Ever since Governor Dayton passed one of the highest taxes in the nation on people earning over about $150,000 a year, conservatives have been predicting an exodus of the productive class.
The Minnesota left is doing cartwheels over “data” showing it’s not happened…
…sort of. I add emphasis:
The ranks of the very rich are growing in Minnesota, despite a controversial tax increase that singles out the biggest earners to pay more.
Critics predicted that the ultra-affluent would flee after Gov. Mark Dayton secured 2013 passage of a new income tax tier of 9.85 percent on individuals who make more than $156,000 a year. But the latest data show that the number of people who filed tax returns with over $1 million in income grew by 15.3 percent in the year after the tax passed, while the new top tier of taxpayers grew by 6 percent.
So many holes in this “story”:
People making over a million a year – the “ultrarich” – can live anywhere they want; the Twin Cities are a great place to be rich; good quality of life with lots of bigger-city amenities, and your dollar, after taxes, still goes a ways. That’s why so many big corporations have their headquarters in the Twin Cities, even though they haven’t hired a non-service blue-collar worker in Minnesota in decades; it’s a great place to be a CEO.
As to the number of people in the >$156K tax bracket rising? So what? As the value of the dollar drops, and inflation creeps in, more real estate agents, dentists, software architects, insurance salespeople and the like find their incomes creeping upward from $145K to $156K.
But you have to then ask:
- How many of them hit that $156K mark, stew on it for a year or so, and decide to move to Hudson or Fargo or Superior?
- How many more would have reached that threshold if it weren’t for the tax hike?
The answers, by the way are “anecdotally, many” and “the Strib, being Tina Flint-Smith’s waterboys, sure aren’t going to tell us”.
Joe Doakes from Como Park emails:
The US economy grew in the first quarter of 2016, but only a tiny bit, 0.5%. That’s technically enough to keep it from being called a “recession.”
First, do you believe that number? Economic estimates are routinely announced with pronounced spin showing how well the administration’s policies are working, then quietly revised downward a few months later. There’s not much room to revise this number downward.
Second, look at the formula for calculating GDP:
Gross Domestic Product = Consumption + Investment + Government Spending + (Exports – Imports)
If the federal government wants the GDP number to look good, it can manipulate the formula by increasing government spending to offset decreases in Consumption, Investment and Net Exports. But federal government spending slowed down in the first quarter. And the GDP number is falling as a result. The implications are important.
It means there never was any growth in the Consumer or Investment side of the economy, that’s all been propped up by federal government spending. In other words, we’ve been experiencing negative economic growth for months, maybe years, but it’s been masked by federal government spending. I’m looking at you, Barack Obama, and your $20 Trillion national debt.
The take-away is simple: don’t worry about Great Depression 2.0 coming; it’s already here. Worry about what happens when the ordinary public figures it out.
Like we need any more good news this week…
The press isn’t so crazy about background checks – when it’s their freedom this being walked all over:
For the first time this year, the Secret Service has a hand in credentialing the media; during previous conventions only the Congressional press galleries were in charge of credentialing the media…[Buzzfeed “editor” John Stanton] Stanton cited concerns about the background checks, the lack of a clear appeals process, and the involvement of a third-party subcontractor, urging his fellow journalists to express their concern over the process.“It seems like an unnecessary step and it gives them in my mind a new and troubling precedence to try and exert authority over the press corps,” Stanton said in an interview. “It creates a logistical burden, a troubling precedent for their ability to have almost a de facto say in who is qualified to be a reporter at these events. What if they use this as precedent to extend to other campaign events or any government events?”
Right – but if it saves just one life…
…but I will say that his Second Amendment stance, expressed here in writing, is aggressively excellent.
Especially this bit here:
NATIONAL RIGHT TO CARRY. The right of self-defense doesn’t stop at the end of your driveway. That’s why I have a concealed carry permit and why tens of millions of Americans do too. That permit should be valid in all 50 states. A driver’s license works in every state, so it’s common sense that a concealed carry permit should work in every state. If we can do that for driving – which is a privilege, not a right – then surely we can do that for concealed carry, which is a right, not a privilege.
Given how often Trump is accused of making verbal promises he has no idea how to deliver, it’s kind of funny seeing him showing the gun control movement – which has been doing the same thing in fact for almost 50 years.