http://www.washingtonexaminer.com/o...high-tax-states-will-lose-them-108681159.html Imagine that, Milton Friedman was right. Capital does really flow to where it's most free and less regulated. Low-tax states will gain seats, high-tax states will lose them By: Barbara Hollingsworth Local Opinion Editor 11/17/10 10:00 AM EST Migration from high-tax states to states with lower taxes and less government spending will dramatically alter the composition of future Congresses, according to a study by Americans for Tax Reform Eight states are projected to gain at least one congressional seat under reapportionment following the 2010 Census: Texas (four seats), Florida (two seats), Arizona, Georgia, Nevada, South Carolina, Utah and Washington (one seat each). Their average top state personal income tax rate: 2.8 percent. By contrast, New York and Ohio are likely to lose two seats each, while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will be down one apiece. The average top state personal income tax rate in these loser states: 6.05 percent. The state and local tax burden is nearly a third lower in states with growing populations, ATR found. As a result, per capita government spending is also lower: $4,008 for states gaining congressional seats, $5,117 for states losing them. And, as ATR notes, âin eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.â Imagine that: Americans are fleeing high tax, union-dominated states and settling in states with lower taxes, right-to-work laws and lower government spending. Nothing sends a message like voting with your feet. Read more at the Washington Examiner: http://www.washingtonexaminer.com/o...s-will-lose-them-108681159.html#ixzz15YXvqAiZ
Yay for us. You're right. But the interstate migration is nothing compared to capital's flight overseas, which took the middle class's jobs with it. But don't get me wrong, I'm all for the working people of the third world.
Yup, you are right. Capital is fleeing the US to lower tax and less regulated countries. Hmm...interesting. Gee, what do you think we should do about that? I got it...let's raise taxes and create more regulations!
Capital goes where it can get the best return, and so it's holders typically couldn't care less about the target's labor or environmental laws and standards. Are you suggesting we drop our own standards so we can compete with the third world?
No buddy, I suggest you get use to the idea of 20% unemployment rates. And fyi, we ARE a third world country. Better make sure your kids learn mandarin.
Trust me, I've long been aware of the shortcomings of simple measures of capital, growth and location. For example, GDP... "If a man walks in the woods for love of them half of each day, he is in danger of being regarded as a loafer. But if he spends his days as a speculator, shearing off those woods and making the earth bald before her time, he is deemed an industrious and enterprising citizen." - Henry David Thoreau
You can explain this to liberals until you are blue in the face, and you wont get anywhere. They dont seem to understand that it is much easier now then it has ever been to move your business especially in the age of E-Commerce. Alot of people can basically live wherever they want and still run their business without a heck of alot of change. In the next 20-30 years i would suspect that the countries with the lowest income taxes are going to see heavy inflows of capital, as all of the western european countries, the U.S. can Canada fight in a race to the bottom as they subsidise people who dont want to work. The biggest problem with lefties is that once they have gone in and destroyed the states/countries they have managed to pull off socialism in, they simply move onto another country to spread the joys of socialism, not unlike a parasite finding a new host.
Taxes have little to do with a business moving out of country. That's not to say there isn't tax incentive, there is. It's just not the primary motivator. They move for the following reasons: 1.Lower Wages 2.Corporate friendly labor law 3.Corporate friendly environmental law That's it, there isn't any other reason to move. Perhaps one of you financial wizards can tell me how reducing my business tax will offset the wages I have to pay some guy to stand around the shop and do nothing. Taxes do not motivate anyone to hire or fire. It's work load, nothing more, nothing less. I'm not going to hire anyone unless there's work for that person to do, simple as that. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3013717