One of the important tasks for companies that want to survive over the long term is to find new revenue sources. Unfortunately, many companies don't do this well. Sometimes they create one too many line extensions of an existing product. Consumers are pretty savvy and can judge when a line extension simply seeks to profit from the brand rather than offer something new. Some old line businesses are now openly seeking new revenues, such as newspapers where the Internet has changed the way people consume news -- and marginalized the importance of the presses that print news.
Government is no less creative at finding new revenue. The difference is that government doesn't create anything, it simply taxes those that do (or have the income to do so). States like companies have bottom lines they must face and those states are coming up with all kinds of creative ways to generate new revenue streams. New York is contemplating a millionaires tax to boost their paltry bottom line. This is a special tax for those making a
million dollars -- only it turns out that the tax can kick in on an income as low as $300,000. The good news is that makes more people millionaires (effectively narrowing the income gap!).
When bad business ideas fail, the investment is lost and shareholders will probably suffer at least some. When politicians get creative on creating revenue unintended consequences are usually the result. For New York, increasing the tax on millionaires will likely chase some of them out of Dodge. You see, states operate in a market as well and it should not be hard for other states to offer these rich people a more hospitable home. Would Donald Trump shop his taxes and leave New York? Don't know if you could live with celebrity, but . . .
Government is no less creative at finding new revenue. The difference is that government doesn't create anything, it simply taxes those that do (or have the income to do so). States like companies have bottom lines they must face and those states are coming up with all kinds of creative ways to generate new revenue streams. New York is contemplating a millionaires tax to boost their paltry bottom line. This is a special tax for those making a
million dollars -- only it turns out that the tax can kick in on an income as low as $300,000. The good news is that makes more people millionaires (effectively narrowing the income gap!).When bad business ideas fail, the investment is lost and shareholders will probably suffer at least some. When politicians get creative on creating revenue unintended consequences are usually the result. For New York, increasing the tax on millionaires will likely chase some of them out of Dodge. You see, states operate in a market as well and it should not be hard for other states to offer these rich people a more hospitable home. Would Donald Trump shop his taxes and leave New York? Don't know if you could live with celebrity, but . . .
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