Spain Soaks the Rich with New Taxes: Tax Revenues Plummet

This happens every time. If you punish economic behavior you get less of it. Maryland and New York have lost revenue after they passed “soak the rich” tax schemes and the result is that those who migtht have paid the tax either fled the state, simply decided to do business elsewhere, or decided to not engage in any behavior that is taxable. Spain went down the same road. Class warfare rhetoric undermines confidence with job creators, risk takers, investors, and small businesses.

It is much like we said in our previous post, “Those with even the most rudimentary understanding of economics understands this and yet new university trained leftist academics keep causing these same problems and keep expecting a different result”.

Always remember, wealth goes where it is treated well.

CNBC:

Spain’s corporate tax take has tumbled by almost two thirds from pre-crisis levels as small businesses fail and a growing number of big corporations seek profits abroad to compensate for the prolonged downturn at home.

In 2010, 30 of Spain’s 35 blue chip companies had subsidiaries in territories considered tax havens, according to the latest report by Spain’s Observation Group for Social Corporate Responsibility.

The organization, which is partially subsidized by the Labor Ministry, put the number at 18 before Spain’s economic crisis began.

“Not only tax reasons justify this trend, but also the internationalization of Spanish groups and the search for new markets, especially in the context of the crisis seen in Spain,” said Josep Serrano, Senior Manager of Transfer Pricing & International Tax at Deloitte in Spain.

The use of subsidiaries in tax havens to reduce tax bills has been a rising global trend in recent decades, tax campaigners said.

California Gas Stations Close as Rationing Hits Consumers

When governmet demonizes and industry, scapegoats it, seeks to make it unprofitable with excessive regulation, the result is much less incentive to produce the product. Production drops and the shortage begin. Rent control has the exact same affect. Similar policies caused the gas lines and shortages under Carter as well. Those with even the most rudimentary understanding of economics understand this and yet new university trained leftist academics keep causing these same problems and keep expecting a different result.

This administration seems to think that by making regulatory war on refineries, drilling, coal technology and power plants people will rush out to pin a solar panel on their car (a solar panel made in China no doubt).

Bloomberg News:

Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.

Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.

The gasoline shortage “feels like a hurricane to me, but it’s the West Coast,” Jeff Cole, Costco’s vice president of gasoline, said by telephone yesterday. “We’re obviously extremely disheartened that we are unable to do this, and we’re pulling fuel from all corners of California to fix this.”

Spot gasoline in Los Angeles has surged $1 a gallon this week to a record $1.45 a gallon premium versus gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg show. That’s the highest level for the fuel since at least November 2007, when Bloomberg began publishing prices there. On an outright basis, the fuel has jumped to $4.3929 a gallon.

Prices Jump

Gasoline at the pump gained 8.3 cents to $4.315 a gallon in California yesterday, according to AAA.com, 53.1 cents more than the national average of $3.784. In Los Angeles the price was $4.347. Gasoline futures for November delivery on the Nymex rose 14.34 cents to settle at $2.9429 a gallon, after falling yesterday to a 10-week low. Retail price movements tend to lag behind those of futures.

“Product supply in California has tightened, especially in Southern California, due to refinery outages,” Bill Day, a Valero spokesman at the company’s headquarters in San Antonio, said by e-mail.

 

Related:

More energy price hikes and power shortages on the way due to government regulation – LINK

Obama’s EPA Shutting Down 10% of America’s Power Plant Capacity – LINK

Obama’s EPA crushing coal-fired power plants, electricity bills rise… – LINK

Candidate Joe Kennedy III Calls for End To “Cheap Oil” – LINK

Gas Prices Under President Obama – LINK

EPA Official on Video: We Are “Crucifying” Oil And Gas Companies – LINK

Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent – LINK

Obama Green Energy Program Cost $9.8 million Per Job – LINK

15th Green Energy Company Funded by Obama Goes Under – LINK

On Oil Obama Says One Thing & Does Another – LINK

GAO: Recoverable American oil in a single location equal to the entire world oil reserves – LINK

Epidemic of Democrat Controlled Cities Failing to Mail Military Ballots…

MacIver News:

[Madison, Wisc…] At least 30 Wisconsin municipalities failed to send absentee ballots to military voters before the 45 day deadline, according to former U.S. Secretary of Veterans Affairs, Anthony Principi, and he’s demanding the Government Accountability Board address the problem immediately.

As reported by the website WisPolitics.com, Principi sent a letter to the GAB on Monday pointing out the failure to meet the 45 day deadline is in violation of Uniformed and Overseas Citizens Absentee Voter Act.

“This violation is particularly unsettling in light of the fact that, only six months ago, a federal court entered a consent decree against Wisconsin and the Government Accountability Board for similar violations of military voting rights,” wrote Principi.

Principi cited a study by the Military Postal Service Agency, which found less than 45 days is not enough time to ensure service members can receive, complete and return in time.

“Your office’s violations therefore may deprive service members of their fundamental right to vote,” he wrote.

This comes on top of a report by the MacIver News Service that the Federal Voter Assistance Program was providing Wisconsin service members the incorrect deadline for when their ballots must be received by for the general election.

Related:

Military ballots mailed late… – LINK

Dearborn Overseas Primary Ballots Coming in Despite Late Sendout: Dearborn is one of 70 municipalities included in a federal lawsuit for sending absentee ballots out past the June 23 deadline – LINK.

California counties miss deadline to send ballots to overseas, military voters – LINK.

Election clerks once again miss federal absentee ballot deadline: More than three dozen local election clerks appear to have missed a federally mandated deadline for sending out absentee ballots to military voters – LINK.

Obama Administration Sues To Stop Military From Voting (video) – LINK