Uber Liberal CALIFORNIA Finally Realizing that Confiscatory Taxation....SUCKS for State Revenues
So it turns out that the liberals in California are realizing that their confiscatory tax codes and regulations are hurting state tax revenues. For real? Gasp! I'm shocked!According to a recent article I read on "yahoo news", broadcast television, commercials, and cable television stations are opting to leave Hollywood. In order to deter them from moving to states that are more friendly towards free enterprise, California is offering these entertainment corporations a 20-25% tax "credit".
Wait. Wait.
Aren't states supposed to represent a microcosm of what can or can't be done by the federal government? When jobs are sent overseas Americans are the first to complain about how "our" jobs are being done for a fraction of the costs. Whenever people say this to me, I ask them, "What would you do if you were a business owner and it was no longer profitable to keep your business in America?"
Now, don't get me wrong, I know that some corporations pay virtually no taxes at all. However, there are ways we can solve this...keep reading.
I think if our elected officials are "smart" they'll try to institute a flat tax. A flat tax is a system where everyone is taxed at one marginal rate. This system doesn't mean that everyone gives the same amount of money back to Uncle Sam, rather everyone pays back the same percentage. In other words, if I make $100,000 (I wish
) I would pay $10,000 if the marginal rate is 10%. Conversely, if someone makes $30,000, he/she would pay $3,000. We both pay 10% of what we make. The system we have now is progressive. Under our current system, the more money someone makes, the more they are penalized by Uncle Sam. My mother is a Registered Nurse and the company she works for recently asked her to work a significant amount of overtime hours. I counseled her AGAINST this because after a certain amount of hours, she would be taxed sooo much, it wouldn't even be worth it. Besides, the thought of Nancy Pelosi controlling my mother's overtime money makes my blood boil....*sigh*
Now to those skeptics out there, previously communist counties in Eastern Europe have seen government revenues increase TREMENDOUSLY since they've decided capitalism is probably the best way to increase the standard of living, while simultaneously increasing government revenue. When government minimally involves itself in the private sector, government's chances of getting larger revenue enhancements increases exponentially. Just ask the homies in Slovakia, Romania, and Georgia (to name a few).The fair tax is different from the flat tax. The fair tax is a consumption tax set at a rate of 20 something percent. In other words under this system ALL Americans (businesses and consumers) would only pay taxes on items that they purchase. Consumption tax rates are now around 7%. Now a consumption tax rate of 23% sounds crazy-but it would work because prices of goods/services would decrease dramatically because an income tax rate would no longer be applied. Although I like the proposed "fair tax" too, it's probably too much of a radical shift for Americans right now. Gotta be realistic!
Anyways, you can read about
How would your mother earning more result in less money she is taking home? If she is bumped into the next tax bracket, she doesn't pay that higher bracket on all her income, just on the amount that exceeds the lower bracket. IE, if she earns 50K a year, she isn't taxed 25% on the entire 50k, she is taxed 10% up to $8275, 15% $8,376 – $34,000, and 25% $34,001 – $50,000.
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