America’s top sanctuary state is finally getting payback, and their tax revenue just crashed through the floor.
Leftists often decry the wealthy, calling them greedy and heartless, and insisting that they don’t pay their fair share in taxes.
But what the critics fail to realize is that if there were no rich, there would be no wealth to redistribute. It’s not that the wealthy are greedy individuals, or that they lack compassion for the poor. 95 percent of American millionaires gave substantial amounts to charities in 2017.
What many millionaires have a problem with is seeing their money be inefficiently spent by incompetent bureaucrats. It’s no secret that the government mismanages taxpayer money. A recent study to see if quail are more promiscuous while on cocaine cost taxpayers a staggering six figures.
So when the government decides to increase their cut of the rich’s earnings, the wealthy move elsewhere looking for a way out.
This is precisely what’s currently happening in the most liberal state in America.
According to new research released by Charles Varner, associate director of the Stanford Center on Poverty and Inequality, California lost an estimated 138 high-income individuals following passage of the Proposition 30 income tax increase championed by Gov. Jerry Brown (D) and approved by Golden State voters in 2012.
Prop. 30 raised the state’s top income tax rate by more than 29%, increasing it three percentage points from 10.3% to 13.3%, which is now the highest state income tax rate in the nation. Prop. 30 also hiked the tax rate on income between $300,000 and $500,000 by two percentage points (a 21.5% rate increase), and raised the rate on income between $500,000 and $1,000,000 by three percentage points (a more than 32% rate hike).
California voters are getting exactly what they voted for in 2012. But these exorbitantly high taxes will do nothing to fix the state’s unbelievable homeless and drug epidemic. Why? Because the voters failed to realize that raising taxes would cause the wealthy to leave.
Now Californians will wind up raising taxes again to make up for the taxes they’re losing.
Shaking down the rich through government extortion never works the way Democrats say it will. The rich either find loopholes or leave, and the middle class is always left holding the bag.
But the whole philosophy behind the Democratic Party is to convince poor people to vote for the rich people by telling the poor people that other rich people are the reason they’re poor. It’s an effective method, but as Margaret Thatcher once said, “The trouble with Socialism is that eventually you run out of other people’s money.”
Hopefully, those flocking to low tax Red states don’t bring their failed Blue state policies and voting habits with them.