I still stand by my picks, mind you.
Interesting thing from the LAT Times here about revenue sharing between Major League Baseball and the LA Dodgers. Background: MLB teams are supposed to toss in a third of their local TV revenue into a pot so that smaller-market ball clubs can get a piece of the national pie. This actually makes pragmatic sense; smaller clubs get a revenue stream, and larger clubs don’t have to worry so much that the next city over will get a baseball franchise that will be competing for the same fans. However, technology marches on, and with it new wrinkles. Case in point: (more…)
Alternate title: Golf Great Going Galt?
Let me use short words, here*: if you want less of something, tax it. Because if you tax it, you will get less of it:
On the day President Obama was sworn in for his second term, [top professional golfer Phil] Mickelson sent shock waves through the Humana Challenge when he said the political landscape in the United States was causing him to seriously contemplate his future in golf.
“If you add up all the federal and you look at the disability and the unemployment and the Social Security and state, my tax rate is 62, 63 percent,” Mickelson said. “So I’ve got to make some decisions on what to do.”
In December, Mickelson, who was part of a group that had bought the San Diego Padres four months earlier, abruptly announced that he was no longer involved in the business deal. His reversal came shortly after California voters approved Proposition 30, which imposed a 13.3 percent tax rate on incomes of more than $1 million.
Asked Sunday if the election results played a role in his decision to sever his ties with the Padres’ ownership group, Mickelson replied, “Yeah, absolutely.”
I’m with Instapundit and National Review Online: if you’re a Democrat talking tax hikes and you are NOT talking about ending the deduction of state/local taxes from federal returns, then you are simply NOT being serious on fiscal responsibility. Particularly since it’s a tax that mostly avoids the middle class (NRO worked it out as “households in the $200,000-and-up range would pay an average of $5,166 more without the deduction, while those in the $30,000-to-$50,000 range would pay only $70 more”). But, of course, if that happens then a lot of high-tax states – which, shock! Surprise! vote Democratic – are likely to discover that their constituents will suddenly have a remarkably different (and more jaundiced) view over what exactly constitutes a reasonable state/local income tax burden.
Which should not stop the GOP from taking this policy initiative, smiling nicely at the Democrats, and folding said initiative until it’s all corners…
PS: Actually, I live in a high-tax Blue state. So Democrats don’t even have that excuse for being so regressive about this, the greedy piglets.
You go ahead and shoot that hostage, Democrats.
Charles Lane (no relation) makes the obvious point:
What the deduction does is enable higher-income states and localities to tax — and spend — more than they otherwise would, while shifting some of the cost to other states. It also encourages them to collect revenue in forms that are easier to deduct on federal returns.
Two states, California and New York, reaped almost 30 percent of the deduction’s value in 2009, the latest year for which I could find Internal Revenue Service data. Other states that benefit disproportionately include Connecticut, New Jersey, Illinois, Massachusetts and Maryland.
I’m arguing against interest here, by the way. My taxes would go up. I assume, so would Charles’. And so would about 3/4ths of the Media elite’s, which is why you’re going to see a lot of people in print and broadcast journalism get the vapors over this. These folks are on the sweet side of a wealth transfer, after all.
…Which is something that they should be disclosing, mind you.
Never mind the fact that Obama got yoghurt splashed on him last night – that’s just an ongoing hazard of being a politician running for re-election in this country. The real story here is this: the President went to Colorado to, essentially, lie to a bunch of kids about how they can get themselves out of this mess that they’re in. And it is a mess. 50% of college graduates are unemployed/underemployed; couple that with student loan debt levels that should really be frightening more people and we end up with a situation where millions of kids are getting out of college and staring DOOM right in the face. And while they are adults – and thus, responsible for their own fates – guess what? The people that connived to put them in this mess are adults, too. We expect twenty-somethings in this culture to make poor life choices, sometimes; what we don’t expect is for the generations above them to so ruthlessly take advantage of that.
Anyway: Obama’s answer in Colorado, last night? …Entrepreneurship. That’s what he was telling the kids. Start that restaurant! Develop that smartphone app! Make your own destiny! Get slammed with a tax hike on small businesses in the form of tighter restrictions on payroll tax exemptions!
…Yeah. One of these things is not like the others.
Just thought I’d let you know: about this?
The CBC is trying to help by organizing job fairs across the country. [Congresswoman] Waters also wants to help by putting more pressure on the big banks to help with mortgages.
“If they don’t come up with loan modifications and keep people in their homes that they’ve worked so hard for, we’re going to tax them out of business,” Waters said.
The formal capitulation took place yesterday, and signals an end to Gov. Dayton’s ill-conceived, ill-timed, and ill-executed attempt to dominate the Minnesota legislature in the same way that predecessor Gov. Tim Pawlenty (R, MN) did during his term in office. The very short version, for those not following along: Minnesota Republican legislators wanted a $34 billion dollar, two-year budget with no new taxes; Dayton wanted $3 billion in business-killing tax hikes. Republicans told him no, and sent him a budget, which Dayton vetoed. The Minnesota government shut down – which meant, among other things, that Minnesotans were in critical danger of running out of beer and not being allowed to fish. Faced with such proven evidence of abject incompetence and idiocy on Dayton’s part, eventually the Governor was brought to heel like a whipped dog; his formal capitulation soon followed. Final score: $35.7 billion over two years with no tax hikes – and legislators in Minnesota have to pretend that Gov. Dayton was not savagely politically beaten. No, seriously… apparently this is supposed to be framed as being a ‘compromise.’
Interestingly enough, post-capitulation news articles on this don’t seem to mention Pawlenty nearly as much as they did, pre-capitulation. Although that may just be a sort of terrible pity towards Dayton, who did turn out to be a very slender, and trivial to break, reed…
Moe Lane (crosspost)
Nothing is stopping so-called ‘Patriotic Millionaires’ from doing it on their own. Well, nothing except the minor detail that it’s all the other rich people who should pay extra. Somehow not enough people are ever ready to voluntarily share in the sacrifice that they’re advocating. Think I’m being cynical? Check this out: Massachusetts has a feature where you can voluntarily pay more state taxes on your return. This dates back to 2000, when it was a compromise to get a reduction of the state income tax rate down from 5.85% to 5.3% (it was originally supposed to be 5%). As of the beginning of April 2011, the state has gotten 1,740,000 tax returns back this year. Guess how many people are paying the higher rate?
How many Massachusetts residents are cheering on the idea of making the rich pay more? How many rich Massachusetts residents are cheering on the idea of making the rich pay more? I’m willing to bet that in either case the number is greater than 862; there are a lot of hypocrites in that state*.
(Via Hot Air)
*Admittedly, there are a lot of hypocrites in every state, but right now we’re focusing on Massachusetts.
Just on the off chance that Alec Baldwin ever runs for political office in the near future… whoever is researching this, be sure to have your boss ask Alec how that residential status tax audit turned out. Or why he fought it in the first place, seeing as Baldwin was for raising taxes on… well, people as rich as him… back in 2006.
Deceiver.com. Doesn’t always have stuff that you can use – but when they do, it’s usually tasty. And they have the saving grace of bipartisan finger-pointing.