Arthur Laffer and Stephen Moore crunched the numbers, and guess what? Low tax states create more jobs than high tax states. The evidence is there for all to see, yet some governors (and our entire federal government) just don’t get it.
Here’s the problem for states that want to pry more money out of the wallets of rich people. It never works because people, investment capital and businesses are mobile: They can leave tax-unfriendly states and move to tax-friendly states.
And the evidence that we discovered in our new study for the American Legislative Exchange Council, “Rich States, Poor States,” published in March, shows that Americans are more sensitive to high taxes than ever before. The tax differential between low-tax and high-tax states is widening, meaning that a relocation from high-tax California or Ohio, to no-income tax Texas or Tennessee, is all the more financially profitable both in terms of lower tax bills and more job opportunities.
Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.
Here’s a case in point: Tom Golisano, founder of Paychex, Inc., and 3 time loser in the New York governor’s race, has decided to leave New York for greener pastures. I like Monroe Rising’s take on it: “Gee Tom, thanks for giving us liberal democrats who will raise our taxes, then leaving. Couldn’t you have left before you decided to change New York?”
Watch out Florida. Another New York millionaire is headed your way. Good luck.
I say let all the “Rich” Liberals who support Barry pay extra taxes…the others should be able to save their money…we will see how the lefties like them apples.
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The problem is that some of them are the ones who voted for the people and policies that caused the problems, then when the escape the results they haul their bad politics to infest another state. Look at New Hampshire, Montana and others. There are like dogs that stink up their own bed an take the same problem to stink up a new one.
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The problem is they want to be generous with everyone else’s money, not their own.
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The uber rich will prevail no matter what party is in power.
They are either in bed with them or are able to move out of their reach.
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