TAX NEWS - JUNE 2010

Tax & flee

01 June 2010 -- The histrionics over New Jersey's scuttled "millionaire's tax" looting wouldn't be such a pathetic display of union avarice and economic ignorance if that state hadn't already taxed the wealthy to excess -- and paid dearly for it.

This ignoble intent to redistribute wealth prompted an immediate veto from Republican Gov. Chris Christie. Predictably that touched off a massive protest in Trenton by the same state unions and special interests superglued to the public teat, all clamoring for Mr. Christie's hide.

Even if Christie agreed to jacking the tax to 10.75 percent (from almost 9 percent), the $637 million anticipated wouldn't stem New Jersey's hemorrhaging. The problem is state spending.

Worse, the additional burden would bury the Garden State in an even bigger hole. Obviously New Jersey's soak-the-rich tax boosters didn't read this year's Center on Wealth and Philanthropy study showing that punishing taxes drove $70 billion in wealth from that state over a four-year period.

If any of this sounds familiar, it should. Pennsylvania, with the world's highest combined Corporate Net Income Tax (41.5 percent), has sunk to 45th in job growth, driving 56,000 residents from the commonwealth from 2000 to 2008, according to the Commonwealth Foundation.

Gov. Ed Rendell's solution? Raise taxes.

Sadly, you can lead tax-and-spenders to reason but you can't make them think.