PDad wrote:jonriv wrote:One of the problems with targeting a certain strata on taxes is that they also have choices. So if Phil moves (and others) not only does Cal. lose the additional revenue, but they lose the revenue they already collect.
Yes, a classic example of unintended consequences. The liberals never learn - for everything they enact, the people and businesses they target are going to react to nullify as much of the effect on them as they can.
Like the 1990 Yacht Tax. Caused people to buy less Yachts, brought in less revenue and cost boat builders jobs:
New Luxury Tax Trimming Boat Sales
By PENNY SINGER
Published: July 21, 1991 NY Times
THE 10 percent excise tax on pleasure boats, coming on top of the recession, is helping to scuttle parts of the local boating industry, say those who make their livings building, selling and maintaining the boats.
The luxury tax, which began Jan. 1, is applied to that part of a new boat's sale price over $100,000. The National Marine Manufacturers Association, the industry trade group, estimates that from 10,000 to 15,000 boats nationally will be subject to the tax.
In Mamaroneck, Howard McMichael Jr., who is 52 years old and joined the family business, McMichael Yacht Brokers, in 1962, said his business has been hit by the tax and the recession. Sales of New Boats Down
"In 1989, we sold 30 boats costing over $100,000," Mr. McMichael said. "We sold 8 last year in that category and so far this year, we've sold 2."
The business was founded in 1935. "Traditionally, we have always sold a mix of new and used boats, with the bulk of sales, or about 60 percent of them, in new boats," he said. "Today, new boat sales account for only 10 percent of our business."