Interesting article. Luckily, Pennsylvania has company, and we’re not even really the worst. People are fleeing Michigan in droves. Followed by New Jersey. Pennsylvania is 42nd in terms of percentage of outbound moves. California has lost the most in sheer numbers. Why?
“When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state,” Laffer and Moore note in their report. “Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole.”
People don’t like high taxes? Who knew?
The Golden State also has tarnished itself among less-wealthy persons. Moore said migration trends based on moving company data show California had the second-highest domestic population outflow of any state in 2005 “despite the beautiful weather, beaches, and mountains.”
California budget officials are predicting another $14 billion deficit this year, although the state has some of the highest tax burdens in the nation. The state budget has ballooned from $79.8 billion in fiscal 2004-05 to $102.3 billion this fiscal year, a jump of 28 percent.
Makes you wonder if Californians were really better off voting for Arnold, who has ruled more like a Democrat than a Republican, than they would have been with Cruz Bustamante. The California political establishment likes big government, and those that don’t are voting with their feet.
Pennsylvania is in trouble too. We have a particularly difficult time keeping young people in this state, enough that it was a campaign issue for Rendell. It’s amazing when I go to DC, the difference in demographics. Bitter is one of the older persons in her workplace, and she’s seven years younger than me. At 34, I’m one of the youngest here at mine, and it’s been the same story at every workplace since I left college. People my age got their degrees and went elsewhere. Same with my shooting club. You don’t see too many guys there under 50, let alone 40. I worry that young people aren’t taking to the traditional shooting sports, but then I think “Maybe the reason you notice this is because there just aren’t any young people left in your state?” If that’s the case, we’re in a lot of trouble. I suspect with Pennsylvania, it’s mostly a lack of opportunity driving young people away. Why are there few opportunities here? Because Pennsylvania has among the highest corporate taxes in the country, and it’s a horrible drain on businesses.