Bloomberg's Curious Grasp of Economics

So, Mayor Mike Bloomberg says that the state's consideration of reimposing a millionaires tax to help balance the state budget would be a bad idea. Why? Well, because the rich folks might move away, causing a loss in revenues.

Hmmmm.

People moving away from high tax areas to lower tax areas? Crazy talk you say?

Well, that's what most people do, if they can afford to do so.

That's the big problem facing inner cities that have taxed everyone out of town who could afford to do so. Those who are left face ever rising costs and a declining tax base. Services decline, crime rates rise, and it begins a death spiral. Businesses are less likely to set up shop where it costs more to do business. New York has the second highest state and local tax burden in the country (NJ is number one).

Somehow, none of this registers with Nanny Bloomberg or the Democrats in New York (or in other big cities like San Francisco or Boston or Los Angeles or even the District of Columbia). They're still looking to find new things to tax, resist cuts to the state budget, and can't help themselves find still more things to regulate. Speaking of resisting cuts to the budget Gov. David Paterson, himself a Democrat, is going to be seen as the second coming of the Grinch for displaying a tremendous amount of fiscal prudence by calling for serious cuts to Medicaid, pork barrel projects and higher education. He will be raked over the coals for violating the first law of Albany politics - never cut the budget. Already, attack ads are going after Paterson's plans and how it would affect school budgets.

Meanwhile, crime in New York City has reached such epic lows, that the City Council thinks that the police should go after businesses who spend their hard earned money trying to entice customers to come into their business establishments by keeping their doors open so that potential customers are lured in by the cold air on hot summer days. The City Council wants to impose fines on these businesses. That's a double threat - not only is a revenue generator for the city, but it pushes the nanny state in new directions.