Posted in Big Government, Class warfare, Economics, Fiscal Policy, Higher Taxes, Jurisdictional Competition, Laffer Curve, Migration, States, Supply-side economics, Tax Competition, Tax Increase, Taxation, tagged Class warfare, Higher Taxes, Jurisdictional Competition, Laffer Curve, Oregon, Soak the Rich, States, Tax Competition, Tax Increases on December 21, 2010 |
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The Oregon Ducks will compete for the national championship early next month, so they’ve had a good season. Unfortunately, Oregon’s government isn’t doing nearly so well. Politicians approved a big tax hike on those bad, evil rich people in 2009, and Oregon’s spite-filled voters approved that measure earlier this year.
So how’s is Oregon’s class-warfare approach working? Not surprisingly, the politics of hate and envy is generating poor results. Revenues are much lower than forecast, as anyone with a rudimentary understanding of the Laffer Curve could have explained. The most noteworthy result is that about one-fourth of rich taxpayers have disappeared. Does the name John Galt ring a bell?
None of this should be a surprise. Maryland politicians tried to rape rich taxpayers a couple of years ago and they also crashed on the Laffer Curve.
As the Wall Street Journal opines, Oregon politicians are getting just what they deserve.
In 2009 the state legislature raised the tax rate to 10.8% on joint-filer income of between $250,000 and $500,000, and to 11% on income above $500,000. Only New York City’s rate is higher. Oregon’s liberal voters ratified the tax increase on individuals and another on businesses in January of this year, no doubt feeling good about their “shared sacrifice.” Congratulations. Instead of $180 million collected last year from the new tax, the state received $130 million. The Eugene Register-Guard newspaper reports that after the tax was raised “income tax and other revenue collections began plunging so steeply that any gains from the two measures seemed trivial.” One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did. Funny how that always happens. …The tax wasn’t enacted into law until June 2009 but was retroactively applied to January 1, 2009. So for the first half of the year wealthy Oregon residents weren’t able to take steps to avoid the tax ambush because they didn’t see it coming. This suggests that a bigger revenue loss from tax mitigation strategies will show up on tax return data in 2010 and 2011. …All of this is an instant replay of what happened in Maryland in 2008 when the legislature in Annapolis instituted a millionaire tax. There roughly one-third of the state’s millionaire households vanished from the tax rolls after rates went up. If Salem officials want to find where the millionaires went, they might start the search in Texas, the state that leads the nation in job creation—and has a top income and capital gains tax rate 11 percentage points lower than Oregon’s.
Welcome Instapundit readers. Your comments are greatly appreciated, particularly your real-world stories from your respective states.
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Posted in 2nd Amendment, Chris Christie, Constitution, Gun control, New Jersey, tagged Chris Christie, Constitution, Gun control, New Jersey, Second Amendment on December 21, 2010 |
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While I think of myself as being in favor of harsh punishment for criminals, I try to restrain this bloodthirsty impulse by remembering that many laws are unjust, all governments are incompetent, and prosecutors often place personal ambition above justice.
And the last point is why I worry about electing people like Rudy Giuliani to high office. There were several reasons why I wasn’t a big fan of the former New York City Mayor, but high on the list was his apparent disregard for the rights of the individual. And I suspect most people who served as prosecutors/district attorneys/U.S. attorneys/etc have a what-could-possibly-go-wrong attitude about proposals to expand the power of government.
With this in mind, I was happy to read that Governor Christie of New Jersey (a former U.S. attorney) has freed a man who was unjustly convicted and imprisoned for a gun offense. My happiness is tempered by the fact that he commuted the sentence of Brian Aitken rather than pardoning him, which is why the governor gets two cheers rather than three.
The important news, though, is that an injustice has been addressed and Aitken is now a free man. Here’s a blurb from a Fox News report.
A man given seven years in prison after being found with two guns he purchased legally in Colorado has had his sentence commuted, New Jersey Gov. Chris Christie announced Monday. The case of Brian Aitken, 27, had become a cause célèbre among gun-rights advocates. …Aitken had purchased the guns legally in Colorado, and he passed an FBI background check when he bought them, according to his father, Larry Aitken. Brian also contacted New Jersey State Police before moving back back to the Garden State to discuss how to properly transport his weapons. But despite those good-faith efforts, Larry Aitken said, Brian was convicted on weapons charges and sent to prison in August. Judge James Morley would not allow the argument in trial earlier this year and Christie later declined to reappoint the judge due to an unrelated case.
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Posted in Big Government, Death Tax, Debt, Deficit, Economics, Fiscal Policy, Government Spending, Higher Taxes, Laffer Curve, News Appearance, Obama, Tax Increase, Taxation, tagged Death Tax, Deficits, Government Spending, News Appearance, Obama, Taxation on December 21, 2010 |
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Appearing on Bloomberg TV, I pontificate about the good, the bad, and the ugly in the recent tax deal. I also make what I hope are good points about the Laffer Curve and the meaning of deficits.
The video won’t embed, but just click below and you can watch it on youtube. As always, feedback is welcome.
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