Taxes are going up you ungrateful kulaks.
Top Marginal Tax Rate Will Exceed 50% in California, New York, and Hawaii in 2013 (h/t Instapundit):
This paper compares state-by-state estimates of the top marginal effective tax rates (METRs) on wages, interest, dividends, capital gains, and business income for tax year 2012 to the rates scheduled for 2013 under scheduled law. Scheduled tax law for 2013 assumes the expiration of the 2001 and 2003 tax cuts and the new PPACA taxes. Overall, the average top METR on wage income is scheduled to increase by approximately six percentage points (41.8% to 47.8%), while taxes on dividends would increase the greatest (19.0% to 47.9%). The top METRs on wages, dividends, interest, and partnership/sole proprietor income would exceed 50% in California, Hawaii, and New York City.
The targets are not the really rich:
The people whose wallets will be drained in the new war on “the rich” are high-earning, but hardly plutocratic professionals like engineers, doctors, lawyers, small business owners and the like. Once seen as the bastion of the middle class, and exemplars of upward mobility, these people are emerging as the modern day “kulaks,” the affluent peasants ruthlessly targeted by Stalin in the early 1930s.
You’re about to be rolled.
Or you can roll, and do what you were told to do almost four years ago when you were told that all this was coming, The Revolt of the Kulaks has begun:
History tells us, however, that economic redistribution plans fail because the producers of society would rather not produce, than have the fruits of their production taken away and given to others. Obama can raise the tax rates on income, but he cannot force people to generate income to be taxed. People may just say “no.” This resistance will not come from evading taxes, but from evading taxable income.
… change your economic behavior to deprive Obama of what he wants most, your tax dollars. Invest in municipal bonds, carefully manage your investments to minimize taxable income, do everything possible and legal to insulate yourself from creating taxable income.
Starve the beast. More of nothing is nothing.
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Comments
This theory takes a lot of Galt to believe. 😉
This resistance will not come from evading taxes, but from evading taxable income.
Remember the old comedy “WKRP?” It was about a tax dodge under Carter’s 100% marginal rates. The funny part was that, even though they hired the most incompetent team, the radio station made money.
It is probably impossible to calculate the actual tax rate one pays because of the manifold ways the leviathan exacts its levy. If you count gov handouts as income and govt money-printing as tax, the middle idiots (like me) who still want to work and forgo benefits are probably getting taxed between 50% and 100% — total, not marginal. Were I to try to start a business with some employees, I’m sure the marginal rate would push 100%.
We’re going down.
P.S. If Hussein gets the ability to raise the debt ceiling hisself, he will suck blood at will. Congress can then go home and start digging graves, as they will no longer be needed.
If Congress gives Obama to raise the debt limit at will, we can kiss truly contested Presidential elections goodbye. It’s one thing to agree to raising taxes, it another to give away Congressional authority to to the Executive without going through a Constitutional Convention and the Amendment process.
Obama already sucks blood at will. He has operated without a budget for the last four years thanks first to the Democrats in the House and to the Democrats in the Senate throughout. He routinely runs deficits greater than one trillion per annum. The debt limit is a theoretical limit which has not constrained his expenditures. We have already experienced a diminished purchasing power far exceeding 30% over the last four years and created a virtual economy proportional to 10% of our GDP. The so-called “fiscal cliff” narrative is a melodrama designed to motivate people to further exchange their liberty for submission with benefits.
It does not matter what congress or the president do on the request that congress give the president power of the purse, it is in violation of separation of powers and would require a constitutional amendment. Ain’t going to happen. Obama is on drugs. And so in Boehner.
They’ve tapped out the income tax because people will now quit working. Next stop on this train is asset confiscation of pensions and retirement funds. This is very similar to what FDR did with everyone’s gold. It’s the only thing left untapped that’s relatively easy to get $9T, which will fund the ponzi for another 2-3 years. If you can’t tax it, just steal it and tell people they are helping society.
Meanwhile, as the tax base is starved of taxable income, the proletariat clamors for more hand outs. “WHERE’S MY BAILOUT!” as the Hurricaine Sandy victims and Councilwomen of Detriot have recently been heard to express.
If you rely on the government to rescue you, you are doomed to misery and disappointment.
I juggled my portfolio around today in advance of tax-a-gedon.
I’m prepared to wait them out before taking a gain.
Unfortunately if things get bad enough they won’t wait for you to take a gain.
They will just take what you have.
Lawlessness does not respect limits on its depredations.
“More of nothing is nothing”…..
The mathematician in me says “Zero time anything is still zero.”
The musician (and former DJ) in me says “this calls for a song, from Billy Preston Nothing From Nothing Leaves Nothing.”
Don’t forget the anthem of all Federal budget negotiations:
Will It Go Round in Circles
The arithmetician in me says, “0!”
P.S. Also of interest, the ‘bama’ is defined as a term that can only take zero as its coefficient.
Taking a step back and looking at the big picture: isn’t it amazing what chaos is caused by a vacuum of opposition leadership in the face of tyranny?
Read the history of Hitler’s rise to power: the parallels are just stunning.
Boehner von Hindenberg.
As I’ve been arguing since the election, the only possibly effective tactic against Obama now, given that he acts without any legal authority when he has a whim to do so, is a producers’ strike.
They cannot tax wealth which is never created, businesses can avoid the tax on new employees by not hiring any.
Make do with the absolute minimum you can. Buy only what is required.
A majority of American voters created this monster; let them feed it.
Practice saying “do you give a discount for cash?”
Give the shopkeeper a chance to avoid taxes, give yourself a chance to save a buck.
Yes. When we were still in Canada, we did this all the time after the hated GST (Canada’s VAT) was introduced. It was amazing the money you saved, and it made you feel good to know that you were resisting socialists in Ottawa that hated you and everything you believed in while at the same time denying a parasite somewhere the fruits of your labor. WIN – WIN – WIN!
I think a push for more local currencies would be an excellent idea. It keeps the money in the community, and provides a bit of insulation from the tax man.
Much like we admonish the “takers,” we’d be as big of a group of losers as they are if we failed to fight for what is ours — namely, our country and our way of life.
Thus, we can’t hide in a hole and deprive ourselves of what we worked so hard to achieve, and let the world around us fall flat on its face — it’s our world. Rather, we need to fight. We need to clean the House(literally), get a new GOP chairman, and work to get momentum back in our favor.
Enough already with the whining. Get back in gear — this is a new season. We own the GOP — we do. Take it back, and rev up the collective ‘whoop ass’ machine.
Break out of your funk already — our side has hit bottom. We do not need to dig further. Rather, we need to start clawing our way back up.
Screw the media, screw the Occupy idiots — screw them all. There are 57 million of us. Make non-negotiable demands of our representatives, or boot them out.
We MUST remove Boehner, Cantor and Preibus from their top posts in the GOP.
Off topic, but here’s a guy with real balls:
http://en.wikipedia.org/wiki/Alfred_'Ken'_Gatward
We could use a guy like him over here. And now.
“Top Marginal Tax Rate Will Exceed 50% in California, New York, and Hawaii in 2013”
Starving the beast would eventually push Obama into eliminating the federal tax deduction for paying state income taxes. Eating his own would speed the revolution.
Professor–
Your 2009 “Kulaks” article (linked above) was most excellent. So were the comments. Thank you.
Yeah… but remember what happened to the kulaks. And remember what happened to food production after the kulaks were destroyed.
The “eat the rich” mob versus the “starve the beast” mob. This could get interesting.
Off Topic:
Where ya’ been mate? Was thinkin’ Jooolya had you incarcerated..
‘MERICA, mate! Don’tcha know that the international VRWC never sleeps? Bwaahahahaha.
“I think when you spread the wealth around, it’s good for everybody”..
So it’s not like anyone can complain they weren’t warned. Good catch mate.
and if I’m not mistaken the above numbers do not include county and city taxes and given Cal fondness for taxes want to bet it drives total taxes close to 60 % of income …..any takers
Add in license fees, permit fees, registration fees, surcharges, toll charges, and all kinds of other little things that are not called taxes but that government says we must pay just to function in daily life. Has anyone estimated how much these little bits, combined, increase the burden?
Don’t forget sales tax… anywhere from 7.25% to 9.75% depending where you make a purchase, going up to 7.5% to 10% in January. Most cities, counties and special districts levy taxes through a sales type tax. In San Diego I pay the sales/use tax that goes to the State and .5% to the County of San Diego for essentially public transportation serving the county. Other counties have special hospital or community college district that also levy a sales tax. I’m surprised they haven’t thought of that in San Diego yet.
And hotel taxes, which are used in states like Florida because they have a large tourist industry. Florida, however, is one of seven states that do not impose an income tax on its citizens. If the hotel tax replaces a state income tax, and frees up the citizens, then that is one tax that I can support.
http://taxes.about.com/od/statetaxes/a/tax-free-states.htm
Notice a common element in this group (with one exception)?
Here’s a hint:
http://en.wikipedia.org/wiki/List_of_current_United_States_governors
I didn’t include the hotel tax (transient occupancy tax) because I generally do not stay in hotels in my home town. Last time I stayed in a hotel I nearly choked on the 17% tax.
On the principle of No Taxation Without Representation you should’a been handed an absentee ballot after you paid the bill. Your room receipt can serve as your proof of eligibility.
Alas, the Tax Eaters sold off all their principles… and being the thieves they are, ours too.
[…] COMING: A revolt of the Kulaks? […]
One caveat to the article: If you’re going to invest in munis, for heaven’s sake don’t buy Detroit’s. I live in the area. The chances of the city going bankrupt are looking increasingly good.
Our dearest Dear Leaders believe we kulaks exist to serve the state, our skills are negligible. The less the “greedy” few hoard the jobs, the more jobs will be left for the less greedy ones to do.
–Joseph Conrad, “The Secret Agent” (1909)
[…] Professor William Jacobson has an interesting post up at his Legal Insurrection blog. […]