From the WSJ:
New York and California have two of the highest income tax rates in the country. Texas and Florida have no state income taxes. Seems obvious to me. NY and CA also both have massive budget deficits. Why? Well, when you tax the rich too much in a state they just leave. Raising tax rates is good business for moving companies but not so good for raising revenue for the state.
The “progressives” who dominate politics in these states target the rich on grounds that they have the ability to pay. They also have the ability to leave. From 1997-2006, New York State lost 409,000 people (not counting foreign immigrants). For every two people who move into the state, three flee. Maybe the problem for New York is merely bad weather, not high taxes.
Except that sunny California is experiencing a similar exodus. Over the past decade 1.32 million more native-born Americans left the Golden State than moved in — despite beaches, mountains and 70-degree weather. Mostly the people who have fled are the successful, the talented and the rich.
I wonder how much more the “rich” in this country will take? The top 5% already pay roughly 60% of all income taxes in the US. The top 1% pays roughly 40%. If those people get fed up and leave, who will pay for all the goodies we’ve voted ourselves?