Do You Live in One Of These States That People Are Fleeing?

By The Daily Bell

Dropping Population Means Less Representation in Congress

The census bureau came out with estimates on which states will gain or lose congressional seats after the 2020 census. Congressional seats are apportioned by population.

Most of the states with dropping populations are high tax states. California, Rhode Island, and New York are all expected to lose Congressional seats. Illinois is hit especially hard with a fleeing populace, so much so that it may lose two seats.

Illinois suffered the largest net population loss of any state in the past year, and due to that loss, it was overtaken by Pennsylvania this year as the fifth-largest state in the country. Major tax increases passed in 2017 will certainly not help this downward economic spiral.

Illinois also lost a seat after the 2010 census, and New York lost two. But both states continue to push for higher taxes and more regulation.

Beginning this year New York mandates 8 full weeks of paid time off for private sector employees who have or adopt a child, or need to help when a family member gets sick or deployed overseas.  Last year New York passed a regulation that forced employers to schedule employees two weeks in advance or pay for an extra two hours per shift.

A New York court last year restricted a dairy farm from spreading manure on their land, despite the fact that it was allowed when the land was purchased. And New York has the highest corporate tax burden in the nation.

It shouldn’t be surprising that people are opting instead to live in states like Florida, which gained two Congressional seats after 2010 and is expected to gain another two after 2020. Florida has no state income tax.

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Texas is another state with no income tax and a growing economy. They poached so many residents from other states that they gained four Congressional seats after the 2010 census, and are expected to add another two or three after 2020.

Other Factors for Migration With the USA

It should be obvious that higher taxes will make a state less attractive. At times states inadvertently admit this. For instance, the Supreme Court has agreed to decide the case of online sales tax. States argue that brick-and-mortar stores are at a disadvantage because it is harder to compete with online stores that are not required to collect sales tax.

But the state governments are too greedy to simply eliminate the sales tax. This would attract more business to the state. Without a sales tax, people are not discouraged from spending. Overall revenues for companies would grow, which means higher corporate and personal income.

Unfortunately, Florida and Texas have relatively high sales tax burdens. But they are still only ranked two spots behind California and New York. Most states have trade-offs, but some are just overall stifling.

Of the ten states with the highest minimum wage, three are also states expected to lose a Congressional seat after the 2020 census: California ($10.50 minimum wage), New York ($9.70), and Rhode Island ($9.60). Massachusetts has the second highest minimum wage in the country at $11 per hour, and it lost a Congressional seat after the 2010 census.

High minimum wages add extra costs for employers. But it also robs low-skilled laborers of opportunities. Some of those fleeing high minimum wage states are likely unable to find work. High minimum wage raises the threshold for hiring. Even if the job requires the skill set of an $8 per hour earner, when the minimum wage is $11 per hour, an employer can be more selective about who they hire. Low-skilled laborers have no opportunity to grow their skill set because of this barrier to entry.

Already states compete for workers and residents. But federal tax rates and regulations hamper that competition.

Perhaps California’s recent opposition to the Trump administration could spur folks of all political stripes to push for limited federal government. The more local you make government the easier it is to control, or simply, move away from.


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9 Comments on "Do You Live in One Of These States That People Are Fleeing?"

  1. California got high taxes cus they gotta pay to earthquake proof their buildings

    • California has been running budget surpluses for several years. The unemployment rate has fallen from 12.2% in 2010 to 4.9 today. California is the 6th largest economy in the world and the world hub of high technology, attracting most of the venture capital. Median household incomes are 20% higher than the national average.

      Many so-called “low tax states” make it up with high sales tax.
      “The five states with the highest average combined state and local sales tax rates are Louisiana (9.98 percent), Tennessee (9.46 percent), Arkansas (9.30 percent), Alabama (9.01 percent), and Washington (8.92 percent).”

      When I go from California to Arizona, I pay higher sales taxes! If I buy $50 of food at a grocery store in California, I pay $50 In Arizona, I pay about $54, as they tax food purchases while “”Sales of food for human consumption are generally exempt from tax” in California.

      The states that have the highest state taxes are also the wealthiest, while those with the highest sales taxes are among the poorest. It’s called magic: watch the right hand while the left hand picks your pocket. Californians, with a median household income of $65K pay about 11% in state and local taxes, down from 12.2% in 1970.

      If you make $50,000 in Calif, you pay 2% state taxes; in “low tax” Arizona, in addition to 10% sales tax and tax on groceries, you pay 4.46%.

      Earthquake damage in Cali is estimated at 3.3 billion a year (govcon.com), while 4 states (not including Califonia) had flood damage in excess of 1 billion each in 2016. (pewtrusts.org)
      Climate disasters, exacerbated by global warming, costs much more than earthquake damage.

      I just went to find the NOAA data on the cost of flood damage but it is shut down, due to Trump demanding taxpayer money for his Great Wall (which he said Mexico would pay for) and forcing a shut down. The public blames Republicans 48 to 28 for Democrats blamed.

      At any rate, California is thriving……and supporting red states with its federal tax money generated by one of the largest economies in the world. It is still attracting about a million people a year.

  2. “Beginning this year New York mandates 8 full weeks of paid time off for private sector employees who have or adopt a child, or need to help when a family member gets sick or deployed overseas. Last year New York passed a regulation that forced employers to schedule employees two weeks in advance or pay for an extra two hours per shift.”
    Such humane laws would attract ordinary people.

  3. So people arrange their lives so they don’t have to pay sales tax? Wow, their lives cant be of much importance then. Sales tax is the one tax that everyone should want and accept. It is the only tax you decide to pay ir not. All other taxes are mandatory. If you truly don’t want to pay sales tax, then don’t buy!

  4. “Massachusetts has the second highest minimum wage in the country at $11
    per hour, and it lost a Congressional seat after the 2010 census.”

    Just to clarify, the Massachusetts minimum wage rose to $11/hour effective January 1st, 2017.

  5. Sales taxes are legal. Income taxes and property taxes are ILLEGAL and plunder.

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