cross posted at the demise
An academic study released by an economist from the University of Massachusetts found that one of the scare tactics used by both federal and state lawmakers for not raising taxes and instead cutting back funding of public works and social services is based on a falsity.
A review of recent research performed by economist Jeffrey Thompson found that there is no evidence to support the often-employed claim that the wealthy will flee states that raise taxes to pay for public services. The study actually found that the most wealthy tax payers were less affected by tax increases in general and were therefore even less likely to consider moving out of state due to increases in their taxes.
Research on the subject found that that family and community ties and the difficult prospect of moving entire families out of state assuages both high wage earners and lower wage earners from considering a move simply due to a state imposed tax increase. Thompson said that the ability of the wealthy to “absorb such increases is obviously strongest,” and therefore such households ”are less likely to cut back on spending as a result of tax hikes.”
Thompson’s study also shows that the carnivorous business class’s deployment of crude ayn randian ‘objectivist’-styled scare tactics that hold that greed is the single most important driver in human relations (the passive-aggressive tactic of threatening to ‘take-my-ball-home’ and justifying the threat by suggesting that the selfish act is somehow legitimate when viewed from a faux ‘cost benefit analysis’ point of view) falls flat when that analysis takes into consideration the desires of even the most wealthy in our society to be part of a community, to know one’s neighbors, to participate in the local school systems, churches, public projects – to achieve both personal growth and to make our communities better for every citizen.
In fact, contradicting the meme broadcast by captured politicos and dreamed up by businesses that see nothing wrong with exacting tax giveaways, tax rebates and other tax avoidance schemes that benefit them from politicians while at the same time advocating starving public programs and reneging on contracted pension benefits, many wealthy wage earners told researchers that they felt obliged to pay more for programs and services that make the community a better place.