This is deeply troublesome. California often leads other states with new "progressive" policies and taxes.
All too often, if you see California do it, then other states follow like Colorado, Washington, Oregon, New York and New Jersey. That does not mean California ideas are good ideas. Often they are not.
Over time California has established high taxes, excessive regulations, overbearing environmental regulations and restrictions on individual liberties. These California Policies almost always lead to an exodus of people from the California to other states that are more friendly to jobs, residents and businesses.
Here come a new one: The Wealth Tax. This has been tried and failed all over the world. It appeals to some voters who want to "make the rich pay their fair share." But there are serious conceptual problems. These include:
- It encourages people to leave the state,
- It does not raise the revenue predicted,
- It is entirely unfair as most wealth was already taxed as income,
- It is very difficult to effectively measure without legal disputes,
- A modest wealth tax may be a significant share of annual earnings, and,
- All new taxes lead to increases of those taxes on everyone over time.
No comments:
Post a Comment