Don’t raise taxes on my state’s rich people

This would be funny were it not for the fact that those proposing this legislation are actually serious.

We all know that come January 1 everyone’s taxes will rise substantially.  The Obama administration, however,  seems to be backing an extension of the Bush tax cuts except for the “wealthy”, who are currently defined as anyone making more than $250,000 per year.  Most democrats in Congress seem to agree with the President, but not all.

Representative Jerrold Nadler (D. N.Y.), joined at the moment by 5 other House members from New York, is proposing legislation that would

require the IRS to adjust tax brackets proportionally in regions where the average cost of living is higher than the national average.

According to Representative Nadler,

[t]he basic costs of life in the New York region are much steeper than in most parts of the country…[i]t’s time for our tax code to take reality into account when assessing someone’s tax liability.

Humm…the basic costs of life in New York are higher due, in large part, to the ridiculously high taxes paid by New Yorkers in sales taxes, state and local income taxes, and property taxes.  Those taxes make it more expensive for businesses in New York to produce goods and provide services, and those increased costs are passed on to New Yorkers. 

But, in Representative Nadler’s view, it is perfectly acceptable for those in Orlando, Florida, for example, to pay more in federal income taxes so that rich New Yorkers get a tax break and remain in New York, thus letting New York continue its reckless spending and ever higher taxes.

Even more curious, though, is that it would appear that Representative Nadler hasn’t read the tax code.  New Yorkers, rich or poor, already get a federal income tax break that is proportionally higher than those living in Orlando…they can deduct their high state income taxes, local income taxes and property taxes on their federal tax returns, whereas, Floridians can only deduct their relatively low (by comparison) property taxes.

All those in favor of further subsidizing New York, please raise their hands.

8 replies
  1. GdavidH
    GdavidH says:

    Did we not already address the constitutionality of equally taxing people from different states??? I'm no constitutional expert, but was not this the problem with the "cornhusker kickback" and other exemptions and give backs to certain states but not all during the health care debate???

  2. Steve McGough
    Steve McGough says:

    I think this is the next logical result of a "progressive" tax scheme based on how much you make in income. There are not as many 250k+ earners out there than you think, and the tax burden is already disproportionate as we have shown with detailed data.

    I'm pretty certain determining one's tax paying status based on where they live within the country is unconstitutional – would that not be the case?

    This could also be a political scheme to get those wealthy New Yorkers to come back to the state … since many left for a more favorable tax haven in the first place. This would allow New York and NYC to keep their local taxes super high, and tout the "great deal" you'll get on your federal 1040 if you'd only come back.

  3. Dimsdale
    Dimsdale says:

    I laughed today when I heard the news that as a possible result of Governor Rell's wining and dining the hedge fund folks (who NY was about to slam with a fat tax), NY quickly dropped the idea of the tax for fear that all the hedge funders would flee.

     

    NY Governor Patterson was heard to remark "Gov. Rell will just have to find revenue somewhere else".  Well apparently Governor Patterson, so will you….

     

    The funny thing is that Democrats can't see the moral of the story: rich people are not stupid, nor are they rooted to one place.  In fact, they are more able to move on a whim than people in the middle class.  If you are robbing them with huge taxes, they will leave, be it to another state, or another country, which will welcome their money and talents with open arms.

     

    Ask John Kerry.

  4. Dimsdale
    Dimsdale says:

    "New Yorkers, rich or poor, already get a federal income tax break that is proportionally higher than those living in Orlando…they can deduct their high state income taxes, local income taxes and property taxes on their federal tax returns, whereas, Floridians can only deduct their relatively low (by comparison) property taxes."

     

    Now that is what I call "spreading the money around".  Doesn't that just redistribute federal money to rich NY, and put the money in the hands of "representatives" like Nadler?

     

    Didn't Nadler once steal Austin Power's mojo?

  5. NH-Jim
    NH-Jim says:

    Article 1, Section 8 of the U.S. Constitution:

    The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defence and general Welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.

    Rep. Nadler and your five cohorts, I have copies of the Constitution if you would like one.

    • GdavidH
      GdavidH says:

      That's the section I was alluding to. I should really try to find time to become more familiar with the most important document since the Bible. Shame on me.

  6. David R
    David R says:

    I live on a dirt road out in the country. Down the street a pair of wall street lawyers own a $750K weekend place: modest by Litchfield County standards. And believe me, as a fan of Italian design, I enjoy seeing the occasional Maseratti sedan pull into their driveway. I suppose you could say that I pay for the honor through higher property taxes, due to the higher valuation weekender money has brought. But I am not complaining. Wealthy people are as miserable as the average Joe, and no tax cut is going to change that.

    • Dimsdale
      Dimsdale says:

      Maybe so, but it is probably not so bad to be miserable in a Maserati.  Everything is relative.   Something the Democrat party uses as a wedge to divide us.

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