Meraglim Blog

WILL THE LAST ONE TO LEAVE THE HIGH-TAX STATES PLEASE TURN OUT THE LIGHTS?

Facebook
Twitter
LinkedIn

At the end of 2017, the historic Trump tax bill made it through Congress and was signed into law by President Trump. The new law cuts taxes on individuals and corporations, increases the standard deduction, provides incentives for multinational corporations to bring offshore earnings back home and creates other incentives for business investment.

The impact of these tax cuts on the budget deficit is huge; estimated at $1.4 trillion over the next ten years. The incentives are supposed to provide enough stimulus so that increased tax collections on added output would offset those deficits to a great extent.

The early evidence is that none of this is working as planned. The economy produced growth of 2.3% in the first quarter of 2018, only slightly better than the 2.2% average since the end of the last recession in 2009, and weak by historic standards.

Updated budget deficit estimates are already higher than those projected when the tax bill was passed. Corporations are using their offshore cash windfall for stock buybacks and dividends, not new investment. It looks like weak growth and higher deficits are in the cards; the opposite of what the tax bill supporters hoped for. And, there are unforeseen side effects that could make the situation worse.

The new law eliminated the federal tax deduction for state income taxes. Since high-bracket taxpayers get a 37% tax benefit on available deductions, the marginal impact of eliminating the deduction for state income taxes is a 60% increase in state income taxes. This doesn’t matter much in low tax states like Tennessee and New Hampshire, but it’s a huge blow to the high-tax states such as New York, New Jersey, and California.

Readers may not have much sympathy for the high-tax states, but they are also among the most productive, densely populated and capital-intensive areas of the country. If a migration from high tax to low tax states begins, it may be good for the companies and individuals that are migrating, but it would be catastrophic for the overall U.S. economy.

According to this article that migration has now begun. No doubt the exodus will grow. That’s another headwind for growth, and another boost to out-of-control deficit spending.

Accredited investors interested in learning more about Jim Rickard’s private placement in the world’s first predictive data analytics startup that combines human and artificial intelligence with complexity science should check out his offering at Meraglim Holdings. Click the link to learn more.

QCI and Meraglim Join Forces to Deliver Capital Markets Risk Analysis Powered by QCI’s Mukai Quantum Computing Software Platform

LEESBURG, VA, December 1, 2020 – Quantum Computing Inc.(OTCQB: QUBT) (QCI), the technology leader in quantum-readysoftware development and execution, and the only public pure play in quantum computing, has partnered with Meraglim Holdings Corporation to deliver advanced capital market risk analysis powered by QCI’s performance-leading Mukai™ quantum software development and execution platform. As an industry leader in predictive analytics, Meraglim was the first

Read More »

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »
Scroll to Top