I don't know how many times we have to debate whether or not punishing highly productive people has any effect on those around them but this week there was an article looking at the "surprise" that some in New York State's leadership have apparently had upon discovering that wealthy people actually left the state when they were taxed too much. To me it is astonishing that politicians still try to tax the employing class over and above what is simply a reasonable amount of tax for using the same (if not less) than any other taxpayer of the roads, bridges, military, and services provided by the government.
When you tax the &$%# out of productive people, particularly the risk-taking self employed, what do you expect? Should they simply stay put and take it? The article points out the case of Buffalo Sabres owner Tom Golisano, who was being taxed to the tune of $13,000 a day in New York State. This man by the way also has created around 5000 jobs in his company Paychex. Why punish this man (or those like him)? Why tax him so much that he leaves? If anything this man should be given tax breaks for having created so much employment (in parts of New York by the way that can really use the employment). Now apparently state revenues are down at the higher income levels and the state leaders are "perplexed" as to what went wrong. If your constituents have any clue they will vote you out and vote in people that make it worthwhile for employers to set up shop. More employers, more employees, more employees, more jobs, more jobs, bigger tax base, bigger tax base more state revenues. Wow imagine that!
Click here for the article.
The source for the chart is the IRS.