Commentary by Samuel Strait – June 3, 2022
With the mass exodus of people fleeing “blue states” such as New York,
California, Illinois, Massachusetts, and New Jersey, something
unexpected, not really, is happening. When these state governments
went “all in” on the progressive line of insanity, certain consequences
have a nasty habit of coming back with devastating effect. States like
California and New York flounder through all sorts of liberal, left
leaning public policies and the costs related to them, find high earning
individuals have quietly been packing their bags and relocating to
states with more sensible public policy and a significantly lower tax
burden. Texas, Arizona, Tennessee, Florida, North Carolina, and South
Carolina have been reaping the benefits of “blue state” flight.
How is that you might ask? It seems that in an analysis of IRS
migration data by Wirepoints, an Illinois based research organization,
some alarming connections have come to light that should cause
politicians in those states some sleepless nights. What am I thinking,
this is a bunch of loose cannons, Democrats for the most part, that have
ignored the clear and present danger of their political posturing for
decades and will steam full speed ahead until the once prosperous
states, that is before they became “blue”, join the third world for
good. Those that are fleeing for “sunnier” shores are taking with them
billions in future tax revenues paid to the states from “high income”
earners in the form of income tax, and to a certain degree, sales tax.
For California alone, over the past couple of years, this change of
scenery has cost the State nearly $18 Billion in revenue in 2019 and
each year there after.
With a State budget proposed by our governor, Gavin Newsom, of over $300
Billion for the 2022-2023 coming budget year this may seem
insignificant, $18 Billion as merely pocket change to be sure. Yet, as
years go forward with no change in sight, ten years in and the $18
Billion becomes $180 Billion, or over half a year’s budget. Once the
high earners escape to more favorable places, that is money that is not
easily replaced. In fact as New York, New Jersey, and California are to
learn from Wirepoint’s research is that the IRS data is showing that the
few coming into those states have significantly less income to be taxed
and in many cases have no income and are a burden to the state rather
than replace that lost tax revenue.
Further examination has shown that the expected losses in California can
quickly mount up over a few short years to trillions as the losses
accelerate. With the best and brightest moving to Texas and Florida,
tax revenues have steadily increased in both states. Those that are the
most productive have left states that do not value their contributions
by over regulating, taxing, allowing outlandish/eccentric societal
behavior, and fostering increasing criminal activity. With the heavy
handed approach by governors like California’s Newsom, over the
pandemic, the decision to move and take their tax revenue with them was
a no brainer.
Clearly at the State level Governor Hair Gel has not gotten the message,
and likely never will. Since our local leadership is tied to the state,
the drain of productive citizens will shortly begin to affect us here in
Del Norte County and subsequently our tax receipts as well. Since those
that currently occupy seats in County and City government appear
obliviously to what is happening in the County, loss of nearly 800
residents just in the past couple of years, the cumulative effect of the
loss of that tax revenue from just those few will rapidly grow to a
point that the current growth in government will not be sustainable.
The time to cut back on government growth cannot happen soon enough.
Funding from Measure”R” sales tax money has only given local leaders a
false sense of financial stability which will evaporate quickly as more
productive people leave the County.
In November it is the intention of locals to have measures on the ballot
to halt growth of government and restore some sense of sanity in local
leadership with citizens who understand that conditions in California
will only get worse if the present policies continue to be operative.
No one on the current County Board of Supervisors has the foresight to
understand that Measure “R” money was not meant to hire new employees
and grow government at an unsustainable cost to the local population
into the future. It is this kind of leadership that has our best and
brightest forsaking the natural wonders and benefits of living in
California for Texas or Arizona. California is insisting on doing
things the hard way, Del Norte County shouldn’t follow along.