The child support plaintiff sends her condolences
A friend’s sister recently died of cancer at age 62 (despite Joe Biden’s pledge to eliminate cancer). He had previously been sued by the mother of the people who used to be his children. As is conventional in Maskachusetts, she was able to obtain a court order that her child support profits be guaranteed in the event of his death via life insurance. The successful plaintiff learned of her kids’ aunt’s death via the kids and reached out to her former defendant… to ask for confirmation that his life insurance that would benefit her was up to date.
Speaking of Maskachusetts and cash… (source):
Matt Gorzkowicz, Healey’s budget chief, said officials believe most of the unexpected revenue was generated by the state’s new surtax on annual income exceeding $1 million — the so-called millionaire’s tax — and collections from capital gains, all money that state officials largely can’t use to balance the budget as a whole.
This is the first year that MA is living its principles of taking from the rich to give to the poor. Previously the state constitution required a flat rate tax (I guess that also enables taking from the rich and giving to the poor because the rich paid a lot and didn’t receive much in the way of services). I wonder if those who are subject to the 9% rate (previously they paid 5%) will eventually wander up to New Hampshire or down to Tennessee, Florida, or Texas, thus restoring revenue to its previous percentage of state GDP. This has been the pattern with federal tax rates over the decades, i.e., a roughly constant percentage of GDP extracted despite wildly varying rates:
(Note that the Federal government went on a “wartime footing” in the 1940s, with taxation ramping up from 5 percent of GDP to 20 percent and then has stayed on this wartime footing ever since!)
Friends who live in what Zillow says is a $2.5 million house in the Boston suburbs are in the process of negotiating the purchase of a $4 million to-be-built house here in Jupiter. They’ll pay the millionaire tax on their way out partly because they bought their house in 2007 for $1.45 million. Adjusted for official inflation and expected realtor commission, it is actually worth about the same as what they paid (which means they’ve lost money when you factor in maintenance and pre-sale repair expenses and they’ve lost huge $$ if you compare to the S&P 500), but they’ll have a fictitious capital gain that is larger than the $500,000 married couple exclusion for a primary residence:
Massachusetts is still getting money from them, even more than before, but the bureaucrats aren’t privy to their escape plans. I.e., the state government is on a sugar high, at least with respect to them, and the inevitable crash will come in 2025 when the new house is finished and the Pack Rats are loaded up.
Circling back to the original topic… it’s important to remember that a human in his/her/zir/their 60s is like a 9-year-old dog and that cancer can strike either kind of animal at any time. Get that estate plan tuned up and, unless you love progressive political schemes more than your own children, have a way to move out of Massachusetts (16 percent state estate tax) as soon as the first cancer diagnosis is received!
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