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<blockquote data-quote="tonyexpress" data-source="post: 741128" data-attributes="member: 1940">Re: Obamanomics<a href="http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html" target="_blank">Tax Hikes and the 2011 Economic Collapse</a>&nbsp;It shouldn&#039;t surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives. &nbsp;On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush&#039;s tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts.&nbsp;Consider corporate profits as a share of GDP. Today, corporate profits as a share of GDP are way too high given the state of the U.S. economy. These high profits reflect the shift in income into 2010 from 2011. These profits will tumble in 2011, preceded most likely by the stock market. &nbsp;Given what&#039;s going to happen to tax rates, this conversion seems like a no-brainer. &nbsp;The result will be a crash in tax receipts once the surge is past. If you thought deficits and unemployment have been bad lately, you ain&#039;t seen nothing yet.</blockquote>

[QUOTE="tonyexpress, post: 741128, member: 1940"] [b]Re: Obamanomics[/b] [URL="http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html"]Tax Hikes and the 2011 Economic Collapse[/URL] It shouldn't surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives. On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush's tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts. Consider corporate profits as a share of GDP. Today, corporate profits as a share of GDP are way too high given the state of the U.S. economy. These high profits reflect the shift in income into 2010 from 2011. These profits will tumble in 2011, preceded most likely by the stock market. Given what's going to happen to tax rates, this conversion seems like a no-brainer. The result will be a crash in tax receipts once the surge is past. If you thought deficits and unemployment have been bad lately, you ain't seen nothing yet. [/QUOTE]

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