Greatest Hits- High Cigarette Taxes Fail to Meet Expected Revenue Targets: Anyone Surprised?

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High Cigarette Taxes Fail to Meet Expected Revenue Targets: Anyone Surprised?  It seems that taxing something causes people to avoid the tax?  Say it isn’t so!

Apparently, raising taxes on tobacco products is falling out of favor with state governments…

According to Patrick Gleason, director of state affairs for the conservative Americans for Tax Reform, tobacco has not been the revenue boon states that have increased cigarette taxes had hoped.

“The lack of interest in raising tobacco taxes this year can be attributed to the fact that tobacco taxes have indisputably proven to be a dubious and declining source of revenue,” Gleason told TheDC. “From 2003-2007, 16 of 59 tobacco tax hikes fell short of revenue projections.”

Here in Washington D.C., for example, the city’s 2009 $0.50 tax hike resulted in a severe drop in expected revenue. In 2010, the District of Columbia’s chief financial officer Natwar Gandhi reported to the mayor that the projected government intake was over $15 million below what they had initially estimated.

Gleason pointed out that for revenue, cigarette taxes are proving to be a loser.

“New Jersey raised its cigarette tax by 17.5 cents in 2007, yielding $52 million less than Garden State lawmakers anticipated and $22 million less than was generated prior to that tax hike,” Gleason told TheDC. “Over the past decade it has become clear that tobacco taxes are an unreliable source of revenue and one in which no budget should depend on.”

Ok then, many states failed to make their projections, but some actually made less under the new rates?  Who could have seen that coming?

It’s actually sad that this even has to be a story.  It should be filed under, “duh!” Anytime you tax an activity, it either decreases, moves somewhere else, or moves underground.  Let’s take a look at some other examples…

When Maryland passed a higher tax rate for millionaires, they suddenly found themselves with 1/3 less millionaires! 

The source is found here.

Here’s a two-minute drill in soak-the-rich economics:

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Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

So, not only did they not meet their projected other people’s money “revenue,”  they actually lost money on the tax!

And that seems to happen anywhere that there are high taxes…

You mean, people move to places where they can KEEP THEIR OWN MONEY?  Astounding!

And the evidence that we discovered in our new study for the American Legislative Exchange Council, “Rich States, Poor States,” published in March, shows that Americans are more sensitive to high taxes than ever before. The tax differential between low-tax and high-tax states is widening, meaning that a relocation from high-tax California or Ohio, to no-income tax Texas or Tennessee, is all the more financially profitable both in terms of lower tax bills and more job opportunities.

Lower taxes mean MORE JOBS???  What a COMPELTELY NEW AND ORIGINAL idea!

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.

You mean free markets and low taxes CREATE MORE JOBS?  You mean PEOPLE EARN MORE?  Who would have thought of that?

Did the greater prosperity in low-tax states happen by chance? Is it coincidence that the two highest tax-rate states in the nation, California and New York, have the biggest fiscal holes to repair? No. Dozens of academic studies — old and new — have found clear and irrefutable statistical evidence that high state and local taxes repel jobs and businesses.

If a regressive were reading this, they might say it isn’t true, in spite of all the evidence.  They’d probably go into some class warfare argument against capitalism, and then propose legislation that would make all states suck equally, so people and jobs wouldn’t leave.

Of course, they could always follow the great statist tradition of building walls to keep people from escaping.

While I don’t support smoking-it’s a dirty habit that I kicked a few years back, taxing it usually causes people to avoid the tax. 

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Will Bill de Blasio Drive the Rich From NYC?

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If the rumblings coming from the Big Apple are correct, Bill de Blasio, the communist mayor, will successfully drive the rich, and their money, from the city.  Wyblog has more…

Gentlemen start your moving vans, wealthy NYers perpare to flee de Blasio’s commie utopia

Rich liberals don’t like it when they’re asked to pay their “fair share.”

New York City Mayor Bill de Blasio’s eat-the-rich policies aren’t sitting to well with the city’s wealthy residents. According to Michael Goodman, a number of them are getting ready to flee the Big Apple for greener pastures, like Florida, where they won’t be treated like criminals.

Of course, leftists are taking their usual approach, claiming that it is not, or will not happen, but in 2009, I covered what happened in Maryland, when their democrats decided to punish success…

“Let’s go get those evil rich folks that are pooping on the little guy!”  The class envy folks love saying things like that.  When they get into power, as they are now, they attempt just that.  Now, I could go into a long, drawn out description of why that is a terrible idea, but they won’t listen anyway.  Instead, I’ll give an example, and laugh at their fail.  The source is found here.

Here’s a two-minute drill in soak-the-rich economics:

Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

Way to go Maryland!  Yet another example of higher taxes yielding smaller returns!   How many jobs went out with them, I wonder?

Then, I covered it again, when even more damage was documented…

Three years later, the damage is even more pronounced…

A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich.

The study, by the anti-tax group Change Maryland, says that a net 31,000 residents left the state between 2007 and 2010, the tenure of a “millionaire’s tax” pushed through by Gov. Martin O’Malley. The tax, which expired in 2010, in imposed a rate of 6.25 percent on incomes of more than $1 million a year.

The Change Maryland study found that the tax cost Maryland $1.7 billion in lost tax revenues. A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows.

Ah, higher taxes means less revenue.  When will they ever learn?  Never, actually.  It’s more about appealing to class warfare advocates, and punishing success, than collecting revenue.  If any of them still think reciepts will grow with higher taxes is either stupid, or intentionally stupid.

But fear not, liberals, I’m sure that someone else will be blamed.  It’s the Marxist way!

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British Raise Top Tax Rates, Two Thirds of Millionaires Left

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Evidence shows again and again that if you want there to be less of something. , you tax it.  Well, either there is less of it, or it goes underground, which means you don’t get to tax it at all.  The British are learning this lesson now, as after passing a unsubstantial increase in their highest tax rate, they suddenly found that they had far fewer millionaires to tax.  The Telegraph has more…

In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.

Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.

Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.

“Labour now needs to admit that their policies resulted in millionaires paying less tax and come clean about whether they would reintroduce this failed policy if they were in power.”

No, Labour will not admit that their policies caused the exact opposite of their stated intent.  Like all leftistis, it will likely be someone else’s fault.

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The Evil Rich are Still Moving: Tax Induced Exodus from Maryland Continues

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It’s wisdom that when taxes go up, people will go to great lengths to avoid the tax. However, the democrat narrative precludes reality, so they raise taxes anyway.  We first covered that sad reality from Maryland in 2009…

“Let’s go get those evil rich folks that are pooping on the little guy!”  The class envy folks love saying things like that.  When they get into power, as they are now, they attempt just that.  Now, I could go into a long, drawn out description of why that is a terrible idea, but they won’t listen anyway.  Instead, I’ll give an example, and laugh at their fail.  The source is found here.

Here’s a two-minute drill in soak-the-rich economics:

Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

Way to go Maryland!  Yet another example of higher taxes yielding smaller returns!   How many jobs went out with them, I wonder?

Three years later, the damage is even more pronounced…

A new report says wealthy Maryland residents may be moving out due to recent tax hikes – a finding that is sure to escalate the battle over taxing the American rich.

The study, by the anti-tax group Change Maryland, says that a net 31,000 residents left the state between 2007 and 2010, the tenure of a “millionaire’s tax” pushed through by Gov. Martin O’Malley. The tax, which expired in 2010, in imposed a rate of 6.25 percent on incomes of more than $1 million a year.

The Change Maryland study found that the tax cost Maryland $1.7 billion in lost tax revenues. A county-by-county analysis by Change Maryland also found that the state’s wealthiest counties also had some of the largest population outflows.

Ah, higher taxes means less revenue.  When will they ever learn?  Never, actually.  It’s more about appealing to class warfare advocates, and punishing success, than collecting revenue.  If any of them still think reciepts will grow with higher taxes is either stupid, or intentionally stupid.

But I doubt that will stop them from trying.

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High Cigarette Taxes Fail to Meet Expected Revenue Targets: Anyone Surprised?

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Apparently, raising taxes on tobacco products is falling out of favor with state governments…

According to Patrick Gleason, director of state affairs for the conservative Americans for Tax Reform, tobacco has not been the revenue boon states that have increased cigarette taxes had hoped.

“The lack of interest in raising tobacco taxes this year can be attributed to the fact that tobacco taxes have indisputably proven to be a dubious and declining source of revenue,” Gleason told TheDC. “From 2003-2007, 16 of 59 tobacco tax hikes fell short of revenue projections.”

Here in Washington D.C., for example, the city’s 2009 $0.50 tax hike resulted in a severe drop in expected revenue. In 2010, the District of Columbia’s chief financial officer Natwar Gandhi reported to the mayor that the projected government intake was over $15 million below what they had initially estimated.

Gleason pointed out that for revenue, cigarette taxes are proving to be a loser.

“New Jersey raised its cigarette tax by 17.5 cents in 2007, yielding $52 million less than Garden State lawmakers anticipated and $22 million less than was generated prior to that tax hike,” Gleason told TheDC. “Over the past decade it has become clear that tobacco taxes are an unreliable source of revenue and one in which no budget should depend on.”

Ok then, many states failed to make their projections, but some actually made less under the new rates?  Who could have seen that coming?

It’s actually sad that this even has to be a story.  It should be filed under, “duh!” Anytime you tax an activity, it either decreases, moves somewhere else, or moves underground.  Let’s take a look at some other examples…

When Maryland passed a higher tax rate for millionaires, they suddenly found themselves with 1/3 less millionaires! 

The source is found here.

Here’s a two-minute drill in soak-the-rich economics:

Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”

One year later, nobody’s grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller’s office concedes is a “substantial decline.” On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year — even at higher rates.

So, not only did they not meet their projected other people’s money “revenue,”  they actually lost money on the tax!

And that seems to happen anywhere that there are high taxes…

You mean, people move to places where they can KEEP THEIR OWN MONEY?  Astounding!

And the evidence that we discovered in our new study for the American Legislative Exchange Council, “Rich States, Poor States,” published in March, shows that Americans are more sensitive to high taxes than ever before. The tax differential between low-tax and high-tax states is widening, meaning that a relocation from high-tax California or Ohio, to no-income tax Texas or Tennessee, is all the more financially profitable both in terms of lower tax bills and more job opportunities.

Lower taxes mean MORE JOBS???  What a COMPELTELY NEW AND ORIGINAL idea!

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.

You mean free markets and low taxes CREATE MORE JOBS?  You mean PEOPLE EARN MORE?  Who would have thought of that?

Did the greater prosperity in low-tax states happen by chance? Is it coincidence that the two highest tax-rate states in the nation, California and New York, have the biggest fiscal holes to repair? No. Dozens of academic studies — old and new — have found clear and irrefutable statistical evidence that high state and local taxes repel jobs and businesses.

If a regressive were reading this, they might say it isn’t true, in spite of all the evidence.  They’d probably go into some class warfare argument against capitalism, and then propose legislation that would make all states suck equally, so people and jobs wouldn’t leave.

Of course, they could always follow the great statist tradition of building walls to keep people in.

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