UPDATE: Welcome readers from Pursuing Holiness! Thanks for the link, Laura! Laura knows about this from experience – she runs her own information technology business, and is scaling it back. Go read her post, too!
A few days back, I posted on the Cato Institute’s story about the New York businessman who shifted his residence to Florida to avoid paying confiscatory tax rates to the greedy socialists in Albany.
Well, that’s not the only place where this is happening. There is a reason why freedom-hating atheists had to build Gulags and walls to keep people from escaping their communist prison. When tax rates go up, the most productive citizens either stop working or they leave entirely!
Here is a story from the UK Times Online about the exodus of British taxpayers from Gordon Brown’s corrupt socialist regime.
SOL ZAKAY, the billionaire property tycoon, is the latest entrepreneur to quit Britain after the introduction of a 50% tax rate on high earners.
…Zakay joins a growing list of businessmen and City financiers disenchanted at the new tax rate as well as the proposed changes to EU regulation of private-equity and hedge funds.
And here is a story from the Wall Street Journal about Maryland taxpayers fleeing their left-wing state’s tax hikes.
Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”
One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.
When the most productive taxpayers stop producing, they take your jobs with them. It’s called the Laffer curve. Maybe you progressives should read about it. Think about the way the world actually works in reality. And then ask yourself a very important question. A question that you never heard answered in Harvard Law School.
Who is John Galt?
UPDATE: Hot Air notes that IRS revenues are dropping rapidly. Gateway Pundit adds: 16K jobs lost PER DAY since stimulus passed. Gateway Pundit reports Democrats consider national sales tax (hurts the poor disproportionately, just like cap and trade), and China has warned democrats about printing more money.