bripat9643
Diamond Member
- Apr 1, 2011
- 170,161
- 47,305
More bad news for the Blue state parasites:
Why Tax Migration and Federalism Mean Doom for Left-Wing States such as New York, California, and Illinois - Daniel J. Mitchell - Townhall Finance Conservative Columnists and Financial Commentary - Page 2
Why Tax Migration and Federalism Mean Doom for Left-Wing States such as New York, California, and Illinois - Daniel J. Mitchell - Townhall Finance Conservative Columnists and Financial Commentary - Page 2
Maybe this means Im not a nice person (notwithstanding my high score for tenderness in a recent test), but I cant help but be happy when I read bad news about fiscal policy in high-tax welfare states.
And because Im a huge fan of tax competition, I get even happier when I find out that bloated governments are in trouble because people are escaping to places where government isnt quite so greedy.
With that in mind, I smiled when I read what the Washington Examiner just wrote about tax competition and tax migration inside the United States.
States like California cant afford to be hospitable to business while also funding massive public employee entitlements. job-creating businesses flee big-government Blue States for limited-government Red States. In short order, Blue States find themselves in financial straits. between 2000 and 2010, the big Blue States of New York, California, and Illinois chased off hundreds of thousands of residents taking billions in income with them ($45.6 billion, $29.4 billion, and $20.4 billion respectively). Each of these states have highly progressive, high-marginal rate tax codes. California, for example, has 10 income tax brackets and a top rate of 13.3 percent. New York has eight brackets and an 8.82 percent top rate. Where did all those formerly Blue State income go? To low-tax, Red State jurisdictions, including Florida (no income tax), Texas (no income tax), and Arizona (4.54 percent top rate). Those three alone raked in $67.3 billion, $17.7 billion, and $17.6 billion, respectively.
Indeed, there have been studies looking at how specific states are driving high-income taxpayers to emigrate. And that means big Laffer-Curve effects.
Which is good news because even politicians are probably capable of learning sooner or later that high tax rates wont raise much revenue if the geese that lay the golden eggs decide to fly away.
And since a picture tells a thousand words, heres the map of taxable income migration put together by the Tax Foundation using IRS data.
And because Im a huge fan of tax competition, I get even happier when I find out that bloated governments are in trouble because people are escaping to places where government isnt quite so greedy.
With that in mind, I smiled when I read what the Washington Examiner just wrote about tax competition and tax migration inside the United States.
States like California cant afford to be hospitable to business while also funding massive public employee entitlements. job-creating businesses flee big-government Blue States for limited-government Red States. In short order, Blue States find themselves in financial straits. between 2000 and 2010, the big Blue States of New York, California, and Illinois chased off hundreds of thousands of residents taking billions in income with them ($45.6 billion, $29.4 billion, and $20.4 billion respectively). Each of these states have highly progressive, high-marginal rate tax codes. California, for example, has 10 income tax brackets and a top rate of 13.3 percent. New York has eight brackets and an 8.82 percent top rate. Where did all those formerly Blue State income go? To low-tax, Red State jurisdictions, including Florida (no income tax), Texas (no income tax), and Arizona (4.54 percent top rate). Those three alone raked in $67.3 billion, $17.7 billion, and $17.6 billion, respectively.
Indeed, there have been studies looking at how specific states are driving high-income taxpayers to emigrate. And that means big Laffer-Curve effects.
Which is good news because even politicians are probably capable of learning sooner or later that high tax rates wont raise much revenue if the geese that lay the golden eggs decide to fly away.
And since a picture tells a thousand words, heres the map of taxable income migration put together by the Tax Foundation using IRS data.
