What Sam really doesn’t get is how I keep getting associated with things I didn’t say.
Upon reflection, I think I get it. I think people here treat me as an avatar for their idea of conservatism, which is largely made of up nut-picking the worst examples of conservatives that make the rounds of liberal twitter and here, and arguing with me as if I hold those opinions, rather than anything I actually said. Thus I get labelled ‘extreme’, even though my own positions are notably centrist in an American context.
For the record, I think people are leaving California primarily because of the high cost of living and high taxes. I never said a word about how this affects other states, so I don’t know how you concluded that I don’t ‘get it’.
I’ll leave you with this:
Another issue these blue states have is not just that people are leaving, but who is leaving. Tax too much, and the wealthy leave and take the revenue with them. If you lose your tax base and replace it with low paid or unemployed immigrants, you will start to decline.
Silicon Valley is ripe for disruption. I predict that it will be the next Detroit - once the powerhouse of the American economy, it succumbed to corruption, machine politics, and overly-powerful unions that drove the cost of doing business through the roof, and eventually led to the decline of the city and an exodus of car manufacturers to cheaper states.
Silicon Valley is a lot easier to relocate than an auto industry. Especially with work-at-home, California could see its tax base plummet as the engineers and technologists realize they can live in a state with no income tax in a much nicer home and still do their job.
Funny that on the one hand the left believes that the rich pay almost nothing in tax, but panic when the rich threaten to leave, because they need their taxes.
Also, highly progressive taxes are risky, because the tax base becomes very thin. According to the article, New York City gets 42.5% of all its tax revenue from a group of 38,700 people. And if the Pareto curve applies, I’d guess that about 30% of the revenue comes from maybe 7500 people, and 25% from the top 1500 or so. And at the very top, I think there are a few billionaires that, if they moved out of state, would demonstrably damage the budget. That’s not a good position to be in.
Relying on revenue from the very rich is also volatile because if the market crashes their wealth crashes with it, so you can take a nasty revenue hit in a recession when you most need the money. Diversity is a good thing, including diversity of tax revenue…