What happens when the rich get taxed more

[Salty]

From the Wall St Journal

 

[InTheLight]

From the Wall St Journal

The article was more about what happened to those states that relied on income tax revenues from rich people after the recession hit and the wealthy paid less in (gross amounts) of taxes because they were earning less. Not much about what happens when taxes are raised on the wealthy.

 

[Salty]

The article was more about what happened to those states that relied on income tax revenues from rich people after the recession hit and the wealthy paid less in (gross amounts) of taxes because they were earning less. Not much about what happens when taxes are raised on the wealthy.

That is the whole point - when you tax the rich even more (% wise) and the economy goes down, taxes are drastically decreased.

However, there is one thing the article did not state:

When Rush Limbaugh left NY for Fla - how much did NY loose? Rush makes some 30 million a year.
If NY increases the "rich tax" by 1% the state would stand to gain about 300 thousand dollars,
but Rush said phooy with that and moved to Fla (no state income tax), so not only does he save 300 grand tax increase, but he no longer pays the - say 3 million in taxes he otherwise would pay - not to mention all the sales tax he would have paid. And Rush is not the only one to have moved out of NY!

 

[StefanM]

That is the whole point - when you tax the rich even more (% wise) and the economy goes down, taxes are drastically decreased.

However, there is one thing the article did not state:

When Rush Limbaugh left NY for Fla - how much did NY loose? Rush makes some 30 million a year.
If NY increases the "rich tax" by 1% the state would stand to gain about 300 thousand dollars,
but Rush said phooy with that and moved to Fla (no state income tax), so not only does he save 300 grand tax increase, but he no longer pays the - say 3 million in taxes he otherwise would pay - not to mention all the sales tax he would have paid. And Rush is not the only one to have moved out of NY!

To be fair, most of the high-paying jobs in New York are going to stay in New York. If one person leaves, another will come in.

Rush Limbaugh just has a mobile career that permits him to relocate like this.

 

[InTheLight]

That is the whole point - when you tax the rich even more (% wise) and the economy goes down, taxes are drastically decreased.

I don't think the article said that tax rates were raised on the wealthy in 2008, did it?

The economy didn't tank in 2008 because NJ, CA, and NY raised taxes on the wealthy, but income tax receipts in those states did decrease because the wealthy were not earning as much as previously.

 

[Salty]

I just took a look at my NY State tax booklet

Rush would have paid 8.9% of his income to taxes- (2.67 million)
Then to add insult to injury, he would pay an additional 987,000 dollars for NY CITY income tax!
(that would be about 3.29% of his income)
That right a total 12% to NY State and NY City taxes - not to mention federal taxes

A married couple with a combined income of 50,000 a year would pay 3.3% ($1650) of their income for State taxes. (1,136 - 2.27%)
Total of 5.5%

So that means that Rush is pay over twice as much percentage wise as the average taxpayer.

I would say Rush is not paying his fair share - he is paying much more than his fair share.

This is a good time to read the story about the 10 men going to lunch -

 

[InTheLight]

So that means that Rush is pay over twice as much percentage wise as the average taxpayer.

I would say Rush is not paying his fair share - he is paying much more than his fair share.

Correction: Rush is paying more of a percentage of his income in income taxes than others.

Now take taxes and fees combined: income taxes, property taxes, sales taxes, gas taxes, motor vehicle taxes, cigarette taxes, alcohol taxes, special school levy taxes, toll road fees, parking taxes, real estate transfer taxes, etc. etc. and I guarantee you that the middle class taxpayer making $50K a year pays more taxes AS A PERCENTAGE of their income then the wealthy do. All those other taxes are a drop in the ocean for Rush but they add up for someone making $50,000 a year.

 

[carpro]

That is the whole point - when you tax the rich even more (% wise) and the economy goes down, taxes are drastically decreased.

However, there is one thing the article did not state:

When Rush Limbaugh left NY for Fla - how much did NY loose? Rush makes some 30 million a year.
If NY increases the "rich tax" by 1% the state would stand to gain about 300 thousand dollars,
but Rush said phooy with that and moved to Fla (no state income tax), so not only does he save 300 grand tax increase, but he no longer pays the - say 3 million in taxes he otherwise would pay - not to mention all the sales tax he would have paid. And Rush is not the only one to have moved out of NY!

Soaking the "rich" does have some unintended consequences.:smilewinkgrin: Especially in an economic downturn.