Monday, May 12, 2014

High Taxes *DO* Fix Income Inequality!

http://blog.heritage.org/2014/05/11/american-companies-escaping-europe/?utm_source=facebook&utm_medium=social

I DO believe that high taxes "work"!

"Tax what you want less of, subsidize what you want more of" is as true as the computer maxim "garbage in, garbage out", or the standard that we need to remember relative to the deficit and all forms of bubbles; "If something can't go on forever, it won't".  Reality still works, we just need to be SURE that we really want it to work!

The US has the highest corporate taxes in the world. If you follow the link it will take you to the very liberal "Poltifact" that is forced to admit it IS a true statement for CORPORATE taxes even though they try their best to soften the statement some by bringing other taxes. Guess what? If you are a CORPORATION, deciding to exit the country with the HIGHEST taxes on your INCOME is pretty much a no-brainer!
I know it is evil from the "liberal" perspective, but corporations are actually "in it for profit"!

The US is losing jobs, companies and high earners. I love the comment from the linked NPR article ... "This was not a gradual change. It was a sudden spike. It's a story of dominoes falling, one after another, leading to an unexpected outcome." Well, "unexpected" in their universe, where cause and effect relative to taxes was declared "repealed" ... right along with the thought that mortgages could be handed out with "affirmative action" and there would never be a housing bubble, we can keep running high deficits forever, etc. ... There tends to be a BIG difference between declaring reality to be repealed and it actually going away! 

The is a lot of "unexpected" in the NPR universe! Not a surprise to me or readers of the blog, I reported on it last year at this time as well. Last year there was some old data for 2010 that indicated 1,500 folks, last year it looks like maybe 3K ... and on it will go. The old blog reports on some conjecture that given the fact of income inequality, it doesn't take many to have a LARGE difference. Sorta like shooting the top 5 QBs in the NFL would really lower the level of QB play. (hopefully Vikings fans will not get any ideas! ... one has to be a bit worried about the mental faculties of folks that wear horn hats and goldilocks!)

Oh, and the US is well in the way to making "Income Inequality" here the equivalent of wanting to climb Everest ... all the way up you have to carry higher and higher tax rates, and as you near the top, there is every sign that they are going to try to kill you! Oh sure, if you are a TP member, you may get some grace, but unless you inherited it, or really lucked into it, a lot of the folks oriented toward taking the risks and doing the work of getting to high income are just not inclined to bow and scrape to the likes of BO and to live in fear of losing everything ala a Sterling if they happen to have one too many and say the "wrong thing"!  (as defined by the PC police on a given day). 

We are actually WELL down the road of "fixing income inequality"! You are in the TOP 10% if your income is $115K today! Lots of calculations show that a single mother of 3 on 100% government dole in most states would need to make $70K in order to improve her "effective income"!  Why that is LESS than **2X**!!!  2x is a crappy $23K Honda Gold Wing vs $46K Harley CVO!! Sure, there are guys like Leno out there than can have every bike and car ever made, but is that REALLY bothering you??? That is 1%, you don't even have to SEE them if you don't want to. Plus, 90% of us are already separated by LESS than somebody making twice as much as you even if you are NOT WORKING! 

Why, this is nirvana! ... but I guess not, so we will have to siphon off a few thousand more top corporations and individuals so we can all feel better about everyone in the US being reduced to riding a Vespa ... I wonder if they make loud pipes and extra chrome for those?



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