Bobo
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- Mar 25, 2008
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It isn't just Amazon... look at the effect that Millionaire taxes are having on states.
The legislature sits down and realizes that they have a shortfall so they come up with a tax that only hits those damned rich millionaires. Smart policy right? You nail a very small percentage of voters that way.
What they did not count on is that people who earn over a million per year generally have a GPS is the rich guy mobile and plug in the coordinates for a state without the millionaire tax.
Check out what's happened in states in the northeast that have gone to that well one too many times.
So what's this got to do with Amazon and a couple states? Simple - business will move to the most tax friendly location and do business where it is least penalized.
Several states, the most heavily taxed ones ironically, are on the verge of bankruptcy right now because they realized too late that their projections failed to take into consideration that those hit by new taxes might decide to leave the state and take their company with them.
NOTE: Studiously avoided political overtones here, just pointing out the those States which tax most heavily are in the worst shape economically. Whether it is cause and effect or one hell of a coincidence I'll leave to the reader.
The legislature sits down and realizes that they have a shortfall so they come up with a tax that only hits those damned rich millionaires. Smart policy right? You nail a very small percentage of voters that way.
What they did not count on is that people who earn over a million per year generally have a GPS is the rich guy mobile and plug in the coordinates for a state without the millionaire tax.
Check out what's happened in states in the northeast that have gone to that well one too many times.
So what's this got to do with Amazon and a couple states? Simple - business will move to the most tax friendly location and do business where it is least penalized.
Several states, the most heavily taxed ones ironically, are on the verge of bankruptcy right now because they realized too late that their projections failed to take into consideration that those hit by new taxes might decide to leave the state and take their company with them.
NOTE: Studiously avoided political overtones here, just pointing out the those States which tax most heavily are in the worst shape economically. Whether it is cause and effect or one hell of a coincidence I'll leave to the reader.