The progressives are still tied up in their underwear trying to bash the deal between the POTUS and the GOP delaying tax increases for households making over $250,000 a year. Some are even saying that the move to delay the tax increases was somehow immoral. Obviously that is typical progressive idiocy. In an editorial today the WSJ explained not only is it moral, but they show how a recent tax increase for people over $250,000 executed in Oregon led to lower tax revenues.
Last year the Oregon raised the tax rate to 10.8% on joint-filer income of between $250,000 and $500,000, and to 11% on income above $500,000.
Instead of $180 million collected last year from the new tax, the state received $130 million. The Eugene Register-Guard newspaper reports that after the tax was raised “income tax and other revenue collections began plunging so steeply that any gains from the two measures seemed trivial.”
One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did. Funny how that always happens. These numbers are in line with a Cascade Policy Institute study, based on interstate migration patterns, predicting that the tax surcharge would lead to 80,000 fewer wealthy tax filers in Oregon over the next decade.
The real story is that it could have been worse, and will be worse when this years tax revenues are counted.
Read the full story by Jeff Dunetz at YID With LID: Oregon Proves that Higher Taxes Equals LESS Revenue.
Friday May 24th 2013