Tired of high taxes? Maybe it's time to move

Everyone complains about taxes. But millions of American households apparently are doing something about it: Picking up and moving.

A CNBC analysis of tax data and figures provided by two major national moving companies shows that states with the highest per-capita taxes, for the most part, are also seeing the biggest net migration out of those states.

Read MoreWhy your state may be forced to raise your taxes

Take Connecticut, for example.

Earlier this week, the Nutmeg State's legislature approved a collection of new taxes to close a two-year, $40 billion budget to help pay the multibillion-dollar tab to repair and replace the state's dilapidated roads and bridges. The package includes a 50-cent-per-pack hike in cigarette taxes and a bump in tax rates on corporations and the state's wealthiest earners.

The budget battle drew heated debate, along with threats from large employers like General Electric, which issued a rare statement that it might consider moving its Fairfield headquarters.

Republican opponents warned that the tax hikes would likely drive residents to flee to lower-tax states. One legislator suggested that a local moving-and-storage company up for sale should do a booming business moving households from the state.

"I think the best buy in Connecticut right now is a business for sale in Westport," Michael A. McLachlan, R-Danbury, told the AP earlier this month as the debate wore on. "For $650,000, a sharp investor can get up and increase this business into a mega moving company, because that's what people are going to be doing, starting today."

Based on an analysis of 10 years of tax data and the figures provided by United Van Lines and Atlas Van Lines, Sen. McLachlan may be on to something.

Via: CNBC

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Connecticut's tax greed may cost it dearly

Connecticut seems determined to follow the Illinois path into a death spiral of higher taxes driving out business, leading to less revenue and the need to raise taxes on the remaining businesses unable to flee. The Democrat governor and legislature, who ran in 2014 on a promise of no new taxes have just introduced a large tax increase, including a suicidal attempt to drive corporate headquarters out of the state.  The Wall Street Journal’s Review and Outlook column explains:

The blue-state paragon’s two-year budget of $40.3 billion includes a $1.5 billion net increase in taxes and fees. The top marginal individual tax rate rises to 6.99% from 6.7%. But the biggest blow is making permanent a 20% surtax on a company’s annual tax liability—a tax on a tax—and for the first time taxing Connecticut companies on their world-wide income, rather than what they earn in the state.

General Electric , long a Connecticut fixture, protested that the state is “retroactively raising taxes again,” which “makes businesses, including our own, and citizens seriously consider whether it makes any sense to continue to be located in this state.” Aetna , the giant health insurer and pillar of Hartford, said the bill would “undermine the competitiveness” of companies and “lead to an exodus of jobs and business from the state.’’

The biggest shock came Thursday when GE CEO Jeffrey Immelt told the company’s Connecticut employees that he has “assembled an exploratory team to look into the company’s options to relocate corporate HQ to another state with a more pro-business environment.”

Via: American Thinker

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Jack Welch: President Has Too Much Power

The president has too much authority compared with Congress' power, says former General Electric CEO Jack Welch.

"The presidency has become too powerful relative to Congress," Welch told CNBC. 

The trend dates back to the Clinton administration, he stated. "That's been happening for a long time, and it's accelerated this time" under President Obama.

Editor’s Note: Obama Donor Banned This Message (Shocking)

According to Welch, Obama has gone overboard on regulations, such as changes the president has made to Obamacare and environmental rules. "He can arbitrarily legislate around Congress on clean air, change the game," Welch noted.

Meanwhile, he faults both Congressional Republicans and Obama for their hardline stances through much of the budget/debt ceiling conflict.

"Both sides went down the wrong path," Welch said, explaining that the Republican demand to defund Obamacare —"by definition that's not sitting across the table," he said. 

"I wouldn't let Republicans market an iPad when it came out. They can't market anything." 

As for Obama, "then the president says, 'I will not negotiate.' That's not a position I can accept either," Welch added.

On Thursday, Congress and the White House made progress in negotiations to re-open the government and implement a debt ceiling increase. 

Stocks have risen Friday in reaction.

"The much-needed political breakthrough appears intact, although investors are now awaiting a nod from the president on the strings attached to the offer from Republicans to extend the debt limit by six more weeks," said Andrew Wilkinson, chief economic strategist at Miller Tabak, according to MarketWatch. 

Via: Newsmax

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What’s Another $45 Million at the Energy Department?

The Department of Energy (DOE) announced it is spending $45 million of taxpayer money for 38 different projects for advanced transportation technologies. But private companies should be making these investments on their own to provide the best products available for consumers.

The 38 projects funded by DOE are going to universities, laboratories, and private companiesfor development of more efficient batteries for electric vehicles, advanced fuels and lubricants, efficient heating ventilations and air conditioning systems, and the next generation of lightweight materials to make cars lighter while not compromising safety.

The list of projects come across as innovative, cutting-edge, and perhaps transformative of the transportation industry. But automakers and other manufacturers are not paying for this research themselves; they’re relying on taxpayer money.

If companies believe it is in their best interest to invest in research and development, they should make those investments with their own money. The companies that identify opportunities will capture the economic benefits, and those that don’t will remain stagnant or suffer. When companies have to make those choices with their own money, risk and reward are properly aligned.

In some instances, the DOE spending is blatant corporate welfare. DOE awarded $1.5 million to Caterpillar, $1.75 million to General Electric, $3 million to 3M Company, and $350,000 to Ford Motor Company. If these companies believe it is valuable to work with the DOE laboratories and universities, they should do so, but there is no need for taxpayers to subsidize them.

Via: The Foundry

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