Tuesday, December 21, 2010

Oregon sends millionaires screaming, tax revenues plummet.

Maybe the liberals watched too many films of Robin Hood in their youth. For whatever reason, they believe that raising taxes on the "rich" (in CA making 250K puts you in the middle class) will make the state richer so they can give the money to the poor. Reality shows how the "rich" migrate to other states and everybody in the prior state is poorer. When will the libs ever learn!

Oregon raised its income tax on the richest 2% of its residents last year to fix its budget hole, but now the state treasury admits it collected nearly one-third less revenue than the bean counters projected. ...
In 2009 the state legislature raised the tax rate to 10.8% on joint-filer income of between $250,000 and $500,000, and to 11% on income above $500,000. Only New York City's rate is higher. Oregon's liberal voters ratified the tax increase on individuals and another on businesses in January of this year, no doubt feeling good about their "shared sacrifice."
Congratulations. Instead of $180 million collected last year from the new tax, the state received $130 million. ...
One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did. Funny how that always happens. These numbers are in line with a Cascade Policy Institute study, based on interstate migration patterns, predicting that the tax surcharge would lead to 80,000 fewer wealthy tax filers in Oregon over the next decade. ...

10 comments:

A Little R&R said...

Of course, since many wealthy people can afford to move about...many work from home or can afford to commute. Why wouldn't the move to a State with lower taxes? Just more liberalism nonsense from The People's Republic of Oregon. Sooooo glad I don't live there anymore!

amanofwonder said...

Okay I am runnin, but I feel like a Forrest Gump, where do I run to now?

Just a conservative girl said...

The same thing happened in Maryland a few years back. They just moved to Virginia where the taxes were lower. So my states revuenues went up even though the tax rate is lower.

Amazing that they don't get it.

Woodsterman (Odie) said...

So what we're seeing here is 98% of the tax payers and voters decided it was OK to vote to steal from the rich or that 2%. They were TOO stupid to realize the predictable consequence of the rich saying F* U and leaving. Isn't life in the real world great.

LL said...

It doesn't take much for a rich person to buy a cheap condo in Nevada and declare themselves residents - and open a bank account there, while keeping the mansion in Oregon.

Or in the alternative, becoming residents of Costa Rica. Capital is fluid. The champions of the poor only hurt the poor (because rich people hire poor people to work) when they punish the successful among us.

I know it's a strange concept, but creating a flat tax where everyone pays tax (rich or poor) at the same rate would work better. 50% of Americans pay no income tax and they'd be unhappy at having to contribute.

WoFat said...

"We're going to punish you for your hard work and intelligence. Welcome to the UK."

The Watcher said...

Liberals just don't get the whole Laffer Curve thing, do they? 'Course, the Laffer Curve is maths, and liberals don't do good with maths (just ask the tax dodges in DC).

fuzzys dad said...

Killing the goose that lays the golden eggs

The_Kid said...

Oh yea, look at the businesses that are flooding out of California. It is so obvious that the Calif legislature has to be intentionally trying to kill the state. It's the only conclusion you can come to. And if anyone thinks the Toyota Tundra plant that just moved to San Antonio is coming back any time soon under any circumstances is out of their mind. They have contracts with Texas now and moving an assembly plant is not trivial. Multiply that times hundreds of businesses.

Libs will think that when all states raise their taxes (if they even would) or the Fed does it, then the revenues will come up because the rich people won't have another state to run to. But they do have places to run to and they've done it in the past.

Historically once a tax gets to a certain level, revenues drop. It's called the Laffer curve.

Liberals are children, pure and simple. Dangerous, but children regardless.

Teresa said...

And, liberals think they're smart. Whatever libs stated intent is, the opposite happens. What a bunch of morons. If libs only had a brain...