Oregon Deciding to Fleece Their Rich
|February 11, 2010||Posted by Roshawn Watson under Uncategorized||
Voters of Oregon have decided to take from their richest residents and businesses, as voters approved a statewide ballot to raise taxes on people with taxable income upward of $125,000. It is estimated that the new tax will affect fewer than 3 percent of filers.
This is a historic moment for Oregon, as its voters have repeatedly thwarted Congress’s attempts to increase tax revenue. For example, cigarettes taxes for children’s health care, income tax affecting most Oregonians, and nine sales tax measures over the decades have all failed. Indeed this is the first corporate minimum tax increase in 80 years.
“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.’”
Ralph Nader’s father purportedly once said that “Capitalism will never fail because Socialism will always bail it out.” My concern, especially in this election year, is that socialists will seek revenge. Already I can hear the war cry “tax the rich!” The problem with taxing the truly rich is that the rich simply move their money to countries that treat them and their money with undue respect. And when the rich move their money, the poor and middle class end up paying more taxes (Robert Kiyosaki on April 14, 2008)
Imagine the implication of driving away from your state of thousands of jobs in this economy and some of the world’s most influencial people because your state can’t balance its budget. I have stated it before; the biggest limitation to a progressive tax system is that it creates an overdependence of the state government on relatively few individuals. Thus, if they fall (i.e. because of the economy), change their residence, or lower their income, the whole system stumbles. Simply put, you just cannot tax the rich beyond their willingness to pay. I can see 70 billion reasons why this may not work out so well for Oregon.
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.