Democrat's Get-The-Rich-Quick Scheme

FUSION JANUARY/FEBRUARY 2010


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Top Hat Photo Courtesy of ©iStockphoto.com/Oliver Childs

By Tyler Grimm


 

The $787 billion “stimulus” program may have created little to no jobs in the U.S., but Democrats have found a surefire way to provide a boon to the Swiss and Grand Cayman banking industry: A millionaire’s tax.

With the federal budget deficit this year exceeding a record $1.4 trillion, fleecing the rich is now being touted as the way to bankroll Obamanomics. The latest health care bill to be passed by the House of Representatives, for instance, contains a punitive surtax for individuals making more than $500,000 or couples making more than $1million a year.

The “wealthy” have long been an easy political target so, this is really no surprise. Besides, it’s not a bad deal, right? I mean, the rich have plenty of money, so why not make them cough up a little more?

The reality is that these schemes never produce their intended results. Instead of filling government coffers to benefit the public good, these punitive taxes always end up bringing in less revenue than expected. Why? Because the rich stash their money off-shore, move to more tax-friendly locales or simply decide to work and invest less because of the tax consequences.

Kail Padgitt, an economist at the non-partisan Tax Foundation says, “Millionaires’ taxes are not reliable revenue sources. These might provide revenue in the short run, but the long-run costs make it a terrible bargain.”

This is not just a federal phenomenon. This year, Hawaii became the fifth state to implement a so called “millionaires’ tax” (the other four: California, Maryland, New Jersey and New York). In each of these states, unintended consequences abound.

Last year, cash strapped Maryland implemented a millionaires’ tax with depressing results: Revenue from that tax bracket was down $100 million and one-third of the people in that bracket were no longer there.

New Jersey produced similar results. Because of the implementation of a half-millionaire tax in 2004, the number of families making over $500,000 grew by 16 percent less than the national average between 2003 and 2006.

In California and New York, it’s hard to tease out the effects of high-income taxes from other bad fiscal policy. Over the last decade, the two states have seen, on net, 1.4 million and 1.9 million people (respectively) move out.

In California, the state’s highly progressive tax structure drove both rich and poor away. According to the Public Policy Institute of California, in the top quintile, 1.16 per every 100 households left between 2004 and 2007. In the bottom quintile it was 1.73—surely due to many employers (likely in the top quintile) departing. And where did they go? Three of the top destination states were Nevada, Texas and Washington, none of which have an income tax.

In the case of New York, it is losing many of its wealthy investment bankers to tax-friendly Connecticut, just across the border. In the words of public policy expert George Gilder, “High tax rates do not redistribute income, they redistribute people.”

Even the Beatles—certainly no Reaganite conservatives—were tax refugees. Their song “Tax Man” was about England’s terrible tax burden. They were paying 95 percent of their income to the crown (“There’s one for you, nineteen for me”). So what did they do? They moved to the then low-tax United States, of course.

Now let’s suppose you don’t believe that these taxes will have adverse consequences and are a good idea on the grounds of economic justice. After all, during his campaign, Barack Obama said that he would look at raising taxes “for purposes of fairness.”

Well, chances are that you don’t make over $1 million a year—no hard feelings, only .3 percent of Americans do. However, “millionaires’ tax” has become a catch-all term, usually referring to any tax on income over $250,000. Over the summer, House Speaker Nancy Pelosi explained why her colleagues’ newly proposed tax would fly politically: “You hear ‘$500,000 a year,’ you think, ‘My God, that’s not me.’”

Pelosi and company see such measures as reasonable because they appeal to people’s sense of fairness or, possibly, envy: The rich earn so much more income so they should pay more in taxes. The problem with that logic is that they already do. The Internal Revenue Service’s most recent data shows that the top 1 percent paid 40 percent of all income taxes in 2007, more than the entire bottom 95 percent.

Last April, in conjunction with tax day, a Gallup poll asked, “Do you consider the amount of federal income tax you have to pay as too high, about right, or too low?” Forty-six percent of respondents answered, “about right”—the highest since 1956. This might be surprising until you learn that the poorest 40 percent of Americans now pay a negative income tax rate.

The people who make up these elusive top tax brackets are not all Paris Hiltons and Derek Jeters. It’s estimated that roughly half of America’s small-business income would be hit by Obama’s plan to raise the top two tax rates. This couldn’t come at a worse time. As Dr. Padgitt explains, “As the economy begins to recover, we need a tax system that attracts investment. Millionaires’ taxes provide the exact opposite.” 

Glenn Beck: Why MLK's pledge of NONVIOLENCE is the key to saving America

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Listen to the Rev. Dr. Martin Luther King Jr.'s pledge of nonviolence and really let it sink in: "Remember always that the nonviolent movement seeks justice and reconciliation — not victory."

On the radio program, Glenn Beck shared King's "ten commandments" of nonviolence and the meaning behind the powerful words you may never have noticed before.

"People will say nonviolent resistance is a method of cowards. It is not. It takes more courage to stand there when people are threatening you," Glenn said. "You're not necessarily the one who is going to win. You may lose. But you are standing up with courage for the ideas that you espouse. And the minute you engage in the kind of activity that the other side is engaging in, you discredit the movement. You discredit everything we believe in."

Take MLK's words to heart, America. We must stand with courage, nonviolently, with love for all, and strive for peace and rule of law, not "winning."

Watch the video below for more:

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Conservatives are between a rock and a hard place with Section 230 and Big Tech censorship. We don't want more government regulation, but have we moved beyond the ability of Section 230 reforms to rein in Big Tech's rising power?

Rachel Bovard, Conservative Partnership Institute's senior director of policy, joined the Glenn Beck radio program to give her thoughts and propose a possibly bipartisan alternative: enforcing our existing antitrust laws.

Watch the video below:

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Dan Bongino, host of The Dan Bongino Show, is an investor in Parler — the social media platform that actually believes in free speech. Parler was attacked by Big Tech — namely Amazon, Apple, and Google — earlier this week, but Bongino says the company isn't giving up without a fight. In fact, he says, he's willing to go bankrupt over this one.

Dan joined Glenn Beck on the radio program to detail what he calls a "smear" campaign behind the scenes, and how he believes we can move forward from Big Tech's control.

"You have no idea how bad this was behind the scenes," Dan told Glenn. "I know you're probably thinking ... well, how much worse can the attack on Parler have gotten than three trillion-dollar companies — Amazon, Apple, and Google — all seemingly coordinated to remove your business from the face of the Earth? Well, behind the scenes, it's even worse. I mean, there are smear campaigns, pressure campaigns ... lawyers, bankers, everyone, to get this company ... wiped from the face of the earth. It's incredible."

Dan emphasized that he would not give up without a fight, because what's he's really fighting for is the right to free speech for all Americans, regardless of their political opinions, without fear of being banned, blacklisted, or losing jobs and businesses.

"I will go bankrupt. I will go absolutely destitute before I let this go," he said. "I have had some very scary moments in my life and they put horse blinders on me. I know what matters now. It's not money. It's not houses. It's none of that crap. It's this: the ability to exist in a free country, where you can express your ideas freely."

Watch the video below to hear more from Dan:

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To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

Joe Biden's administration is getting ready for something historic, but we're all being distracted. And now that Biden has hired at least 14 former or current executives from Big Tech — experts at colluding to censor unflattering news about Biden — Americans must be laser-focused on what's coming.

On January 20, the most corrupt president in American history will be inaugurated, and it looks like some of his cabinet choices were picked specifically so everything just – poof – goes away. The administration nominees appear to be all about preserving corruption, crony capitalism, and executing a Great Reset. Those same people also have one more thing in common: Ukraine.

On his Wednesday night special this week, Glenn exposes their radical agenda in their own words and gives U.S. senators the questions they must ask before confirming corrupt nominees to some of the highest offices in the country.


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