Beyond Ted Strickland's proposed tax hike, Democrats in the Ohio House are proposing raising taxes even more.
A lot more.
Reps. Mike Foley of Cleveland and Robert F. Hagan are proposing returning the state tax rate on incomes over $200,0000 to 7.5 percent, the rate in place in 2004, prior to the five-year, 21-percent income tax cut approved by GOP lawmakers in 2005.
The bill also would create a new top tax bracket, taxing income over $500,000 at 8.5 percent. Foley said the plan would raise about $1.4 billion over two years, more than filling the $851 million budget shortfall created when the Ohio Supreme Court dashed Gov. Ted Strickland’s plan to place slot machines at Ohio racetracks.
“It raises revenue on the percentage of the population that can afford to pay it,” Foley said. “It’s a more progressive way to raise money, and the income tax should be a progressive tax. And under (the 2005 income tax cuts) people who made $200,000 and above have really benefited. They’ve made lots and lots of money.”
Wow. There is so much dumb here that I don't know where to start.
Probably best to repost something I brought up just last week when tax hikes were suggested for Ohio.... and with the proposal to raise taxes even more on those making over 500k, this is even more appropos.
There are two real-life and current examples of the absolute and utter stupidity of Foley and Hagan's proposal.
1) I give you Democrat and soon-to-be ex-Governor David Paterson of New York speaking last month on his state's tax revenue problem:
"You heard the mantra, 'Tax the rich, tax the rich,' " Gov. David Paterson said Wednesday at a gathering of newspaper editors at an Associated Press event in Syracuse. "We've done that. We've probably lost jobs and driven people out of the state."2) From this past May, here is the Wall Street Journal on Maryland.
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."And these Ohio Democrats want to do the same thing to Ohio.
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.
How obnoxiously vapid. Especially in this economy.
And how precious is Foley's quote about those making over 200k post tax-cut, "they've made lots and lots of money."
This is the problem with liberals in a nutshell.
No, Rep. Foley, they got to keep the money they earned. Period.