Tag Archives: taxes

On Trump’s Budget Proposal

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President Donald Trump (R) has submitted his budget proposal for the next year to Congress, and on its surface, it does little to address the current large budget deficit and its attendant borrowing on top of the current national debt. It does, though, seriously plus up defense spending, with its request for $1.5 trillion for the Departments of Defense and Homeland Security.

There are a couple of ways to think about that. One is to deal with the threat to our economy, and so to our national security, of that burgeoning debt resulting from the continuing large deficit by raising taxes (as Progressive-Democratic Party politicians demand to do, especially on those Americans of whom they so vociferously disapprove) or by cutting spending (as budget hawks in the Republican Party demand to do).

Raising taxes, though, hurts all of us, not just those Evil Rich. Taking money away from the folks who make it and put it to gainful use reduces private economy investment and innovation—things us citizens do far better than even the most well-meaning government ever can—and that drop negatively impacts business competitiveness, expansion, and jobs, each of which hurts all Americans who are not part of the Evil Rich cohort.

Cutting government spending, on the other hand, always is a very good way to help our economy since it takes government competition for resources and more direct inputs to production out of the competition among businesses for those same factors, which puts downward pressure on prices that both businesses and consumers face. The cuts do, though, reallocate lots of jobs away from politicians’ districts and toward more efficient locations for the work, with efficiency defined by the businesses themselves rather than government politicians.

The other way to think about the budget with its deficit and attendant borrowing is articulated quite clearly by Trump:

We have to take care of one thing: military protection. We have to guard the country.

Indeed. We can’t protect our economy and its health, much less reduce deficits and borrowings, if we can’t defend our nation and instead have our futures dictated to us by our enemies—as the People’s Republic of China President Xi Jinping has committed himself to doing.

The answer writes itself, as anyone to the right of the Progressive-Democratic Party can see: plus up our defense spending, cut Federal spending everywhere else, and either cut taxes further or at least leave them alone.

Tax Flight and Iron Curtains

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Progressive-Democratic Party-run jurisdictions keep raising taxes, and those being taxed keep taking their incomes and assets and leaving those jurisdictions. Indeed, [S]tates with the highest taxes continue to lose the most income to States with far less onerous taxing regimes (including no income tax at all) as this graph, based on IRS data, illustrates.

Meanwhile, Massachusetts’ Progressive-Democrat Senator Elizabeth Warren and a couple of her syndicate confreres are proposing an IRS/Party iron curtain against the Evil Rich leaving our nation altogether: a 40% tax on all assets, not just income or savings or investment accounts, as the price of leaving.

The bill, called the Ultra-Millionaire Tax Act of 2026, would impose an annual 2% tax on the net worth of households and trusts over $50 million, and an additional 1% tax on the wealth of billionaires. To deter the ultra-rich from leaving the US to avoid the new tax, the bill also proposes a 40% “exit tax” on anyone worth more than $50 million who renounces their American citizenship.

California already has an exit tax of sorts, a mix of…aggressive residency and sourcing rules (which can keep you on the hook for California tax if you still have strong ties or California-source income).

The government men of the late Russian SSR were financial pikers in comparison.

This is Party’s platform: raise taxes, and you will like it, or else. And don’t dare try to leave; you won’t like that.

If It Moves, Tax It

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California Progressive-Democrat Congressman Ro Khanna has just clearly articulated his Party’s ideology regarding the valuables held by American citizens.

What I’ve said—and what Bernie Sanders [I, VT] said—is that we need a modest wealth tax on these billions of dollars that aren’t being taxed. They are just sitting there without ever paying income tax, and that funding could pay for the healthcare, childcare, and education of all Americans.

Contra Ronald Reagan, if it’s just sitting there, tax it, too. That money, that asset, that value—as Progressive-Democrats define it—belongs to a Progressive-Democratic Party-run government. That government will leave in us average Americans‘ hands what those men and women deem appropriate, and they’ll appropriate the rest.

Reducing Federal spending and reducing government’s overregulation of healthcare, childcare, and education would do far more for making those things, to coin a phrase, affordable for us average Americans than would raising taxes, confiscating ever more money from our pockets. And yes, those Evil Rich are Americans, also.

This is what we can expect from the reign of Progressive-Democrats.

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.

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.