Even someone with a rudimentary understanding of economics should know that if you tax a business or individual beyond their level of tolerance, they will pack up and leave the state for one with lower or no state income tax. Unfortunately, one can't escape the long arm of federal taxes.
Proof of this axiom comes from the IRS and its publication of the latest (2023) migration numbers. Unleash Prosperity, which touts its mission to "educate policy makers and the public about government policies that have been proven, in practice, to maximize economic growth and equitable prosperity in America and around the world," constructed a graph from the numbers. Their findings should be no surprise except to those Democrat politicians who are in denial and can't help themselves when it comes to squeezing more money out of successful individuals and businesses.
California leads the list for the most people leaving the state, taking with them $11.9 billion in revenue. Next is New York, which lost $9.9 billion, followed by Illinois ($6 billion), Massachusetts ($4 billion), New Jersey ($2.6 billion), Pennsylvania ($2.2 billion), and four more. All have governors who are Democrats. Most who left went to Florida, Texas, North Carolina, South Carolina, Arizona, and other states with no or lower taxes.
New York Governor Kathy Hochul takes the chutzpah prize for begging wealthy former residents to return to the state. The reason? She says they have eroded New York's revenue base. She offers them no incentive to return. Maybe a tax cut would help. New York City's Democrat-Socialist Mayor Zohran Mamdani wants to raise taxes on the wealthy, but can't do it without approval from the general assembly. If it happens, expect even more people to flee. According to Bloomberg.com, approximately 546,000 residents left New York between April 2020 and 2024.
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Democrats in Washington State have adopted a 9.9 percent state tax. It's scheduled to take effect on January 1, 2028. That leaves time for the wealthy to make moving plans. Their politicians appear as ignorant or as blind as those in states that are already losing overtaxed residents and businesses. This may not be socialism in its purest form, but it is headed in that direction.
As this is the centenary of our 30th president, Calvin Coolidge, his economic philosophy might be instructive for contemporary politicians who keep taxing and spending beyond the means of many to keep up. Coolidge said: "A government which requires of the people the contribution of the bulk of their substance and rewards cannot be classed as a free government, or long remain as such."
How about this one: "The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare, is only a species of legalized larceny. Under this republic the rewards of industry belong to those who earn them."
Coolidge's economic views are the antithesis of socialism, a failed economic system that is gaining popularity among younger Americans who have never had to live under it.
While the late composer Stephen Sondheim would probably have never allowed any of his songs to be used for political ends, one from his musical "A Little Night Music" could fit the thinking and policies of high-tax Democrat states.
The lyrics include "Isn't it rich (no pun intended)? Are we a pair (Hochul and Mamdani)?"
And then the concluding line:
"Don't you love farce (politicians)?
My fault, I fear (they never admit error).
I thought that you'd want what I want (taxpayers).
Sorry, my dear.
But where are the clowns?
Quick, send in the clowns
Don't bother, they're here."
They are certainly here and not just in high-tax blue states, but also in Congress.
Readers may email Cal Thomas at tcaeditors@tribpub.com. Look for Cal Thomas' latest book, "A Watchman in the Night: What I've Seen Over 50 Years Reporting on America" (HumanixBooks).
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