The Ryan budget plan, Part III: More trickle-down

In “The Path to Prosperity,” House Budget Chairman Paul Ryan makes it clear that tax increases will not be part of the solution to the nation’s fiscal problems. He intends to address the problem solely through budget cuts, most of them focused on programs affecting the elderly, the sick and the poor. After all, that’s where the money is in the federal budget, especially when you exempt the Pentagon from spending cuts, as Ryan proposes to do.

“The U.S. government is not running sustained deficits because Americans are taxed too little,” the plan states. “The government is running deficits because it spends too much.”

However, that sentiment doesn’t mean that Ryan intends to leave the tax code untouched. Among other things, he proposes to reduce the number of tax brackets from the current six, which would make the income tax flatter and less progressive. He also intends to lower the top tax bracket on individuals and corporations from the current 35 percent to 25 percent.

Inevitably, such changes would have the effect of lowering taxes on corporations and the wealthy, while shifting more of the burden to working and middle-class Americans. When combined with the payroll tax, which Ryan concedes is a surtax on earned income below $106,000, a large number of working class and middle-class Americans would probably end up paying a significantly higher percentage of their income in federal taxes than their wealthier counterparts.

I say “probably” because as far as I can tell, Ryan hasn’t released specifics of his tax reform proposal to the public. He did, however, provide considerable detail to the Heritage Foundation’s Center for Data Analysis to allow it to project the economic impact of the proposed changes. So let’s see what they have to say.

Overall, Heritage projects, the Ryan budget proposal would produce an outcome that frankly would be nothing short of miraculous, including an increase in economic output of $1.5 trillion over the next ten years. That in turn would help drive down the federal deficit considerably.

But how real is it? Unlike projections by the nonpartisan Congressional Budget Office, the Heritage analysis relies on what is called “dynamic scoring.” In other words, it programs its computer models to assume that tax cuts on the wealthy and corporations produce enormous economic growth.

For example, let’s take a look at what dynamic scoring does to the projected unemployment rate. The CBO projects that the unemployment rate next year will average 8.4 percent. The Heritage Foundation, using dynamic scoring, projects that if the Ryan plan passes, unemployment would plummet next year to 6.4 percent.

By 2015, the CBO projects, unemployment will be down to 5.9 percent. Under the Ryan plan, Heritage projects it will fall to a remarkable 4.0 percent, declining still further to 2.8 percent in 2021.

2.8 percent?

Who believes that? Nobody believes that. In fact, those projections are so embarrassingly absurd that Heritage itself has gone back into its study and removed them. They were there in the version I downloaded yesterday; they are gone from the version available today.

In this case, Heritage can make ridiculous claims for the economic benefits of Ryan’s plan — claims that help account for the supposed deficit reduction — without fear of those claims being tested against reality. Nobody believes that the plan will ever be adopted.

Ten years ago, however, the Heritage Foundation’s Center for Data Analysis ran similar projections for President Bush’s plan to cut taxes, using the same computer model it used to analyze Ryan’s plan.

Heritage claimed that if the Bush tax cuts were approved, the economy would grow so quickly that by 2010, the entire federal debt would effectively be eliminated.

Not only that, “The plan would save the entire Social Security surplus and increase personal savings while the federal government accumulated $1.8 trillion in uncommitted funds from FY 2008 to FY 2011, revenue that could be used to reform the Social Security and Medicare systems and reduce the payroll tax,” Heritage claimed.

Well ….

– Jay Bookman

970 comments Add your comment

jm

April 6th, 2011
5:30 pm

Moderate Line indeed indeed

jm

April 6th, 2011
5:31 pm

Jay, we’re no longer in a recession.

Del

April 6th, 2011
5:31 pm

Keep, Google is your friend and you may want to try it before you make assertions that there’s no such thing as voter fraud and that committing such fraud is near impossible.

TaxPayer

April 6th, 2011
5:32 pm

So, the Ryan Roadkill Plan cuts 2.05 trillion from Medicare, Medicaid and other domestic programs over the next ten years while increasing the national debt by another 2 trillion in ten years. So, how does that add up to a cut in the deficit or debt exactly.

jm

April 6th, 2011
5:33 pm

Jay 5:30 – look, Obama has completely punted on the deficit. Even my Dem chums working for some very deep pocketed non-profits have come to the conclusion that he has made some incredibly dangerous decisions not to begin addressing deficit reduction, which was served up by his own deficit commission, then rapidly thrown in the trash by Obama and his political advisors.

@@

April 6th, 2011
5:33 pm

Guess there won’t be a Part IV since Obama’s deeply committed to his spending on defense and national security. Perhaps it’s the 20% vs 60…70%.

I still see Ryan’s plan as the better alternative to…….nothing……which is what the Democrats have offered.

lowering taxes on corporations and the wealthy while eliminating loopholes and deductions?

Works for me.

Jay

April 6th, 2011
5:33 pm

Yes, jm, I know. Technically, a recession ends when things stop getting even worse.

And things have stopped getting worse. In fact, they’re starting to improve a little bit, month by month. But they’re a long, long way from good, agreed?

Midori

April 6th, 2011
5:33 pm

LOL – That “woodshed” looked more like 6 Flags :lol:

Keep Up the Good Fight!

April 6th, 2011
5:34 pm

josef — as someone who lived for a number of years near Chastain Park and used to walk there for concerts and cycle the many turns off Mount Paran and other streets, I do know many beautiful homes….but glad that you are now making everyone wear labels. :D

jm

April 6th, 2011
5:35 pm

Look, it sux that Obama got handed $1.5+ Trillion deficit. It sucks that on 9/11 the WTC was blown to smithereens. Presidents have to do tough things (in theory). But not this one.

If the deficit was 9/11 (and it will be), then Obama’s plan is the equivalent of calling on INTERPOL to arrest the Taliban and Bin Laden.

Jay

April 6th, 2011
5:36 pm

jm, given that Obama has to negotiate a solution with a Republican Party that absolutely, totally rejects even the suggestion that tax increases might be considered — and we all know that tax hikes have to be part of this — what would you have him do?

ATF

April 6th, 2011
5:36 pm

“He also intends to lower the top tax bracket on individuals and corporations from the current 35 percent to 25 percent.”

Oh, sure. And those tax cuts we have had for the last decade have done SO MUCH to increase jobs.

There is a point in any policy when a good idea is carried to a ridiculous extreme. Are we there yet?

Del

April 6th, 2011
5:36 pm

jm, good point as Ryan was on that commission and much that he’s proposing came from it. Really does make Obama appear foolish and a weak leader.

Pogo

April 6th, 2011
5:37 pm

The Lefts answer to the fiscal crisis? Just tax those evil “riche” and everything will be OK. Nevermind that that has been tried elsewhere and in this country and it failed. Do your own research. Name a country where taxing the so-called “rich” has solved that country’s fiscal problems that were created by their socialistic government policies. Just name one.

The problem with socialism (which many on here appear to be subscribe to, whether they realize it or not) is that once one level of taxation is established to pay for socialistic government spending, then inevitably government spending again is escalated as the country’s people become more and more addicted to getting something for nothing (they think) and the politicians become more and more addicted to getting re-elected for promoting these policies. And the answer by these politicians is then to create another higher level of taxation to pay for it. And all the while the definition of “rich” (based upon earned income) is re-defined downward by the politicians to accomodate the “beast” that is government spending. Ultimately the “middle class”, and the “rich” at least tax wise, constitute about 99% of the tax revenue for the country even though they constitute 50% or less of the working population. This is a viscious cycle which will ultimately end in disaster and misery and revolution. Look at what is happening in Wisconsin.

Socialism, and make no mistake, that is exactly what the Reid’s, Pelosi’s and Obama’s of the world are are all about, is very akin to a cancer in the human body. A cancer divides and multiplies using the resources of its host but ultimately it kills its host and at the same time it kills itself. That is exactly what socialism does and that is exactly what Americans and their politicians are doing now. If we don’t address the out of control spending by our government in this country we are a doomed society in which no matter how hard you work and how hard you save all you can expect is a mediocre existance which those that don’t contribute anything also have. A world wherein everyone is equal no matter their contribution to society. Any way you look at it, whether it be us older folks or the younger generation coming along, things are going to have to change and someone is going to have to do with less government support or the “host” is going to die. Socialism is a motivational killer. It kills the motivation to produce and it kills the motivation to be innovative.

jm

April 6th, 2011
5:37 pm

Jay 5:33 – yes, they’re not great. More accurately, you might argue that one shouldn’t try to fix a deficit while headline unemployment is still 9% and real unemployment is still more like 20%.

That said, I’m not sure we have a choice because I don’t things are going to get better no matter what. GDP growth is not going to bail us out this time in my opinion. Its a complex issue, and now is the time to START deficit reduction, because that will have significant benefits.

Midori

April 6th, 2011
5:38 pm

well, my GOP “friends” working for some very deep pocketed profits tell me that the key to our prosperity is defunding NPR, PBS and Planned Parenthood.

I never did like that d*mned purple dinosaur……

Keep Up the Good Fight!

April 6th, 2011
5:39 pm

Keep, Google is your friend and you may want to try it before you make assertions that there’s no such thing as voter fraud and that committing such fraud is near impossible

And yet you have not used “the Google” to come up with a single piece of evidence to support your claim of widespread voter fraud after I posted links to the 86 cases of the Bush DOJ and the now 95 cases in the DOJ chart. Of which 4 of the 95 cases between 2002 – 2005 were multiple voting cases……… sorry, you really have failed on this one.

jm

April 6th, 2011
5:40 pm

Jay 5:36 – well, hard to know, since Obama hasn’t proposed a plan that includes tax hikes.

R’s want spending cuts. D’s want tax increases (in the closet about this one still though). There’s a compromise waiting to be had (potentially), but not if Obama plays “whirlwind re-election fun time” for the next 18 months. If D’s don’t come to the table, its impossible to know if a compromise is available.

Moderate Line

April 6th, 2011
5:40 pm

The main thing which will be driving our future budget deficit is medicare. You can argue about coporate welfare, welfare for the poor, defense, but most projections for this will swallow our entire budget. Our current expenditures are around 22% of GDP. Historically, we have average around 20%. Medicare and Medicaid is projected to go from 4% of GDP to 9% of GDP by 2035. By 2082 the percentage will be 19% which is roughly equal to what we take in on ALL revenues for the government.

How is this increase going to be made up?
http://www.cbo.gov/ftpdocs/87xx/doc8758/MainText.3.1.shtml

Midori

April 6th, 2011
5:40 pm

maybe if Obama high fives he wouldn’t look so weak? or better yet, how about a terrorist fist bump?

WOW #6

April 6th, 2011
5:40 pm

“given that Obama has to negotiate a solution with a Republican Party”

Another excuse. Where were the Democrats budget proposal last year? OH that’s right, they didn’t put one forth because of the November elections. We are Here Because Democrats Didn’t Pass a Budget for 2 Years.

Obama keeps saying that the Republicans want it to be ‘my way or the highway,’ but when has he ever compromised on anything?

Boehner: If President Obama “Wants to Have An ‘Adult Conversation’ About Solving Our Fiscal Challenges, He Needs to Lead Instead of Sitting On the Sidelines”

He’s absolutely right. Instead, Obama is out campaigning and playing golf.

Jay

April 6th, 2011
5:41 pm

actually, jm, Obama DID propose a solution that included tax hikes. He wanted to let the tax cuts for the rich expire, and remind me again … how did that one go?

@@

April 6th, 2011
5:41 pm

I never did like that d*mned purple dinosaur……

ME EITHER!!!!

“I love you…you love me…we’re a happy family…”

Thbbpbbt

Jonas

April 6th, 2011
5:42 pm

It is my belief that Obama should be given a pass on any responsiblity as he is simply and only the President of the United States.

AmVet

April 6th, 2011
5:42 pm

jm, the TARP debacle was illustrative of an administration completely out of control.

Books will be written about how the president and congress completely botched that crisis. (And arguably allowed it to happen in the first place.)

They had Wall Street’s Titans of Malfeasance and Criminal Negligence over a barrel. Who came like slavish puppy dogs to Washington with their enormous hats in their outstretched hands.

And instead of getting REAL concessions from them (after all Bush promised to clean up Wall Street in his 2000 campaign), getting the banksters and casino capitalists to pay for THEIR bailout (by implementing a very modest .5% tax on all credit swaps for example) and putting the many criminal offenders behind bars/fining the hell out of them, the politicians did what?

They got stuffed into the barrel by their paymasters and rolled down the hill to us.

Who, of course, picked up the tab.

And King George of the fifty colonies (not to be confused with the previous one who only had 13) did his backroom, closed door Taxation without Representation shtick.

No gathering of the best minds in the country to propose and debate solutions. (Well, nobody but the Wall Street boys themselves.) Nobody to represent you and me. (Congress doesn’t really do that anymore.)

Just fear-mongered b*llsh*t.

Something they had perfected seven years earlier…

josef nix

April 6th, 2011
5:42 pm

It wasn’t US who put the labels on them…they chose them…Chastain and Mt Paran are only part of this part of town…there’s Pharr, Paces Ferry, Lindbergh Drive, Peachtree Battle, Lenox…and how do we know who’s who…Old Buckhead sees you walk down the street or passes you in the store, smiles, nods and says “good morning.” Real Buckhead does the same, and asks about Mama and them and when are you going to come for a cup of coffee, Buckhead Newcomer looks at you like you’re an alien being when you nod and walks on by. Tourists? They’re the ones trying to find their way back to Peachtree… :-)

Midori

April 6th, 2011
5:43 pm

Del

April 6th, 2011
5:44 pm

Jay, the public isn’t convinced that government, which includes both parties possess both the will and ability to manage the nations financial affairs. The first step must be deep meaningful cuts in spending to gain the public’s confidence. The Republicans are doing what the public is demanding as evidenced in the mid-term election. Democrats would be well advised to understand that message and it appears they’re failing to do so.

WOW #7

April 6th, 2011
5:44 pm

“Obama DID propose a solution that included tax hikes. He wanted to let the tax cuts for the rich expire, and remind me again”

Sure. Obama and the Democrats had the House and Senate for two years. The GOP was in the minority.

Obama extended the Bush tax cuts.

More excuses by the DNC excuse maker himself.

Tommy Maddox

April 6th, 2011
5:44 pm

This business of attacking “programs affecting the elderly, the sick and the poor” is just the same old rehash of claims made by the Left in1996. We did not see the bodies of the elderly littering the streets then, nor will we now.

How’s about trying something that really is a CHANGE in as much that the Left as proposed NOTHING to address the debt.

jm

April 6th, 2011
5:44 pm

Jay, what Obama thinks (and probably you) is that after Obama is (in theory) re-elected in 2012 then they can work on deficit reduction.

2 problems with this.
1. The deficits are so large things could blow up before then.
2. Everyone wants to keep punting until the next election. Obama thinks he’ll have the freedom, since there won’t be a 3rd term, to negotiate without worrying about 2016. Problem is, Congress is always worried about re-election (the house anyway), and he’ll have a bunch of R’s that say: well we’ll wait until 2016 when we have a better shot at an R president to settle.

This can’t go on forever. Life’s not fair. Obama needs to deal with the deficit now.

Midori

April 6th, 2011
5:45 pm

so now Del is the voice of the public.

got it.

josef nix

April 6th, 2011
5:45 pm

@@

For my 40th birthday party they had a Barney pinata…busted that purple b*stid wide open!

Keep Up the Good Fight!

April 6th, 2011
5:45 pm

The nonpartisan Congressional Budget Office’s initial analysis of the House GOP budget released today by Rep. Paul Ryan (R-WI) is filled with nuggets of bad news for Republicans.

In addition to acknowledging that seniors, disabled and elderly people would be hit with much higher out-of-pocket health care costs, the CBO finds that by the end of the 10-year budget window, public debt will actually be higher than it would be if the GOP just did nothing.
___________________

Ahh reality…. it just does the Republican ilk little good.

Jay

April 6th, 2011
5:47 pm

Again jm, given the refusal of the GOP to even consider tax hikes, what specifically would you have him do?

jm

April 6th, 2011
5:47 pm

Jay 5:41 – it went nowhere because it was only the D half of the plan. Ie, not a compromise.

A compromise entails spending cuts (for the R’s) in return for higher taxes (for the D’s).

And furthermore, tax increases on just the rich won’t close the gap. Everyone’s going to have to pay up. And the rich don’t want to be thrown into the meat grinder first. Hard to blame them.

Jay

April 6th, 2011
5:48 pm

jm, I agree on that point. Everybody is going to have to contribute.

jm

April 6th, 2011
5:48 pm

Jay 5:47 – “the grand bargain” thingy. Everyone hurts and everyone wins simultaneously. It can’t be done in piecemeal fashion I don’t think.

Midori

April 6th, 2011
5:49 pm

funny how Obama’s election meant absolutely nothing — a mere pittance (in some minds), but the GOP taking back the House is the end all of all time (again, in some minds).

Jay

April 6th, 2011
5:49 pm

Sure got quiet in the woodshed….

@@

April 6th, 2011
5:49 pm

Sitting on the sidelines?

Even congressional Democrats have complained he spends too much time on the sidelines, leaving them to do his dirty work.

I spotted that personal characteristic early on. Don’t know what took THEM so long.

Haven’t they learned not to bother him while he’s playing the role of president?

Jay

April 6th, 2011
5:50 pm

josef nix

April 6th, 2011
5:50 pm

midori

And he needs to learn to speak Ebonics…I’ll be glad to tutor him!

WOW #8

April 6th, 2011
5:51 pm

“And furthermore, tax increases on just the rich won’t close the gap”

The thing that left wingers don’t seem to understand is the fact that rich people can simply move. When states, like Maryland for instance, raise taxes on rich people, they simply pack up and leave and the middle/lower class are left footing the bill.

But, most of these left wingers have never taken ECON 101 class so I can see their ignorance when it comes to money.

“Everybody is going to have to contribute.”

What about those that don’t pay taxes, Jay? Maybe the government should sell those people to China. (JOKE)

jm

April 6th, 2011
5:52 pm

Jay 5:50 – glad there’s common ground. Of course, where on that ground things shake out changes things. The problem with the grand bargain thing is someone looks at their piece and thinks they’re losing and everyone screams bloody murder.

The GA tax commission plan was a bit of the “everyone wins and loses simultaneously” thing. How did you feel about that?

Doggone/GA

April 6th, 2011
5:52 pm

“given the refusal of the GOP to even consider tax hikes, what specifically would you have him do?”

At this point, and based on what happened in Dec, I think those “cut spending NOW” “conservatives” would be quite willing to compromise on more spending, if they can only get the tax CUTS they want. After all, they DID cave on increasing unemployment benefits (more spending) to keep lower taxes for the rich (tax cuts)

Midori

April 6th, 2011
5:52 pm

HAHAHAHAHA, Josef!!

well, as you know that talent completely evaded me :lol:

AmVet

April 6th, 2011
5:52 pm

josef, you should of had Tinky Winky and invited that loon Jerry Falwell!

Jay

April 6th, 2011
5:53 pm

So Wow, where are the big earners going to move? What Western industrialized country would they move to that has lower taxes than we do?

It’s a bunch of bull.

@@

April 6th, 2011
5:53 pm

josef:

I can’t tell you how many times we’ve had to sing that song at school. It’s a bit easier in that environment. We DO love each other, but still…

IT’S NERVE-WRACKING!!!!

I entertain myself by singing it in Barney’s voice. The rest of the staff gets to laughing so hard they forget how NERVE-WRACKING it is.

Del

April 6th, 2011
5:54 pm

“so now Del is the voice of the public.

got it.”

There was a mid-term election that took place this past November 2, 2010. An election is where the public makes their opinions heard by electing representatives to serve them in government. There are classes dealing with civics’ that you can attend.

Jay

April 6th, 2011
5:56 pm

jm, I never saw the point of that “reform.” The whole thing was justified as a way to make the state more “business friendly,” but as the commission made very clear, none of the proposed changes would do anything to accomplish that goal.

From the beginning, it was all show.

AmVet

April 6th, 2011
5:56 pm

Midori @5:49, four months on and I’m still recovering from the “backlash”.

Or is it the previous whiplash of 06 and 08?

LOL…

WOW #9

April 6th, 2011
5:56 pm

“So Wow, where are the big earners going to move?”

Texas has seen the biggest influx of people. Florida is another. There is a reason why companies/people have moved down south, Jay.

I’m guessing that’s one of the reasons you’re here and not living in some blue state like Illinois.

“What Western industrialized country would they move to that has lower taxes than we do?”

Singapore and Hong Kong are more business friendly than the US. Australia and Costa Rica are another area.

“It’s a bunch of bull.”

Oh really?

Certainly, Maryland’s millionaire tax back fired. It is estimated that Maryland lost $1 billion because one-third of wealthy residents moved or filed their taxes in other states with lower tax burdens. Since Maryland’s millionaire tax was implemented, Maryland’s deficit has increased from $1.7 billion to $2 billion.

Similarly, New York enacted a “millionaire tax” that raised tax rates on all residents making more than $200,000 a year. However, since New York implemented their so-called millionaire tax its state revenue has declined by 9 percent. According to New York Governor David Paterson,

We increased the income tax for millionaires last year. We projected that we would get $4 billion and we actually got well short of it. Tax the rich, tax the rich. We’ve done that. We’ve probably lost jobs and driven people out of the state.

http://www.freedomworks.org/blog/jborowski/tax-hikes-on-the-rich-wont-work

jm

April 6th, 2011
5:56 pm

Jay 5:53 – top income tax rate in Singapore is 20%. There’s a reason our good ole southern boy and Soros protege Jim Rogers went there.

josef nix

April 6th, 2011
5:58 pm

@@

Same here…I’m threatening to teach mine Marshall Chapman’s “I Love Everybody!”

@@

April 6th, 2011
5:58 pm

funny how Obama’s election meant absolutely nothing

I’m glad we got it behind us. Problem is…he was the wrong FIRST. His lack of leadership reflects poorly. ‘Twas a huge burden to place on one so young and inexperienced.

jm

April 6th, 2011
5:59 pm

Jay 5:56 – I think you may have proved my point.

I think it would make the state more competitive by eliminating all the tax credits / deductions / etc and lowering the rate. But that’s just my perspective.

Midori

April 6th, 2011
5:59 pm

ROFL, AmVet :lol:

http://www.youtube.com/watch?v=Xbt30UnzRWw

maybe Del will chime in on this as well.

once he’s finished digging up some “you momma so fat” jokes to rebut Keep :lol:

getalife

April 6th, 2011
5:59 pm

The gop took Clinton’s surplus, went 2 trillion in debt with needless a war like Iraq and handed out corporate welfare, collapsed the global economy then want to cut services for the American people.

Then they will go back to spending trillions and destroying our country.

Amazing hypocrisy is the gop.

jm

April 6th, 2011
6:00 pm

and I don’t think the commission would’ve proposed something to put the legislature through the ringer “just for show”

Yippee

April 6th, 2011
6:01 pm

So, what is your plan Jay, and the rest of the poopslingers?

Ryan: Debt on Track to Hit 800 Percent of GDP; ‘CBO Can’t Conceive of Any Way’ Economy Can Continue Past 2037

SEE LINK
http://cnsnews.com/news/article/rep-ryan-obama-s-budget-path-do-nothing

Midori

April 6th, 2011
6:02 pm

jm

April 6th, 2011
6:03 pm

For anyone looking Singapore tax rates….

http://www.guidemesingapore.com/taxation/topics/singapore-tax-rates

Oh, and their corp tax rate tops out at 17%.

Keep Up the Good Fight!

April 6th, 2011
6:03 pm

Midori…. funny! :D

getalife

April 6th, 2011
6:03 pm

“I’m glad we got it behind us. Problem is…he was the wrong FIRST. His lack of leadership reflects poorly. ‘Twas a huge burden to place on one so young and inexperienced”

Behind us?

He will win again @@.

The gop can’t beat him.

Jay

April 6th, 2011
6:04 pm

all of those destinations are here in the good ol US of A, Wow. Altho Texas does make noises to the contrary from time to time.

And if they want to move to Singapore … see ya!

As to the Maryland claim:

“In May 2009 the Wall Street Journal ran an editorial entitled “Millionaires Go Missing.” This article argued that Maryland’s newly imposed millionaire tax was driving wealthy citizens from the state. The article claimed that one-third of millionaires left Maryland after the state increased their top tax rate from 5 percent to 6.25 percent for taxpayers making $1 million or more. However, a study that used actual state tax return data contradicts this claim.

According to a study by the Institute on Taxation and Economic Policy (ITEP), the decrease in Maryland millionaire tax returns had less to do with millionaires leaving the state and more to do with the recession’s effect on their income. The institute gathered data from the Maryland Office of the Comptroller on millionaire tax returns from before and after Maryland’s 2007 tax hike. Their findings showed that out of 3,837 less millionaire tax returns filed in 2008 compared to 2007, only 547 of them were due to state residency changes. The other 3,290 millionaires simply made less money during the recession and were therefore not subject to the millionaire tax.

Other studies have resulted in similar conclusions. Princeton University’s Policy Research Institute studied the effects of New Jersey’s “half millionaire” tax that was passed in 2000. This “half millionaire” tax created a new tax bracket for those making over $500,000 a year. The study found that while some out-migration did occur, the increase in tax revenue more than made up for the losses. New Jersey lost $37.7 million in tax revenue after wealthy taxpayers left the state, but they gained over $1 billion in revenue from the tax increase. A similar study by the California Budget Project found that after the state passed a 1 percent surcharge on people making more than $1 million a year in 2005, the number of taxpayers with adjusted gross incomes of at least $1 million increased by nearly 38 percent.”

http://taxes.about.com/od/statetaxes/a/State-tax-on-millionaires.htm

josef nix

April 6th, 2011
6:04 pm

good fight

Before leaving Buckhead in the broad daylight…Unmentionable came back from Publix and said he heard a drawled “Y’all got ‘n mo of them chock-lit cov-uhd matzos?” Said he looked over and there she was, floppy housedress and sensible shoes…that’s Real, Old Buckhead! I love my neighborhood!

Midori

April 6th, 2011
6:05 pm

josef nix

April 6th, 2011
6:05 pm

midori

Nyanh…the yo mama’s so fat jokes belong to Michelle!

jm

April 6th, 2011
6:06 pm

Singapore: “see ya” tryin my darndest. I’m not rich, but I wouldn’t mind being so. Productivity is self-perpetuating.

Sent in my formal app for a spot in singy actually today. Not sure it’ll go anywhere, tough to get a job there. So many people trying to get in. Kind of like the US used to be. But times have changed.

AmVet

April 6th, 2011
6:07 pm

Midori, although a bizarre band and song, I’ve always like that tune.

And as my mom is from Freiburg, on the edge of the Black Forest, I have always been fascinated by these truly bizarre characters of the 1300s. Who originated there.

They would publicly flog themselves in penance thinking the big guy upstairs would be impressed and lay off on that nasty little Black Plague thing.

They would have made for good cons, who like paying extra taxes to help out BIG business and the wealthy…

http://en.wikipedia.org/wiki/Flagellant

Jay

April 6th, 2011
6:07 pm

Yeah jm, nobody’s trying to get into the USA anymore … eyeroll

Paul

April 6th, 2011
6:07 pm

Didn’t read all the posts, will skim them in a bit more, but…

Jay

Good on you. Always, always, always test the assumptions that produce the answer.

If the assumptions are suspect, or if a slight change in one variable produces significant differences in the answer, one knows to be suspicious of the validity of the answer.

And this answer by Heritage is so far out there scientists haven’t even named the galaxy.

One would think those guys would be professionally embarrassed to produce such a report. Then again, maybe they have no shame -

Midori

April 6th, 2011
6:07 pm

houseworks calls.

Later folks :)

jm

April 6th, 2011
6:07 pm

Course won’t do me any good cause I still get to pay US taxes. But one can hope for a good tax lawyer. And I’m still young, so 10 years of taxes might be a cheap trade….

getalife

April 6th, 2011
6:08 pm

Good one.

The tea ba ggers will let us know what billionaires want.

Like their party.

Pogo

April 6th, 2011
6:08 pm

AJC, “NAACP” Objects to Civil War marker. So the NAACP is objecting to a marker to a war that was fought to set black people free from slavery.

What about Obama going grovelling to that charlatan the race baiting “Reverend” Al Sharpton to stir up black support for his 2012 presidential bid? Obama must be really, really scared.

Midori

April 6th, 2011
6:09 pm

Hi Paul :)

AmVet – I’ll catch that link later.

And Doggone – thanks for your help :)

WOW #9

April 6th, 2011
6:09 pm

“all of those destinations are here in the good ol US of A, Wow. Altho Texas does make noises to the contrary from time to time.

And if they want to move to Singapore … see ya! ”

Uh yeah Jay, no kidding. You act as though I meant that rich people would only move out of the country. See ya? That’s great, Jay. So you want people who create jobs to move elsewhere.

Nice.

“According to a study by the Institute on Taxation and Economic Policy (ITEP), the decrease in Maryland millionaire tax returns had less to do with millionaires leaving the state and more to do with the recession’s effect on their income.”

They had to do a study on why millionaires left the state? LOL talk about wasting tax payer dollars!

Why didn’t they just ASK the millionaires why they left the state?

“The other 3,290 millionaires simply made less money during the recession and were therefore not subject to the millionaire tax.”

Uh……they were already millionaires, Jay! LOL

jm

Dude, there may be one or two left wingers on this blog that actually took an economics class. The rest of them probably never even went to college.

jm

April 6th, 2011
6:09 pm

Jay 6:07 – well, all the INS guys say illegal immigration is way down. Courtesy of the recession / tepid recovery thing.

Yeah, the US is 50 times better than, say, the Ivory Coast. But Singapore is twice as good as the US…. sometimes the grass really is greener.

Jay

April 6th, 2011
6:10 pm

You ever spent any time in Singapore, jm?

jm

April 6th, 2011
6:10 pm

WOW – well, one can be an economist and still left wing. Krugman proves that every week.

carlosgvv

April 6th, 2011
6:10 pm

“affecting the elderly, the sick and the poor”

It is a tribute to the effectiveness of Republican brainwashing and propaganda that their mindless voters will support them even though it is clear that their number one priority is serving Big Business and, if that means sticking it to the poor and elderly, so what. Money talks and BS walks, right Ryan?

Keep Up the Good Fight!

April 6th, 2011
6:10 pm

josef…you sure that unmentionable did not see Midori getting ready to do her housework….

A tax lawyer? You could hire Bachman

jm

April 6th, 2011
6:12 pm

Jay 6:10 – not yet. I know, no spitting out gum (I don’t chew) and no pot smoking (don’t smoke). So it shouldn’t be too much of a problem.

And I know they have a “partially socialized” medical system. Fine by me if it works. I don’t think the same system would work as well in the US, but that’s just me.

Oh yes, it’s sunny and hot. I’m from the GA coast, so hot and humid I can deal with :)

getalife

April 6th, 2011
6:12 pm

There is Paul.

I agree they have no shame.

Paul

April 6th, 2011
6:12 pm

Hi and Bye Midori!

:-)

josef nix

April 6th, 2011
6:13 pm

Keep

Ooooh, you just plumb bad! :-)

jm

April 6th, 2011
6:15 pm

It also helps their national language is actually English too.

getalife

April 6th, 2011
6:16 pm

“Civil War marker?”

We need HD’s opinion on this one.

@@

April 6th, 2011
6:16 pm

Getalife:

He will win again @@.

That remains to be seen, much like his efforts.

By the by…if, for some reason, you decide to leave these parts, let me know. I don’t wanna have to worry about you.

Deal?

getalife

April 6th, 2011
6:18 pm

Why would they leave American exceptionalism and the greatest country with the shining city on the hill?

md

April 6th, 2011
6:19 pm

The rich going to leave? They don’t have to leave……just declare one of their other homes as their primary residence and move their money offshore…….they aren’t rich because they give their money away…………..you folks are kidding yourselves if you think they are dumb enough to sit back and let others vote away their money.

josef nix

April 6th, 2011
6:20 pm

getalife

Haven’t heard from HD today. Somebody else has been here, though…jus’ sayin;

getalife

April 6th, 2011
6:20 pm

@@,

Deal but I will stay until they pry this keyboard from my cold d ead hands.

Or if the host bans me.

Doggone/GA

April 6th, 2011
6:21 pm

“And Doggone – thanks for your help”

You’re welcome Midori. Hope it does help. I learned from a friend who has panic attacks too.

jm

April 6th, 2011
6:21 pm

md 6:19 – that is true as well. Capital mobility isn’t just a catchphrase.

jm

April 6th, 2011
6:22 pm

md – although, that said, lots of investments are less liquid than one might prefer…

getalife

April 6th, 2011
6:22 pm

“Somebody else has been here, though…jus’ sayin;”

Poking the Bear are ya?