Posts Tagged ‘taxes’

Today on twitter I saw this rather amusing video from Stephen Moore who covered a press conference of “patriotic millionaires” who joined Democrats in pushing for a 90% tax on those they called the “super rich”.

Their hesitation to do so without the official approval of the state suggests that it’s time for the federal government to import another idea from Massachusetts, one that is much better than turning “RomneyCare” into Obamacare?

Around 20 years ago Democrats in Massachusetts were pushing for a higher tax rate and we saw a bunch of very rich leftists doing what was being done in the video above, namely asking for their taxes to be raised, Barbara Anderson and Citizens for Limited Taxation made a sarcastic suggestion that they state offer an optional higher tax rate to those who wanted to pay more:

“We were just being sarcastic,” she says. “The next thing we knew, the legislature seemed to find our sarcasm relevant and so they passed the idea we had.”

In 2002, tax politics were serious in Massachusetts. Voters had passed a sharp decrease in the income tax rate, and lawmakers decided to slow that down. In that same year, they also passed the optional tax rate — a way to contribute just a little more to the state’s general fund.

Since that time Residents of the state have had the option to pay a 5.85% tax rate if they so choose and every year about 2000 people in the state make that choice, but that doesn’t include at least one pro-tax person you’ve heard of:

Elizabeth Warren wants to raise taxes if she’s elected president, but usually hasn’t chosen to pay more herself.

Massachusetts state income tax forms allow taxpayers to pay a higher rate to help out the state government. But according to tax returns posted on Warren’s presidential campaign web site, she didn’t do so at least nine years in a row.

I think it’s time that this law is passed federally but on a grander scale.

If I’m Kevin McCarthy as part of his debt ceiling deal I’d offer the Biden Administration the chance to include an optional tax rates in the tax code so that those millionaires who want a max rate of 90% can just check a box on their taxes and Viola their federal rate will be 90%.

In fact McCarthy could make it even fairer, he could add 3 optional rates, a 90% rate to satisfy those “ultra rich” and 75% rate for those who think 90% is too high and an economy sized 50% rate for the folks who are rich, but aren’t wealthy enough to be classified as “ultra rich”.

Hey if 2000 people in a small state like Massachusetts voluntarily choose a higher tax rate surely they’ll be able to find 100,000 people in a country of over 330 million willing to pay those higher tax rates. It could be the ultimate virtue signal for the super rich. Heck the Bidens could invite those folks to the White House and honor them for making that sacrifice to help their country and democrats can cite them as heroes of the revolution republic.

C’mon Kevin, let’s give these rich leftists a chance to put their money where their mouth is, literally.

42 years later, California’s Proposition 13 continues to inspire attempt after attempt to kill it. This Election Day – er, Election Season – is no different. Passed in 1978 – back when the aerospace and oil industries were still vibrant enough to pepper the state with conservatives – the law allows property tax rates to be increased only upon a sale of the property and limits any increase to a 2% rate of inflation. Nothing a politician hates more than limits on taxation. Since ’78, progressives have thrown more propositions, lawsuits, and legislation at the hated law, and despite California’s voters electing bluer and bluer representatives, they still somehow continue to protect lower property taxes. There’s something about voting on actual legislation, with its provisions in black-and-white, rather than voting for personalities, that sobers the voters’ minds. Propositions cannot hide so easily behind a flashy smile or perfectly-creased pants.

It’s easy to imagine these tax-loving cretins in their Sacramento offices, watching with envy as property values throughout the state sprout ever higher. The Federal Housing Price Index shows that the House Price Index for California has risen almost 700% since 1979. This drives the politicians crazy, that in the wake of these gains, their hands remain cuffed, unable to pick the pockets of its citizens. Progressive dreams of income redistribution, even in the navy-blue Golden State, remain at least somewhat limited.

The latest attempt to undo Prop 13 is Prop 15. Prop 15 promises to raise property taxes by setting the tax rate at the market rate. But, knowing California voters’ reluctance to mess with Prop 13, the authors of 15 have limited its effects to only commercial properties. They presumably suspect the progressive voters here may not mind raising taxes on capitalist endeavors, so long as their own homes are left out of it. One can only marvel that California may pass yet another anti-business law, even as business flee the already-stratospheric taxes and cost-of-living.

A survey of California likely voters released ten days ago reveals 49% favor Prop 15, while 45% oppose it.

Don’t be surprised to see more moving trucks headed for parts east come 2021. And as the businesses flee, the Sacramento tax coffers will fall, and the politicians will look for where else they can raise tax rates. Why do I suspect those eyes will fall upon residential properties?

One effect of California’s feeble educational system: the local politicians educated in it never learn. Tuesday will tell if the voters have.

Tomorrow on the feast of the Archangels Michael, Raphael and Gabriel I’ll be on Fault Lines Radio talking the NYT tax story.

Oh full disclose, I’ll be on Fault Lines Radio making fun of the NYT Trump Tax story & those pushing it and making this point:

Oh and don’t miss this week’s live stream podcast tentatively at 3 PM unless the horrible Trump economy makes me work another Friday.

Hope to catch you there.

Today I begin my first day as a regular blogger at The Minority Report.

I will generally be blogging on Business and Tech issues but you may see the occasional interview online as well.

Today’s post Killing the small business in the cradle is on small businessmen and the effect of a new law in Illinois on their well-being:

As regular readers of my blog know, I spend a lot of time going door to door talking to business people in order to sell ads for my radio show (DaTechGuy on DaRadio Saturday Mornings 10 a.m. on WCRN AM 830 BTW).

With the economy in trouble nationwide and jobs scarce to come by, many people (including me) have decided to go into business for themselves. Just yesterday I met a lady at a cleaners shop in Acton who is painting silk scarfs as a new business while she looks for other work.

Small Entrepreneurs usually have it tough. One or two person operations put in an inordinate amount of labor to make a small amount of money (if any). In addition they have to follow all the governmental rules that are put before them as they attempt to get started….

click below to continue or click here to read it at The Minority Report.