Monday, November 19, 2012

It's the Spending, Stupid

"Don't think for a second that California's chronic deficits are caused by low taxes. Even before last Tuesday's tax hikes, California had the most progressive income tax system in the nation, with seven brackets, and the second-highest top marginal rate. Now it has the nation's highest top marginal rate and the nation's highest sales tax. And the budget still isn't balanced."
http://washingtonexaminer.com/can-conservatives-prevent-the-u.s.-from-becoming-california/article/2513695#.UKoiFod9Kh0

"What are Californians getting for all this government spending? According to a new census report released Friday, almost one-quarter, 23.5 percent, of all Californians are in poverty. One-third of all the nation's welfare recipients live in the state, despite the fact that California has only one-eighth of the country's population. That's four times as many as the next-highest welfare population, which is New York. Meanwhile, California eighth-graders finished ahead of only Mississippi and District of Columbia students on reading and math test scores in 2011."

"Figures lie and liars figure." So, does the poverty happen because California's excessive regulation make it harder for folks to get ahead, or because poverty stats are a joke, or because Cali's a great place to be if you are "in poverty", a veritable poverty magnet?

"Middle-class families that want actual jobs, not welfare, are fleeing California in droves. According to IRS data compiled by the Manhattan Institute, since 2000, almost 2 million Americans have left California for other states. Their most popular destination: Texas."

This stat, coupled with the one above, will just make all the "progressives" lobby for more Federal interventionism. Obviously, if you do the right thing with other people's money in your own state, you get all the freeloaders while the louts who don't "do the right thing with other people's money" attract all the performers.

"It isn't a tough move to make. Thanks to low taxes and simple regulations, Chief Executive magazine ranked Texas as the best state to do business in for 2012. Guess who ranked dead last? That's right, California. And not only does Texas (6.8 percent) have a far lower unemployment rate than California (10.2 percent), but, according to the Census Bureau, income inequality is worse in California than it is in Texas."

These unemployment stats reflect the same dichotomy - are people in Cali out of work because it is such a good place to be unemployed? Or, does the lower regulatory burden and decreased tax burden of Texas make that a place that draws the folks who demand to be employed?

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