Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for March 18th, 2003

Posted by taxguru on March 18, 2003

Dynamic scoring assumes that we aren’t dummies



As I have always said, changes in tax rates and rules do affect behavior.  To not consider those behavioral changes when estimating the expected effects of proposed legislation is completely irresponsible, but business as normal for our rulers.

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Posted by taxguru on March 18, 2003

Raising taxes makes state fiscal crisis worse



Typical level of government intelligence to take a bad situation and make it worse.  Also a good illustration of the difference between the common sense market driven thinking of private businesses and the idiotic responses by our rulers in  government.  For example, when airlines are having financial difficulties, they lower their fares and bring in more customers.  When the Post Office (the epitome of moronic management) and State governments are losing money, they raise all of their prices, driving customers and taxpayers away.  It is a fundamental tenet of basic economics that people buy more of things when prices are lower and less when they are higher.  Of course, understanding the realities of economics has never been a requirement to be in positions of power.  Migration from high tax states to low or no-tax states will just continue as people reach their breaking points over having their pockets picked by obnoxious politicians.



KMK

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Posted by taxguru on March 18, 2003

This is why, when shopping, I only compare the up-front prices of products. Most rebates are bogus and it is wrong for any merchant to advertise “after rebate” costs as if they were realistic.

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