With the SALT cap in place, governors and legislators in those high tax states will find it more and more difficult to deal with their fiscal problems by raising taxes on wealthy taxpayers and business owners. In the wake of the 2008 financial meltdown, governors in Connecticut, New Jersey, Illinois, and California signed legislation to raise state taxes to deal with financial shortfalls instead of making the more difficult choice to reduce expenditures. This may prove impossible to do in the future, given the incentive that wealthy taxpayers now have to pack up and leave for friendlier tax climates.An article well worth your time.
To survive in a competitive universe, blue state governors and legislatures may have little choice but to reduce taxes and pare back public services and public employment—in other words, to abandon the blue state model.
Thursday, December 21, 2017
Good Riddance to the Blue State Model
American Greatness reports:
 
