Skip to content

Higher state taxes on the rich won’t drive them out: study

The threat that wealthy people will simply pull up stakes and move if they taxes are raised has often been deployed in an effort to prevent states from doing just that. However, a new paper (pdf) suggests that the threat has been greatly exaggerated.

The study, by Universeity of Massachusetts economist Jeffrey Thompson, reviews several previous studies of state tax increases and concludes that the wealthy are not only as strongly influenced as anyone else by the pull of community ties and the costs of moving but often find it easier to stay put in the face of tax increases than lower-paid workers do. Wealthier citizens also frequently feel that it is worth paying higher taxes to obtain increased public services.

Thompson has recently emerged as a strong advocate for higher taxes on the wealthy as an alternative to slashing state budgets. An article he co-wrote with fellow economist Robert Pollin, which appeared in The Nation in March 2011, pointed out that state tax revenues fell by 13% between 2007 and 2009, far more than during other recent recessions, and that the resulting spending cutbacks had created a vicious cycle that further deepened the recession.

“In general, raising taxes during a recession is not good policy,” they commented. “But if it must be done to help fill deepening budgetary holes, the sensible way to proceed is to focus these increases on wealthier households. Their ability to absorb such increases is obviously strongest, which means that, unlike other households, they are not likely to cut back on spending in response to the tax hikes.”

Photo of an expensive home in Florida by Mike Whaling, via Flickr

Related Posts with Thumbnails

Posted in General News.

Tagged with , , .

2 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

  1. Dustin says

    There is enough anti-freedom propaganda flooding the media as it is, without this article. Instead, we need articles built on a foundation of reason and human liberty. The government is frikken HUGE – it’s erased all our rights and abuses us further each day.
    The outrageous amount spent on war and surveillance and militarizing of police SHOULD BE CUT! Why would ANY thinking person advocate instead for letting the state STEAL MORE from the people to SUSTAIN the fraud, waste, and frightening growth of state? Marxist lunacy!
    And what’s the point if raising taxes a bit on some section of society? Do you CARE about the debt/deficit suddenly, now that it’s too late and economic collapse is certain? I have news for you, people who are suddenly [manipulated into being] worried about the debt: this would be a LAUGHABLY minuscule drop in the bucket, that wouldn’t even make up for a noticeable fraction if the INTEREST the Govt accrues on its current debt.
    Tax everyone and everything 100% – and were still fuxx

    • darkpolitricks says

      Chill brudda

      This is an alternative news site – aimed at bringing points of view to those people that may have missed them if they are full of mainstream BS. I show articles from all sides from the right wing to left wing, even the middle and those that are far out there.

      I will let you into a secret – half the articles on this I don’t agree with everything and sometimes nothing that they say. This is why I write my own articles under the “my articles” section. If it hasn’t got “by Dark Politricks” on the top of it, it’s not my point of view.

      However as I am pro-free speech I will continue to put up articles that drive debate whether or not I personally agree with them. It’s always worth hearing both sides of an argument before making your own mind up about anything and on this point I am totally with you.

      We should be rolling back the warfare state, and looking after our own people with all those trillions spent blowing up mud huts in Afghanistan instead.

      Banksters should be in jail and main street should be looked after first with Wall St kicked hard in the bollox back to where it belongs – the gambling industry for that is the true nature of the beast. They gamble with our hard earned savings, pensions and keep the rewards and socialise the losses through inflation and higher taxes. So yes I agree with you and not the article.

Some HTML is OK

or, reply to this post via trackback.

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's all happening now big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale". This site must be on some list at GCHQ/NSA as my AdSense revenue which I rely on has gone down by a third. Either people are not helping out by visiting sponsors sanymore or I am being blackballed like many YouTube sites.

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally I know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know some people in prison now for the content they had on their "secret private group". Use Telegrams secret chat mode to chat on, or if you prefer Wickr. If you really need to, buy a dumb phone with nothing for the NSA/GCHQ to hack into. Ensure it has no GPS tracking on it and that the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install or other ways people can exploit the computer tracking device you carry round with you most of the day - your smart phone. If you are paranoid ensure that you can remove the battery when travelling around and do so to prevent GPS tracking or phone mast triangulation. Even with your phone in Flight mode or turned off, it can be turned on remotely and any features like front or back cameras, microphones and keylogging software can be installed to trace you.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering rubbish) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.


Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?