The Dying High Tax StatesHigh taxes kill states. There can be no better evidence than the 2010 Census, which was just released. The states that lost congressional seats — the states that are shrinking — had taxes 27 percent higher than the ones that gained seats — the states that are growing. In fact, of the seven states that do not have a personal income tax, four (Texas, Florida, Nevada and Washington state) account for eight of the 12 seats apportioned to the fastest growing states. New York state and Ohio just lost two more seats in Congress as a result of the census of 2010. Other losers — down one each — are Massachusetts, Missouri, Michigan, New Jersey, Pennsylvania, Illinois, Louisiana and Iowa. What do they each have in common? High taxes. Texas, with the second lowest taxes in the nation, gained four seats, Florida picked up two and Arizona, Georgia, Nevada, South Carolina, Utah and Washington state each gained one congressional seat. They all have low taxes in common. The states that lost seats ranked an average of 24th in taxes and had an average tax burden of $2,267 per capita (weighted more toward the states that lost more than one seat). The states that gained seats ranked an average of 39th in taxes and had an average tax burden (weighted) of $1,788 — 27 percent lower than the losing states. People vote with their feet and flee to low tax states. It's not the climate. It's the taxes. This table reflects the states that gained and lost congressional seats, along with their tax burden per capita: States that Gained Seats and Their Per Capita State Tax Burden Texas (four seats) —— $1,434 Florida (2 seats) —— $1,905 Arizona —— $1,854 Georgia —— $1,726 Nevada —— $2,347 South Carolina —— $1,719 Utah —— $1,904 Washington state —— $2,359 Weighted Average: $1,788 States that Lost Seats and Their Per Capita State Tax Burden New York (2 seats) —— $2,665 Ohio (2 seats) —— $2,094 Massachusetts —— $2,818 Michigan —— $2,324 New Jersey —— $2,781 Pennsylvania —— $2,193 Illinois —— $2,069 Iowa —— $1,948 Louisiana —— $1,909 Missouri —— $1,645 Weighted Average: $2,267 While the population of New York City grew from 7.3 million in 1990 to 8.0 million in 2000 to 8.4 million in 2010, the population of upstate New York shrank dramatically.
The New York City metropolitan area can grow despite high taxes. It is the historical center for new immigration, a glittering attraction for national migration within the United States and the foremost global city. But with no such attractions to offset its high taxes, upstate New York is experiencing catastrophic declines. Consider the plight of Buffalo. In 1960, it had half a million people. Now it has a quarter of a million! It has lost half its population in 50 years. Yet the politicians in New York state and the other high-tax states, like farmers beating a dying horse to get it to plow one more furrow, raise taxes to squeeze one last bit of revenue from upstate before it dies. Supply-side economics — lowering taxes in the upper brackets to attract wealthy taxpayers — may or may not work internationally. But it certainly works within the United States. The states that lost population drove out their high-income taxpayers with increases in local taxes. As New York and other high tax states confront their budget difficulties, they need to be mindful of this trend, lest they use their mounting deficits as a pretext to tax their states into oblivion. You can't keep beating a dead horse. Dick Morris and Eileen McGann are authors of the new book "2010: Take Back America — A Battle Plan." To find out more about Dick Morris and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com. COPYRIGHT 2010 DICK MORRIS AND EILEEN MCGANN DISTRIBUTED BY CREATORS.COM
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