Democrat Tax Flight

[JohnDB]

Democrats love to raise taxes....
Kinda has been a thing for well over 60 years now. It's their standard operating platform.

However.....raising taxes during stagflation and possible recession.....absolutely a death knell.

People are an asset to government. Always have been. To attract people (adults) requires jobs, security, and good schools.

Currently the corporations are leaving Democrat controlled states and cities in droves.....leading to an inversion of house sales versus buyers.....especially with remote work still rising.

This includes states like CA, VA, and NYC.

But somehow this is a winning idea?

 

[1srelluc]

I heard yesterday that the 30-year mortgage rate ticked down to under 6% so more will be selling.

This started in my AO about nine months ago.....Before then there were seldom a baker's dozen homes for sale in my county at any given time.

In my AO I think it had a lot to do with the "homers" having to go back into DC everyday to work. We had a shit-ton of them move into my AO during the covid.

 

[JohnDB]

I heard yesterday that the 30-year mortgage rate ticked down to under 6% so more will be selling.

This started in my AO about nine months ago.....Before then there were seldom a baker's dozen homes for sale in my county at any given time.

In my AO I think it had a lot to do with the "homers" having to go back into DC everyday to work. We had a shit-ton of them move into my AO during the covid.


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[1srelluc]

I looked at a few listings and about half of them showed price reductions.....I guess that's a good thing. That said our market is a bit skewed due to all the young .gov/NOtVA workers making 6 figures who don't mind the 50-60 mile commute.

That said a builder friend of mine told me a week or so ago that every home he builds is still sold before it's finished but the competition is not there like it once was....Stands to reason with more homes on the market now.

 

[JohnDB]

Let's explain it this way.
In the '70's there was no tax on tips in higher class restaurants. Waitstaff paid the restaurant for each shift. (Covered cost of uniform and a "free meal". And there was a long standing line of ready, willing, and able people waiting for the day you quit or got fired. The quality of food and customer service was high. (Everyone was making good salaries back and front of house)
Everyone made great money in food service industry.....hospitals actually competed to see who had the best food.....HOSPITALS! (Everything was scratch)

In 1984 Tip Oneal led Democrat Congress placed new laws on tips and how restaurant staff functioned, got paid and taxes on tips. Waitstaff was now paid a wage and had to report tips for taxes to be paid like SS, Federal and state income taxes.

But....
One cook can comfortably cook for 100 people....requiring 5 waitstaff and one dishwasher.

But 5 people who used to pay to work now had to get paid (swallowed up by tax dollars so the workers still made less money) so....that money had to come from somewhere. It came from the cook's and dishwasher salary.
Skilled people learned their skills....and can learn other skills when paid to do so. So all the commercial good cooks left, the waitstaff who could speak several languages, knew wines, bartending, and current events found better jobs elsewhere.

Today, when going out to eat you pray earnestly the cook is in a good mood and sober, your waitstaff brings ALL the food you have ordered, and somehow you get a check that resembles what you ate. And you pay a premium price to do all of this....plus tip.

The skill, the concern for quality, and care about doing a good job is gone. Food is always processed and "heat and eat" type food because the cooks do not even know the five mother sauces or know they exist. Soups are either canned or frozen bricks you add water to. Nothing is made except at a factory.

That's tax flight....where taxes increase so much that everyone with skills leaves for greener pastures.

 

[JohnDB]