Location: Pantego, Texas, United States

Tuesday, October 06, 2009

The US is going to have to increase taxes to pay for Obama's spending program. Many states are also having to raise taxes. They particularly like to raise income taxes "on the rich." Eventually the point is reached where the "rich are tapped out." What happens then? Maryland recently raised the state income tax on the rich to confiscatory levels, and one-third of the "rich" left the the state within a year. Maryland is geographically a small state, so people can conceivably move to another state without having to change jobs. California has also raised personal income taxes to the point that about 150,000 people pay for half of the budget and the other 40 million people in the state pay the other half. California has also seen a lot of high earners move to Nevada, which has no state income tax. It is harder for people to leave the country because of taxes, but it is not impossible. If US income taxes on the high earners is increased dramatically some will leave. There are a lot of foreign born scientists and engineers in the US who are high earners who could easily leave. The US does not produce enough scientists and engineers to replace them should large numbers of them return to their home country.


Post a Comment

<< Home