Wednesday, August 04, 2010

Tocqueville Redux

"A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury." (often attributed to Tocqueville, though apparently it comes from Elmer Peterson)

In any case, the WSJ has a great story showing how Democrats are now trying to game the tax system so that residents in many states that voted for Obama will pay lower taxes than other US residents. The WSJ clearly sees through the arguments that these politicians make. Here are the closing paragraphs:
A big reason the cost of living is so high in Boston, Manhattan and San Francisco is because of high state and local taxes, union work rules, and heavy business regulation that make it more expensive to produce, sell and buy things.

Why should someone in Spokane or Knoxville or Topeka be penalized because New York and California impose destructive policies? Mr. Nadler also conveniently forgets that the federal tax code already subsidizes high-cost states through the deductibility of state and local income and property taxes.

An all-star line-up of liberal class warriors has nonetheless endorsed Mr. Nadler's effort to raise taxes on the rich everywhere but in their own districts. New York House Members Tim Bishop, Steve Israel, Nita Lowey, Carolyn Maloney and Carolyn McCarthy are cosponsors. Ms. Lowey, who has voted to tax anything that moves, now says that "When it comes to the tax code, one size just doesn't fit all" and laments that New York has "some of the highest property taxes in the country." But whose fault is that?

So welcome to the brave new world of "tax equity." If you live in a state that voted for Barack Obama, you get a tax cut.

1 Comments:

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