Carpe Diem

The Rich Are Not Docile Sheep Waiting to Be Shorn

“President Barack Obama’s new health-care legislation aims to raise $210 billion over 10 years to pay for the extensive new entitlements. How? By slapping a 3.8% “Medicare tax” on interest and rental income, dividends and capital gains of couples earning more than $250,000, or singles with more than $200,000.

The president also hopes to raise $364 billion over 10 years from the same taxpayers by raising the top two tax rates to 36%-39.6% from 33%-35%, plus another $105 billion by raising the tax on dividends and capital gains to 20% from 15%, and another $500 billion by capping and phasing out exemptions and deductions.

Add it up and the government is counting on squeezing an extra $1.2 trillion over 10 years from a tiny sliver of taxpayers who already pay more than half of all individual taxes.

It won’t work. It never works. Punitive tax rates on high-income individuals do not increase revenue. Successful people are not docile sheep just waiting to be shorn.”

~Cato’s Alan Reynolds in today’s WSJ

Here are some reports on how tax increases on millionaires worked out in Maryland:

1. Wall Street Journal – “Maryland’s Mobile Millionaires: Income tax rates go up, rich taxpayers vanish.”

2. Washingont Post – “The number of self-reported million-dollar earners in Maryland has dropped by roughly a third compared with this time last year, renewing debate yesterday about whether the state’s year-old “millionaires’ tax” is driving rich people beyond its borders.”

3. Baltimore Sun — Top Payers Fade Away; Maryland Was Depending On Taxing Millionaires, But They’re Disappearing.

4. Wall Street Journal — Millionaires Go Missing; Maryland’s fleeced taxpayers fight back.

2 thoughts on “The Rich Are Not Docile Sheep Waiting to Be Shorn

  1. Pingback: Low 60s is a great golf score, but a terrible tax rate | AEIdeas

  2. Publicly, the class warriors talk about raising revenues by taxing the rich – when confronted by the reality, they change their stories – “It is about fairness” they say – What they really want to do is inflict pain on those that have anyway they can – and when it does not work, they double down and keep increasing tax rates –

    They cannot accept the fact that reducing rates will INCREASE total revenues – they are not interested in increasing revenues as they are about inflicting pain on those that have money – and use that to get elected again and accumulate their own wealth and figure out how to protect that wealth.

    “Public Servant” is an oxymoron – they serve only themselves by pretending to serve others.

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