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Thursday, November 18, 2010

States With High Taxes Set to Lose Political Influence Due to Migration to Low-Tax States

There could be a ill-wind blowing over the next decade across states, like California and New York, as people are moving away from there to live, work, and start business in states with lower taxes:

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.

People fleeing California. I wonder why. Oh yeah, it is because of insane policies like this.

Considering that most of the states that have the highest taxes are also states that are dominated by Democrats, this could strengthen the GOP in the House and with the electoral votes during the presidential election and will make it increasingly difficult for Democrats, especially liberal Democrats, to get the majority in Washington. No wonder that they wanted to ram has much of their liberal wishlist through during these past two years, while that they had such a huge majority. I think that they may have seen the writing on the wall and took advantage now, even if it was to the detriment of the them this election, because they don't know if they'll get this kind of power again, at least not anytime soon.

I love the this exit quote:

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.

If only, we had warned them. Oh wait! We've seen this before.

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