Productive Americans, and Jobs, are Fleeing High Taxes

First, here is a note about the London terror attack. After the attack there was a photo on the internet which showed the suspect with a dark Salafi Muslim beard (no mustache. Salafis are ultra-conservative) and hair, and a Middle Eastern-looking face.

But lo and behold, the Daily Mirror newspaper said that the suspect had “an Asian appearance”. Many news reports also called it a “terrorist incident” rather than an “attack”.

In other words the liberals will never realistically describe terrorism since they are allies to the terrorists, as all leftists are. Now here is today’s commentary:

Look at this from the New York Daily News:

Some of the wealthiest New Yorkers are asking the state to raise their taxes. Eighty people including George Soros, Steven Rockefeller and Abigail Disney wrote to lawmakers and Democratic Gov. Andrew Cuomo saying they and other top earners should pay more to support schools, roads, bridges and programs to help poor and homeless residents of the state.

“Now is the time to invest in the long-term economic viability of New York,” the letter reads. “We need to invest in pathways out of poverty and up the economic ladder for all of our fellow citizens, including strong public education from pre-K to college. And, we need to invest in the fragile bridges, tunnels, waterlines, public buildings, and roads that we all depend on.”

The letter… endorses a plan that would create new, higher income tax brackets for top earners to raise a projected $2 billion.

OK, so what is wrong with this?

Well, notice that the three people who are advocating this deal are all very dubious characters. Abigail Disney and Steven Rockefeller are left-wingers who inherited their money from wealthy families, so they would have a skewed vision of how an economy should be managed to serve all of the people. Wealthy inheritors are usually liberal. They are shamed into it by the media and by their friends.

George Soros is one of the most devious figures in the world today. He is a far-left political extremist and an international currency speculator, on which he has built a $25 billion fortune. For thousands of years political thinkers have deemed speculation an illegitimate means of accumulating wealth. Even George Washington did so.

So you would expect these three people to have a distorted vision of economic reality. In fact New York City and state already have some of the highest taxes in America on wealthy people and on property, while the state has a bloated budget of more than $150 billion annually.

Yet all of this spending and taxing have not produced happiness for everyone. The opposite has happened. High taxes are driving people and jobs away, while bottomless government corruption and greed, for which New York state is notorious, have created an angry welfare state and an insatiable demand for more and more tax money. Look at this from the New York Post in Autumn 2016:

Taxpaying New Yorkers are leaving in droves for other states, according to a new study. In 2014, 126,000 New York tax filers fled to other places in the United States — more than from any other state, according to the study posted on by two demographers.

The Empire State also lost the most “high earners,” who reported incomes of more than $200,000 a year.

“New York has been leading the nation in domestic migration for decades,” Wendell Cox, who co-authored the study, told the Albany Times Union. …The Sun Belt states of Texas, Florida and South Carolina took in the most domestic migrants from other states.

These economic migrants are taking their wealth with them. Rush Limbaugh famously did so; he moved to Florida after New York City harassed him for years over every detail of his tax status, which he discussed on several occasions on his radio program.

Florida does no such thing. Florida is pro-business. Its governor and both houses of its state legislature are Republican. Florida does not have socialist goblins breathing down every resident’s neck every minute. That is why Florida’s economy is booming. Millions of productive Americans are fleeing to low-tax states like Florida, Texas and North Carolina.

New York state even has a whopping 8.25% statewide sales tax. This hammers every single person in the state who spends money – rich, poor, middle class. No wonder New York has lost more than 1 million younger, skilled and educated residents along with hundreds of thousands of jobs over the last 20 years. These productive people are fed up, leaving behind a poorer, sicker and older population, which compounds the state’s problems.

This all happens because socialist actors like labor unions, taxers, regulators, environmentalists, bureaucrats, welfare staters, crooked politicians and the like come along wherever there is wealth and steal as much of the money as they can, and then want more and more. It becomes an addiction. Today New York state has growing poverty and income inequality while it was the economic center of the universe for 200 years. Reported the New York Post on March 2, 2014:

As (former New York City mayor) Bloomberg often noted, about 5,000 very wealthy families paid 30 percent of the city’s income tax. Losing even a few of them means significantly less money for filling potholes and hiring cops.

Billions in philanthropy support the arts, ranging from local dance groups to the flagship institutions that define New York as a world-class city. Nearly half of the Metropolitan Opera’s operating fund comes from donations, which last year reached $143 million.

Thus a sensible person would seek not to penalize rich people but to accommodate them like Florida does.

In Connecticut General Electric closed it global headquarters in Fairfield after Democrats in the state legislature slapped the company with a huge tax increase. GE moved to Boston, Massachusetts after the Republican governor there offered them a nice tax incentive, contrary to what Democrats have been doing for the last 50 years, i.e, treating business like a piggy bank. Massachusetts even has lower personal income tax rates than Connecticut for the 800 GE executives who are moving.

There is an old adage about money that “capital goes where it is well treated.” And if states or nations treat capital badly, like overtaxing it, that money goes somewhere else. This is why so much of the American economy is migrating to the low-tax Southern states.

Here’s another example: In 1990 the federal government imposed a special luxury tax on yachts. This was intended to get more money for the government while forcing wealthy people to pay their “fair share” in taxes.

Did this cause revenues to the government from yacht sales to spike upward?

Nope. The opposite happened. Rich people stopped buying yachts and the yacht-building industry lost thousands of jobs. Tax revenue to the government from yacht sales actually fell.

On the other hand president Ronald Reagan lowered taxes on top earners by 60% which the average liberal would insist would certainly reduce revenues to the government by 60%. But the reduction caused a huge spike in economic activity that increased revenues to the government by 91%.

Another example: The Roaring 1920s was a decade of unprecedented economic growth after Treasury secretary Andrew Mellon cut the top tax rate on wealthy Americans from 63% to 25% under instructions from Republican president Calvin Coolidge.

Throughout history we have seen the same story over and over: The heavier the taxes, the worse the economy performs. Period. End of story. It is proven again and again.

The United States currently has the highest corporate tax rate in the world at 35%. This is causing companies to flee our shores, particularly in the last few years. This is why president Trump wants a lower rate, perhaps 15%. This will bring trillions of dollars back to our shores.

In tax-crazy California a company called Intel – the firm that is called the “grandfather” of the Silicon Valley computer industry – has not created any jobs inside California since the year 2000 but is expanding in Oregon, Utah and Arizona. Other companies like Toyota and Nestle have recently fled California because of its high-tax policies. It has been reported that 1,700 companies have fled California in the last decade after more than century in which California was an economic magnet.

So what does it mean when those rich trust-fund-babies in New York like Rockefeller and Disney demand that taxes on wealthy New Yorkers be increased even more from their already astronomical rates?

It means that these people really have a hard-left political agenda and do not want to do what should prudently be done, which is to cut the state’s outrageous and wasteful spending, and lower tax rates so as to stimulate business and wealth and keep it, not chase it away.

New York state is floundering economically, yet Democrat governor Andrew Cuomo has recently been touting a big new government project that he is very proud of – a hiking trail that criss-crosses the state so that his “greenie” supporters can have fun while millions suffer without jobs or hope. Cuomo also recently touted this new law reported by the Daily News:

Gov. Cuomo on Monday signed legislation making it legal for the cremated remains of pets to be interred with their owners at any of the approximately 1,900 not-for-profit cemeteries regulated by the state — so long as the cemetery goes along with it.

“For many New Yorkers, their pets are members of the family,” Cuomo said. “This legislation will roll back this unnecessary regulation and give cemeteries the option to honor the last wishes of pet lovers across New York.”

Wow! What a forward-looking state! That will bring the jobs and productive young people back! Watch out Texas! Here comes New York state, cremated pets and all!

And by the way, Cuomo and his Democrat friends are blocking ‘fracking’ for natural gas in New York state. Yet it is low energy prices from ‘fracking’ in other states that are helping the New York economy to survive. This is classic socialism – you do the work and I’ll take the benefits.

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