New York’s High Tax Rates makes it Difficult for People to Willingly Work in New York

Posted by PITHOCRATES - March 29th, 2014

Week in Review

If you ever wondered why the communists built the Berlin Wall this is why (see Man Takes Selfies for Proof to the IRS by Brian Koerber posted 3/18/2014 on 3/18/2014 on Mashable).

Anne Jarvis’ father, Andrew, is an architect that splits his time between his firm’s branches in New York City and Philadelphia. The commute became so overwhelming that he began to rent an apartment in NYC to improve his quality of life.

Upon further inspection of tax laws, Andrew learned that in order to avoid being taxed by New York, he would only be allowed to live in the city 182 days or less out of the year. In preparation for disputes against his living situation, he began taking selfies, as a way to prove to the taxman that he spends more time in Philadelphia, than he does in New York.

When a taxing authority taxes too much the natural inclination of free people is to move.  And that’s what was happening in East Berlin.  The best and brightest that drove the economy were walking across the street into the West.  Leaving behind only the less-educated and the less-skilled.  So to stop this brain-drain the communists built the Berlin Wall.  To keep the best and brightest from going to where life was better.

Those on the left will read this story and call this architect greedy.  For he enjoys the privilege of working and living in New York City part of the year.  And should pay for that privilege.  In particular so they can have more free stuff paid for by the best and brightest.  But if New York starts taxing his income that doesn’t mean Pennsylvania will stop taxing his income.  No.  They both will tax his income.  As if he’s two different people.  That is, he will pay the taxes of two people.  Is that fair?  Would even those on the left call that fair?  Of course if you suggest they should pay two cellular bills (theirs and somebody else’s) they would say, “Wait a minute.  That is NOT fair.”  But the architect?  They’d probably say something like, “He’s rich.  He can afford to pay the income taxes of two people.  And should.”

Being rich is a relative term.  It basically means anyone making more than you these days.  So even people who win the lotto don’t consider themselves rich when it comes to paying income taxes.  They’ll say that having to give almost half of their winnings to the taxman is unfair.  But having two states tax this architect is fair.  Because he can afford it.  For he earns that every year.  While they only won one lotto.

The way New York City is going they will have to build a wall around Manhattan if they expect to keep the best and brightest from fleeing their oppressive tax rates.  Or they’ll have to get the federal government to tax all states oppressively high so people have no better place to go.  Which explains why big-government liberals are all for expanding the power of the federal government.  For their oppressive liberal policies won’t work if the people can move to another state to escape them.

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As the Financial Crisis deepens in Greece the Best and Brightest are choosing to Leave Greece

Posted by PITHOCRATES - June 23rd, 2012

Week in Review

Greece struggles to remain in the Euro.  But it may all be for naught.  For the damage is done.  The best and brightest have been leaving Greece for sunnier pastures (see Greece brain drain ‘wrecking my social life’ by Giorgos Christides posted 6/22/2012 on BBC News Magazine).

According to the latest national polls, more than seven out of 10 young Greeks aged 18 to 24 believe that emigration is the ideal – indeed the only – way out from the crisis. Two out of 10 have already applied for jobs and university places abroad.

For many Greek high school graduates, who are currently sitting for their university entrance examinations, studying in Greece is not a choice but an imperative dictated by their families’ lack of economic means to fund a university education abroad.

Those families who can afford it, don’t give the matter a second thought – they hide their tears and frustration as best they can, and wave their children goodbye, wishing them to go abroad and stay there for good…

Little did we know that a decade later, Greece would be considered an economic wasteland for ambitious young students and graduates, who are now suffering from unemployment rates in excess of 50%.

Workers’ and students’ mobility has been, of course, one of the landmarks and major achievements of European integration. But it is now evolving into a medium-term death sentence for the ageing Greek society and economy.

In an era characterised by intensified global competition for talented, innovative and highly-skilled workers, the brain drain afflicting Greece means the country is losing its best hope of revival.

Rather ironic, isn’t it?  The thing that brought Europe closer together, the Eurozone, may be the thing that makes the Greek tragedy so tragic.  As the politicians massaged the financial numbers to get Greece into the Eurozone, and to keep Greece in the Eurozone, the young people who were to pay for their financial chicanery saw no future and left.  Saying goodbye to that generous social democracy.  Walking away from the welfare state.  And all of that government spending that caused all of this trouble in the first place.  To get a good education.  So they can get a job.  Which they can do relatively easily thanks to the currency union and European integration.

Greece is in a world of hurt.  An unemployment rate of 50% for the young and ambitious is bad.  But it’s better than having the young and ambitious leave.  Because these are the people who get good jobs.  And make a lot of money.  Who pay a large share of the taxes.  These are the tax contributors.  Who barely consume any taxes.  As they leave the tax consumers will be the only ones left.  Which will only make the current financial crisis worse.

The austerity requirements for their financial bailout caused rioting in the street.  And the rioters were primarily tax consumers.  For who else would riot over these spending cuts?  The taxpayers?  Not likely.  The tax consumers are the ones panicking over proposed austerity measures.  Because they are wholly dependent on government spending.  But while they protest the tax contributors, like Elvis, have left the country.  Making the future indeed a dark one.

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