When Will Death Spiral States Impose Taxes On Fleeing Citizens?

Discussion in 'Politics' started by Wehrwolfen, Dec 21, 2012.

  1. Wehrwolfen
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    Wehrwolfen Senior Member

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    When Will Death Spiral States Impose Taxes On Fleeing Citizens?​



    By Bill Frezza
    December 17, 2012

    One of the most fascinating characteristics of government borrowing - whether at the local, state, or federal level - is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it's customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality's estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.

    Imagine if that type of tax "evasion" were eliminated. How would it change America?

    Government debts are accrued on your behalf by elected officials for whom you had a chance to vote, all supposedly representing your interests. In a democracy, all citizens are obliged to pay the government's bills as determined by the duly empowered taxing authorities - regardless of whether they voted for a particular officeholder or not. What's to stop legislators from passing laws that make debt obligations due and payable by any citizen who decides to leave for another jurisdiction? After all, they don't hesitate to take your money when you die.

    Mayors and governors of most tax-and-spend, heavily unionized, low-growth cities and states are both desperate for revenue and tired of watching disgruntled citizens vote with their feet. Think how politically attractive it would be for them to make "economic deserters" pay their "fair share" of old debts. I can see the arguments already: "You can't move away from credit card debt or commercial debt, so why should government debt be so easy to dodge?" Politicians could easily win kudos from both public employee unions and the overtaxed residents left behind, for the mere cost of enraging emigrants who won't be around to exact retribution at the next election.

    And can't you just see the progressive commentariat lining up behind a movement designed to deter well-heeled blue state residents from seeking refuge in those despicable red hinterlands? Like Glenn Close rising from the bathtub to take one more stab in Fatal Attraction, don't be surprised when death-spiral states resort to exit taxes as a last ditch effort to forestall their impending bankruptcies.

    Exit taxes imposed on emigrants have a long history, including their use in both Nazi Germany and the Soviet Union. They were imposed under the theory that, since citizens were educated by the government and were either provided benefits or allowed to profit from jobs and business held while living under the government's protection, they were obligated to pay back some of that money on their way out.

    Sounds like something only a Hitler or Stalin would love? If only. Try surrendering your U.S. citizenship and moving to another country. Thanks to a series of expatriation tax laws passed by Congress dating back to the 1960s, with the most recent revision sponsored by Rep. Charles Rangel (D-N.Y.) (no stranger to tax evasion himself), emigrants leaving the U.S. must pay capital gains tax, including on unrealized gains, across all their holdings marked to market as of the day of departure. In addition, expats are liable for gift taxes on amounts above $12,000 a year given to anyone in the U.S., for the rest of their lives, even though they are no longer citizens themselves.

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  2. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Don't doubt some states aren't thinking about it. But if I'm an entrepeneur or buisnessperson looking to start an enterprise or expand my business, it won't be in a state that's gonna hammer me with all kinds of taxes, both individual and corporate. The first hint of this shit would see a lot more people leaving for other places before it becomes effective.
     
  3. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Wouldn't matter anyway because "you didn't build that! Someone else did!" :D
     
  4. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Yeah well, you can't keep kicking the people who put up a lot of money investing in new and expanding businesses in the balls without getting a little blowback. Wish the left would understand that.
     
  5. asaratis
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    asaratis Uppity Senior Citizen Gold Supporting Member Supporting Member

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    Impossible! Lefties do not fathom logic. Socialism will surely work...this time! The FACT that it has failed repeatedly does not compute with the leftist numbnuts. They see the money in the hands of richer, nore industrious people and they want it in their own without having to lift a finger.

    Liberalism is a mental disorder!
     
    Last edited: Dec 21, 2012
  6. GoneBezerk
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    GoneBezerk BANNED

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    Rush said NY was sending him tax demands and audits for years making him prove he moved to Florida.

    Liberals are scum, they run you off with high taxes then claim you didn't leave or you weren't allowed to leave.....kinda like telling Boeing they couldn't build a plant in SC because of unions in WA.
     

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