Category Archives: Taxes

The blue-state exodus gains momentum, by Merrill Matthews

People are voting with their feet, leaving blue states for red states. Unfortunately, many of the new arrivals bring their blue-state politics with them. From Merrill Matthews at thehill.com:

Nine years ago I published a piece that asserted, “Voters around the country are concluding it’s better to be red than dead,” applying almost the exact opposite meaning to an old phrase referring to communism. New Census Bureau figures appear to confirm my prediction — mostly.

My point was that many voters were, and are, increasingly fed up with the high taxes, heavy regulations and increasing social wokeness that have come to characterize most blue states — i.e., those dominated by liberal politicians and policies.

I argued that voters wanting to live in a business-friendly, fiscally responsible state that minimizes its tax burden would either vote out the liberals destroying their state’s economy or flee to a red state. The latest Census Bureau report highlights the red-state shift.

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New IRS data reveals winners and losers of wealth migration across 50 states, by Ted Dabrowski and John Klingner

From and to where the tax donkeys are fleeing from Ted Dabrowski and John Klingner at wirepoints.com:

Nearly 7.5 million people moved from one state to another in 2018, boosting the economies of some states while straining the finances of others.

The winners of the battle for people and their incomes included states like South Carolina, Arizona, Texas and Florida. Those findings are based on a Wirepoints’ analysis of the latest 2018 domestic migration data provided by the Internal Revenue Service.

The stakes are large. A growing population for the winners means an increasing tax base, economic growth and investment. And as baby boomers age and pressure to fund pensionsincreases, a growing workforce is a windfall.

On the other end of the competition are states that have become perennial losers. Connecticut, New Jersey, Illinois and New York have experienced some of the nation’s biggest drain of people and their money.

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Congress gives America a special Christmas present: higher taxes, by Simon Black

Leave it to Congress to wait until the very last moment to spring a complicated new tax package on American taxpayers. From Simon Black at sovereignman.com:

You’ve got to hand it to these people– Congress really knows how to bring out the holiday cheer.

They have some sort of pathological need to pass the most absurd legislation at the VERY END OF THE YEAR giving people very little time to react.

Two years ago, for example, they passed comprehensive tax reform in late December 2017… and the new tax code went into effect only a few days later.

Taxpayers had no time to even understand the new law, let alone plan around it.

That’s the funny thing about taxes– people plan their entire lives around the tax code.

They set up special structures, invest in particular assets, and go through all sorts of legal and accounting work, to make sure they’re following the tax code while they take care of their families.

And then, poof, Congress changes the rules overnight.

Well they just did it again.

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Today France, Tomorrow the USA? by Patrick J. Buchanan

Welfare-state governments are reaching the point where they can’t squeeze any more out of their economies and taxpayers but cutting spending is politically difficult to impossible. From Patrick J. Buchanan at buchanan.org:

As that rail and subway strike continued to paralyze travel in Paris and across France into the third week, President Emmanuel Macron made a Christmas appeal to his dissatisfied countrymen:

“Strike action is justifiable and protected by the constitution, but I think there are moments in a nation’s life when it is good to observe a truce out of respect for families and family life.”

Macron’s appeal has gone largely unheeded.

“The public be damned!” seems to be the attitude of many of the workers who are tying up transit to protest Macron’s plan to reform a pension system that consumes 14% of GDP.

Macron wants to raise to 64 the age of eligibility for full retirement benefits. Not terribly high. And to set an example, he is surrendering his lifetime pension that is to begin when he becomes an ex-president.

Yet, it is worth looking more closely at France because she appears to be at a place where the rest of Europe and America are headed.

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As the Fiscal Doomsday Machine Powers On – Impeach the Congress, Too! by David Stockman

If bringing one’s country to fiscal ruin were an impeachable offense, you’d have to impeach the entire city of Washington. From David Stockman at lewrockwell.com:

On December 16 the gross Federal debt breached a new level to $23.1 trillion, while the net debt after $401 billion of cash weighed in at $22.71 trillion. The latter monstrous figure is notable because on June 30, 2019 it stood at $21.76 trillion.

So what has happened in the last 167 days is a $948 billion increase in the Uncle Sam’s net debt, which amounts to a gain of $5.7 billionper day – including, as we like to say, weekends, holidays and snow days.

Worse still, not a single dollar of that gain got absorbed in government trust funds. The Treasury float held by the public actually rose by $953 billion.

So why in the world do the knuckleheads on bubblevision not understand where the spiking rates and ructions in the repo market came from?

The law of supply and demand is still operative, and the US Treasury is literally flooding the bond pits with new supply. Even at the bottom of the Great Recession, Uncle Sam did not drain $5.7 billion per day from the bond market.

But nary a soul down in the Imperial City has noticed this borrowing eruption at the tippy-top of the business cycle, which now teeters on borrowed time at a record 127 months of age. Instead, this very day the Congress is busily engaged in what is a fair approximation of abolishing the election process at the heart of American democracy.

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It only costs about 20 grand to get away with murder, by Simon Black

Simon Black’s weekly collation of government-related absurdities, from sovereignman.com:

Are you ready for this week’s absurdity? Here’s our Friday roll-up of the most ridiculous stories from around the world that are threats to your liberty, your finances, and your prosperity.

Kentucky Governor Pardons Murderer after family’s fundraiser

Kentucky Governor Matt Bevin lost reelection in November.

But the governor still had some campaign debt to retire. And it’s not easy to convince people to donate to a campaign that already lost.

Still, one family managed to raise over $20,000 for the governor at a fundraiser they held for him after he lost the election, but before he left office.

Why would they do this? Perhaps it is related to the fact that a few weeks later, Governor Bevin pardoned the fundraiser’s brother– a convicted murderer.

The brother was serving a 19 year sentence for dressing as a cop, invading a man’s home, and shooting him to death.

Believe it or not, that wasn’t the only questionable– to say the least– pardon of the 428 issued by the governor since he lost reelection.

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Californians Flock To Texas As Corporations Seek Cheaper Pastures, by Tyler Durden

For many businesses in California, moving to Texas has become a no-brainer. From Tyler durden at zerohedge.com:

Around 700,000 people left California last year, with more than 10% moving to Texas.

According to a new report by Yardi Systems, over 86,000 people abandoned the Golden State. In terms new Texas residents overall, ex-Californians constituted around 15%, according to the Dallas Morning News.

The influx of Californians should come as no surprise, as businesses have been migrating out of the high-tax, high-crime, heavily regulated statefor cheaper pastures.

Chairman and founder Charles Schwab noted that one of the drivers behind the move from California was that “the costs of doing business here are so much higher than some other place.”

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