The "Millionaires Tax"

Here is an article about yet another tax that is likely to have a disproportionate impact on the high-earning financial set, in NY no less: http://www.nytimes.com/2009/03/29/nyregion/29tax…

I wasn't (that) worried by the toxic assets, the massive job losses, etc. I always assumed high finance would recover. However, the continually increasing taxes and regulation (on PE and HFs in particular) might actually be capable of keeping us down for the long-term.

I don't believe the taxes are too unreasonable yet, but I fear we might be giving way to a tyranny of the majority where those on the lower rungs of the payscale use their voting clout to arbitrarily clober those at the top.

Do you foresee a serious adverse impact on earnings power in finance as a result of these moves? Are the taxes good, bad, or neutral.

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"A democracy cannot exist as a permanent form of government. It can exist only until the voters discover that they can vote themselves money from the public treasury. From that moment the majority always votes for the candidate who promises to give them the most, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship".

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