The Blue-State Suicide Pact (Fiscal Cliff Tax Hikes Will Affect Blue-States the Most)

forbes ^ | 12/05/2012 | Joel Kotkin

With their enthusiastic backing of President Obama and the Democratic Party on Election Day, the bluest parts of America may have embraced a program utterly at odds with their economic self-interest. The almost uniform support of blue states’ congressional representatives for the administration’s campaign for tax “fairness” represents a kind of bizarre economic suicide pact.
Any move to raise taxes on the rich — defined as households making over $250,000 annually — strikes directly at the economies of these states, which depend heavily on the earnings of high-income professionals, entrepreneurs and technical workers. In fact, when you examine which states, and metropolitan areas, have the highest concentrations of such people, it turns out they are overwhelmingly located in the bluest states and regions.
Ironically the new taxes will have relatively little effect on the detested Romney uber-class, who derive most of their income from capital gains, taxed at a much lower rate. They also have access to all manner of offshore dodges. Nor will it have much impact on Silicon Valley millionaires and billionaires, or the Hollywood moguls and urban land speculators who constitute the Democratic Party’s “good rich,” and enjoy many of the same privileges as their wealthy conservative counterparts.
The people whose wallets will be drained in the new war on “the rich” are high-earning, but hardly plutocratic professionals like engineers, doctors, lawyers, small business owners and the like. Once seen as the bastion of the middle class, and exemplars of upward mobility, these people are emerging as the modern day “kulaks,” the affluent peasants ruthlessly targeted by Stalin in the early 1930s.
The ironic geography of the Democratic drive can be seen most clearly by examining the distribution of the classes now targeted by the coming purge.

(Excerpt) Read more at forbes.com ...

TOP 10 STATES AFFECTED THE MOST BY OBAMA's TAX HIKES FOR THE RICH: No. 1: Connecticut
Average Tax Increase From Expiration Of Bush Tax Cuts In 2013: $5,783
No. 2: New York State
Average Tax Increase From Expiration Of Bush Tax Cuts In 2013: $5,452
No. 3: New Jersey
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $5,030
No. 4: Massachusetts
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $4,272
No. 5: California
Average Tax Increase From Loss Of Bush Tax Cuts In 2013: $4,242

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