Wednesday, November 17, 2010

Low-tax states will gain seats, high-tax states will lose them

I feel for you folks in New York. The taxes there are crazy. It's a wonder that anyone can still afford to live there.

Paying taxes sucks, but it is an evil we will have to live with, but there is a limit to what people will tolerate. Do you think the States experiencing a mass exodus will get the point? Somehow I doubt it. What percentage of the population of a State has to pack up and leave before the State government tries to stop the bleeding? It's also impossible to attract new businesses or keep existing businesses when the taxes are high and the workforce is fleeing in droves...

By: Barbara Hollingsworth - Washington Examiner

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.

And, as ATR notes, “in eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.”

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.