Again the cries of progressives from coast to coast is “Tax the Rich” especially here in California. I decided to look a little bit and check a few things to make sure I got the facts straight and I was dead on accurate with my earlier assumptions. The rich are not the enemy. The Rich are not the problem, nor are they the solution.

As far as Jerry Brown (Moonbeam Governor of Cali) is concerned, a “Rich person” is people making over 500k a year. The plan for California is to tax them more to pay for services in the state, which means Education. Right now 50 cents from every dollar the state takes in goes to education.  The teachers are outraged that Moonbeam is talking about laying off teachers, and want the rich to pay more.

The California Federation of Teachers supports a bill by Assemblywoman Nancy Skinner, D-Berkeley, which would increase the income tax rate from 9.3 percent to 10.3 percent on taxable income of $500,000 and up, union spokesman Steve Hopcraft said. A recent poll by the Public Policy Institute of California found that six in 10 likely voters favored raising income taxes on top earners to fund education.

Okay so let’s look again some facts of this dumbassery…

I’m not rich. This wouldn’t affect me too much I guess but here it goes. The tax the rich crowd is way off. (Again) The rich pay the most in income taxes, they buy a lot of high dollar items that they get hit for SALES taxes on. The use very few state services other than roads. They are probably the biggest group that are NOT using the public school system because of it’s incompetence. Rich folks want their kids to be prepared for life for the most part so I’m betting they enroll their kids in charter schools, private schools or if they are really on the ball they’ll send their kids out of state for education.

So pretty much EVERYTHING the Rich put in to the state doesn’t come back to them. It goes for pet projects, education, welfare  or whatever the state decides to do. Now let’s ask that question about the lower tax brackets. They are USING the systems education, and they get back money from the state in the form of tax refunds (I’m in this category)

Now we move on to charity, when you tax the rich (Again) and they are a custom to living the way they live, they will make cuts to their lifestyle just like the rest of us do when times get tough. Meaning: They might reduce their charitable giving, that absence means the state may have to pick up some of that. They will NOT buy high dollar items for a while, which drops the sales tax revenue for the state.

It also means they will look for other ways to keep or improve their lives. Meaning they may look to reside in another state. Perhaps the one they sent their kids to. They will also if they happen to be business owners and employ people, look to maintain their lifestyle by reducing overhead cost. Labor is a huge savings. They would pass on to the customer what they can and still be competitive, but they also may look at moving the business out of state, as is happening across this state in droves.

So what problems does a 1% tax increase present to the state of California? Well perhaps if that was ALL, maybe no problem. But it’s not. There’s the energy prices that are steady going up, the sales tax that is the highest in the nation, the never ending increases to health care costs and local taxes. So yep, if I’m making 500k a year and the state is going to take more from me, I’m going to make up the difference by doing some things different. Perhaps I buy my big ticket items in AZ rather than here. Perhaps I lay off employees or move my business, perhaps I just up and move all together. Then what happens? That 9.3% has turned into ZERO and how much does ZERO go into education funding? Yeah you were educated here in California if you don’t see the problem with Moonbeam and the state’s leadership.