william the wie
Gold Member
- Nov 18, 2009
- 16,667
- 2,402
- 280
If the tax bill if it gets through and the senate vote count is that it will if McCain's health permits him to get to the Senate and vote then some things follow:
A huge incentive is then created for high income ($200K annual income or more) Individuals or families to low SALT (State And Local Taxes) jurisdictions.
There is a shortage of housing in most of the nation and land to build 5,000 sq. ft or larger homes are hard to find and expensive to buy now. Expanding demand and a fixed supply (land) translates into exponential price increases. That means gentrification and migration of the poor to states with better welfare benefits. In other words the poor from the states with low SALT will head to high SALT states where the bennies are. Therefore the Blue wall will mostly see a catastrophic collapse of tax base instead of a slow erosion of it due to an increase in welfare beneficiaries and the need for ever higher taxes, which will reduce the tax base ever faster.
Based on the date of implementation of the Reagan corporate tax rates to the Bush tax increases the US should experience double digit GDP growth by the 2020 election and 2-10 blue states going into Chapter 3 bankruptcy prior to the 2018 election.
This should get interesting.
A huge incentive is then created for high income ($200K annual income or more) Individuals or families to low SALT (State And Local Taxes) jurisdictions.
There is a shortage of housing in most of the nation and land to build 5,000 sq. ft or larger homes are hard to find and expensive to buy now. Expanding demand and a fixed supply (land) translates into exponential price increases. That means gentrification and migration of the poor to states with better welfare benefits. In other words the poor from the states with low SALT will head to high SALT states where the bennies are. Therefore the Blue wall will mostly see a catastrophic collapse of tax base instead of a slow erosion of it due to an increase in welfare beneficiaries and the need for ever higher taxes, which will reduce the tax base ever faster.
Based on the date of implementation of the Reagan corporate tax rates to the Bush tax increases the US should experience double digit GDP growth by the 2020 election and 2-10 blue states going into Chapter 3 bankruptcy prior to the 2018 election.
This should get interesting.