Unemployment By State Tax Rate & Unionization

[DiveCon]

Sure you can. Yeah there were lots more deductions so that a guy making $350k today wouldn't be paying the top rate. The marginal rate escalated up for the really wealthy, around a couple million or so in today's dollars.

the person in the $350k range wouldnt have the same deductions as back in the 1950's

I'm not an expert, but I think there were numerous deductions and credits you could take back then, credit card expenses, business lunches, club fees, on and on, many of which were eliminated particularly in the Tax Simplification Act in 1986.

exactly
that mean you can not compare the two rates alone

 

[Iriemon]

the person in the $350k range wouldnt have the same deductions as back in the 1950's

I'm not an expert, but I think there were numerous deductions and credits you could take back then, credit card expenses, business lunches, club fees, on and on, many of which were eliminated particularly in the Tax Simplification Act in 1986.

exactly
that mean you can not compare the two rates alone

I agree, but 91% was the top rate even if effective rates didn't reach that high; folks making the equivalent of a couple mill today were paying much higher marginal rates on their top income than now.

 

[DiveCon]

I'm not an expert, but I think there were numerous deductions and credits you could take back then, credit card expenses, business lunches, club fees, on and on, many of which were eliminated particularly in the Tax Simplification Act in 1986.

exactly
that mean you can not compare the two rates alone

I agree, but 91% was the top rate even if effective rates didn't reach that high; folks making the equivalent of a couple mill today were paying much higher marginal rates on their top income than now.

not when you add in the NEW taxes loaded on

 

[DiveCon]

the situation is NOT that taxes arent high enough
its that congress SPENDS too much
and on the WRONG things

 

[KittenKoder]

the situation is NOT that taxes arent high enough
its that congress SPENDS too much
and on the WRONG things

Yep ...

 

[Iriemon]

exactly
that mean you can not compare the two rates alone

I agree, but 91% was the top rate even if effective rates didn't reach that high; folks making the equivalent of a couple mill today were paying much higher marginal rates on their top income than now.

not when you add in the NEW taxes loaded on

What new taxes?

 

[Iriemon]

the situation is NOT that taxes arent high enough
its that congress SPENDS too much
and on the WRONG things

That's a matter of opinion. I agree that Govt spends too much on some things.

 

[Evangelical]

Oregon is about to go into hyper tax state. I know they will be pushing a sales tax. Then there's the corporate minimum tax they have been looking at raising for years.

It's gonna go from bad to worse in Oregon.

Can you show me a state that fell apart because they taxed too much?

And did you see this?

Four states dominate city foreclosure rankings - Mortgage Mess- msnbc.com

Nevada, Arizona, Florida and California.

Nevada is a different case, first, housing prices in the West were far surpassing reality, we're talking about 2 bedroom 2 1/2 bath houses on 1/4 acre lots going for $400,000 dollars.

You could get the same house on 1 whole acre if not more in the South for $50,000.

Second, Nevada specifically has a tremendous investment in the gaming industry which is highly influenced by people's willingness to travel. Reno, NV is doing better than Las Vegas, because Reno, NV has a more diversified economy and a more stable gaming base where as Las Vegas requires around 3 million visitors a year from around the World.

 

[Toro]

but thats not including the OTHER taxes that are paid
and i mean federal as well
a lot of those have either gone up or there are new ones that werent around in the 1950's

Yes, that's very true.

 

[sarahgop]

unions are bad for the economy.

 

[editec]

those differences in rates also have other changes in the tax codes
a lot of deductions have been removed
so you can not say that someone paying in the 91 percentile in the 1950s would have paid more than someone today in the 35 percentile

Sure you can. Yeah there were lots more deductions so that a guy making $350k today wouldn't be paying the top rate. The marginal rate escalated up for the really wealthy, around a couple million or so in today's dollars.

the person in the $350k range wouldnt have the same deductions as back in the 1950's

Really?

Can you give us some examples of how deductions have changed such that the people in the 91% bracket were actually paying less than the people in the 35% bracket now?

I'm finding your statement hard to believe, so if you can cite examples to support that theory, I'd appreciate it.

 

[Old Rocks]

unions are bad for the economy.

Republicans are bad for the economy. 1929. 2008.

 

[garyd]

On average between Sales taxes, car tags (another form of taxation like it or not) state income taxes and fed taxes to say nothing about various regulatory confiscation that affect every American Business Corporate taxes alone in this country are approaching 50%. This place isn't like europe where the central government most places is the only one collecting taxes and then disperses it to the various municipalities as they see fit.

 

[Sinatra]

Much more at site. Interesting number crunching:

The Volokh Conspiracy - -

[Jim Lindgren, April 22, 2009 at 1:18am] Trackbacks
High Unemployment States Have High Income Taxes or High Unionization or Both. As the nation considers increasing marginal tax rates and facilitating greater union membership, I thought it might make sense to look at the states with the highest and lowest unemployment rates to see if there might be any relevant patterns.
The six states with the highest unemployment rates are:

12.6% Michigan

12.1% Oregon

11.4% South Carolina

11.2% California

10.8% North Carolina

10.5% Rhode Island

The six states with the lowest unemployment rates are:

5.2% Iowa

5.2% Utah

4.9% South Dakota

4.6% Nebraska

4.5% Wyoming

4.2% North Dakota


....

Fantastic site! I was looking for something like this not too long ago.


It appears to paint quite a clear link between high taxation and high union participation as a model for high unemployment. I have long suspected this, but this information confirms it.

One need only look to most of Western Europe to confirm this as well - while our economy enjoyed significant gains throughout the 1980s with one minor recession and now this recession, Western Europe was mostly stagnant. High taxes and the modern union do little to support a healthy economy - just the opposite.

Sadly, Americans have had it so good for so long, they have forgotten that simple truth.

 

[Iriemon]

Sure you can. Yeah there were lots more deductions so that a guy making $350k today wouldn't be paying the top rate. The marginal rate escalated up for the really wealthy, around a couple million or so in today's dollars.

the person in the $350k range wouldnt have the same deductions as back in the 1950's

Really?

Can you give us some examples of how deductions have changed such that the people in the 91% bracket were actually paying less than the people in the 35% bracket now?

I'm finding your statement hard to believe, so if you can cite examples to support that theory, I'd appreciate it.

I think you misconstrued my statement. I didn't say "people in the 91% bracket were actually paying less than the people in the 35% bracket now?"

I said they had deductions back then that lowered the effective rate that we don't have now.

E.g. ""deductions for interest paid on car loans, charge-account purchases, vacations and anything else that fell under what the law termed 'consumer loans.'"

WikiAnswers - In what years was credit card interest a deduction on income taxes

 

[sealybobo]

Conservatives definetely have the right idea about taxes.

It's too bad they never had any discipline with spending.

How can you say they have the right idea about taxes. Did the debt double? Then the definately didn't take in enough in taxes. Do you think you never have to pay for the Iraq war?

This weekend I heard someone talking about Obama closing the offshore tax haven's for our richest Americans. I can't remember if I heard this correctly, but Florida along lost $100 billion in taxes because all the rich folk in this country have all their money in the Caymen Islands and UBS Switzerland.

 

[sealybobo]

Much more at site. Interesting number crunching:

The Volokh Conspiracy - -

[Jim Lindgren, April 22, 2009 at 1:18am] Trackbacks
High Unemployment States Have High Income Taxes or High Unionization or Both. As the nation considers increasing marginal tax rates and facilitating greater union membership, I thought it might make sense to look at the states with the highest and lowest unemployment rates to see if there might be any relevant patterns.
The six states with the highest unemployment rates are:

12.6% Michigan

12.1% Oregon

11.4% South Carolina

11.2% California

10.8% North Carolina

10.5% Rhode Island

The six states with the lowest unemployment rates are:

5.2% Iowa

5.2% Utah

4.9% South Dakota

4.6% Nebraska

4.5% Wyoming

4.2% North Dakota


....

What do you think of this?

Offshore Tax Havens: A State-By-State Breakdown Of The Cost To Taxpayers

A Senate report estimated in 2008 that the United States loses up to $100 billion a year in tax revenue to offshore tax havens

 

[Iriemon]

Conservatives definetely have the right idea about taxes.

It's too bad they never had any discipline with spending.

How can you say they have the right idea about taxes. Did the debt double? Then the definately didn't take in enough in taxes. Do you think you never have to pay for the Iraq war?

This weekend I heard someone talking about Obama closing the offshore tax haven's for our richest Americans. I can't remember if I heard this correctly, but Florida along lost $100 billion in taxes because all the rich folk in this country have all their money in the Caymen Islands and UBS Switzerland.

Not to mention revenues because they eliminated (or sharply reduced) intangible taxes and real estate taxes.

And now the state faces a multi-billion dollar deficit.

It's OK though. The Republicans are coming up with some great ideas, like having school only 4 days a week and closing parks on Sunday.

But at least the McMansion owners were able to afford that bigger yacht they wanted.

 

[sealybobo]

Conservatives definetely have the right idea about taxes.

It's too bad they never had any discipline with spending.

How can you say they have the right idea about taxes. Did the debt double? Then the definately didn't take in enough in taxes. Do you think you never have to pay for the Iraq war?

This weekend I heard someone talking about Obama closing the offshore tax haven's for our richest Americans. I can't remember if I heard this correctly, but Florida along lost $100 billion in taxes because all the rich folk in this country have all their money in the Caymen Islands and UBS Switzerland.

Not to mention revenues because they eliminated (or sharply reduced) intangible taxes and real estate taxes.

And now the state faces a multi-billion dollar deficit.

It's OK though. The Republicans are coming up with some great ideas, like having school only 4 days a week and closing parks on Sunday.

But at least the McMansion owners were able to afford that bigger yacht they wanted.

And people ask why I hate the rich. I don't hate the rich. I hate that the rich are getting away with shit like this.

And then there are the people who defend the rich like they are their lap dogs. They make me sick.

People who say, "the rich pay more than their share in taxes. Because they see a millionaire paid hundreds of thousands in taxes, to them, it seems like they are paying too much. What they forget is that these people are filthy rich. But deep down in our conservative bones we don't think it is right that anyone pays hundreds of thousands or millions in taxes, but we forget, its all relative. If I have a billion, I SHOULD pay millions in taxes. People don't get that if they don't, we have to. Or, just double the debt like we do now.

So I can't stand people who say, "the republicans definately have it right when it comes to taxes, just not spending".

Soooo stupid. Just look at America. Bush gave only the rich tax breaks and our infrastructure is crumbling. Just take a trip to China and see that their infrastructure is better than ours. Pathetic.

But what do the rich care? The infrastructure is just fine in Bel Air.

 

[SpidermanTuba]

Much more at site. Interesting number crunching:

The Volokh Conspiracy - -

[Jim Lindgren, April 22, 2009 at 1:18am] Trackbacks
High Unemployment States Have High Income Taxes or High Unionization or Both. As the nation considers increasing marginal tax rates and facilitating greater union membership, I thought it might make sense to look at the states with the highest and lowest unemployment rates to see if there might be any relevant patterns.
The six states with the highest unemployment rates are:

12.6% Michigan

12.1% Oregon

11.4% South Carolina

11.2% California

10.8% North Carolina

10.5% Rhode Island

The six states with the lowest unemployment rates are:

5.2% Iowa

5.2% Utah

4.9% South Dakota

4.6% Nebraska

4.5% Wyoming

4.2% North Dakota


....

[/QUOTE



Funny how the author stops at the top 6 and the bottom 6. Why not the top 7 and the bottom 7?

I'll tell you why. Because Nevada has the seventh highest unemployment rate BUT NO INCOME TAX AT ALL - and that wouldn't fly with the conclusions that the author has preordained.











Here's the top 12

State Unemployment Top tax Rate
Michigan 12.600 4.350
Oregon 12.100 9.000
South Carolina 11.400 7.000
California 11.200 9.300
North Carolina 10.800 7.750
Rhode Island 10.500 8.750
Nevada 10.400 0.000
Indiana 10.000 3.400
Kentucky 9.800 6.000
Florida 9.700 0.000
Ohio 9.700 6.240
Tennessee 9.600 0.000



Seems that three of the top 12 have no income tax rate at all.