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December 27, 2022

The Ascent Of The States Over The Federal Government...Will It Be Driven By Tax Policy?

Deep Blue states such as CA, NY, and NJ have ridiculous state income tax rates: California tops out at a mind-boggling 13.3%, NY at 10.9%, and NJ at 10.75%.

And what do the good citizens of these states get for their hard-earned money that flows into the corrupt and chaotically inefficient state governments? Bums, crime, crappy infrastructure, insanely bloated government, and blatantly unconstitutional laws restricting their rights.

Sounds great!

But people are leaving those states, and the people who are leaving are very possibly the more conservative and better off of those residents, making low tax states more conservative and wealthier, and leaving the blue shitholes poorer and more to the left.

How this will end remains to be seen, but as states try to attract the typical taxpaying middle-class voter, they may inadvertently (or advertently!) tip the voting scales and empower those states as part of a coalition of right-leaning states more and more willing to confront the federal government.

Momentum to Axe Income Tax Mounts in State Legislatures

Mississippi could become the nation’s 10th state to eliminate its personal income tax, with Republican Gov. Tate Reeves and House Speaker Philip Gunn (R-Clinton) backing differing plans to do away with the levy when lawmakers convene their 2023 session on Jan. 3.

Similar 2023 proposals to erase immediately, or phase-out, state income taxes are also expected to be filed in West Virginia, Arkansas, Iowa, Georgia, North Dakota, Utah, and, perhaps, Wisconsin. 

Nine states right now don't assess personal income taxes -- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming -- with Mississippi the most likely to join their ranks in 2023.
Obviously that theory does not apply in all cases...New Hampshire is a good example of a beneficial tax scheme attracting leftists from Massachusetts, Nevada from California, and Washington perhaps from Oregon.

But it is an interesting trend to observe, with Florida being the most successful example of a state that went from purple to solid red in less than 20 years.

Is the future of America 2.0 a resurgence of States' Rights and a group of powerful and wealthy states simply ignoring the increasingly hysterical and damaging diktats emerging from a dysfunctional and inefficient federal government?

That sure sounds like a delightful outcome!

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posted by CBD at 10:38 AM

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