Tag Archives: tax rates

Logic Takes A Vacation

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Breitbart posted an article today about the State of New York’s $2.3 billion budget shortfall. Governor Cuomo is blaming the Trump tax bill for the shortfall.

The article explains the logic:

According to Cuomo, it was Trump’s tax cut that caused “many of the state’s richest residents — who pay 46 percent of the state’s income tax — to either change their primary residence or leave New York entirely.”

…What Trump’s tax reform did was to restore fairness to the tax code, was to put an end to the injustice of all Americans — including those in the middle class — paying for the sky high tax rates in states like New York.

You see, before Trump reformed the tax code, all Americans were subsidizing the rich.

It used to be that you could write off every penny of your state income tax on your federal income tax. Trump put an end to this outrage. Here’s how it works…

In the state of New York, if you earn over $1.078 million per year, you pay an income tax to the state of almost nine percent.

In other words,  using round numbers, a New York resident who earns $10 million owes the state of New York close to $900,000 in income taxes. But…

Democrat-run states like New York knew that their rich residents would not feel the sting of that $900,000 tax bill because that $900,000 could be written off of their federal tax bill.

Basically, this was a sleazy way for Blue States to steal money from federal taxpayers, to make all of us pay for their grotesque tax rates. These Democrat-run states not only got all of this tax money, they also avoided getting voted out of office for over-taxing because the federal write-off removed most of the sting for the wealthy taxpayer.

Thankfully, Trump’s tax bill put an end to this shell game. Whereas before there was no limit on the amount of state income tax you could write off on your federal taxes, now there is a $10,000 limit. This means that the poor sap gutted for $900,000 in income taxes by New York, now eats $890,000 of it, which is as it should be.

Hey, if you’re a rich guy who thinks your taxes are too high, instead of making middle class taxpayers subsidize your ass, maybe stop voting for Democrats? Just an idea.

For those who want the rich to pay more taxes, the Trump tax plan has accomplished exactly that in New York and some other states that have excessive taxes.

The article concludes:

The truth, though, is spelled out very well by economist Marty Cantor, who laid it out for a local news outlet.

“The problems here are caused by the governor and his administration,” he told News12, “It’s too expensive to live on Long Island and in New York state. Taxes are too high, people are leaving. It has nothing to do with Trump.”

Here’s the kicker: The $10,000 write-off limit did not go into effect until  2018. So how does Cuomo explain 2017’s $4.4 billion deficit? How did the Orange Bad Man create that one?

Crickets.

The Show Has Begun

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We are going to need a lot of popcorn to watch the show in Congress for the next two years.

Taken from an article at The Gateway Pundit posted today:

In the last 24 hours since taking control of the House of Representatives, Democrats have:

** Introduced articles of impeachment
** Called for the impeachment of “mother f*cker” Trump
** Scratched Israel off the map and replaced with Palestine
** Called for a 60%-70% tax rate
** Refused to fund a border security wall
** Worked one day and went on break until Tuesday

It gets even better:

Open Democrat-Socialist Rep. Alexandria “Sandy” Ocasio-Cortez called for a 60%-70% tax rate on Friday.

That was quick.

Ocasio-Cortez: “But once you get to the tippie tops, on your $10 millionth, sometimes you see tax rates as high as 60% or 70%. That doesn’t mean all $10 million are taxed at an extremely high rate. But it means that as you climb up this ladder, you should be contributing more… I think radicals changed this country. Abraham Lincoln made the radical decision to sign the Emancipation Proclomation. Franklin Delano Roosevelt made the radical decision to establish programs like social security. ”

Hold on to your wallet, there has been a change in Washington.

 

Going Against Conventional Wisdom

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Yesterday Breitbart posted an article about a recent study of which states are the wealthiest and which are the poorest. Then Breitbart compared those results with the voting records of the people in those states. The results were surprising.

The article reports:

Democrats paint themselves as the party looking out for the little guy and more interested than Republicans in representing the poor and their best interests.

But according to Ken Fisher, the founder and executive chairman of Fisher Investments, best-selling author and one of the richest men in the United States, a USA Today study released earlier this month that shows the economic profile of all 50 states, ranked by household income, reveals much more.

When Fisher read what he called “a breathtaking economic profile” of the states he found in it something that was “embedded” in it that reveals what he believes is “arguably the greatest unseen political truth of our time.”

This is the surprising correlation:

USA Today headlined its story reporting on its findings: “Wealth in America: Where are the richest and poorest states based on household income?”

But Fisher headlined his commentary about the study published in USA Today on Sunday: “Midterms: Poorest states have Republican legislatures, and richest have Democratic ones.”

“Fathom it, and you will see how politics may unexpectedly affect economics and wealth for years to come,” Fisher wrote.

The article points out that the five richest states have legislatures controlled by Democrats. He doesn’t mention that those states also have some of the highest tax rates in the country. Those states are Maryland, New Jersey, Hawaii, Massachusetts, and Connecticut.  According to an article at Wallet Hub, a website that ranks states according to tax rates, Maryland ranks 44th, New Jersey ranks 47th, Hawaii ranks 51st, Massachusetts ranks 45th, and Connecticut ranks 49th in the list of states with the lowest tax rates. Yes, I know there are not 51 states, but the District of Columbia was included in the list.

I guess you have to move to a state with a legislature controlled by Republicans if you want lower taxes.

Confusing Giving With Taking

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Investors.com posted an article yesterday which clearly shows a basic difference in philosophy between Governor Romney and President Obama. The article deals with the current debate over extending the tax rates put into place by President Bush about ten years ago. The Democrats are still fighting the battle to raise those taxes.

The article reports:

Speaking last Wednesday in New Orleans at a campaign event, Obama talked about “another trillion-dollar giveaway for millionaires” in reference to an extension of the Bush-era tax cuts.

A day later, White House spokesman Jay Carney did the same thing. He called the extension “another $1 trillion giveaway to the wealthiest Americans.”

What they are talking about is the House Republicans’ opposition to legislation approved in the Senate that would raise taxes on those earning more than $250,000 a year, a sum less than the president makes yet is somehow considered to be the mark of wealth.

ABC’s Jake Tapper questioned Jay Carney about the idea that tax-cuts are the same as giveaways:

ABC’s Jake Tapper wanted to know what he would “say to a small-business owner who says that’s not a giveaway, that’s my money, and by the way, I’m going to need some of that money in order to help pay the health care of individuals that I’m now mandated to do?”

Tapper further said, “It’s not giving anything away; it’s allowing me to keep my money.”

Needless to say, Jay Carney never directly answered the question.

The article concludes:

Americans should be deeply offended that anyone would categorize the act of keeping one’s own money as a giveaway. And they should be profoundly alarmed when policymakers and their aides hold that view because they can turn their beliefs into oppressive law.

Remember, government creates neither wealth nor jobs. It has to take everything that it owns, and that requires force — real or implied.

Obama was elected in 2008 on a platform of hope and change. The promises sounded good to many even if they were not defined.

Now those terms have taken shape — unmistakably and unsettlingly.

If a government that owns all is the change Obama promised in 2008, and it becomes the dominant governing philosophy of this country, then there’s not much hope left.

That pretty much says it all.

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