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George Rebane
The 26mar11 WSJ has a comprehensive analysis for states’ policies that emphasize the socialist ideal of redistribution – just tax the rich. Combine that with the other side of their coin of wisdom – buy votes through the unions – and you have the perfect storm in which the country is now writhing. We are indeed idiots for voting these people into office. The figure below is abstracted from the WSJ article ‘The Price of Taxing the Rich’.
Interesting to ponder what would happen if the top 1% in California formed a Union. e.g. The Industrious Peoples of America. Perhaps the forthcoming movie “Atlas Shrugged” will be inspirational.
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Unfortunately, the income tax doesn’t tax the rich based on the wealth they have, it taxes folks who are gaining wealth. The truly wealthy clip coupons and shuffle assets around to avoid showing income. Many have perks their company provides, so they can fly the corporate jet for a heavily subsidized 9 holes or a night out rather than buy a ticket or hire their own airplane.
Personally, I’d like to see the corporation income tax eliminated. Remove the tax code consequences from business decisions. Let corporate earnings be taxed at the rate appropriate to the shareholders when it is paid, which might be nothing for a 401K holding and the widow McGillicuddy (and her five kids), and the top rate for the CEO holding a few hundred thousand shares or more.
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Great concept JohnG; maybe something such as that would really come of it.
Greg, I fully agree. I am not in favor of asset taxes per se – the property tax already rankles me, but I’m not smart enough to propose a reasonable alternative. However, as the these pages show, I have long taught that corporations in effect pay no taxes. The taxes they are charged is just 1) a double taxation on their clients/customers, and 2) creates endless opportunities for mischief and gaming the system.
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that is an excellent point George, never thought of the double taxation angle
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And the I.R.S./franchise tax board Laffer Curves all the way to the bank…I mean treasury.
“We are indeed idiots for voting these people into office.” “WE” don’t have a voice. The moochers will continue to vote themselves free lunches (paid for by the enslaved producers).
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To the point about idiots, it seems the educational system deserves most of the blame, followed by parents whose lack of oversight has allowed their offspring to be stupified.
I like Greg’s thoughts…kind of like taxing all corporations like partnership.
Regardless, based on George’s post, 45% of California’s tax revenues is provided by 1% of the tax payers. Whether it be those gaining wealth (producers), or those who have already acquired wealth, the ratio is still inbalanced.
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