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Why Isn’t the Blue Model Working?

Posted by V the K at 11:11 am - June 28, 2017.
Filed under: Economy,State Politics & Government

Illinois is about to enact a massive tax increase. The Republican governor wanted property tax reform coupled with pension reform to tame the state’s out-of-control debt. But the Democrats who control the legislature only know one tool — tax increases — and it was the only one they were willing to use. Even this massive increase in taxes will only put a small dent in the state’s debts; and that’s if the Democrats don’t use it for more spending, which they will. It’s so bad in Illinois that Megamillions and Powerball are going to suspend lottery ticket sales.

The Blue State of Connecticut enacted major tax increases in 2009 and 2011 and has become even more financially insolvent as state spending outpaced receipts.

People… especially, people with healthy incomes… are fleeing Illinois and Connecticut.

Meanwhile, the states of Florida and Texas, which have no income tax, are not only attracting new residents and new business, but are also fiscally solvent.

How can that be if the Democrat formula of high taxes and lavish Government spending is the optimal formula for success? Democrats claim that people want high taxes to pay for the pensions and fine work of Government bureaucrats. Democrats claim that “investments” (spending) on their pet projects pays off with higher wage earners contributing to a robust economy. But it seems like, given a choice, people prefer to live where taxes and levels of “public services” are lower.

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10 Comments

  1. Since the voting-mass of Illinois is in the Liberal urban and suburban counties around Chicago and the downstate college towns; the people of Illinois are doomed. Brace for imminent State bankruptcy!

    The progressives, the liberals, the public-sector unions, the urban underclasses and those sucking on the public-teat in the college towns will never understand they live off “other peoples’ money”. And that “money” today is fungible and mobile, the producers will vote-with-their-feet since they’re out-numbered at the ballot box. Other than the farmers and the local small businesses, they’ll just move away…

    Chicago is no-longer the heart of the heartland. The business revenue-stream no-longer needs Chicagoland’s stockyards, railroads, highways and proximity to the Loop and the Golden Mile to make money.

    Comment by Ted B. (Charging Rhino) — June 28, 2017 @ 11:52 am - June 28, 2017

  2. Michelle Malkin has a great read about why the $15/hr minimum wage initiative in the People’s Republic of Seattle isn’t working: http://michellemalkin.com/2017/06/27/study-from-captain-obvious-about-min-wage-law-effect-will-baffle-progressive-economists/

    Then again, common sense isn’t exactly a liberal hallmark.

    Regards,
    Peter H.

    Comment by Peter Hughes — June 28, 2017 @ 11:58 am - June 28, 2017

  3. Brace yourselves, Midwest cities.

    The people that ruined Chicago are moving in and bringing the same stupid ideas that destroyed Chicago and Detroit with them.

    Comment by Craig Smith — June 28, 2017 @ 1:05 pm - June 28, 2017

  4. Blue model is not supposed to work. It is supposed to make things worse. Which is used as an excuse for more government power.

    Comment by Beaches — June 28, 2017 @ 1:27 pm - June 28, 2017

  5. given a choice, people prefer to live where taxes and levels of “public services” are lower

    Actually the cities that broke off of Atlanta & incorporated found they could drop taxes & increase services massively.
    http://www.wnd.com/2013/03/suburbs-secede-from-atlanta/

    OT: What does this mean for gay men if Bath House Barry Obama carries around more “jewish enough to marry a cohen” DNA than all of the Nobel prize winners combined except for the Peace & literature categories?
    http://yournewswire.com/women-dna-man-sex/

    Comment by Steve — June 28, 2017 @ 2:00 pm - June 28, 2017

  6. The people that ruined Chicago are moving in and bringing the same stupid ideas that destroyed Chicago and Detroit with them.

    Back in the 1980s, the same thing happened to Portland and Seattle — hordes of California “progressives” swarmed North fleeing Southern California. Now the ENTIRE Pacific coast is (contaminated?) ruined .

    Comment by Ted B. (Charging Rhino) — June 28, 2017 @ 4:23 pm - June 28, 2017

  7. the democrat politician’s method of success has been to use enough of the workers tax dollars to buy enough votes to stay in office permanently. well it looks like they are starting to have a problem having enough workers to pay for all the votes they buy.

    Comment by salg — June 28, 2017 @ 5:14 pm - June 28, 2017

  8. Hi V the K,
    It is not as simple as you make out. The second article you link to has a more complex reasoning than Income Taxes!!!!

    “Naturally, the state’s Republicans have blamed the exodus on high taxes, an unfriendly business climate, and expanded social welfare programs. But the financial services firm UBS moved to Manhattan. General Electric, as Gross has noted, left for Taxachusetts. (It got a big tax break to do so, but employees will still pay blue state income and property taxes.) And millionaires relocate less than everyone else and don’t seem to respond predictably to different tax regimes. Connecticut still has the nation’s highest per capita income.

    Connecticut’s real problem was that it took a kind of middle road: It doesn’t have the sunny days of Arizona, the regulatory nonchalance of Alabama, or the environmental degradation of Louisiana. But it also doesn’t have a Boston, a Seattle, or a Minneapolis.

    And it looks like companies want one or the other, or sometimes both: a big city to keep the top brass happy, and a low-rent Sun Belt metropolis for the back office.”

    I might add that a number of companies are moving their HQ’s to …

    “To take one city as an example, Caterpillar, Motorola, and Kraft Heinz have all moved top talent into downtown Chicago.”

    Yep, Illinois …

    So, income taxes are part of the story, but not the whole enchilada… My guess, from reading the articles is that an important issue is whether or not the state government is seen as being effective and responding to people’s concerns. If not, then there are problems. And as w know, Kansas hasn’t been doing so well either … Goldilocks …?

    Comment by Cas — June 28, 2017 @ 5:27 pm - June 28, 2017

  9. I live in Louisiana, because of oil. We elect idiots and crooks for state politicians.( and the occasional good one) John (Tinkerbell) Edwards believes he can tax us out of our government spending crisis. We pay 10 percent sales taxes and about 3.5 percent state income tax . ( On incomes above 35000 or there about) We have currently more rinos in office than Kenya. Yet inspite of the YUGE flaws , young hipsters are flocking to New Orleans. Go figure.

    Comment by Matthew the Oilman! — June 28, 2017 @ 9:05 pm - June 28, 2017

  10. Certain cosmopolitan magnet-cities will always attract “money” and talent despite the taxes and regulations. But, if for the same tax-burden the choice is NYC, Boston or Hartford — then NYC and Boston win up to a point. Exceed that point, or make life less-desirable there — and that sound you hear is the patter of feet headed for the exits.

    The former magnets of LA, SF and Silicon Valley are already seeing that flight to Nevada and Texas. Seattle, Chicago and Minneapolis are probably the next on the list to cross that threshold of regulations and confiscatory taxation. Atlanta is losing-out to Orlando, and Philadelphia is already dying from the centripetal-pulls of NY and DC.

    Comment by Ted B. (Charging Rhino) — June 29, 2017 @ 10:30 am - June 29, 2017

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