Pro golfer Phil Mickelson has gotten a lot of flak for his recent comments about threatening to make “drastic changes” in his life due to state and federal tax increases. Never mind that he later backed off, saying he should have kept his thoughts to himself and apologized to those he “upset or insulted.”
He was cowed into being Politically Correct.
Mickelson was telling the truth. If there’s anything that should upset or insult Americans, it’s just how much of their money the government takes. Mickelson estimates that more than 60% of his earnings are snatched in federal and state taxes (he lives in California). Should a private citizen, no matter how successful, really owe the government more than half of what he or she makes? Intuitively, this cannot make sense to anyone who believes in the principles of hard work and personal responsibility.
Which a Liberal does not. Blame someone else first and always. You do hard work and the rich guy gets all the rewards, the bastard!
But Mickelson’s comments reveal something far more profound. He was talking about an increasingly complex tax code (nearly 74,000 pages!) that also reserves special punishment for small businesses, working families and even the little guys. The rich, like Mickelson, can hire high-priced lawyers and accountants to compute their taxes and take advantage of loopholes. Or, they can pick up and move. The middle class is not quite so fortunate; most cannot simply pick up and move to a better economic climate.
And that’s the rich people’s fault. So hate them. 🙂
A high income-tax state like California is not just driving away successful men and women like Mickelson, but driving businesses out, too. This ultimately results in even less tax revenue, which sinks California’s economy even more.
So they have to raises taxes even more.
The wealthy were already paying a significant portion of California state income tax. Based on 2010 tax figures, those earning over $250,000 per year were accounting for 62 percent of state income tax revenue. Those earning over $450,000 were paying 46 percent of state income tax. (TaxLawhome)
The Top 10% pay consistently from 66-70% of all Income Taxes. But it’s “unfair”.
But it’s not fair! They have to pay more! Scream the Left and their class warfare rhetoric.
Get the peasant to revolt. Gin up this class hatred.
“If you have excessive regulations and excessive tax, that’s just not where you want to be,” said Peter Farrell, president of ResMed a medical-device maker in San Diego that employs 600 workers and is considering moving its offices out of state. “California is unfriendly. It’s become an unfriendly business environment.”
One possibility is Texas, where the personal income-tax rate is zero, compared to 13.3 percent for top California earners.(end time news)
Farrell said November’s election results, including the passage of tax increases, made California less hospitable for ResMed.
“The whole place is very Democratic, very union-friendly and tax-unfriendly,” Farrell said. “And we just see the costs going up, and the benefits going down. We see more regulation and more taxes, and more of an anti-business kind of environment.”
Another San Diego-based company, Fallbrook Technologies, a maker of variable speed transmissions, recently announced it is leaving for Texas.
Nevada tax accountant George Ashley said he’s received more than 100 inquiries from higher-earning Californians about the possible tax advantages and feasibility of relocating to a state with lower taxes.
California has played the role of piñata for years among national business leaders because of its anti-business reputation. Chief Executive magazine has put Texas on top as the most business-friendly state and California at or near the bottom for eight consecutive years. (UTSD)
Now back to Fran…
Massive state government spending leads to higher taxes. More taxes lead to less government revenue because overtaxed businesses and higher income individuals depart for more business-friendly states. This vicious cycle hurts average citizens and the most vulnerable alike.
From the payroll tax hike surprise that most workers found in their first paycheck of 2013 to Medicare tax increases to raising top tax rates to nearly 40%, Washington has made life more difficult for most Americans. When companies raise prices to pass the cost of the corporate income tax — now the highest in the developed world — on to consumers, these “hidden taxes” hit fixed-income families the hardest.
I have never seen it quite so bad for job creators. Today, many are being punished for just doing business. Confiscatory taxes. Suffocating regulations. Stifling energy costs. There is only one way to create the jobs we need: we must put our fiscal house in order. Our nation must lower tax rates to be more competitive and to incentivize businesses to invest and job creators to grow their businesses. Pro-growth policies will lead to more businesses and more jobs; these jobs will create more taxpayers and government revenue.
After the unfair treatment Mickelson received from partisans and the press, we won’t likely hear from him again soon on economic policy. That’s unfortunate, because his frank talk on taxation is the kind of discussion America needs.
Fran Tarkenton is founder and CEO of OneMoreCustomer.com, NFL Hall of Fame quarterback, and member of the Job Creators Alliance.
Dr. Benjamin Carson at the National Prayer Breakfast (via Townhall.com)
CARSON: Well, some people say, they say, “Well, that’s not fair because it doesn’t hurt the guy who made $10 billion as much as the guy who made ten.” Where does it say you have to hurt the guy? He just put a billion dollars in the pot! You know, we don’t need to hurt him. It’s that kind of thinking that has resulted in 602 banks in the Cayman Islands. That money needs to be back here, building our infrastructure and creating jobs.
And there’s more:
CARSON: Here’s my solution: When a person is born, give him a birth certificate, an electronic medical record, and a health savings account to which money can be contributed — pretax — from the time you’re born ’til the time you die. When you die, you can pass it on to your family members, so that when you’re 85 years old and you got six diseases, you’re not trying to spend up everything. You’re happy to pass it on and there’s nobody talking about death panels.
Number one. And also, for the people who were indigent who don’t have any money we can make contributions to their HSA each month because we already have this huge pot of money. Instead of sending it to some bureaucracy, let’s put it in their HSAs. Now they have some control over their own health care.
What’s most effective about Dr. Carson’s remarks is that they make the case for free enterprise medicine — based not on economics, or efficiency — but based on morality. Kudos to him for that — hope the GOP was taking note.
And the fact that Obamacare targets HSAs to be eliminated by lowering their benefits and increasing their costs is particularly telling.
We are From the Government and We know what’s good for you better than you do. 🙂