Governor Brown wants to raise the tax on millionaires from 10.3% to 12.3%.
Here are my three arguments against this tax increase: moral, practical and economic.
Moral: It's wrong for the government to treat people differently under the law for any reason, income level included. We talk about this one a lot.
Practical: This is the one we focused on this morning and I think is the home run argument with your friends and co-workers.
Right now the top 1% of Californians - those evil, greedy, terrible, disgusting 1% of rich Californians - pay 45% of the income taxes. Not only is it morally wrong to raise their taxes, but it's just a really bad idea to but an even larger burden of government on the shoulders of fewer people. What if these rich people leave? Then what? Who are we going to tax next?
Let's say a millionaire decides to leave California because their taxes just went up. A 10% tax on that millionaire today brings in a lot more money than a 12% tax on NO ONE tomorrow because he moved to Texas.
Which brings us to point number 3, Economic: If you tax something, you will get less of it.
Maryland passed a tax on the disgusting millionaires in 2009. They said it would bring in an extra $106 million in revenue. The next year, 1/3 of the millionaires left Maryland and the state brought in $100 million LESS revenue than the year before. Can we please start to learn from experience?
Even if you want the state to bring in more money, raising taxes on millionaires will bring in LESS money.
I think these are three solid reasons to be against this tax.
Mike called in and said, "Slater, I get it and I agree, and I'll spread the word. I'm just worried that other people will vote for the tax. Why will otherwise smart people vote for something like this?"
At 8:00 we talked about the Milgram Experiment. Please listen to the full story below, but my argument is, smart people vote for stupid things because authority tells them to.
People understand the moral, practical and economic arguments above, but authority, the governor, the state senator, the media, the professors even the president of the United States tells you over and over and over again that we need to soak the rich.
We suppress our emotions of envy and covetousness because we know better. But when authority says it's okay to feel that way, and when they amplify it inside of us with their class warfare rhetoric, and when they ask for permission to act out on our envy (steal from the rich), otherwise smart and rational people do what they're told: vote for this tax increase! Oh, and by the way it's for the children.
Here is the 8:00 hour:
http://media.worldnow.com/kfmbam/podcast/the_mike_slater_show_6120.mp3
And if you want to know all about the Milgram Experiment, here is a great TED talk.
And here is some great footage of the experiment starting at 2:15:
http://www.youtube.com/watch?v=GHuI2JIPylk
