Daily Archives: February 5, 2010

M 66 & 67 Fall Out: Wealth Migration. Just Look at New Jersey

 Before the Oregon special election where Multnomah, outvoting 24 other COUNTIES, passed Measures 66 & 67,  the Cascade Policy Institute commissioned a study (here) about the measures’ impact. Among the findings by Randal Pozdena and Eric Fruits were these:

  • Between 47,000 and 55,000 jobs will be lost by 2018 from the increase in top marginal tax rates alone in the two measures.
  • Net out-migration of tax filers will be approximately 80,000 greater than otherwise over a ten year period. These lost filers are likely to have significantly higher incomes than the average tax filer.
  • The average biennial loss in Adjusted Gross Income (AGI) from Measures 66 and 67 is approximately $1.1 billion dollars-50 percent higher than the $733 million first-biennial transfer of income from the private sector sought by the measures.

These findings were dismissed as scandalous falsehood by the unions funding the “yes” campaign and their friends in their bankrolled think tank. But the problem for them is Cascade is closer to being right than they are and, of course, real world experience bears this out.
A new study from Boston University (story here) shows that in New Jersey between 2004 and 2008, $70 billion in wealth LEFT THE STATE due to new, higher tax rates—and a tax on “millionaires.” Many of those “wealthy” people left to go to Florida, New York (?!) and Pennsylvania. And what becomes of New Jersey which had been the repository of some of the highest rollers in the land?

“The wealth is not being replaced,” said John Havens, who directed the study. “It’s above and beyond the general trend that is affecting the rest of the northeast.” 

So a disproportionate number of wealthy folks left New Jersey vis a vis the rest of the Northeast. What a shocker. Oh, wait… it’s not a surprise. It was totally predictable. Just like the predictability of the “outmigration” of wealth is being predicted for Oregon following the passage of –what did Chicago Mayor Richard Daley call them–oh, yes, “bad news,”

“What happened in Oregon is not good news for Oregon. They believe that anybody who makes $125,000 or more [annually] or businesses or anyone who makes $250,000 — they’re gonna start taxing them. They call them ‘rich people,’ ” the mayor said.
“I’ve always thought America stands for [rewarding success]. You finish high school. You work hard, go to college and you hope to succeed in life. I never knew it’s a class war—that those who succeed in life are the ones that have to bear all the burden. I never realized that. It will be a whole change in America that those who succeed and work hard [that] we’re gonna tax ‘em more than anyone else.”

But the New Jersey story is even more stark than our story here. Oregon has had a ‘bad for business’ reputation for a long period of time. But prior to the imposition of the new taxes in New Jersey, money–rich people with their jobs—had been pouring in. Things went south when greedy lawmakers in their zeal to grow government made a bigger grab for the wealth that didn’t belong to them,

The study – the first on interstate wealth migration in the country — noted the state actually saw an influx of $98 billion in the five years preceding 2004. The exodus of wealth, then, local experts and economists concluded, was a reaction to a series of changes in the state’s tax structure — including increases in the income, sales, property and “millionaire” taxes.
“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.

Oregon democrats who, with their SEIU buddies, midwifed Measures 66 & 67, now consider taking the “kicker” and raising other taxes. In doing so they risk driving out even more of the wealth from Oregon–which has little to begin with.
We are number one in something however: Jobless claims

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Portland: $100K Study to Find Out How to Attract Business

After unveiling a $1-million-dollar-a-mile bike plan, installing budget sucking “street cars,” announcing millions to be spent in items that aren’t the city’s job, cheerleading the job killing Measures 66 & 67, Portland, Oregon is now looking for guidance on how to attract business. Enormous systems development charges, two years to get a building permit, HIT squads, protesters threatening local businesses, illegal alien job centers, hot and cold running panhandlers, high taxes, garbage and water rates that are at historic highs and they don’t know what the problem is?
I am not kidding. We all knew they didn’t have a clue. For those of you who didn’t…here’s your sign.
I especially find interesting this part of the RFP (to the right) discusses that somehow Portland is always lagging behind in job creation. Gee, maybe it has to do with the fact that these people—most of whom have NEVER run a business or worked a job in the private sector that doesn’t involve the phrase, “you want fries with that?” don’t know what the heck they’re doing. Perhaps it has to do with these people who don’t know anything about business then sit around their big conference tables and pick which industries they’ll deign to have to Portland.
They’ve been so busy getting rid of businesses through their onerous charges and environmental overlays and ‘jacking of their land, that they don’t even realize THEY are are the problem.
Pete the Banker has weighed in with his suggestion:


Summary Conclusion 

Making Portland more business friendly.  Raze City Hall, habitants included!!

Invoice for payment – $100,000.

Please remit payment prior to taking above action. 🙂

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M 66 & 67 Fall Out: Wealth Migration. Just Look at New Jersey

 Before the Oregon special election where Multnomah, outvoting 24 other COUNTIES, passed Measures 66 & 67,  the Cascade Policy Institute commissioned a study (here) about the measures’ impact. Among the findings by Randal Pozdena and Eric Fruits were these:

  • Between 47,000 and 55,000 jobs will be lost by 2018 from the increase in top marginal tax rates alone in the two measures.
  • Net out-migration of tax filers will be approximately 80,000 greater than otherwise over a ten year period. These lost filers are likely to have significantly higher incomes than the average tax filer.
  • The average biennial loss in Adjusted Gross Income (AGI) from Measures 66 and 67 is approximately $1.1 billion dollars-50 percent higher than the $733 million first-biennial transfer of income from the private sector sought by the measures.

These findings were dismissed as scandalous falsehood by the unions funding the “yes” campaign and their friends in their bankrolled think tank. But the problem for them is Cascade is closer to being right than they are and, of course, real world experience bears this out.
A new study from Boston University (story here) shows that in New Jersey between 2004 and 2008, $70 billion in wealth LEFT THE STATE due to new, higher tax rates—and a tax on “millionaires.” Many of those “wealthy” people left to go to Florida, New York (?!) and Pennsylvania. And what becomes of New Jersey which had been the repository of some of the highest rollers in the land?

“The wealth is not being replaced,” said John Havens, who directed the study. “It’s above and beyond the general trend that is affecting the rest of the northeast.” 

So a disproportionate number of wealthy folks left New Jersey vis a vis the rest of the Northeast. What a shocker. Oh, wait… it’s not a surprise. It was totally predictable. Just like the predictability of the “outmigration” of wealth is being predicted for Oregon following the passage of –what did Chicago Mayor Richard Daley call them–oh, yes, “bad news,”

“What happened in Oregon is not good news for Oregon. They believe that anybody who makes $125,000 or more [annually] or businesses or anyone who makes $250,000 — they’re gonna start taxing them. They call them ‘rich people,’ ” the mayor said.
“I’ve always thought America stands for [rewarding success]. You finish high school. You work hard, go to college and you hope to succeed in life. I never knew it’s a class war—that those who succeed in life are the ones that have to bear all the burden. I never realized that. It will be a whole change in America that those who succeed and work hard [that] we’re gonna tax ‘em more than anyone else.”

But the New Jersey story is even more stark than our story here. Oregon has had a ‘bad for business’ reputation for a long period of time. But prior to the imposition of the new taxes in New Jersey, money–rich people with their jobs—had been pouring in. Things went south when greedy lawmakers in their zeal to grow government made a bigger grab for the wealth that didn’t belong to them,

The study – the first on interstate wealth migration in the country — noted the state actually saw an influx of $98 billion in the five years preceding 2004. The exodus of wealth, then, local experts and economists concluded, was a reaction to a series of changes in the state’s tax structure — including increases in the income, sales, property and “millionaire” taxes.
“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.

Oregon democrats who, with their SEIU buddies, midwifed Measures 66 & 67, now consider taking the “kicker” and raising other taxes. In doing so they risk driving out even more of the wealth from Oregon–which has little to begin with.
We are number one in something however: Jobless claims

Tell ’em where you saw it. Http://www.victoriataft.com

Hooked On Phonics?

Bush and Clinton were noted for their use of “nukular” and we chuckled. Now comes the most intelligent man with the highest I.Q. ever, so we heard during the campaign,

Barack, it’s pronounced “core-man,” not “corpse-man”

Teleprompters should have pronunciation marks on them.

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Portland Schools’ Kabuki Dance With Teachers

by Rees Lloyd The Portland School District has given parents of students notice that labor negotiations with the teachers are at impasse.
Teachers. Impasse. In a recession styled as the worst economic crisis since the Depression. After the teachers’ union, along with other public sector unions, e.g., SEIU, AFSCME, just spent millions, apparently more than $6-million, to get passed tax increases in ballot measures 66 and 67 which were supposed to be to benefit the “kids,” not the teachers.
Are these oppressed, exploited, “workers,” so underpaid and enduring working conditions so  onerous that they must take negotiations with the taxpaying public to “impasse”?
Remember the fight for an 8-hour-day? Well, Portland teachers have a contract that forbids kids’ school days being  longer than 6.5 hours. Tax increases in 66 &67 were tearfully touted as being “for the kids” in a “crisis” of funding. All Oregonians were urged to sacrifice “for the children.” It is now clear they meant all should sacrifice, except for the teachers: They are being guaranteed a raise of 3% in the offer which is at impasse, no matter what happens to the economy.
It has to be remembered that, among other things, teachers’ annual salary is really a salary for 9-month work year. They have two weeks off every Christmas, Spring Break, multiple 3-day and 4-day weekends, never a risk of having to work on Thanksgiving, Christmas, other holidays. They have sick time, personal time, prep time and other benefits that are the envy of private sector;  and extremely generous pensions that people who work 8-hour days, 40-hour weeks, 12-months a year, with a two-week vacation if they are lucky, in the wealth-producing private sector, can only dream about.  
That teachers, who have been whining and crying about a “crisis” in school funding to impose further tax burdens on the public, would now take negotiations to impasse when they are guaranteed a 3% raise while most in the private sector worry about whether they will have a job at all, evidences that the contemporary teachers and the union they do not repudiate are a disgrace to their profession, and their interest is manifestly their self-interest, not the kids’ interest, as they posture and proclaim with teary-eyes.
They are evidencing that they and their union, which poured millions into the 66 and 67 tax increase campaigns, are no better than the tax consuming so-called “public servants” of the contemporary SEIU, whose posturing Alinsky-ite leader, Andy Stern, former  pantywaist “social worker” who  postures now  as a “tough talking labor leader,” openly states that “workers of the world unite is no longer a slogan;but the way we do business” (against whom, if not taxpayers?), and that SEIU will “use the power of persuasion, but, if that doesn’t work, we will use the persuasion of power.” Against whom, if not the public, the taxpayers who make possible the higher pay, perks, and pensions that the public sector employees enjoy?
Now the teachers’ union pushes negotiations to the point of impasse  in what the teachers claim is a “crisis” in funding “for the kids”? Hypocrites –Let them strike. Let them walk off the job.  Let them strike – and then let them go. Bye-Bye. Replace them.  There will be scores of teachers, eager to teach, not to get rich teaching, seeking every striker’s job. Let them strike.
These are not industrial workers of an earlier age fighting exploiting employers who impose ionerous conditions and employing thugs to beat them down if they protest. These are pampered public sector employees with enviable working conditions, and a 12-month salary for an actual work year of eight months or less. The most dangerous thing in their workplace isn’t falling steel, or a machine taking an arm or leg, or fire, or explosion, it’s an errant paper clip, flying spitball, or obnoxious kid.
Yet they posture as aggrieved “workers” through the dated rhetoric of public sector union leaders pimping them, and the public, for profit, wimps mouthing tough-guy threats like social-worker Andy Stern of SEIU, the most frequent invitee to Barack Obama’s White House according to records, threatening to use the “persuasion of power” against the public.
Its time for the public to stand up and fight back. Oregon in general and Portland in particular are at a crossroads: Those choosing careers in the public sector as public servants are in fact becoming the public’s masters, buying politicians by their union’s political contributions and seeking greater and greater tax burdens in their interests and not the public’s interest.
Its very simple: If anyone choosing a career in the public sector, including teachers, wants to get rich, then they should leave the wealth-consuming public sector and take the risks re getting rich in wealth creating private sector.  If teaching is a profession, a “calling,” as is pretended, then do not seek to achieve an affluent life-style. Seek riches in the private sector, where there is risk, not  in the wealth consuming the education bureaucracy. Leave the security of the teaching position, and take the risk in the private sector.  Make all the money you wish, and create some wealth as you do, instead of consuming the wealth others produce in the private sector which you apparently covet. If you want to be credited and honored with participating in a noble profession, i.e., sacrificing wealth in order to teach new generations of children, then don’t expect to be rich, and don’t believe you are entitled to consume wealth you don’t produce.
Most importantly: Do not continue to bite the hand that feeds you. Do not use the statutorily created right to unionize in order to gouge the taxpaying public who have provided you with better pay, perks, and pensions than most of them can get in the private sector, and without the security you enjoy.
Negotiations with the teachers’ union are at impasse? I  say again: Let them strike. Let them go. And replace them. Get people who are truly dedicated to teaching our children and advancing the children’s interest, not their own financial interest through their politician-buying union.
[Rees Lloyd, is a career-long civil rights and workers rights, attorney whose work defending those rights has resulted in the receipt of numerous awards ,and been profiled by such varied media as the Los Angeles Times, ABC’s “Nightline” and “20/20,” Hannity and Colmes, and other media.]

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