New York, California Are Rock Bottom On Economic Freedom — Again
Once again, New York and California are on Santa's naughty list for their misbehavior in the realm of economic policies.
The Fraser Institute's latest annual Economic Freedom of North America (EFNA) report finds New York ranked 50th and California 49th, based on an index of 10 variables related to government spending, taxes, and labor market freedom. California has been in the bottom five for 14 of the past 15 years. New York has been there in all 35 years of the dataset, and in last place 22 of those years. In contrast, Texas has been in the top five for 11 years in a row, and Florida has been there for 34 of the last 35 years.
One reason this matters is that residents and businesses frequently vote with their feet in favor of economic freedom. Since the last recession ended (in 2009), population in the 10 most-free states has grown 2½ times faster than it has in the 10 least-free states. It has grown nearly 3½ times faster in just the past three years. Employment and income have also grown faster in the freer states.
Furthermore, over 230 scholarly articles by independent researchers have used the Economic Freedom data to examine economic freedom at the state level, while more than 400 articles have done the same at the national level (using its companion report that ranks countries). Most of that literature finds that economically free areas tend to experience more broadly positive
outcomes, including more economic prosperity. One reason is that high levels of taxes, spending, and regulation make it harder for entrepreneurs to succeed. When businesses can't expand and hire new workers, it hurts everyone.
States that have seen the fastest economic growth, like Texas and Florida, tend to have a common focus in their economic policies: low taxes (including low or no income taxes), a fiscally conservative approach to spending, and a common-sense approach to regulation that makes it easier for entrepreneurs to be successful. States that take the opposite approach, like New York and California, tend to see much less economic prosperity and many more moving trucks leaving the state for greener pastures.
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New York and California ranking at the bottom of the Economic Freedom of North America report is not an outlier. Last year's Freedom in the 50 States report, which uses an entirely different methodology, came to the exact same conclusion on economic freedom: NY 50, CA 49. This year's State Business Tax Climate Index ranked New York 49 and California 48; only New Jersey was lower.
If politicians in New York and California want their state's residents to thrive, they should follow the models of states like Texas and Florida. The first step would be to lower their income tax rates. California's are the highest in the nation and New York's are not far behind. Income taxes are particularly harmful for economic growth because they punish productive activity. It's no coincidence that Texas and Florida, to which many businesses and residents are fleeing, have no income tax at all.
New York and California also need to rein in the growth of spending. Allowing the budget to grow only as fast as population plus inflation would make a big difference. Eliminating wasteful spending on things like corporate welfare programs that put small businesses at a disadvantage would be a good place to start. Reducing excessive regulations would also help entrepreneurs be more successful, allowing them to in turn expand their businesses and hire more workers, rather than leaving the state or shrinking payrolls and laying off workers.
Taking the steps necessary to rank higher on the various measures of economic policies, like the EFNA, is a win-win for New York and California (and all other states). Politicians can take the credit for improving the economy, and residents can reap the rewards of that greater prosperity.
Sounds like a great New Year's resolution for politicians everywhere: increase economic freedom. That'll surely get you off Santa's naughty list and onto his nice list! https://www.investors.com/politics/commentary/new-york-california-are-rock-bottom-on-economic-freedom-again/
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“New York and California ranking at the bottom of the Economic Freedom of North America report is not an outlier. Last year's Freedom in the 50 States report, which uses an entirely different methodology, came to the exact same conclusion on economic freedom: NY 50, CA 49. This year's State Business Tax Climate Index ranked New York 49 and California 48; only New Jersey was lower.
If politicians in New York and California want their state's residents to thrive, they should follow the models of states like Texas and Florida. The first step would be to lower their income tax rates. California's are the highest in the nation and New York's are not far behind. Income taxes are particularly harmful for economic growth because they punish productive activity. It's no coincidence that Texas and Florida, to which many businesses and residents are fleeing, have no income tax at all.
New York and California also need to rein in the growth of spending. Allowing the budget to grow only as fast as population plus inflation would make a big difference. Eliminating wasteful spending on things like corporate welfare programs that put small businesses at a disadvantage would be a good place to start. Reducing excessive regulations would also help entrepreneurs be more successful, allowing them to in turn expand their businesses and hire more workers, rather than leaving the state or shrinking payrolls and laying off workers.”
New York and California are the two worst run anti free enterprise high regulation and taxes states as well as most anti middle class in the union. Working and middle class American citizens are leaving both hell hole despotic state regimes in record numbers for America.
I reckon that if the one and only vague concept one used to judge where was and where was not a good place to live was something the autfhor calls, "Economic Freedom", then the thousands of rural backwaters way out in deserted flyover country would be Nirvana and people would be clammoring to move their businesses, homes and families there. People are not. No, folks tend to live where the living is good and where opportunites are abundant. There are damn good reasons why California and New York are the two most populous states in the USA...
"Economic Freedom" is the ability to rape our environment without being held accoutable. So, who needs clean air, water, ground etc etc?
The Fraser Institute is a group of Ayn Rand libertarians who think that taxes are theft. There is no such concept in the constitution as economic freedom because wealth isn't a right. If California is such a hellhole for business then why would be in the top 10 economies of the world if it were a country instead of a state?
You will get no arguments from me. "Economic Freedom" is just code for being able to despoil the land, air and water while treating People like disposable commodities. "Economic Freedom" is pretty much the opposite of "Quality of Life". There are damn good reasons California and New York are where lots of People choose to live and work. I have lived in Texas and I have lived in New York. One is beautiful and lush and the other is a concrete wasteland. In NYC People want to be out enjoying the environment. Everyone is Texas tries to stay indoors or in their cars since Houston and Dallas are hellish...
When Reagan was governor and President California was the #5 economy in the world if its own nation.
I have never seen you reply with more than a sentence or two of your opinions. You don't have facts to support what you beleive.
I have visited NY and Texas because I have family there. I love NY, especially the Hudson valley. I love the culture of NYC for a few days and then my loner personality takes hold and I have to get away from all 4 million of my closest friends.
Texas is a wasteland of heat, pollution and stupid that I couldn't wait to leave. I feel the same way about almost everything south of I-40.
OMG.....what part of TX did you visit?
TX is awesome.....the land, the culture, the people!
A sing along.....the stars at night are big and bright deep in the heart of TX. reminds me of the girl I love deep in the heart TX..........
Insofar as NYC goes.......my heart is NYC!
Exactly. Liberal secular progressives hate economic freedom.
Rankings - Economic
1.South Dakota=
2.Idaho=
3.Tennessee=
4.Oklahoma=
5.New Hampshire+1
6.Florida-1
7.North Dakota+2
8.Alabama-1
9.Wyoming-1
10.Alaska+5
11.Indiana=
12.Georgia-2
13.Utah+1
14.Missouri-2
15.Virginia-2
16.Iowa+2
17.Kansas+5
18.Texas-1
19.South Carolina+2
20.Montana=
21.Michigan-2
22.Nebraska-6
23.Arizona=
24.North Carolina=
25.Arkansas=
26.Nevada+1
27.Colorado-1
28.Mississippi=
29.Wisconsin+3
30.Pennsylvania-1
31.Louisiana-1
32.Kentucky-1
33.Ohio=
34.Delaware=
35.Massachusetts+1
36.West Virginia+1
37.Oregon-2
38.Washington=
39.New Mexico+1
40.Minnesota+1
41.Vermont-2
42.Rhode Island=
43.Maine+1
44.Illinois-1
45.Connecticut=
46.Maryland=
47.New Jersey=
48.Hawaii=
49.California=
50.New York=
MAP VIEW
About How It’s Calculated FAQ
Freedom in the 50 States
China And Europe See What U.S. Critics Don't: A U.S. Tax-Cut Boom Is Coming
12/15/2017
Especially those fascists in their ivory towers in NY and Ca. There are plenty of places in flyover America that are economically booming. And they didn’t ruin their environment to do it either. I remember when Maryland had a millionaires tax. It actually lost revenue as those targeted simply moved.
Many movies are made in right to work States.
Lol. Yesterday you were bragging about how rich you are. Now you are bragging about how smart you are. Why am I not surprised? Thing is, Fearless, some people are NOT as rich or smart as you are, but they are every bit as valuable a human being as you are. They have friends and family who love them, and children who admire them. And if the best they can do is hold down a job in a field, restaurant, or on a loading dock, they should be paid a decent, living wage for it, period.
Well said.
Fearless has a very good brain. And he's rich, he's very, very rich.
They are not the two most populous states. Both Texas and Florida have passed NY in population and among internal migration of American citizens California is net losing population. The only reason Californication population grows at all is due to many foreigners moving here and in 2010 the growth was slow enough to not add one additional seat in Congress for the first time in forever and 2020 looks to be a repeat.
Get used to it. The liberal state of mind is becoming ubiquitous. Fascism is a dying form of insanity.
You should go look into congressional apportionment. California had more growth than Florida but CA didn't get another set and Florida got 2. It isn't JUST about population.
California has too many congress persons already. Ca. Should have a reduction of Congress persons in 2020. And no, illegal aliens don’t count.
Nope, 12+% of the population AND the House.
Why?
Actually, they DO.
Then California should drop by 1 to 52 congress persons. That would maintain their 12% of population. I’m glad you agree we should drop a seat to a real state.
Second time I've asked, why?
Yet 52 would bring them UNDER the number for apportionment. Do we ALL get to pick a state to screw over or is that honor relegated just to you?
So your posit is that CA isn't a state? Ridiculous.
Realizing that CA's GDP is BIGGER than FL and NY PUT TOGETHER, ask yourself what the GDP would be in the US WITHOUT CA.
You realize that if California ever tried to literally become that independent country with the 8th largest economy in the world that much of the area that produces all that agriculture you mentioned would secede from CA to remain in the union. Our rural and inland regions have more culturally, political, and religion in common with Texas, Utah, Idaho, and Nebraska than with anything LA or SF.
You realize that NOTHING in my post mentioned a fucking thing about CA becoming an independent country. You are the one who inferred that CA wasn't a 'real state'.
So WHY did you bring it up?
Oh wait, my bad, you don't answer questions, you just move on to your next deflect and post completely irrelevant 'points'.
Yet the rural and inland regions are where the secession talk originates from, aren't they? Just as our local 'State of Jefferson' proponent. It would be MUCH more likely that the urban areas would remain untied with the US.
The fact is, the 'rural and inland areas' rely on the urban centers for their economy, and not just for transporting their goods to market. I lived in the Bay Area of CA, fished and camped all over the state, went to over a dozen state parks, bought oysters @ Point Reyes Oyster farm, stayed at B&Bs in small towns like Fortuna and Sonora and watched the Geminid meteor showers in the desert outside of Mohave, CA. Every small town we went to relied on CA urban dwellers to come out for a weekend or a week and support their rural lifestyle. Hell, towns like Guerneville and Occidental would evaporate without Bay area residents going up and spending money to 'play in the country'. Those towns, and hundreds more like them all over CA LIVE for the weekend invasion so they can pay their bills but still live in the 'quite' country for the rest of the week. In MY experience, the claim that the 'rural and inland areas' are culturally, politically and religiously more like Texas, Utah, Idaho and Nebraska is total BS. Even in the 80's, rural CA was WAY more liberal and open minded than Texas et al.
Additionally, I'm pretty sure that MOST of the Midwest is MUCH more liberal and open minded than you think. Remember that almost a decade ago, Iowa was one of the first to recognize same sex marriages and from MY experience, they welcomed gay people with open arms in small rural towns all over the state.
Wealthy New York City Elites Prepare to Leave the City Under de Blasio’s Tax Burden
By Robert Donachie
December 17, 2017 at 10:00am
Wealthy New York City elites are preparing to flee the state because the Republican tax bill is going to make them face the full brunt of Mayor Bill de Blasio and Democrat state leadership’s tax rates.
“Everybody I speak to brings this up. Every NYC resident I speak to asks about the feasibility involved in doing it,” Wall Street tax expert Robert Willens told Yahoo Finance.
“I’ve been doing this more than 40 years, and never heard more discussion about relocating than recently.”
Wealthy New Yorkers can currently lower their federal taxable income by more than $100,000 through a provision of the tax code known as the State and Local Tax Deduction, or SALT.
The average SALT deduction in the Manhattan area is at least $60,000.
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The Republican bill will cap the deduction amount at $10,000, meaning wealthy New Yorkers who currently write off expensive real estate could face an extra six figures in taxable income.
.@Varneyco: "Congress may pull back a little on what's known as the SALT deduction, but the die is cast. Long term, it will have as profound an effect as cutting taxes on businesses and individuals. Hey you one-percenters, load up the moving van." pic.twitter.com/OJOp53v6el
— FOX Business (@FoxBusiness) December 10, 2017
President Donald Trump is expected to sign the bill into law by Christmas, which is why many hedge fund and private equity managers are seriously considering getting out of New York.
New York is a state run by Democrats and one that taxes its citizens at a higher rate than any other state in the nation.
The state’s combined state and local income tax burden tops California’s at 12.7 percent.
That amounts to roughly $6,993.42 per New York taxpayer.
For the first time, many wealthy Manhattanites will finally feel the full burden that their state legislators and city leadership have put on them.
De Blasio is actually trying to increase millionaire New York City taxpayers’ loads as Republicans put the finishing touches on their bill.
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The mayor is trying to levy a 14 percent tax increase on the city’s millionaires to pay for improvements to the city’s subway system.
The governor-elect of New Jersey is looking to pull a similar tactic to raise money for public schools in the state. https://www.westernjournal.com/wealthy-new-york-city-elites-prepare-leave-city-de-blasios-tax-burden/
It will be great when people in lowtax states no longer have to subsidize the liberal high tax ones. The days of getting a reduction on federal taxes because state and local ones are high are thankfully about over. Now citizens of high tax ones will have to bring pressure for reductions now that they can’t be masked by funds brought in from lower tax states.