Tax the rich....if there are any left....

A Boston.com article describes in ugly detail the dire revenue predictions for the state coffers. Read it here: http://www.boston.com/news/loc... I don't know if I have ever heard such ugly descriptions of the state's economic situation."State Revenues are continuing to collapse", "Every day it gets worse and worse", "The state treasury could be depleted of all its funds by the end of the year", "Its fallen of the cliff, literally fallen off the cliff" are some of the frightening comments made from state Senators, the State Treasurer and taxpayer groups.

In the meantime, a solidly liberal state legislature feels that part of the remedy is to tax the sales of goods in Massachusetts at a higher rate than before. Most people realize that we live in a state that neighbors other states with lower/no sales tax, which provides opportunity for out of state retailers to steal business from border town residents that don't want to pay the additional tax. If the sales tax does rise from 5% to 6.5% it would create a major price difference on large ticket items. A $100 radio bought in Nashua costs $100, but that same radio bought in Massachusetts will cost $106.50. In today's economy will people travel to Nashua to save $6.50? Maybe or maybe not, but if they are going to Nashua to save a couple bucks on a radio they may as well stay and shop some more and save money on tools, housewares, home decor, auto parts and everything else they can fit in the car before their ride home. I would like someone to calculate the lost business from every Massachusetts resident that travels to Nashua to shop. Is every car driving north equal to a loss in MA retail business of $250 or more?

Then there is discussion of an increase in income tax. "Those people who can afford to pay more should do so" we hear from the left. "Tax the rich" is the siren song of the liberals. It sounds good somehow because nobody considers themselves rich - until the tax gets approved. The increase in income tax and other taxes such as restuarant taxes and local options taxes are like little mice eating away at your income and savings.

Here is a hint to our friends in the legislature. There are huge numbers of people out of work. The people that are working are not spending money freely because they don't feel financially safe. State revenues are down in part because of losses sustained on Wall Street. People who lose money on investments don't pay tax on losses.

So where are the rich? Who among us is doing so well that they can afford to pay more? Our state leaders should have learned long ago that drops in state revenues is a direct reflection of poor taxpayers. In the last year the average 401k plan has lost about 40 percent. The average home has lost about 30 percent of its value. 3.5 to 4.0 million Americans have lost jobs. Somehow the Massachusetts state legislature thinks this is a good time to reach into your pockets and take a lttle more than before. The pockets are empty... I listen as people talk about trying to find part time jobs to keep up with their spending. They have cut back spending so deeply that they are not sure kids can stay in college, not sure mortgages will be paid, not sure they can afford healthcare. The consensus in the room was that jobs in the industry would not return for 12 to 18 months. So where are the rich? Haven't the rich lost their jobs as well? Haven't the rich lost 40% of their 401k as well? Haven't the rich got themselves upside down on mortgages like so many others? I know lots of people that are still working, but have taken a pay cut to stay employed. I consider them lucky...

My point is this, we need deep cuts in state spending. We need to start cutting the jobs left and right in order to stop the losses. Massachusetts taxpayers have been partners all along and suffered with broken promises of 'temporary' tax increases and loads of other bullsh*t thrown at us from lying legislators. They can't give any more. The rich are gone. Massachusetts needs real reform in how their state government works. No sales tax inrease. No income tax icrease. No more taxes.....