Market politics

[dmunjal]

Inflation rates are relatively low

What is the Current U.S. Inflation Rate?
Historical Inflation Rate- Annual Inflation rates from 1913 to the present |InflationData.com

Inflation is much higher than the CPI shows. If we used the same formula we used to before Clinton, it would already be at 5%. It also understates housing and healthcare because of the formulas used.

https://www.investors.com/politics/editorials/heres-the-real-inflation-problem-we-face-today/

 

[bkp_duke]

I don't see a lot of rich people moving from California to Alaska. The rich could save a lot of money by not living in high value neighborhoods within their states now, but they don't do that. The idea that they would leave the country in droves because of a 1-6% wealth tax is ridiculous.

Ha ha ha

Cherry picking Alaska. You do see a net exodus to FL and TX, however.

 

[JRP3]

Cherry picking Alaska.

Lowest taxes. But OK, next would be Delaware, then Tennessee. Not seeing mass exodus there either. Point is that taxes are not the end all be all some would pretend. Not to mention that if the rich started fleeing the country in volumes housing prices would drop and they'd lose money when trying to sell.

 

[dmunjal]

Lowest taxes. But OK, next would be Delaware, then Tennessee. Not seeing mass exodus there either. Point is that taxes are not the end all be all some would pretend. Not to mention that if the rich started fleeing the country in volumes housing prices would drop and they'd lose money when trying to sell.

Living in California for the past 50 years, it's more complex than that.

The middle class are leaving in droves because of taxes and cost of living.

They are being replaced by the rich from all over the world, especially China and India and those who are in the top 1% working in Silicon Valley and Hollywood. Of course, immigration at the lower levels is increasing, too.

So, eventually you have a state made up of the very rich and the very poor.

 

[JRP3]

Proving my point that the rich are not deterred by higher taxes and won't be leaving the country in droves if higher taxes are levied.

 

[dmunjal]

Proving my point that the rich are not deterred by higher taxes and won't be leaving the country in droves if higher taxes are levied.

It all depends on the tax levels. The very rich pay 13% in California. That's still relatively low compared to federal at 39.6%. However, if you start going towards 60-70% and pushing wealth taxes, you'll see the rich leave.

Here's the example in Europe:
If a Wealth Tax is Such a Good Idea, Why Did Europe Kill Theirs?

"The experiment with the wealth tax in Europe was a failure in many countries. France's wealth tax contributed to the exodus of an estimated 42,000 millionaires between 2000 and 2012."

 

[JRP3]

Moving between countries in Europe is more like moving between states in the US. Leaving the US for another country is a different level.

 

[dmunjal]

Moving between countries in Europe is more like moving between states in the US. Leaving the US for another country is a different level.

Exactly. People move between states all the time because of taxes (similar to Europe) but they haven't left the US yet because federal taxes are relatively low. At a certain level, people will leave.

 

[JRP3]

People move between states all the time because of taxes

Supporting data? I don't know of anyone doing that, and I live in NYS, highest taxes in the nation.

 

[dmunjal]

Supporting data? I don't know of anyone doing that, and I live in NYS, highest taxes in the nation.

Besides Trump??

https://www.investors.com/politics/editorials/cuomos-budget-rich-high-taxes/

Rich People Are Fleeing New York In Droves, Study Shows

 

[bkp_duke]

Supporting data? I don't know of anyone doing that, and I live in NYS, highest taxes in the nation.

Billionaire investor Carl Icahn to leave New York for Florida

That one is REALLY going to hurt NY's bottom line tax receivables.

 

[dmunjal]

Billionaire investor Carl Icahn to leave New York for Florida

That one is REALLY going to hurt NY's bottom line tax receivables.

And Tepper from Jersey to Florida.

One Top Taxpayer Moved, and New Jersey Shuddered

 

[bkp_duke]

And Tepper from Jersey to Florida.

One Top Taxpayer Moved, and New Jersey Shuddered

It gets even better. NJ had no clue what to do about the tax shortfall, so instead of trying to attract businesses back, they RAISED taxes again further.

The state of New Jersey just signed its own death warrant | Sovereign Man

It's a tax death spiral, the rich will continue to leave and guess who gets to foot the bill . . . middle class payers that don't leave.

 

[JRP3]

Besides Trump??

https://www.investors.com/politics/editorials/cuomos-budget-rich-high-taxes/

Rich People Are Fleeing New York In Droves, Study Shows

Work was the most common thing that drove people to and from New York, the study shows. More than 60 percent of those who moved to the state did so primarily for a job, while about 44 percent of those who left did the same.

 

[bobinfla]

MOD:

Try to keep this discussion to Politics, please. Thanks.

And Market? I think that is in the thread title too

 

[ZeApelido]

Exactly. People move between states all the time because of taxes (similar to Europe) but they haven't left the US yet because federal taxes are relatively low. At a certain level, people will leave.

Yes and that level is around 60 or 70%.

I can't remember if that's flat or marginal rate.

Given that the very wealthy are paying much lower than that, there's plenty of room to go.

 

[dmunjal]

Yes and that level is around 60 or 70%.

I can't remember if that's flat or marginal rate.

Given that the very wealthy are paying much lower than that, there's plenty of room to go.

The wealthy in CA and NY are already paying over 50% at the top marginal rate right now combined (Fed, State, Local, Medicare).

For example, CA is 35 + 13.3 + 2.45 = 50.75 today.

 

[EVNow]

Warren is planning big structural changes …. by getting Bain Capital guy Deval Patrick in the cabinet.

Asked which 3 African Americans she’d want in her White House, @ewarren says she won’t name any current politicians, but drops @DevalPatrick’s name, adds “someone like” @MelodyCBarnes​

 

[dmckinstry]

Supporting data? I don't know of anyone doing that, and I live in NYS, highest taxes in the nation.

I think it's cost of living and housing more than taxes. A family can sell a house in CA for over a million and buy an equvilent house in our area for a quarter Mil in our area. Or could a year or two ago. We're getting an inflation bubble in our area now.

 

[dmunjal]

Warren is planning big structural changes …. by getting Bain Capital guy Deval Patrick in the cabinet.

Asked which 3 African Americans she’d want in her White House, @ewarren says she won’t name any current politicians, but drops @DevalPatrick’s name, adds “someone like” @MelodyCBarnes​

I'm curious to see how many Democrats believe in providing universal health care to undocumented immigrants? This is no way tenable. Even European countries with universal healthcare restrict benefits to citizens.

Elizabeth Warren tells emotional wife of detained immigrant she's 'open to suspending deportations'

"'Medicare for all,' as I put this together, covers everyone regardless of immigration status," she said. "Because I believe healthcare is a basic human right, and we fight for basic human rights."