Tuesday, May 17, 2011

No Tax Tuesday 5 17 11 Edition J Brown Playing for Keeps

National Protest - Need Before GreedImage by infomatique via Flickr
Happy No Tax Tuesday, the 5 17 11 Edition.

OK, so California gets some good news, that the state is projected to receive $6.6 billion more than expected in tax revenues, mostly from capital gains tax collections, on "the rich." Apparently, the rich are making more money than anticipated and thus paying more taxes than anticipated, so California Governor Jerry Brown and his Democrats ask why not tax them some more?

GOP lawmakers are asking why we need five more years of new taxes?

You see, the problem with Democrats is they can never see that tax revenues can rise without tax increases. If I make more money this year than last year, I will pay more taxes this year than last year. It really is simple math. Even even 6% of $200 (=$12) is more than 10% of $100 (=$10). So, the smart goal would be to find a way to allow businesses to pay their employees more rather than taxing people more.

Back to "the rich" making more money than expected. If a business owner made $1 million last year and then makes $2 million this year, they would automatically at the same tax rate pay twice as much in taxes. Everybody wins! Let it be Jerry.

To make a long post short, I do not think Californians need to pay more taxes or even more of the same taxes, increasing taxes just raises prices.  Have you noticed the price of eating out rising? How about at the supermarket or gas pump? Higher taxes + rising cost of living = lower standard of living. No thanks.

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