Reply to "California as #1"

I read this article the other day. I also read one today on WSJ about how Bulgaria not only has a flat tax, but it is only 10%. Their corporate tax is also only 10%. They do not have exemptions either. How does a socialist country have lower taxes that the great capitalist United States. We have lost our way.

Leaving California aside for a moment, Michigan is the perfect example of the ignorance of elected politicians. The automakers are in big trouble thanks to poor managment, unions and a slowing economy. Most new auto plants built in the US are built in the South because of the business unfriendly climate in other parts of the country. BMW in South Carolina, Mercedes in Alabama, Toyota in Tennessee, Kia in Georgia, Honda in Oklahoma. The list goes on.

So what is Michigan's solution? Raise taxes on the remaining shrinking tax base so that it will shrink even further leading to further deficits. And of course, protect the unions. Brilliant. If the state needs more money, it will just legislate a raise. The well will never run dry. Why would anyone leave Michigan?

The truth is, everyone is leaving Michigan. No one is immune. Not even California.