Tiebout Hypothesis: California vs.Texas

Serviços públicos de oitava categoria e impostos estratosféricos, eis o legado democrata que está destruindo a economia da California. O Texas é o contrário: Conservador em gastos e com peso tributário mínimo. A consequência é simples, os eleitores votam com seus pés e saem da California e mudam para o Texas: Laffer and Moore pointed out that between 1998 and 2007, the states without an individual income tax “created 89 percent more jobs and had 32 percent faster personal income growth” than the states with the highest individual income-tax rates. California’s tax and regulatory policies, the report predicts, “will continue to sap its economic vitality,” while Texas’s “pro-growth” policies will help it “maintain its superior economic performance well into the future.” The clear implication is that California should become more like Texas.