The Addiction Of Taxing The Rich

Just as Cleopratica gauged the rise of the Nile as an indicator of how much to tax her people, state capitals and the IRS look hungrily to the increase in your stock portfolios and capital investments to predict how much is needed to run Washington.

The dependence on the income of the wealthy to run things across this country has been likened by the Vice President to our patriotic duty; somewhat begrudgingly given, by the American people as of late, to places like Pakistan for bridge building and unspecified no-fly zones in Libya. But, dependence on taxing the top 1% of taxpayers translating to 38% of all taxes paid, has a nasty downside. Taxing the rich creates a boom when things are good, but when the economy collapses like the 1990s dot-com bubble and the disaster of the financial markets in 2008, the rich are the first to go. 

States in the past have based their budgets on the assumption that the windfalls of the wealthy are to be assumed and would return every year, but that is not the case, and states are now grappling with multibillion shortfalls. Kicking the addiction of taxing the rich is hard to break in any state legislature and must be stared down, with less taxation for a starter, and lowering taxation on the wealthy to stop the volatility and broaden state tax bases.