Eat the Rich

Here in Washington State certain groups are attempting to pass an income tax on individuals, through Initiative 1077, making more than $200,000 or couples earning more than $400,000. One of the leaders of this modern day witch hunt is the father of 'His Majesty' Bill Gates; William Gates Sr (my first thought was: He's still alive???). The populist argument in favor of this attack on the wealthy is that it will reduce middle class and small business taxes.

Regarding the Middle Class, it will come in the form of property tax relief. The supporters claim a 20% reduction in state property taxes. That may be true but they conveniently omit the fact that only 10-15% of your property tax bill is levied by the state. The rest is local. So you will get relief of 20% of 15% of your tax bill. For the math impaired, 20% of 15% is a whopping 3%! That's $30 on a $1000 property tax bill. Try not to spend that all in one place! Small businesses will see a similar 'savings'.

In return for that, all we have to do is cannibalize the people in WA state who create our jobs. Bill Gates Jr. employs nearly as many people as the gubbermint. Boeing has quietly been sending jobs to states with less onerous tax burdens and what makes anyone think they won't accelerate this process as more of their high income officers start taking a hit on their personal incomes?

Of course, like any other increase in taxes, this will have the opposite of its desired effect and REDUCE revenue to the Treasury. I-1077 will head us in the direction of California rather than Texas and the few states that are not in fiscal trouble. Even if, in the unlikely event, I-1077 did increase revenue, there is no precedent that demonstrates the morons in Olympia will spend the additional revenue wisely by reducing the state's deficit.

All around the nation we are seeing attempts to eat the rich. Much of this is being pushed by socialists and other anti-capitalists attempting to direct populist outrage against government mismanagement of OUR money toward wealthy people who mismanage THEIR OWN money. Oregon just passed an income tax on the rich. Why don't we in WA wait for a year or two and see what happens in Oregon before we throw our own rich in the cooking pot? Better yet, why not reduce state spending?