Monday, September 28, 2009

Information coming on-line

Remember back in March when we had a giggle (for lack of a better word) about the never-ending fantasy of soaking the rich and all things being pure in the world? Well ,the tax hikes on the evil rich were put in place, claims were made and all was right with the world. Now, the results (for lack of a better word) are starting to trickle in:

This year, New York's deep-pocketed rich were required to dig even deeper to help shore up state finances.

They now pay higher taxes on their income and on limousines and yachts, more to enter a horse in a race and more to dabble in real estate. Meanwhile, many are losing millions from the closing of business tax loopholes and those making over $1 million are losing tax deductions others get.

It even costs more to hunt foxes or pheasants and have their taxes prepared.

Now, a half-dozen states in this recession-driven movement are nervously eyeing New York to see if it's wise to demand so much from people rich enough to have a second home in less taxing states — and for whom a change of address can be its own tax break.

Early data from New York show the higher tax rates for the wealthy have yielded lower-than-expected state wealth. Gov. David Paterson, who had always warned targeting the rich could backfire, fears that's just what happened.

Paterson said last week that revenues from the income tax increases and other taxes enacted in April are running about 20 percent less than anticipated.
No doubt, just the beginning.

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