Tag Archives: political economy

Taxes

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Progressive-Democrats’ limiting factors for Evil Rich’s fair share and for how high to raise taxes are converging to: all of it. Pay everything you have.

Here’s an enumeration of what they’re demanding currently, courtesy of the WSJ‘s editors:

  • California: Service Employees International Union affiliate is seeking to qualify a referendum for the November ballot to impose a 5% wealth tax on residents with more than $1 billion in net worth. This includes stocks, illiquid stakes in private companies, artwork, patents, and family trusts.
    The tax would even be levied on illusory assets. Silicon Valley investors who own super-voting shares in a company would be taxed on their voting rights, rather than the value of their shares. A startup founder could be required to pay tax on the 25% of voting rights he controls even if he only owns 5% of shares.
  • Washington: Democrats have passed a 9.9% income tax on millionaires, despite a state constitutional ban on a graduated income tax.
    [I]n 2022…Democrats enacted a 7% tax on capital gains exceeding $250,000…[l]ast year they raised the rate to 9.9% on capital gains over $1 million. Now they’re extending the 9.9% tax to all forms of income.
  • New York: Albany…Assembly wants to raise the top state-and-local income-tax rate to 15.9% from 14.8%, and the Senate to 15.3%. Democrats also want to raise the state top corporate tax rate and let New York City raise its rate. That would make the top business tax rate nearly 20% in New York City.
    New York Mayor Zohran Mamdani…wants to increase the estate tax to 50% from 16% and impose a two percentage-point city tax surcharge on incomes over $1 million. That would raise the top individual rate in the city to 16.8%. If Democrats in Albany don’t deliver, he’s threatening an across-the-board 9.5% property tax hike.
  • Rhode Island: [Progressive-]Democratic Governor Dan McKee is pushing a 3% surtax on income over $1 million, which would raise the state’s top rate to 8.99%.
  • Virginia: One bill would impose a 3.8% tax on investment income of taxpayers making more than $500,000, which would raise the top rate to 9.55%. Another bill would create two new individual top tax brackets of 8% (starting at $600,000) and 10% (more than $1 million).
  • Congress: Maryland [Progressive-Democrat] Senator Chris Van Hollen wants to add three new tax brackets on high earners, which would raise the top federal rate by 12 percentage points to 49%. New Jersey [Progressive-Democrat] Senator Cory Booker is proposing to raise the current 35% tax bracket (starting at $256,226 for individuals) to 41% and the 37% bracket ($640,601) to 43%.
    …
    This [also] is a gigantic tax increase on small businesses that pay taxes at the individual rate—$1.01 trillion over 10 years for the Booker proposal, according to the Tax Foundation.

This, and much more—dangerously more—is what we can look forward to when the Progressive-Democrats resume their reign over our republic.

An EV Mandate Lawsuit

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California has enacted regulations restricting automobile emissions that are far stricter than national requirements. The Federal government is suing on the theory that Federal regulations, along with Federal law, preempt State regulations. If successful, this would render California’s regulations illegal and without force. The Federal government should win this suit easily, even if California drags it out and into the Supreme Court: our Constitution’s Supremacy Clause—this Constitution, and the Laws of the United States which shall be made in Pursuance thereof…shall be the supreme Law of the Land—is pretty dispositive.

On the other hand, no one is forcing the companies to build cars for sale in California in the first place. It’s expensive to do so, and those increased costs get spread across customers nationwide, because the car makers build all their cars to meet California’s requirements. Those car makers could both reduce their costs of production and so their prices charged the rest of their customers, if they simply built cars according to national standards and stopped selling in California. That would result in a increase in ex-California national sales that would swamp the per-car price reduction, which in turn would produce large aggregate increases in revenue, and profit.

Tax-Addicted Progressive-Democrats

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Party has never seen a tax or an increase in existing taxes they don’t like. Washington and New York present examples.

Washington demonstrates the desperation for ever more tax fixes that Party needs to feed its collective addiction for OPM. The State’s Party is determined to impose a 9.9% tax on household income over $1 million a year.

On Monday lawmakers in Olympia pulled an all-nighter to push through the legislation, which [Progressive-]Democratic Governor Bob Ferguson has said he will sign. The bill passed the House 51-46 and goes back to the state Senate.

Never mind that the State’s citizens have repeatedly rejected income taxes in referendum after referendum. What do Party politicians care about the wishes of the small people of their State.

Never mind, either, that the State’s constitution forbids any form of income tax. What do Party politicians care about laws, however foundational, that get in their way?

And never mind that the State’s Senate Majority Leader, Manka Dhingra (D), campaigned for office on her opposition to income taxes, and now in office, actively supports this one. What do Party politicians care about truth or honesty?

Next is New York.

Democratic senators want to increase the state’s top income tax rate by 0.5 percentage points on households making more than $5 million. That would raise the top state-and-local rate in New York City to 15.3%. They also propose to raise the state’s corporate tax to 9% from 7.25% on businesses with more than $5 million income and let New York City raise its corporate tax rate to 10.62% from 8.85%. All told, large businesses would pay a nearly 20% tax rate in New York City.

And this one:

Governor Kathy Hochul, Democratic legislators, and union leaders held a rally over the weekend in support of rolling back the state’s 2012 pension reforms that raised the retirement age to 63 and requires workers to contribute between 3% and 6% of their paychecks to their pensions. “I’m fighting for a fair pension plan,” the Governor declared.

I’m not sure France is a useful model to emulate in the areas of work and retirement.

Taxes are a far more powerful addiction for Party politicians than are nicotine, or sugar, or opioids for us average Americans. Worse, Party’s addiction is severely damaging to our nation, whereas nicotine, sugar, and opioid addictions do their primary damage to the users.

No They Don’t

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I’ll be brief.

The lede lays out the question.

Companies say President Trump’s climate overhaul makes it tough to frame their future emissions plans and prepare for what they see as inevitable environmental restrictions—particularly as their goals extend beyond the president’s term.

No, they don’t.

Quit planning their future emissions. Quit distorting business decisions away from simple economics and away from what’s optimal for the business’ owners—the shareholders.

Easy peasy, once business managers get up out of their deep defensive crouches and stop cowering in front of climate funding industry pushers.

The hard work, while remaining straightforward, is to engage those duck and cover energies and their existing lobbying budgets to getting the current Congress to codify in statute those Trump moves. Therein lies business planning stability and lower costs for business’ customers.

What He Said

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Mississippi’s Republican governor, Tate Reeves, had a few words to say in response to Vermont’s nominally Independent Senator, Bernie Sanders, the latter whom wants a moratorium on building data centers to support AI development or any other uses. Reeves’ words, though, have much broader implication, and I’ve repeated them below in their entirety.

I understand individuals who would rather not have any industrial project in their backyard. We all choose where to live, whether it’s urban, suburban, agrarian, or industrial. I do not understand the impulse to prevent our country from advancing technologically—except as civilizational suicide.
This instinct seems to infect the far left across lots of domains: immigration, crime fighting, and the national debt to name a few. You can tell they’re just sort of yearning to submit our society to outside forces: mobs, international councils, or communist China. Maybe they’re exhausted and just want a few years of taxpayer-funded rest before they shuffle off.
I don’t want to go gently. I love this country, and want her to rise. That’s why Mississippi has become the home of the world’s most impressive supercomputers. We are committed to America and American power. We know that being the hub of the world’s most awesome technology will inevitably bring prosperity and authority to our state. There is nobody better than Mississippians to wield it.
I am tempted to sit back and let other states fritter away the generational chance to build. To laugh at their short-sightedness. But the best path for all of us would be to see America dominate, because our foes are not like us. They don’t believe in order, except brutal order under their heels. They don’t believe in prosperity, except for that gained through fraud and plunder. They don’t think or act in a way I can respect as an American.
So, let’s see Americans (and Mississippians) dominate this space—no matter how many leftists want us to roll over and die instead.

That last is especially important; I’ll say it again:

So, let’s see Americans (and Mississippians) dominate this space—no matter how many leftists want us to roll over and die instead.