Competing visions of political economy in America
Mark Hemingway has a great column comparing differing approaches to government that is well worth the read. Here’s an excerpt:
….Broadly speaking, the two states have many similarities. They have diverse economies, large urban areas, a border with Mexico and similar demographic make-up, with Hispanics a third of the population. Yet one state is failing and one state is succeeding….
Well, let’s see if it was California:
….California is facing budget shortfalls in excess of $20 billion each year for the next five years, and acquires $25 million in new debt each day. “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked,” then California Gov.-elect Jerry Brown, D, told the Los Angeles Times….
….By contrast, when Gov. Rick Perry, R-Texas, campaigned successfully for a third term this year, he ran ads touting the fact that his state has billions in surplus. In fact, Texas was one of only six states that did not run a budget deficit in 2009….
There you have it. It’s not right-wing science fiction. Serious reform of the tax code is realistic. And, bear in mind Texas has no state income tax, no personal capital gains tax and only a mere 1% gross receipts tax. In contrast, California has a 10.3% personal income tax, a corporate income tax of 8.84%* and a capital gains tax of 10.55%*.
Now, tell me something. In which state would you prefer to live as a tax paying citizen? Well, you may be like a good number of others. Between 2000 and 2009, while California saw an exodus of 1,500,000, Texas gained 850,000 new residents from other states. In the last year of that references period of time, Texas’ influx of new residents was double of any other state in the U.S.
So that saying of Texas being “Like a whole other country,” I’m sure it is to the big government liberals in California and other liberal strongholds in the country.
God bless Texas!
* Top marginal rate
UPDATE: Gov. Rick Perry explains that Texas’ “economic strength is no accident.”