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August 04, 2010

Oh, My: Democratic Reps Seeking To Reduce Pain Of Reimposed Clinton Tax Rates On High Income Voters, For Their Own Blue State Constituents Only

The theory is that a millionaire in NYC doesn't really have as much money as a millionaire in Oklahoma, because the guy in NYC has so much less disposable income because costs are so much higher.

Well, two problems with this theory: One, It is an income tax, not a disposable income tax, and two, anyone who lives in NYC will brag on all the benefits of the dense urban environment they've chosen -- they get benefits out of the massive costs, they'll say.

Exactly. They've chosen a very costly city over a less costly city (or an even less costly rural area).

The government has not business subsidizing their lifestyle choices by reducing tax rates on Manhattanites (and Los Angelenos) only.

But that's what Jerry Nadler wants to do. He wants to make this country expressly one of a spoils system in which elections decide which party's members are punished and which are rewarded.

One irony of the tax increase that arrives on January 1 is that the it will hit residents of high-income, Democratic-leaning states like California, Connecticut, New Jersey and New York the hardest. This is a problem for pro-tax Democrats.

Enter New York Representative Jerrold Nadler, who wants to exempt his own six-figure constituents from the tax hike he supports. Mr. Nadler's bill would "require the IRS to adjust tax brackets proportionally in regions where the average cost of living is higher than the national average."

In other words, the various tax brackets would apply to residents in certain regions at higher income levels versus other parts of the country. A family with an income of $50,000 or even $1 million in Manhattan would pay less federal income tax than a family with the same earnings in Omaha. The bill is called the Tax Equity Act, but a more accurate title would be the Blue State Tax Preference Act.

Unbelievable.

This is third-rail stuff, dangerous stuff -- expressly setting a spoils system where there are expressly different Classes of citizenship and the Second Class shall be compelled to pay a subsidy to the ultrarich in the First Class.

And, since we're playing with fire here anyway --

Can we work it the other way? Can we start compelling Blue Staters to pay higher taxes than everyone else, too? After all, they're always voting for the higher-tax party; shouldn't they carry the bulk of that load themselves?

Since they want it so damn much?


Thanks to Ben.

Hey... If I buy a six bedroom house instead of a three bedroom house, should I get directly subsidized by the government for my high-flying lifestyle choices?

Why not? In that case I've done what tony urbanites have done -- I've chosen a more costly lifestyle that necessary. Shouldn't my taxes be cut so that I am immunized against the costs of my choices, too?

From the Comments:

So basically these guys are admitting that New Yorkers can't make it there. I guess they aren't as special as they thought they were. Perhaps they can make it somewhere else.

Posted by: PR


digg this
posted by Ace at 11:05 AM

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