NY's Proposed Millionaire Tax Increase and Why it's a Horrible Idea

[David Atlee]

Well, it seems as though the political leaders in NY really hate their state. They are trying their hardest to drive out anyone who is successful. What am I talking about? Assembly Speaker Sheldon Silver has just recently proposed another increase in the “millionaire’s tax” from 8.97% to 9.97% which is an 11% increase. According to the NY Post, the top 1% of wage earners in that state pay for 36% of all state taxes. Remember that these people will also be paying just under 40% in federal income taxes when Obama allows Bush’s tax cuts to expire. We already know that successful people aren’t stupid. If they were, they wouldn’t be successful. So, if this gimmick gets passed and their taxes increase, these business owners and employers will simply pack up their bags and head for greener pasteurs.

Maryland, another liberal cancer state, tried this same tactic not too long ago. They were having budget problems due to the recession and huge government entitlements. So.. instead of doing the normal thing people do when budgets get tight (slow down spending), they went after the business owners for more tax revenue! Liberals love soaking the rich in taxes because liberals love class warfare. From a political standpoint, it’s not a bad idea. Steal from the minority (rich) and give everyone else the fruits of the successful’s labor in the form of government entitlements. You’ll always have votes! But back to Maryland. What do you think happened when the tax on the wealthy increased? According to the Wall Street Journal, nearly a third of those people fled the state within one year! Yes, some of those numbers can be attributed to people no longer making over a million due to the economy. But that just brings up another point. Why on earth would you put a choke hold on the only people who can get the private sector moving again? It’s insanity. It’s liberalism.

All of the stuff mentioned above brings me to my next point. And that point is common sense. I had a friend the other day, who is a big time liberal, try to counter a few points I had made regarding the Arizona immigration law (it could have been something else, but since I’ve talked about Arizona so much, it’s a best guess). So, what was this liberal’s rebuttal? “Stop being so ignorant and using Rush Limbaugh talking points”. Well, there you have it! A monumental rebuttal indeed good sir. There is no way I can possibly counter that. “Well, I think that when you listen to Rush Limbaugh or Glenn Beck, it’s pretty apparent, and it’s troublesome..” Where did that quote come from? The teleprompter in chief, Barack Obama. So, I guess he only uses Obama talking points to counter my argument? But this is not just related to him. Most liberals I talk to do the exact same thing. They claim “David, you’re just being ignorant” and that is the end of it. Why am I being ignorant? Do explain please, I’d love to know.

Here is what is ignorant: believing that big government and class warfare can bring economic harmony. Japan proved beyond a shadow of a doubt that the Keynesian economic model, which liberals have wet dreams about, is a scam in the true sense of the word. The Keynesian model believes that activities in the private sector bring about unwanted macroeconomic outcomes and therefore the government must intervene. Also, Keynesian theory implies that saving is a bad thing, spending is great. Which is why the Keynesian Multiplier is “a ten-billion-dollar increase in government spending could cause total output to rise by fifteen billion dollars (a multiplier of 1.5)”. So what did Japan do? In the 90s, Japan experienced a horrible recession in which they tried spending their way out of. Multiple stimulus bills totaling in the 100 Trillion Yen range, that is. Yet, nothing good happened. The recession only got worse and lasted longer because the increase in government spending sucked dry all of the money in the private sector.

Liberals refuse to recognize this fact. In order for the government to spend money, it must take the money from someone first in taxes because the government does not, in fact, make money. They believe that if you just keep taxing the rich, “because they need to pay their fare share”, then everything will turn out hunky-dory and we will all live happy lives skipping down a yellow brick road with the wizard of Oz. Well, there is a breaking point in everything. You’ve seen it in states such as California, New York, and New Jersey. You’ve seen it in countries such as Argentina, Greece, Iceland and Spain. What are the common denominators in all of these places? They are huge welfare states. And because of being a welfare state, they are all economically dead. The majority of the resources needed by the successful people in these areas to create jobs and wealth for other citizens has been taken away by the hand of big brother in order to provide for “the less fortunate”.

The funny thing is that most of the countries around the world view American Capitalism as evil and unjust. Yet, who has had the highest standard of living over the last century? Who has the worlds largest economy in the world? Where else can you be considered “poor” and still own your own home complete with multiple TVs and 2 cars? Damn that capitalism! “It’s an evil dog-eat-dog society” is what we here a lot from these socialist European states. Well, indeed it is. The original intent of American Capitalism, which sadly has drifted far away over the years, was that you are responsible for yourself. If you stay dirt poor all through your adult life, it is your own fault and nobody elses. If you want a comfortable lifestyle and financial stability, you must work your butt off and not make excuses. It is that forced drive of competition that created the most successful companies in the world such as Wal-Mart, Google, Microsoft, Apple… you get the picture. And Obama wants to get rid of the greatest, most successful form of government ever created by man? Utter absurdity! If only the Founding Fathers could see where we’ve come as of late.

But there is good news in all of this. Obama’s poll numbers are still dropping. The latest Rasmussen poll shows that only 26% of Americans strongly approve of Obama’s job performance while 42% strongly disapprove. This means that Obama’s extreme liberalism is failing. American’s don’t want it. American’s in their conscience understand what makes this country different from others. We believe in personal responsibility. And the citizens of this great country are recognizing that Obama believes it is the role of government to baby its citizens. Republicans were kicked out in 2006 because they acted in favor of big government. Democrats are on the verge of a massacre at the polls this November for the very same thing. We can only hope that is the case.

[David Atlee]

That definitely paints a great picture Debbie. We are hanging on the edge of the cliff regarding inflation. So much money has been printed and borrowed in an attempt to bring about an economic recovery. Let's just hope that the people in charge of monetary policy can turn off the spicket before it's too late. I've got some of the links I mentioned in the post above posted on my website at http://theatleeappeal.com/

[Debbie G]

I can back up your Japan example with first hand experience! I lived in Japan throughout the 90"s and if it were not for cost of living adjustments it would have been impossible to make ends meet. Our family of 4 lived in a 900 sq ft home with a "driveway" and it was considered lavish. Each room has it's own heater, we only heated two rooms at a time and our monthly electricity bill averaged $300. Our gas bill for cooking and heating water was ~$100 a month. Rent for this home was $3000 a month. A trip to the local grocery store, $5.00 for an apple, $8.00 for a pint of strawberries, $30-50.00 for a watermelon, $5. for a 3oz package of cream cheese, $5.00 @lb for ground beef (not the lean type), $6.00 for two liters of milk (half gallon), along with a multitude of other examples. Gas when I left in 2003 was ~$8.00 a gallon. Tolls to get from Tokyo to Narita airport were more than $60.00 one way. Most families must live in a "multi-generational" circumstance just to afford a home. I hope this paints a better picture of where the U.S. is headed.