There Are Two Americas, update
In a previous post, I observed that there did indeed seem to be two Americas: the one productive people want to live in, and the one productive people are trying to escape because the local government is so controlling and confiscatory. I further observed that, unfortunately, both Democratic candidates appeared to be from the latter.
This is an interesting follow-up:
"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."
I am not sure how they got to this number, but holy crap! 20% of the wealthiest families left the state? I'm not sure even Hugo Chavez is doing that poorly.
Update: Even more here, comparing inward and outward migration rates of states vs. a state-by-state economic freedom index.
Posted on February 21, 2008 at 10:01 PM | Permalink
So 5,000 families (i.e. 0.0137% of the state's population) paid for half of California's budget? That can't be; liberals tell me all the time that the rich don't pay their fair share.
Posted by: Zach | Feb 22, 2008 9:31:44 AM
The statement was they they constituted half the budget shortfall, therefore $7bil, which would be $1.4mil in state taxes per family.
Still seems high, but possible, I suppose, in California.
Posted by: BobH | Feb 22, 2008 12:45:53 PM
Where did they move to? Do we see a nice jump in income and property taxes from a select few in other states? Nevada? Arizona? Wyoming? Texas?
Posted by: Allen | Feb 22, 2008 8:33:00 PM
I believe most of the exodus from California is to Nevada and Arizona.
Posted by: HTRN | Feb 22, 2008 9:09:31 PM
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