Consider the Laffer Curve as your GPS. Your position is way east of "Y":
Posted on 02/21/2008 4:07:43 AM PST by Man50D
WASHINGTON – California, which once lured Americans from near and far, is now driving out millions of the most productive residents – including high percentages of the most affluent.
"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."
And it's not just the rich leaving.
Based on data from moving companies, California had the second-highest domestic population out-flow of any state in 2005, according to the report, "despite the beautiful weather, beaches, and mountains."
The bad news for California is that it faces $14 billion deficit this year, despite boasting one of the highest tax burdens in the nation.
The report, published by the American Legislative Exchange Council shows jobs are not just leaving the country – they are moving from state to state, with the population following.
"States are in direct competition with each other for human capital and business investment. State governments that think they can attract jobs and people, and grow their economies, by taxing their citizens at a higher rate than their neighbors are sadly mistaken," said Democratic Arkansas state Sen. Steve Faris, ALEC's 2008 national chairman. "Legislators should take a close look at where their state ranks in this book and use it as a tool to help them improve."
(Excerpt) Read more at worldnetdaily.com ...
Whither goest California . . .
More and more of us are deciding we don’t want to live in a mexican barrio.
The flight from California is not good news for the rest of the nation. The refugees bring California with them wherever they go. “Colorado is nice but it needs more land use ordinances.” Idaho is nice but it needs more regulation of(fill in the blank).” That leads to the (excuse me)Californication of the rest of the West.
Liberals foul the nest with over-legislation and then wonder who ruined the state.
There. Fixed it.
But one nice thing about people from New Jersey is that when we move to a new state, we do not feel compelled to re-create the pathologies of New Jersey everywhere we go.
Profound, my hat is off to you.
Gee whiz, 5000 of the richest accounted for $7 billion in tax revenues for California.
These 5000 must have left because they wern't taxed enough.(/S)
FYI: Californication = Collectivephornication
Tennessee sucks rocks. Pass the word......
“But one nice thing about people from New Jersey is that when we move to a new state, we do not feel compelled to re-create the pathologies of New Jersey everywhere we go.”
Californians have been invading Texas for some time now, using monies from the sell of their homes and businesses to buy up real estate. It’s starting to take it’s toll.
“The bad news for California is that it faces $14 billion deficit this year, despite boasting one of the highest tax burdens in the nation.”
Not “despite,” “because it boasts” would be correct.
Once again, history proves that if you raise taxes, you lower revenue.
Consider the Laffer Curve as your GPS. Your position is way east of "Y":
They run away from conditions in California but they yearn for the laws and regulations that make those conditions. They don’t connect the taxes with those conditions and they don’t connect the super high housing with those conditions, etc. If they just move to Texas and get all the right laws and regulations instituted then everything will be swell. The land and air will stay pure without all that restriction of freedom and high cost of California.
Is Atlas Shrugging in Cali?
Atlas is shrugging in California...................
And if taxes are raised, expenses will go up at a higher rate against the promise of new revenue. If a government has a deficit of 5% and raises taxes to cover that % the legislature will raise outlays to cover a multiple of the amount of the projected new revenue which then comes in at a fraction of the projection.
GMTA...........
Well, the good news is that they are importing plenty of poor people from Mexico to replace them.
Pray tell, what are all those damn guns for?
Suck it up, Kalifornia. You should’ve learned from the state with the MOST outflow of population — Michigan — where high taxes, liberal government, unions and no welfare caps are the rule of law.
As the founders intended.
The peak of that curve is optimal only if you think that government revenue should be optimized. It is far better for the citizenry to be living on the upward sloped left side of that curve, with even lower tax rates and less money going to the government.
Even the so-called Conservative economists start with the assumption that government revenue is a good thing.
They’re influencing local Pols to adopt those Cali laws and regs, (and toll roads) creating their own little utopia. (an unaffordable one at that) When Sun City moved here, I knew thing would go downhill fast.
I saw a T-shirt a while back that said something similar, “Montana sucks, now go home and tell your friends.”
OK, you lost me.
Now California is advertising on the TV for people to come and live there, instead of just advertising for tourist business. I always figure that a good product will sell itself, but when some guy is working hard to push a product on me, it probably is not as good as he makes it appear.
The other side of the equation is what is the quantity and quality of the goods and services that the state provides.
AR and CA are both high tax states but the CA taxpayer gets a lot more for his money than the AR taxpayer.
Or, TX and FL don't have income taxes but they have other taxes in lieu of income taxes.
Only if you are on the right side of the peak of the Laffer curve.
Great
Minds
Think
Alike...............
Animals and birds, as opposed to Liberals..know better than to foul their nests....
California is teetering on the edge of the abyss.
IMHO, the political will to balance the state budget, does not exist. Cannot exist, because the entire state has become a giant welfare program.
The (only) possible solution would be an Arizona-style law actually shutting down the hiring, of illegals. As we’re seeing in Arizona, this would cause illegals to begin self-deportation, and the massive drain on state budget funded services would begin a slow decrease.
The effect, would be hugh. Could be enough to save the state.
But it won’t happen. Because the state is now governed by democrats, with loyalties split between communists, and Mexico.
They're like locusts...
Many of them have been moving here to Oklahoma City over the past three to five years. They’ve been buying up a bunch of shopping centers, downtown property, apartments, etc. It’s helped to keep our real estate market fairly steady. Oklahoma City is a great place to live and a great place to do business. Homes are reasonably priced here and property taxes are surprisingly low, especially compared to California. I’m afraid that’s all going to change over the next 15 to 20 years if people from California continue to migrate here. I’m mostly concerned about how this could affect our political landscape in the long run. If you are a conservative from California, we welcome you. If you are a liberal from California, Washington State welcomes you.
It’s a wonder that middle class people can afford to live in California. If they start leaving in droves, then the state will really be in trouble.
Remember the “Three S’s”...
ping
Same thing with the bastards from NY/NJ turning a once purple Pennsylvania blue.
My Wife works for a company from Minnesota,(?) so, we know lots of people from that area. They absolutely love this state and have no intention of heading back north. Nor do they wish to change Texas into something it’s not.
They checked their hats at the door.
There’s more to it than taxes; I’ve had middle-class people tell me they left California because they could no longer subject their children to the schools there. California schools were the pride of the nation 50 years ago; quite a feat going from pride of the nation to something people would not tolerate in that space of time.
One thing Californians have brought to the Northwest is much higher housing prices. The combination of the number of Californians and the equity they bring on exiting the insanely-priced California real estate market has had a huge impact.
I have invited a few to go *fishin*.
But, like the Taliban and AQI, the Left would rather die than give up their ideology, so the only thing left to do in a civil, peaceful society is to leaven and take all your financial assets with you. When enough good people, who love right and hate wrong, leave Kali, who will be left and what kind of self-consuming society will they sustain?
This is a shame, for at one time Kali was one of the great economic engines of the US, especially in leading-edge industries. There is no way I would start a new business in Kali today.
Here in Florida, they’re broadcasting the Come to California ads non-stop.
Maybe they’re targeting the high-rolling Cubanos who are sick of Miami.
A Democrat said this?
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