States Look To Tax Wealthiest Residents To Shore Up Budget Deficits

[steven johnson]

Source: All Headline News

New York Governor David Paterson and other Democratic lawmakers in New York are attempting to reverse an $18 billion budget deficit by imposing taxes on the wealthiest residents in the state. The move comes as several governors consider similar measures to shore up budget deficits in their respective states.

The proposal by Gov. David Paterson would follow California and Maryland in placing its top earners into higher tax brackets, while New Jersey is considering raising its top-tier income taxes even higher, to more than 10% compared with the 5.25% marginal rate paid by most households.

In his proposal, Mr. Paterson has called for raising the marginal tax rate to 7.85% for three years for single filers who earn $200,000 to $500,000 as well as married couples whose combined earnings total $300,000 to $500,000.

While a number of states already have so-called millionaire's taxes in place, New Jersey is considering boosting the tax on top earners to 10.25% from 8.97% for one year, which would provide an estimated $620 million to help close a $7 billion shortfall.




Read more: http://www.allheadlinenews.com/articles/7014641556

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With New York's $18 billion deficit, New Jersey's $7 billion deficit and California's $42 billion deficit, there aren't a lot of ready revenue sources in a down economy.

http://online.wsj.com/article/SB123854978218576549.html?

[bemildred]

1. Go where the money is. Duh.

With no middle class any more, it's the rich and the corporations or bankrupted governments.

[DallasNE]

2. That Could Prove To Be Counterproductive

The wealthy would simply move their residence to a lower tax state, perhaps Delaware. People vote with their feet so they would walk. Today's report from Challenger, Christmas and Gray (or whatever their name is) just reported that States and Cities are now announcing steep job cuts. The stimulus dollars apparently will go to deficit reduction rather than job creation. Hopefully there are strings attached to somewhat prevent this from happening. Stretching out contracts could save money. Surely there are smarter people than me that can come up with more good items that fall short of shooting yourself in the foot.

[Waiting For Everyman]

3. As a Marylander, I say Delaware can have 'em.

If they walk, then they won't be around to buy our laws anymore, and the working class will have a chance to recover - at least at the state level.

[Zynx]

4. There isn't a lot of evidence of the phenomenon you suggest.

People care about a lot more than taxes so long as the tax rates are within a certain bound. If Wisconsin had a tax rate of 16% on income above $100,000 that would make a difference. However, if it is only .25% higher than Iowa, I really doubt someone will move to Iowa.

[hadrons]

5. This sounds like the "if health care were free everyone would go to the doctor everyday" POV

As if waiting around for hours just to be polked by a doctor and taking unneeded treatments would be more appealing if it was free ("hey, its go to the clinic for some free chemo!!!)

Besides money isn't everything and I would think all those wealthy people from NY or LA would be dissappointed with the nightlife in Delaware (no offense).

I smell a freeper-troll

[Psephos]

7. I smell an ideologue

Quit already with the lazy freeper-troll insults and address the argument instead. I'm interested in free discussions - horrors! - even about points of view I don't currently hold, and suppression tactics hinder that.

[Tansy_Gold]

6. Makes perfect sense to me

Why should the rich be immune to the effects of the downturn they created and profited from?

Why stop with minimal increases?

And why ain't the feds doin' it too?





TG