Friday, September 24, 2010

Why Mark Dayton is wrong again!

Mark Dayton, the bored Trust Fund Baby who is perpetually running for a political office he's woefully incompetent to hold, is on the campaign trail again with one of the oldest class-envy schticks the Democrats have relied on for generations: Make the Rich Pay Their Fair Share.

Now, no one can really define what their "fair" share is, considering the top 20% pay 80% of the taxes. Do they think they should pay ALL the taxes and let the rest of us live tax free? Would that be "fair"?

The reality is, this Democrat/Dayton forumula has been tried time and time again with disasterous results.

Here's the tax realities in a report from the Congressional Budget office:

The overwhelming majority of federal income taxes are paid by the highest income earners with the top 1% of income earners paying approximately 32% of all income taxes. The top 5% pays 51.4% while top 10% of high income earners, pay 63.5%. Drop to the top 20% of income earners and you find they pay 78% of all federal income taxes.

So it's the the old 80/20 Rule in action...80% of the federal government bill is paid by 20% of the workers.

So let's see how the "Tax the Rich" concept works in the real world: From the Wall Street Journal:

Here's a two-minute drill in soak-the-rich economics:

Maryland couldn't balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."

One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.

Surprise, surprise....stick someone with more of the bill and they decide to leave!

So if we end up with Governor Mark "Moonbat" Dayton as governor of Minnesota and has his way, be prepared for even more revenue shortfalls as we drive those who are paying the bills out of the state.