The latest Census Bureau data on population changes in America should have been a wake-up call to lawmakers in blue states and cities. The Census data provide even further evidence that “soak the rich” tax policies have incited a blue-state meltdown.
California, New York, and Illinois all lost the most population last year. These states have nearly lost a combined 5 million people over the past decade. California and New York could both lose another three congressional seats by the end of the decade, and Illinois another two.
Did I mention that these are the three states with the highest taxes?
Is this just a coincidence?
Democratic governors evidently think so. This year, seven blue states are pursuing even higher tax rates on the top 1 percent of earners, despite the evidence that these policies are detrimental to their citizens.
One such state is Washington. Once an importer of talent and brainpower because of its no-income-tax status, the Democrats who control all the levers of power in Olympia just enshrined a 7 percent capital gains tax, and the Democratic Washington Supreme Court strangely ruled that it’s constitutional. This is one of the highest taxes on the sale of assets in the country.
State Sen. Noel Frame (D-Seattle) wants a 1 percent annual tax on financial intangible assets—such as cash, stocks, and bonds—valued at more than $250 million. And then they wonder why one of the world’s richest human beings, Jeff Bezos, has moved to South Florida.
In Vermont, Democrats have just proposed raising their top income tax rate to more than 8 percent. Pretty soon, Ben and Jerry will be the only rich people left in the state—and don’t be surprised if they move out, too.
Meanwhile, Maryland Democrats are pushing a “millionaire tax” ($750,000 in income and above), a capital tax, and a new corporate tax.
California just raised its top income tax rate to the highest in the United States—from 13.3 percent to 14.4 percent. The Golden State just moved past New York to reclaim the income tax top spot. It must be so proud. The Democrats in Sacramento also expanded the state’s 1.1 percent payroll tax to include all income earners. The tax was previously applicable only to those making up to about $153,000 annually.
Meanwhile, Jonathan Williams, chief economist at the American Legislative Exchange Council, which is an association of more than 2,000 conservative state legislators, reports that eight red states are cutting income taxes: Arkansas, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah, and West Virginia. Oklahoma is set to cut rates this year to as low as 2 percent. Several of these states now have flat taxes, not tiered “progressive” rates. Every state on this list is a red state, except Connecticut.
What does all this mean? The blue-state deep thinkers can’t see that their “progressive” tax systems are bleeding their states dry. Or they don’t care.
Once upon a time, it was the Northeast that was the financial and industrial capital of the world. Now Miami, Nashville, Dallas, Austin, Charlotte, Tampa, and Salt Lake City are the hot destinations. The Southeast now produces more GDP than the Northeast.
I call it a blue-state dysphoria. They must change their ways or die. So far, their political leaders are choosing the latter course.
