KUIK radio talk show host John Kuzmanich interviewed Cascade Publications Director, Kathryn Hickok, about her latest piece, Divorcing Lady Liberty, which discusses ex patriots renouncing their U.S. citizenship because of U.S. taxes.
Numerous recent news stories have reported on high-net-worth Americans renouncing their U.S. citizenship to protect assets from high tax rates. Last Friday, a Wall Street Journal editorial suggested the U.S. government should not seek to “punish” ex-citizens through high “exit taxes.” Instead, Congress should work “to make the U.S. so appealing and dynamic again” that people will be “sorry [they] ever left.”
It seems unreal that citizens should find it in their interest to leave the United States of America. Our country and its material success were built by millions of the world’s “huddled masses, yearning to breathe free.” Men, women, and children have come to America for centuries in search of freedom, justice, and an upwardly mobile future that results from both. When the tax code is so punitive that Americans would relinquish willingly the rights and privileges of U.S. citizens, we know we have a problem.
Our tax policies should encourage entrepreneurs, investors, and individuals of financial means not only to come here but to stay. Yet, it bears remembering that our identity as Americans and our relationship with our country should have value to us beyond whether they are financially “worthwhile.” Americans have grown used to acquiring whatever we desire, but our American heritage can’t be purchased―and you can’t put a price on freedom. That’s why it’s a sorrow to see Americans choosing to go.
Tax Freedom Day arrived this year on April 17, coincidentally the same day tax returns were due. Tax Freedom Day is a calendar-based measure of Americans’ cumulative tax bill. It is calculated as the day on which Americans have worked long enough to pay all their taxes. Americans worked 107 days to earn enough money to pay this year’s combined federal, state, and local taxes. These taxes include personal income taxes, payroll taxes, corporate income taxes, and property and sales taxes.
However, this is only what Americans actually pay, not what government spends. According to the nonpartisan Tax Foundation, “if the federal government raised taxes enough to close the budget deficit—an additional $1.014 trillion—Tax Freedom Day would come on May 14 instead of April 17. That’s an additional 27 days of government spending paid for by borrowing.”
Americans currently pay more in taxes ($4.04 trillion) than they do on food, clothing, and housing combined ($3.89 trillion). The saying goes, you should “work to live, not live to work.” But the more government grows, the more Americans are working less to live and more to pay for runaway government spending. That leaves fewer resources to invest in the real engines of economic growth: private sector businesses that create jobs and produce goods and services for a market fueled by Americans’ hard-earned purchasing power.
This is a “told you so” story about Measures 66 & 67 …
by Steve Buckstein
In December 2009, Cascade Policy Institute published a research report by Randall Pozdena, Ph.D. and Eric Fruits, Ph.D. forecasting the impacts of tax increase Measures 66 and 67 on Oregon employment.
The study was based on thorough research of peer-reviewed literature and a quantitative analysis of taxes and economic growth across the U.S. and over a long period of time. They concluded that the tax measures would have a significant negative impact on Oregon’s employment picture, as shown in Exhibit 1 on page 7 of their report.
On Saturday, September 12, Cascade Policy Institute founder and Senior Policy Analyst Steve Buckstein [center photo] spoke to an enthusiastic crowd of about 80 people from the courthouse steps in Astoria. The event was one of hundreds of such “9-12” events around the country, including a massive rally in Washington, D.C.
For immediate release
Contact Steve Buckstein
(503) 242-0900 firstname.lastname@example.org
The state recently announced that its $175 million “stimulus package” has created or saved 3,236 jobs.1,2
What the state hasn’t yet told citizens is that Oregon risks losing ten to twenty times or more as many jobs if two “anti-stimulus” tax bills take effect.
I estimate that raising the maximum tax rates on personal income, including capital gains, to eleven percent will cost the Oregon economy 36,000 jobs by 2015. The job losses will continue to accumulate beyond that year. This analysis does not incorporate job losses due to higher corporate income taxes.
The estimate is based on a model of state employment growth that incorporates data for all 50 states for 26 years. It exploits tremendous variation in tax practices from one state to another, and within individual states across time. The model was developed for my 2005 analysis of Oregon’s capital gains tax. (See “Generating Jobs and Income Through a Capital Gains Tax Reduction,” Appendix 1, Equation 3, available at http://www.conerlyconsulting.com/pdf/Capital_Gains_Report.pdf.)
The opinions expressed herein are those of the author and
should not be attributed to any other individual or to any other organization
with which the author is affiliated.
The State of Oregon faces State budget deficits due to the sharp decline in employment and economic activity in the state. In an attempt to fend off this fiscal problem, the Oregon House just passed, and the Oregon Senate will decide shortly, on two major tax measures:
• HB 3405 would increase tax rates on corporate profits, from 6.6 to 7.9 percent for two years, dropping to 7.6 percent thereafter.
• HB 2649 would increase, for three years, personal income and capital gains tax rates from the current 9 percent to 10.8 percent and 11 percent for those earning more than $125,000 and $250,000, respectively. A 9.9 percent rate would be imposed thereafter.