To use a favorite expression of Obama when he makes a straw man argument, “there are those who say” that Trickle down economics doesn’t work. People of such belief would say that if you cut taxes on the high achievers in society their excess cash in pocket simply will not trickle down the economic scale to the economy at large.
To them I ask, if that is the case, then I assume you would have to also argue that trickle up economics would be just as flawed right? ….. That when you raise (or overly charge) taxes on high achievers the states would stand to gain a ton of tax revenue right. If that were the case then why not just tax at 100% and be done with it?
A contemporary example of this in plain sight for all to see is LeBron James going to play basketball in Florida instead of New York. Here’s a guy who with (for the sake of argument) has the same bazillion dollar offer from the team in NY and the team in Miami, Florida. In NY LeBron has to pay state taxes. In FL there are no state taxes. He picks Florida saving himself over $1 million a year in taxes. You would do the same.
That’s $1,000,000 that LeBron can save, spend, invest, bank, donate, whatever he wants – and whatever he does with it will end up in the economy at large. It is estimated that simply by picking FL over NY state he will save over $12 million in taxes that would simply go to waste by bureaucrats in NY state.
But it gets better, according to the above article (and I’d say common sense as well) the team not having Lebron in their home state will feel the trickle up (down) effects of not having the main attraction in their arena, meaning a loss of “could have been” revenue for that team and the local community. High taxes cost NY the additional tax revenue that would have come from having Lebron play in NY, which would have been far higher than the income tax NY would have gotten out of Lebron.
Whenever you ask someone on the Left that thinks the more you make the more you should pay in taxes never has a good answer to the question “how much is enough?” 50%? 60%? 90%? How much of someone’s income should be confiscated in order to pay taxes? They’ll dismiss this as childish but the reality is they are fully illogical about the whole thing.
The rational approach to taxes is simple. Lower taxes attract business, individuals, employers, achievers and with them comes all of the auxillary benefits of having them in the community/state helping to employ others, who in turn spend locally, that in turn raises state revenue.
Higher taxes means achievers, producers, and employers eventually will pick up and leave. Need proof? Click here to see how many people are leaving high tax states and moving to lower tax states.
Lower individual income taxes = more money for the state. A few states get it. Lebron definately gets it.
And by the way – allow me to be facetious for a moment…. why do we need a pay czar for corporate executives but not guys who dribble?