Ratcheting up the class war in America a notch- Connecticut Democrats fan the flames

[Neckbone]

The Connecticut Democrats are proposing a “Millionaire’s Tax” increasing the Personal Income Tax by 1% on taxpayers with incomes exceeding $1.0 million. This increase would take effect beginning on January 1. 2002 and would be retroactive by six months. That’s right, a special tax to solely penalize people for being financially successful.

An increase in the income tax is just not a good policy idea. In 2000, the number of millionaire filers numbered approximately 7,529 (raising around $1 billion, or $220 million each). Due to this plan, the anticipated number of filers for tax year 2002 would be 6,500, with projected revenue increase of only $140 million! That means that not only does the proposal unfairly target a small number of income tax filers, but it runs off the same golden goose upon which the Democrats so love to dine. Have they not heard of a diminishing rate of return? How long will those 6,500 taxpayers put up with being the benefactors of Democrat whims? How long would you?

The Democrats are using this proposal as a weapon in the upcoming gubernatorial race in an attempt to rally the relatively untapped urban poor voter market, and to wage class warfare. Rather than a sound fiscal recovery plan in a flaccid economy, this is an excuse to increase spending to the tune of tens of millions of dollars while we are in a deficit situation. The millionaire's tax will not be temporary once it is on the books- it will be extended. In future years it will be 5.5%, then 6%, and then 7%, making us all the more uncompetitive in terms of attracting wealth to the state. There is a real possibility that the millionaire's tax in future years could be lowered to those who make $500,000 or those who make $250,000 or those who make $100,000. It begins the cycle of tax increases in the state. A millionaire's tax today means we will be going after the little guy tomorrow.

[Neckbone]

Taxation with misrepresentation- that's why we're the Constitution State, right?

[WindMinstrel]

It amuses me how loudly the dems are screaming for tax increases in the CT state budget this year. What a wonderful idea! We're in the middle of a recession, so increase taxes. Bastards.

Rowland isn't exactly a great conservative or Republican, but I hope to God he stands by his guns on this issue. We're beging bled white as it is.

You folks remember when they instituted the income tax? "A temporary measure", they said. Suuure!

[kali_player]

If my understanding is correct, many in Connecticut are commutors, even the millionaires. How are the Dem's going to explain the exodus of wealth from there State. Furthermore, I come to believe that the higher an individual raises on (sp?)Maslow's Heirarchy of Needs, the more vicious the become when the lower levels are threatened. In a nut shell, them rich folks can hire the Right people to stop this action and them punish those that inititated it. Just some thoughts. Enjoyed the post.

[Neckbone]

I believe Rowland to be a great Republican in a climate where people are not allowed to be anything other than Democrat. The state is so overwhelmed by the Liberal effite who are now prosterating themselves before the unions and welfare cheats that I am amazed that Rowland has been able to do what he has!

The lazy slackers of the Healthcare Workers' Union District 1199 are still pissed off that he stepped in and controlled last year's labor cartel. How many nursing home residents were murdered by the union to "make their point"?

[Neckbone]

I agree with you RE: the exodous of wealth. 5 months, 29 days at their "summer home" in Florida and poof! No state income taxes whatsoever!

Millionaires do not become millionaires from not knowing how to avoid tax traps!

[WindMinstrel]

The lazy slackers of the Healthcare Workers' Union District 1199 are still pissed off that he stepped in and controlled last year's labor cartel

I'll admit that that move took some serious stones. Wish the nursing home admins hadn't capitulated as quickly as they did -- would have had much more impact that way.

[kali_player]

Amen Brother.

[Neckbone]

Wish the nursing home admins hadn't capitulated as quickly as they did

I have to agree with you, I believe it to be short-sighted to capitualate at all when dealing with unions. If you look at many Connecticut cities, there is a marked downward trend in the employment levels in the industrial sector. In the city where I work, there has been a drop from 5,000 to little over 1,000 UAW jobs! That is a drop of roughly 80% in this city alone! That is due almost entirely to the union artifically inflating labor costs by employing unfair (and often illegal) labor practices.

[Broker]

The camel is in the tent. As a former resident of New Canaan and Darien, it is sad to see the rape of CT . Either fight the socialists or pitch tent .

[Neckbone]

it is sad to see the rape of CT....fight the socialists

That is the critical, and critically hard part! CT is such a dichotomy in that there is a huge concentration of people with such comfortable lives that they are idle. To fill their time, they focus on "pet projects" (AKA rabble-rousing) which spell the very rape of which you are speaking!

Can you imagine what would happen if we didn't have a Republican Governor?

[TruthShallSetYouFree]

Even the nickname--"millionaire's tax"--is wrong. A millionaire is someone with assets in excess of one million dollars, not necessarily someone who earns a million a year.

[Neckbone]

Even the nickname--"millionaire's tax"--is wrong

That is a good point. It is obvious by the way that this scheme has been marketed that it is intended to perpetuate the us-vs-them views of the urban poor (the vast majority of the vast minority of whom are registered voters vote overwhelmingly Democrat, of course).

The part that kills me is how illogical the plan is

[Slip18]

Exactly, TSSYF. If you own a home, say you bought it for $500,000, and ten years later it's worth $1,000,000, you are a "millionaire."

Wonder what the farmers will think on this one. Crops come in rich one or two years, and the next three years they dump.

You can make millions in the marketplace one year, and the next five years you have a loss.

Wonder how the bureaucrats are going to deal with this aspect of the "Millionaire Tax."

[borntodiefree]

If you are successful, lucky, and intelligent, you must pay a portion of your proceeds to those who are either unsuccessful, unlucky, or unitelligent..

The new American Dream, "I have the right....to what you have"

[Neckbone]

And it's funny you should mention farmers. There are farmers in my town (albeit not that many anymore) whose family has farmed the same land since the 1600s. Now, say that they have an apple orchard on 30 acres from which they are able to make a modest living. That land is taxed at my town's per acre value of around $200,000, minus a downward agricultural tax adjustment. That still puts their tax base on land assets alone of 6 million!

[Slip18]

I've always felt that we should be taxed (if we must be taxed) at a percentage rate for every citizen. We shouldn't be taxed on the land we own, only on the income minus expenditures we make.

If this scenario were to happen, a lot of millionaires and billionares might decide to bring their assets back into the United States.

Unfortunately for the farmers, their land is here to be taxed and retaxed.

[Slip18]

Dropped an "i" in "billionaires." Here it is: "i."

[WindMinstrel]

A flat tax? But that's so *gasp* regressive. You can't tax the poor at the same rate as the rich -- that wouldn't be FAIR!

[Neckbone]

ah, a flat tax! I too think that, if there must be a tax, it ought to be equally levied. However, you realize that this is diametrically opposed to everything the Democrats believe in, their argument being that losing 25% of their income to taxes is more painful to someone of limited means. This is of course true, but does not lead logically to the conclusion that there is justice then in penalizing someone for not being of limited means, IMHO.

[WindMinstrel]

Wonder what the farmers will think on this one. Crops come in rich one or two years, and the next three years they dump.

At the risk of turning this into a WoD thread, check out the statistic I just saw:

Connecticut Top Crops, by Value

Rank	Crop	Unit	Planted Area (000) Acres	Harvested Area (000) Acres	Yield Per Acre	Production (000) Units	1997 Street Price Per Unit Dollars	Value of Production (000) Dollars
1	Marijuana	Lb	N/A	N/A	N/A	7	$3,120.00 0	$21,494
2	Tobacco, All	Lb	N/A	2.27	1,577.00	3,572	$6.000	$21,432
3	Hay, All	Ton	N/A	72	1.57	113	$131.000	$14,803
4	Apples, All Commercial	Lb	N/A	N/A	N/A	23,500	$0.370	$8,695
5	Peaches, Freestone	Lb	N/A	N/A	N/A	3,000	$0.700	$2,100
6	Pears, All	Ton	N/A	N/A	N/A	1	$700.000	$700
7	Maple Syrup	Gal	N/A	N/A	N/A	9	$33.400	$301