Barack Obama and his liberal cronies want to tax, tax and tax anyone making over $250,000 per year. They claim it will help increase government revenue which in time will help spur the economy.
The state of California has been doing that very thing. They have the highest personal income tax fees of any state. Middle class workers making more than $48,000 per year pay a state income tax rate of 9.3%, which is higher than what millionaires pay in 47 other states. Even with the high tax rates, they still have the greatest deficit of any state and things are getting worse, not better.
Because of the high personal and business taxes, businesses and citizens are leaving the state in droves. According to a report by Spectrum Locations Consultants, 254 businesses moved all or part of their operations out the state in 2011. This compares with 201 companies that left the state in 2010 and only 51 companies in 2009.
In 2011, California lost a total of 120,000 jobs while in the same time frame, Texas gained 130,000 jobs. A number of the companies that left California had in fact moved their operations to Texas due to the more conducive business environment and more favorable personal income taxes.
A number of small businesses are also fleeing California. One business CEO, Ronald Mittelstaedt of Waste Connections said:
“Then the other part of it was the cost of doing business in California. Highest tax rates in the nation. Until recently very expensive real estate. Tremendous regulation and really a broken legislature. Something that’s got a built-in structural deficit that’s not going to improve. The reality is this is just a very difficult place to do business. It’s a very expensive place to do business.”
As more and more businesses and citizens are leaving California, the state’s revenue is also dropping. They are now facing a budget deficit of over $16 billion. And Governor Jerry Brown, in the true Obama Democratic fashion has recently announced plans to raise taxes once again.
If California is any indication, once Obama starts raising taxes on Americans making more than $250,000, which includes most business owners, large and small, we will see another exodus of businesses to countries like Mexico, India, China, and Japan to name just a few. I’ve read a few reports of wealthy Americans moving out of the country ahead of Obama’s crusade against them.
The end result will be millions of jobs lost to other countries; leaving millions of more American’s looking for work that won’t be there. Unemployment will skyrocket and the economy will fall further into a recession and quite possibly into another full blown depression. But, hey, that’s the Democrat’s way of doing things.