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The 8 a.m. Econ 101 class that many of us skipped had some very valuable information in its lesson. It would help explain why we are headed to an economic collapse which I believe will arrive next year.
If you get your news and information from some talking head on TV, you are misinformed and uninformed.
The nine states without an income tax are growing faster than the nine states with the highest income tax rates. To quote Gomer Pyle, “Surprise! Surprise!”
People and their businesses will change the location of income production based on incentives. Business will jump from one aquarium to another if the incentives are right.
When the government taxes people who work to pay people who don’t, then fewer people will work. Look at Europe and Greece. Incentives do matter. In the high tax states, fewer people will work. For parasites and lefties, that sounds like a utopia that does not exist anywhere. But lower taxes do exist elsewhere. If not in another state, then maybe “over there.”
On Jan. 1, 2011, taxes will hit the fan – federal, state and local will all go up. Top federal tax rate will go from 35 to 40 percent; capital gains from 15 to 20 percent; estate taxes from zero to 55 percent – just to list a few. Who knows what is going to happen in the various states?
You can find this information at taxfoundation.org, “Comparing Kennedy, Reagan and Bush Tax Cuts;” Dow Jones Newswire on NASDAQ.com, “Among Democrats, Calls to Extend Bush Tax Cuts” and marketwatch.com, “Obama proposes end to Bush Tax Cuts for Wealthy.”
If you don’t remember history, please look it up. Reagan’s tax cuts produced real growth that reached 7.5 percent in 1983 and 5.5 percent in 1984. Those were some good times in my working life. The Democratic and Obama tax increases will do just the reverse or opposite. If it is bad now, it will be an actual collapse in 2011. It will leave a mark for sure. Have a nice day.