Tuesday, November 2, 2010

Why Texas Will Prosper if California Elects Liberals Today.

By Troy Corman, t2realestate.com

According to chiefexecutive.net, Texas ranks #1 as the best state for business, while California ranks dead last. Expect that trend to continue, particularly if California elects the tax-and-spend liberals like Jerry Brown and Barbara Boxer today. Expect Jerry Brown to hike taxes on California wage earners to pay for the mistakes of their liberal state representatives, who have essentially bankrupted the golden state. Those "pulling the wagon" are likely to leave the state in droves.

The uhual indicator tells the story without any complicated mumbo-jumbo economic theories. It will cost you $597 to rent a 26' uhaul truck to take from Dallas to LA, while the charge from LA to Dallas is $2,180. It's simply based on demand.

The nation’s most populous state at 37 million, California had the fastest growth rate in the 1950s and 1960s during the tenures of Democratic Governor Pat Brown and Republican Governors Earl Warren and Ronald Reagan. But in the last 10 years, it's lost 1.5 million residents, while Texas has gained 848,000.

Californians pay among the highest income and sales taxes in the nation, the former exceeding 10 percent in the top brackets. Unemployment statewide is over 12.2 percent. Unfunded pension and health care liabilities for state workers top $500 billion.

“Texas is pro-business with reasonable regulations,” one CEO respondent remarked, “while California is anti-business with anti-business regulations.” Another commented, “California is terrible. Even when we’ve paid their high taxes in full, they still treat every conversation as adversarial. It’s the most difficult state in the nation. We have actually walked away from business rather than deal with the government in Sacramento.” 

Expect both Californians and their businesses to continue to relocate to the great state of Texas. We welcome them with open arms.

  

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