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Tag Archives: High Taxes


Gov. Cuomo’s Right: The Rich Are Leaving High-Tax New York

Investor’s Business Daily

We don’t often praise New York Gov. Andrew Cuomo, but we have to say, we appreciate his recent frankness on taxes.

On Monday, he told his state’s citizens that income tax revenues were coming in $2.3 billion below the expectations of just a month ago. “That’s as serious as a heart attack,” he said.

He’s right. The question is why?

A little budget talk is in order. New York plans to spend about $176 billion in the coming fiscal year, starting April 1. About $100 billion of that, according to Carl Campanile of the New York Post, will come from federal funds.

That means the actual deficit in state funding after just one month is 3%. Cuomo says it’s due to the new federal tax code, which limits state income tax deductions to $10,000, and recent volatility in the stock market. Continue reading


Wealth Tax Fails The Test Around The World

Investor’s Business Daily

There’s little doubt that the political flavor of the day is what the left calls “democratic socialism.” And one of this movement’s more recent ideas, from Sen. Elizabeth Warren, is to impose a “wealth tax” on the wealthy. Sorry, senator, it’s an old idea — one that’s thoroughly discredited.

To begin with, the wealth tax is nothing new. It’s been tried by many nations, but most who’ve tried it have dropped it. As recently as 1990, according to the Organization for Economic Cooperation and Development, 12 of its member countries imposed a wealth tax on citizens. Today, it’s just four.

The irony is that those who ended their failed experiments with the wealth tax are those that America’s “democratic socialists” say they most admire. That includes Denmark and Sweden, nations often cited by people like Warren, Sen. Bernie Sanders, and Rep. Alexandria Ocasio-Cortez as worthy of emulation by the American left. Continue reading


For Democrats, The Era Of Big Government Is Back, Big Time

Investor’s Business Daily

Leading Democrats are pushing an agenda that would more than double the size of the federal government. This comes as a new Gallup Poll finds that the public views government as the most important problem facing the country today.

Gallup regularly asks what are the biggest problems facing the country today. The latest shows “government” well in the lead, with “immigration” No. 2.

Another Gallup poll finds that, despite all the focus on left-wing celebrities like Alexandria Ocasio Cortez, the country remains far more conservative than liberal — with 35% saying they are conservative compared with 26% who are liberal. The rest fall in the middle. Continue reading


The Crippling Cost of 70% Tax Rates

By Edward Conard • Wall Street Journal

Newly elected Rep. Alexandria Ocasio-Cortez spent her first few weeks on Capitol Hill calling for a 70% top marginal income-tax rate, and suddenly the debate over optimal rates has reopened. To support her charge, some liberals are citing a 2011 study by economists Peter Diamond and Emmanuel Saez, which advocates for confiscatory upper-range tax rates. But a quick look at their analysis reveals grave caveats that only an advocate of higher taxes could possibly overlook.

Messrs. Diamond and Saez admit that taxes can have detrimental…

Newly elected Rep. Alexandria Ocasio-Cortez spent her first few weeks on Capitol Hill calling for a 70% top marginal income-tax rate, and suddenly the debate over optimal rates has reopened. To support her charge, some liberals are citing a 2011 study by economists Peter Diamond and Emmanuel Saez, which advocates for confiscatory upper-range tax rates. But a quick look at their analysis reveals grave caveats that only an advocate of higher taxes could possibly overlook. Continue reading


No, The Deficit Isn’t ‘Soaring,’ And Yes, Tax Revenues Are At Record Highs

Investor’s Business Daily

In the first two months of the new fiscal year, tax revenues are up. But so is the deficit. Why? Because spending continues to outpace revenues. So why do tax cuts keep getting blamed?

The latest monthly budget report from the Congressional Budget Office shows the deficit jumping $102 billion in just the first two months of the new fiscal year.

That sure looks like the deficit is “soaring,” as one news outlet claimed. But as the CBO makes clear, almost all that deficit increase was the result of quirks of the calendar. Depending on where weekends fall, significant sums of spending can get shifted into different months.

A true apples-to-apples comparison, the CBO says, shows that the deficit climbed by just $13 billion. Continue reading


House Democrats Change Rules to Make It Easier to Raise Taxes

by Haris Alic • Washington Free Beacon

Democratic Rep. Nancy Pelosi (Calif.) has yet to take the speaker’s gavel of the U.S. House of Representatives, but Democrats are already laboring to make it easier to dismantle the achievements of the Trump presidency.

The incoming chairman of the House Rules Committee, Rep. Jim McGovern (D., Mass.), confirmed to colleagues on Wednesday that he would not honor the three-fifths supermajority requirement to raise income taxes, as reported by the Washington Post.

McGovern’s decision overturns a rule implemented under outgoing Speaker Paul Ryan (R., Wis.) that mandated a three-fifths majority approve any proposed hike to the income tax.

The change comes after a standoff between Pelosi and her moderate allies in the Democratic conference, such as incoming Ways and Means Committee chairman Richard Neal (Mass.), and younger, more progressive members like Rep.-elect Alexandria Ocasio-Cortez (N.Y.). Continue reading


Elizabeth Warren’s Corporate Catastrophe

By Samuel Hammond • National Review

The ability of businesses to grow rapidly is a one of the most defining and precious features of the American economy. Amazon went from a fledgling online bookstore to an “everything store” and the second-largest employer in the United States in just two decades. Uber emerged from nowhere less than ten years ago to become a dominant transportation option in cities around the world. And earlier this month, Apple became the first U.S. public corporation to reach a $1 trillion valuation — a far cry from its sorry state in 1996, when it looked doomed to fail.

It’s not just the information sector. The United States is home to 64 percent of the world’s billion-dollar privately held companies and a plurality of the world’s billion-dollar startups. Known in the industry as “unicorns,” they cover industries ranging from aerospace to biotechnology, and they are the reason America remains the engine of innovation for the entire world.

Unless Elizabeth Warren gets her way. In a bill unveiled this week, the Massachusetts senator has put forward a proposal that threatens to force America’s unicorns into a corral and domesticate the American economy indefinitely.

Dubbed the “Accountable Capitalism Act,” Warren foresees Continue reading


Supreme Court Opens The Door To Internet Taxes — What Comes Next Could Be A Lot Worse

By Investor’s Business Daily

Taxes: Whatever you think about the issue of taxing internet sales, the simple fact is that the Supreme Court has just guaranteed that people across the country will now be paying more in state taxes. It’s hard for us to see how this is good news.

In its 5-4 decision on South Dakota v. Wayfair, the court overturned two previous rulings that prevented states from taxing sales of out-of-state companies. That meant a catalog company based in Maine didn’t have to navigate 45 state sales-tax laws to figure out how much each customer owed, and then remit that money to the right states.

Brick-and-mortar stores have been trying to lift this ban for decades, because, they say, it unfairly tilts the playing field in favor of catalog and online retailers. According to the Government Accountability Office, this break cost states up to Continue reading


One Stat Explains Why The California Legislature Is Prone To Pass Outrageous Laws

By Chuck DeVore • The Federalist

A California lawmaker recently came up with the bright idea that waiters who serve unrequested straws should go to jail for six months because … the environment. Another duo of lawmakers have proposed more than doubling California’s business tax under the theory that employers wouldn’t miss the cash, because the tax increase would only take about half of President Trump’s recent tax cut.

Lawmakers all over the nation introduce weird or controversial legislation. Most of these bills are harmless, as they’d never make it out of the legislature, much less be signed into law by a governor. In California, however, many such legislative proposals are taken seriously and often do get signed into law.

Why is this? Sure, California is a liberal state. But, one key governmental structural factor likely contributes to Golden State lawmakers’ seeming isolation from common sense: California lawmakers often make a career of full-time politics. Continue reading


Taxing Innovators To Pay For Universal Welfare Is A Terrible Idea

Investors Business Daily

Taxes: A new “study” in Britain suggests that by raising taxes sharply on Facebook, Amazon and Apple, the government could pay for a universal basic income (UBI) for all Britons. It’s an absurd idea, which is why it can’t be counted out.

The so-called FANG companies — the above-mentioned three, plus Google and Netflix — have been vilified now for years in Europe and in the U.S. as “monopolies” and, worse, “predators.” When such strident rhetoric is used by politicians, you know they’re going in for the kill. There’s money to be made in taking down big, successful companies.

In the case of Britain, the left-wing paper The Guardian reports, the Royal Society of Arts (that’s right, Arts) recommends that “Britain could raise new taxes on Amazon, Facebook and Apple to give every citizen under the age of 55 as much as £10,000 ($14,000) in a form of universal basic income … helping to counter the growing risk of job losses from automation and artificial intelligence.”

America’s FANG tech companies look like easy victims. Inevitably, since they have little in the way of a domestic British constituency, they will come into the cross hairs of Britain’s tax-happy, left-wing politicians. Continue reading


Taxpayers Spend 113 Days Working to Pay Nation’s Tax Burden

Ali Meyer • Washington Free Beacon

This year, taxpayers will spend 113 days working to pay for the nation’s tax burden, according to a report from the Tax Foundation.

Tax Freedom Day is April 23, 113 days into the year, and falls 5 days after taxes are collected on April 18. Tax Freedom Day would fall roughly two weeks later on May 7 if federal borrowing or future taxes were included.

“Tax Freedom Day takes all federal, state, and local taxes—individual as well as payroll, sales and excise, corporate and property taxes—and divides them by the nation’s income,” the report says.

Americans will spend upward of $5.1 trillion on taxes, which includes $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, according to the report. Continue reading


Taxes Now Eat Up Larger Share of Income Than When Obama Took Office

After-tax income has declined for some demographic groups since 2009

by Ali Meyer     •     Washington Free Beacon

Taxes are consuming a larger share of household income now than before President Obama took office, according to data from the Congressional Budget Office.

The CBO uses a comprehensive measure of income, referred to as average household market income, that includes labor income, business income, capital income, capital gains, and retirement income. It combines this with government transfers to calculate before-tax income.

The budget office then subtracts individual income taxes, payroll or social insurance taxes, corporate income taxes and excise taxes to calculate average after-tax income. Continue reading


Federal Taxes Receipts At an All Time High

$2,883,250,000,000: Federal Taxes Set Record Through August; $19,346 Per Worker; Feds Still Run $530B Deficit

By Terence P. Jeffrey     •     Investor’s Business Daily

Obamanomics2The federal government raked in a record of approximately $2,883,250,000,000 in tax revenues through the first eleven months of fiscal 2015 (Oct. 1, 2014 through the end of August), according to the Monthly Treasury Statement released Friday.

That equaled approximately $19,346 for every person in the country who had either a full-time or part-time job in August.

It is also up about $198,425,330,000 in constant 2015 dollars from the $2,684,824,670,000 in revenue (in inflation-adjusted 2015 dollars) that the Treasury raked in during the first eleven months of fiscal 2014. Continue reading


Obamacare fines rise as subsidies go to people who don’t exist

by Eric Boehm     •     Watchdog.org

GOING JUST FINE: It was the first year in which purchasing health insurance was made mandatory under the ACA, with penalties of $95 or 1 percent of total income. The average penalty collected for the 2014 tax year was about $200, the IRS reported.

The IRS fined more than 7.5 million Americans who didn’t have health insurance in 2014, even as Obamacare subsidies flowed to people who didn’t even exist.

The Treasury Department reported last week the number of Americans who faced fines because of the Affordable Care Act’s individual mandate was significantly higher than the Obama administration expected. For 2014, the IRS projected that roughly 6 million would face fines, but the final total was 1.5 million higher.

It was the first year in which buying health insurance was made mandatory under the ACA, with penalties of $95 or 1 percent of total income – whichever was higher – for people who did not comply. Continue reading


Middle-Class Savings Like Blood In the Water

Obama goes where the money is to pay for ‘free’ education programs – your savings account.

by Glenn Harlan Reynolds     •     USAToday

obama_taxesBank robber Willie Sutton is said to have explained his career this way: “That’s where the money is.” Whether Sutton ever really said that, it’s an aphorism that, according to Bloomberg’s Megan McArdle, explains President Obama’s plans to go after middle class assets like 529 college savings plans and home appreciation.

Though millions of Americans have been putting money into “tax free” 529 plans to save for their children’s increasingly expensive college educations, President Obama would change the law so that withdrawals from the plans to fund college would be taxed as ordinary income. So while you used to be able to get a nice tax benefit by saving for college, now you’ll be shelling out to Uncle Sam every time you withdraw to pay for Junior’s dorm fees.

This doesn’t hurt the very rich — who just pay for college out of pocket — or the poor, who get financial aid, but it’s pretty rough on the middle– and upper–middle class. In a double-whammy, those withdrawals will show up as income on parents’ income tax forms, which are used to calculate financial aid, making them look richer, and hence reducing grants. Continue reading