Sunday, August 2, 2009

So Much For The 95% Promise

Obama claimed during his campaign that he would decrease taxes for everyone making under $250,000. There was even a nifty chart showing it.

The NY Post points out that top income earners in New York could be facing a 57% tax burden. They've got an interesting graphic of their own. But New York isn't the only state that will have this. According to the Heritage Foundation Oregon, Hawaii, New Jersey, and California would be included in the 57%+ tax rate (47% marginal fed tax plus state taxes).

And even with all this on the wealthiest Americans, it's not going to cover the ObamaCare bill. After they realize it still isn't enough what are they going to do? They have two options. They could try raising the taxes on the wealthy even more. But how much is too much? We've already seen one prominent Conservative pack up and leave due to the tax burden of New York.

If you've played one of the recent Sim City games, you know that the tax rates in your city can be used to determine the demographics of your city. Tax one group too much, and they leave for another city. Lower taxes and they flock to your city.

As for the other option, the NYT has an article that you have to read all the way to the last line in order to get to the real point of the story;
“There is no way we can pay for health care and the rest of the Obama agenda, plus get our long-term deficits under control, simply by raising taxes on the wealthy,” said Isabel V. Sawhill, a former Clinton administration budget official. “The middle class is going to have to contribute as well.”
Which one are the Dems going to do? Tax the rich out of the country, or start telling the middle class "it's your turn?"

My guess, both. In that order.

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