"There are going to be some drastic changes for me, because I happen to be in that zone that has been targeted both federally and by the state and, you know, it doesn't work for me right now."
-Pro golfer Phil Mickelson on why California's tax increases may prompt him to leave the state
• • •
And you thought the rich didn't pay taxes.
Then again, as the "revenue raisers" were quick to remind Mr. Mickelson, the fortunate few still have plenty left even after the taxman takes half their income. So quit complaining and just lie back and enjoy it, right?
Alas — no matter how much our covetous culture demonizes them, the working wealthy are apt to do just the opposite. And if you think that won't make a difference to your state's economy, consider this: According to economist Art Laffer, 62 percent of the 3 million net new jobs in the last decade came from just nine states without an income tax.
States such as California and Illinois — which seek to punish the well-to-do with higher levies on earned income — are not only digging out of deficits, but the state of their economies gives new meaning to the term "basket case."
As I wrote on Dec. 9 ("To plug state jobs drain, try this plan"), if Minnesota wants to avoid becoming a cold California, it needs genuine, progrowth tax reform — not the $1.1 billion income tax hike Gov. Mark Dayton has proposed for 54,000 Minnesotans. Or even worse, the $2 billion worth of private earnings House DFLers plan to confiscate by adopting the second-highest income tax rate in the nation: 11 percent.