.png)
Anyone who has ever watched Animal Planet should be familiar with migrations. Geese do it, wildebeests and whales do it, turtles do it and, yes, people do it too. To migrate is a natural phenomenon.
What's interesting about most migrations is their purposes are generally positive: sex, food, sun and other such motivations. "The grass is always greener" is what they say.
For humans and, to a lesser extent, animals, a number of migrations also occur for negative reasons: famine, war, pestilence and, yes, taxes without corresponding benefits.
Population outmigration can be a key marker for a disturbed society with deeply rooted policy flaws. It's a far better sign of a state's health to have people lined up on its borders trying to get in than it is to have people lined up on its borders trying to get out.
Over the past 165 years, California has grown at an average annual compound rate of 3.8%. But in recent times it has morphed from being America's (if not the world's) greatest people attractor to being a massive population and jobs repellent (see actual population in blue on the chart).
And there really is no end or solution in sight. If it weren't for net immigration (people who move from another country to California), California would be a mere shadow of its present size (the population from 1960 on without net immigration is shown in red).
Post-War Boom
To set the stage for the story of today's California, you should be aware that after World War II, Gov. Earl Warren cut California's highest marginal income tax rate from an astronomical 15% to 6%, where it remained for well over a decade. He also cut the state's sales tax rate.
In the chart on Page A15, I have plotted California's population growth relative to the U.S. from 1959 to the present. I have also plotted California's net domestic in-migration (people who move from state to state) as well.
My choice of 1959 is far from arbitrary. That was the year when Edmund G. (Pat) Brown became governor of California. It was also a year of enormous tax increases in California — no mere coincidence.
As governor in 1965, Brown even proposed raising California's highest personal income tax rate back up to 15%. But he withdrew that proposal when tax revenues exceeded projections.
After eight years of calamitous government, Ronald Reagan took the helm in 1967 and showed that he too could raise taxes with the best of them, culminating in his 1972 increases on corporate income and sales.
Read the full story: www.news.investors.com
Follow Larry Elder on Twitter
"Like" Larry Elder on Facebook
No comments:
Post a Comment
Comment Policy:
The author of this blog will attempt to engage in conversation via the comments section whenever possible and recognize the 24/7 nature of the internet. Moderating and posting of comments will occur during regular operational hours Monday through Friday. Comments submitted after hours or on weekends will be read and posted as early as possible, however admins and/or the author is unable to commit to replying to every comment posted.
This is a moderated blog. That means all comments will be reviewed before posting. In addition, it is expected that participants will treat each other, as well as the author and admin, with respect. Comments that contain vulgar or abusive language; personal attacks of any kind will not be posted. Comments that are spam or that promote services or products will not be posted. It is requested that all comments remain on topic.
The Elder Statement blog does not guarantee or warrant that any information posted by individuals on this blog is correct, and disclaims any liability for any loss or damage resulting from reliance on any such information. The Elder Statement blog may not be able to verify, does not warrant or guarantee, and assumes no liability for anything posted on this website by any other person. The Elder Statement blog does not endorse, support or otherwise promote any private or commercial entity or the information, products or services contained on those Web sites that may be reached through links on our Web site.
To protect individual privacy and the privacy of others, please do not include phone numbers, addresses or email details in the body of a comment. Such information will result in removal of a comment.
Thank you for your attention.
The Elder Statement