What Is Happening in California and Connecticut Need Not Happen In New Hampshire - Granite Grok

What Is Happening in California and Connecticut Need Not Happen In New Hampshire

What is happening in California?

What is happening in California? States know their revenue streams have taken a hit. In New Hampshire, the shortfall will be half to three-quarters of a billion dollars. The upcoming legislative session will be a test.

Related:  Wealth Tax Is Dangerous and Will Not Increase Revenue

Notable for its lack of state income tax, Texas has seen an influx of Californians. Over 700,000 people left California last year. About 1 in 7 ended up in Texas and the numbers continue to rise. In 2020, Texas Realtors report a 36% increase in the number of Californians moving in. Technology companies and startups are fleeing California for Austin. Investors are beginning to call it the new Silicon Valley.

This flight is no coincidence. Tax flight is a direct result of the incentive structures in place in California. The policy of continually increasing taxes is detrimental. Targeting of the wealthy demonstrates California is punishing success. They are pushing industry away. New England is following closely behind the California example. Connecticut especially has taken this direction down the tax policy road.

New Hampshire needs a clear-eyed view of tax policy

Texas has a relatively low tax burden to start and maintain a business. Governor Abbott has gone so far as to call out the new California immigrants. He tweets: “Remember those high taxes, burdensome regulations, & socialistic agenda advanced in CA? We don’t believe in that. We believe in less government & more individual freedom.”

Those who flee high tax states should consider why they left. They have witnessed the killing of the goose that lays the golden eggs. They should leave those policies behind and embrace economic freedom. That means a change in mindset.

People do not appreciate having their hard-earned money taken away by the government. Wealth taxes always result in failure. They are certainly a large risk for a small gain. Any gambler will tell you that is a poor bet.

>