The 120th Congress will be seated on 3 January
2027. The Democratic Party will have a
voting majority in both the US Senate and House of Representatives.
In a story in “Finance Buzz Money” dated 5 November 2026,
Josh Koebert reported that the following states
have the highest taxes:
1)
Oregon - Total
Effective Tax Rate 24.41%
2)
Massachusetts - Total
Effective Tax Rate: 23.52%
3)
Maryland – Total
Effective Tax Rate: 22.40%
4)
New York - Total
Effective Tax Rate: 22.09%
5) New Jersey - Total Effective Tax Rate: 21.46%
6) Virginia – Total Effective Tax Rate: 21.43%
7) Minnesota - Total Effective Tax Rate: 21.43%
8) Illinois - Total
Effective Tax Rate: 21.29%
9) Hawaii - Total Effective Tax Rate: 21.21%
10) Colorado - Total Effective Tax Rate: 21.16%
Mr. Koebert adds that, “…
median incomes range from $60,531 in
Hawaii to $78,811 in Massachusetts, with residents paying thousands annually in
combined federal and state taxes.” taxes pay for big government –
not just the rich.
Please take note of the
fact that the ten states with the highest taxes are all “Blue” states. is, they are all states that have consistently
voted for Democratic candidates, and states where the Democratic party controls
the state and local governments.
Lower taxes contribute to
more economic activity which generates more revenue. Higher taxes suppress economic activity which
generates less revenue.
Less economic activity
means fewer jobs. Those who are not able
to find work must rely on government assistance programs. Therefore, they become dependent on the
government to meet their needs. That
dependency creates a power base for the Liberal Democrats and Democratic
Socialists. People are afraid to vote away
what little they are getting in government benefits.
Bigger government and its social
assistance programs create more opportunities for fraud. Recently, we have been
made aware of individuals and special interest groups that have defrauded the
taxpayers out of billions of dollars. Matters
are still under investigation, but some government officials may have turned a
blind eye to the fraud because those individuals or groups may have contributed
to their election campaigns.
Although President Trump
can veto the spending bills passed by Congress, the Congress has the power to
override the President’s veto. It is
rare for Congress to override a veto, but it has happened. The vitriol coming from the Democrats right
now seems to make veto overrides more likely.
It takes a vote of two
thirds of the House and two thirds of the Senate to override a veto. The Supreme Court has ruled that two thirds of
a quorum, (when a simple majority of members are present), is sufficient. A recorded
roll call vote is conducted in the case of an override.
Please be aware that increased
government spending can temporarily stimulate the economy and mask the economic
damage done by higher taxes. Certain
economists believe that deficit spending adds wealth to the economy, but they
ignore the fact that it creates inflation.
There is more money in circulation, but it has less and less buying
power.
Past behavior is
predictive of future behavior. In the
past, the Democrats have raised our taxes, and their spending has vastly
exceeded the government’s revenue. Furthermore,
taxes are higher in the states where the state and local governments are
controlled by the Democrats.
Get ready. We may not have voted for higher taxes and
spending, but we all are going to have to live with them.