California is NOT a high-tax state

Pub date March 31, 2009
WriterTim Redmond
SectionPolitics Blog

By Tim Redmond

Next time a politician tells you that businesses are leaving California because of high taxes, try the truth. California is #12 on the list of state tax levies per person.

Check out this nifty chart from the Sacramento Bee:

Per capita

U.S. total $2,571
Alaska $12,276
Vermont $4,095
Wyoming $4,070
Hawaii $3,996
Connecticut $3,818
North Dakota $3,604
New Jersey $3,526
Minnesota $3,509
Mass. $3,360
Delaware $3,357
New York $3,356
California $3,193

Imagine — good ol’ conservative red-state don’t-tax-me Wyoming has higher per-capita taxes than California. Alaska, home to Sarah Palin, has the high oil-severance tax (which California still lacks, despite being an oil-producing state). I guess it’s cold in Minnesota, so they need higher taxes to heat all those state buildings — but wait! It’s warm in Hawaii, and they have higher taxes, too.

As Calitics notes:

The chart shows little overall trend – big states and small states, states with high unemployment and low unemployment, they’re all there. One cannot draw a conclusion from this chart that there’s any correlation between high taxes and high unemployment or poverty rates.

Of course, no amount of evidence or fact is likely to change the minds of California conservatives and their fellow travelers, who continue to cling to 30 years of failed policy and insist that any tax increase is going to destroy our state.

And none of that includes the fact that overall, people and businesses in the United States pay far lower taxes than just about any other industrialized country. Which may be why the recession isn’t as bad in Europe, where there’s a solid social-safety net:

The Europeans say they have no need for further stimulus right now because their social safety nets, derided in good times by free market disciples as sclerotic impediments to growth, are automatically providing the spending programs that the United States Congress has to legislate.

Something to think about.