“Progressives” love to complain about the alleged unfairness of the amount of income earned (“Progressives typically use misleading terms such as “claimed by”) the top 1 percent of income earners. Why not complain instead about the unfairness of the amount of tax revenues received by the top 1 percent of net-tax-revenue recipients? Why are the annual tax-receipt incomes of this small group less worthy of condemnation than are the annual pre-tax market-earned incomes of “the 1 percent” who are the regular objects of criticism, envy, and childish populist moralizing? — Don Boudreaux Read more →
EppsNet Archive: Taxes
IRS Refunds $4 Billion to Identity Thieves
The Internal Revenue Service issued $4 billion in fraudulent tax refunds last year to people using stolen identities, with some of the money going to addresses in Bulgaria, Lithuania and Ireland, according to an inspector general’s report released Thursday. The IRS sent a total of 655 tax refunds to a single address in Lithuania, and 343 refunds went to a lone address in Shanghai. In the U.S., more fraudulent returns went to Miami than any other city. Other top destinations were Chicago, Detroit, Atlanta and Houston. — Associated Press Hmmm . . . aren’t there some sort of sanity checks built into the IRS system? Doesn’t a warning bell go off when 655 tax refunds are sent to a single address in Lithuania? Does this erode your confidence in the federal government’s ability to manage complex systems and gigantic sums of money? I’m sure they’ll do a much better job… Read more →
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T.J. Rodgers: Targeting the Wealthy Kills Jobs
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Things That Scare Other People’s Dogs Do Not Scare Our Dog
We went out to watch the city of Irvine fireworks show. Best use of our tax dollars since last year’s show! As we drove back to the house, I said, “I hope the fireworks didn’t scare Lightning.” He was asleep on his bed. He’s not scared of anything. Read more →
Drive Me to the Junkyard in my Cadillac
Well buddy when I die throw my body in the back And drive me to the junkyard in my Cadillac — Bruce Springsteen, “Cadillac Ranch” Say goodbye to that $500 deductible insurance plan and the $20 co-payment for a doctor’s office visit. They are likely to become luxuries of the past. . . . Then blame — or credit — the so-called Cadillac tax, which penalizes companies that offer high-end health care plans to their employees. — High-End Health Plans Scale Back to Avoid ‘Cadillac Tax’ – NYTimes.com You’re probably thinking: “So what? I don’t have a high-end health care plan. I’m a working stiff. Let the Wall Street fat cats pay their Cadillac tax.” Actually, because the plan cost that triggers the Cadillac tax is not indexed for inflation, Bradley Herring, a health economist at Johns Hopkins Bloomberg School of Public Health, estimates that as many as 75 percent… Read more →
Tax Rate Hike and Increased Unemployment Payments on the Same Day
According to this White House press release, the federal government is ringing in the new year by simultaneously raising tax rates (i.e., penalizing people for working) and extending payments to two million people who do not work (i.e., rewarding people for playing Xbox). Has this ever happened before at any time in the history of the U.S. (or anywhere else in the world for that matter)? — Philip Greenspun Read more →
eEconomics – Gas Taxes
I Don’t Understand What Warren Buffett is Talking About
In an op-ed for the New York Times, Warren Buffett argues that higher taxes won’t keep the super-rich from trying to make money: Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.” Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist. — A Minimum Tax for the Wealthy – NYTimes.com Really, Warren? It’s an investment, right? It’s not a sure thing. It’s not a giveaway. I’m being asked to put money at risk. That’s the difference between… Read more →
No Surprises in Berkeley
Final election counts are in for Berkeley, CA, the most liberal city in America. Let’s start with the presidential election, where Mitt Romney was able to edge out Jill Stein for second place: Barack Obama, Democrat – 90.3% Mitt Romney, Republican – 4.6% Jill Stein, Green Party – 3.2% California ballot proposition results included: Proposition 30, a measure to increase state income tax rates for the wealthy – 90.7% Yes (passed statewide at 54.6%) Proposition 34, to abolish the death penalty in California – 86% Yes (lost statewide 52% to 48%) Proposition 37, requiring labeling of genetically engineered food – 92.4% Yes (lost statewide 52% to 48%) Read more →
More People I’m Sick Unto Death Of: Paul Krugman
America in the 1950s made the rich pay their fair share; it gave workers the power to bargain for decent wages and benefits; yet contrary to right-wing propaganda then and now, it prospered. And we can do that again. — Paul Krugman I hardly know where to begin with this . . . First of all, what is the relevance of the 1950s as opposed to any other period of American history? America prior to 1913 had no permanent income tax and contrary to left-wing propaganda, it prospered. Why can’t we do that again? Of course we’re all in favor of fairness — right? — but why is it only important that “the rich” pay their “fair share”? I don’t remember ever hearing anyone, certainly not Krugman, use the phrase “pay their fair share” in reference to any group except “the rich.” If you’re concerned about fairness, isn’t it also… Read more →
The Lives of Julia and Paul
David Henderson says — accurately, I think — that Mitt Romney’s “47 percent” remarks can be paraphrased as “People who are dependent on government will vote for the candidate who credibly (to them, at least) promises to keep the programs that have created that dependence.” Do you think President Obama disagrees with that? He doesn’t. If you think he does, please see The Life of Julia on the president’s web site. It lays out a “typical” woman’s cradle-to-grave dependence on government assistance and describes how Obama will keep those programs going while Mitt Romney won’t. The most insulting thing about it is that as you read about Obama funding this and Obama funding that, it sounds like he’s doing it all out of his own goddamn pocket. What a prince! There’s no acknowledgement that Obama is taking from some and giving to others, and that all of Julia’s “free” stuff… Read more →
Herman Cain’s 9-9-9
By slashing the income tax rate, effectively, in half, he makes it that much more worthwhile to get up in the morning, take risks, work hard, take chances, and invest in progress. By eliminating the capital gains tax, he rewards investment and ownership and makes it possible for people to move up the economic ladder, not through phony teaser Fannie Mae mortgages, but by smart purchases and skillful investment. . . . Herman Cain would establish America as a beacon for investors, entrepreneurs, inventors, creative business people, and all manner of upwardly mobile, ambitious men and women. He would give the U.S. the lowest personal and corporate tax rates in the world, and the only place where investment earnings are tax free. In the process, he and his plan would kindle decades of robust economic growth. He would make the next few decades a continuation of the American Century. —… Read more →
Education Dollars at Work
My son, a high school senior, says, “Guess what I’m doing in school tomorrow?” I venture a guess: “Learning things.” “No. It’s actually a trick question. I’ve got a free period, then another free period, then a movie.” “I hope I’m getting a tax refund for this nonsense.” Read more →
The Price of Taxing the Rich
Nearly half of California’s income taxes before the recession came from the top 1% of earners: households that took in more than $490,000 a year. High earners, it turns out, have especially volatile incomes—their earnings fell by more than twice as much as the rest of the population’s during the recession. When they crashed, they took California’s finances down with them. — WSJ.com Read more →
Orwell in Wisconsin
On Saturday, February 26th, Americans in all 50 states rallied to show solidarity with the people of Wisconsin, and to save the American Dream. — MoveOn.Org Ha ha — George Orwell couldn’t have said it better! MoveOn.org doesn’t stand with the people of Wisconsin, they stand with the people trying to rip off the people of Wisconsin. Union-elected legislators provide sweet contracts for public-sector unions, who in turn kick back a share of the money to the legislators. Government employees take both sides of the action and the tax-paying fools who pay for everything are not represented at all. That’s the American Dream? Read more →
New Jersey is the Worst Place to Die
The worst place to die is New Jersey with a combined effective estate and inheritance tax rate of 54.1%. Congrats to the Garden State! In second place is Maryland at 50.9%. Good try! — Yahoo! Finance Read more →
Not in My Backyard
James Taranto on press coverage of President Obama’s Backyard chats: What’s most telling about these encounters is the absence of fear on the part of the citizens challenging Obama. In October 2008, in his own Ohio neighborhood, “Joe the Plumber” confronted the future president and objected to his tax-hike plans. Obama revealingly replied that he was eager to “spread the wealth around,” and the media pounced–on Joe. He’s not really a plumber! Joe is his middle name! Who knows how history might have been changed if the media had been as aggressive in investigating Obama’s background? But now, it seems, the lesson of Joe the Plumber has been lost. Citizens feel free to criticize Obama with impunity. The reporters who wrote these stories don’t even mention the names of the critics, much less conduct opposition research against them on Obama’s behalf. Read more →
First They Came . . .
I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes. — Barack Obama, Sept. 12, 2008 There must be some mistake then because I just got an email from our accounting department stating that effective January 1, 2011, over-the-counter drugs will require a doctor’s prescription when an FSA claim for reimbursement is submitted. That doesn’t even make sense. Of course I don’t have a prescription for OTC drugs. Why would I pay a doctor to write me a prescription for something that I can just walk into Walgreen’s and buy it? Hi Doc, I’ve got a terrible cold so I just stopped by to drop a $30 co-pay and get a prescription for some Nyquil. And if I… Read more →
Too Rich to Live?
If Congress doesn’t change the law soon–and many experts think it won’t–the estate tax will come roaring back in 2011. On a $5 million estate, the tax consequence of dying a minute after midnight on Jan. 1, 2011 rather than two minutes earlier could be more than $2 million; on a $15 million estate, the difference could be about $8 million. — Too Rich to Live? – WSJ.com THANK GOD I DON’T HAVE 5 MILLION DOLLARS! I’d be sleeping with my eyes open from now till New Years, lest I meet my demise at the business end of a pillow stuffed in my face by a greedy heir. IT’S KILL OR BE KILLED NOW! Read more →