An interesting little calculator I found in the Mickelson article at the NRO.Punch in two states and you can see which way the trend is going as far as people entering or leaving a state. Trust me, it seems California is on the short end of the stick here.
Do the state politicians get it? Of course not. Remember this is about feeding the beast, and the beast demands more and more every year.
This conclusion is derived by analyzing Internal Revenue Service migration data and comparing that with state and local tax burdens. The Tax Foundation has a web-based migration calculator that enables anyone — including journalists — to make quick and easy comparisons between states on tax flight. The calculator shows the numbers of tax filers who moved from one state to another, and how much income shifted along with them.
Between 2009 and 2010 (the most recent tax year for which IRS data is available), California lost over 41,000 residents (including taxpayers and their family members) to other states, the third-largest net outflow in the country. And that was before last year, when the state’s income tax went up again to a top marginal rate of 13.3 percent, along with an increase in the sales tax. In 2010, Californians faced the nation’s fourth-highest tax burden, according to the Tax Foundation.
Where did the most Californians go? Texas. Nearly 15,000 more Californians moved to Texas than vice versa. Texans enjoy the nation’s sixth-lowest state-tax burden, and their state gained over 93,000 residents from other states, the highest figure in the country.
So if Governor Jerry Brown and the California legislature plan to ever balance the budget, they can start by figuring out how to stop nearly $380 million in annual income from leaving their state to Texas alone. Those incomes will not be subject to state and local income, property, and sales taxes because these individuals have vanished from the tax rolls, and their purchasing power will no longer benefit California’s economy.
However, there will be no public-policy changes if powerful elected officials are in denial. And, make no mistake, they are in denial.
The chairman of California’s state-senate budget committee told the San Francisco Chronicle after Mickelson’s remarks that he had “never seen tax flight so significant that it should make a financial difference or influence public policy.” Really? Perhaps the media should ask the senator how California is supposed to make up for over $1 billion in annual income fleeing the state. Again, that was just between 2009 and 2010. The senator might want to spend a few minutes using the tax-migration calculator to determine how many billions California has lost since he’s been in office.
This is not about living within your means. This is about reelected some very spoiled and ethically challenged politicians back into office again and again. Truth is sooner or later California will have to buckle under the weight of a growing “taker” population and a shrinking “producer” population. That is why you see politicians trying every way they can to get more revenue. Not to solve the problem but just hold it off long enough to get the hell out of town before this happens.
CHRIS HUGHES, FACEBOOK CO-FOUNDER: But I think he’s been very clear. The administration, the president in particular, has gone to the table for a grand bargain several times and it seems that the — much of the Republican caucus in the House has not — has not accepted some of the sacred cows that the administration has put on the table. The president again talks about this in the interview in detail.
RADDATZ: George, quick.
GEORGE WILL: Again, I come back to the rule of life. A dollar spent on A cannot be spent on B. You wonder why discretionary spending is so low? Because nondiscretionary spending on entitlements is crowding out the Marine Corps, scientific research, everything else. And this is our future. We’re going to be an assisted living home with an Army. That’s going to be the American government.
Don’t forget the welfare state George. They are the ones who will be coming for your stuff when their stuff runs out. And they’ll be armed. You won’t, the good liberal that you are, which will make their job simpler.