DB