The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”

Americans Are Migrating

Some states are losing people while others are gaining. What’s behind that? Taxes are one reason. A way of life is another.

We may be seeing the start of another great migration in the US, out of states with high taxes and high debt into states with lower taxes and more financial discipline.

Here is a chart of the top 5 in each category from the latest annual “U.S. Migration Report” from North American Moving Services. Illinois had the biggest outflow of people in 2017.

California is one of the states losing people, but it is only the 4th worst percentage wise. Illinois, Connecticut, and New Jersey are apparently even less desirable.  It seems like California wants to be #1 though and is now considering several measures to accomplish that.

People are voting with their feet and going to lower tax states. But California’s politicians don’t get it. They think that working Americans that leave can be replaced by illegal migrants who depend on welfare programs. Good luck with that plan.

The big cut in Federal corporate taxes is too lucrative for Sacramento politicians to just let companies keep their hard-earned money so they can invest it back into their businesses.

A new proposal in the legislature could change the state corporate income tax from an already high 8.84% to include an additional surcharge of 10%.

If approved by two-thirds of the Legislature, Assembly Constitutional Amendment 22 will go before the voters for final consideration.

Proponents estimate it will raise between $15 billion and $17 billion a year, which would be directed toward funding for education, college affordability initiatives, child care and preschool slots, taxpayer rebates and an expansion of California’s Earned Income Tax Credit.

Those are the stated goals. The money usually ends up in a rat hole for the special interests.

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