Blue Cities and States, by Taxing Wealth Creators, Risk Self-Destructing

The higher tax, higher spending, and bigger bureaucracy systems which run several blue states and cities will ultimately self-destruct. Big government socialism is going to bankrupt them.When this happens, the national left will almost certainly look to parts of the country that have avoided misguided, indeed crazy policies to bail out these failing systems. Consider what is happening in California and New York.Six billionaires have left the Golden State, the Hoover Institute reports in a study flagged by Steve Moore’s Unleash Prosperity Hotline, to avoid the proposed new California Billionaire Tax Act. This is a ballot initiative which will be voted on later this year. It provides for a 5 percent tax on the adjusted net worth of billionaires. These six billionaires took with them $536 billion in net worth and nearly $27 billion in potential tax revenue which they will not be paying California. This represented 28 percent of the supposed California billionaire wealth base. It is incredibly likely that more billionaires will be leaving the state when they are faced with this kind of confiscation by politicians.California has been propped up in part because of the stunning amount of money made in Silicon Valley and to a lesser extent the continuing profitability of the motion picture industry. If the entrepreneurial wealth creators of these two activities leave California, Sacramento will be faced with a huge permanent loss of tax revenue — and left with less talent creating less wealth.The findings in the Hoover report, combined with Mayor Zohran Mamdani’s insane tax proposals, are a sign of how out of touch with economic reality the left has become. Mr. Mamdani is discussing a corporate tax increase, a wealth tax, a property tax increase, and the highest death tax in the world. He is going to guarantee the continued exodus of New Yorkers to Florida, North Carolina, Tennessee, and other states that believe in free enterprise and entrepreneurship. Mr. Mamdani has the potential to create a socialist economy of deep poverty with no job or wealth creation component. This is a formula for a much poorer and more desperate New York City.There are a series of states that have been captured by an alliance between big government socialist politicians, huge bureaucracies dedicated to protecting their income and power, unions deeply opposed to reform, and university faculties who have never had to operate in a real economy. States such as California, Washington, Colorado, Illinois, and New York are all trapped into systems of power and ideology which make it harder to attract the wealth creators of the future.Part of the genius of the American system has been the citizen’s ability to move to a more desirable place. Something like 28 million Americans move every year. When cities or states adopt antisuccess policies, they shouldn’t be surprised when successful people get the message they are not wanted and simply leave.These confiscatory blue states have already seen steady declines in population — especially among people who are successful. This is because these people will be hurt the most by confiscatory policies — and they have the ability and resources to find a better, more positive environment for themselves, their families, and their companies.If these blue cities and states do not change their policies, we will have a surprisingly different America by 2050. The shift in population and power will be remarkable.

Blue Cities and States, by Taxing Wealth Creators, Risk Self-Destructing

Blue Cities and States, by Taxing Wealth Creators, Risk Self-Destructing

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