California has 39.24 million residents and only 60% of the households pay taxes... the other 40% pay no taxes at all...
California is losing about 1% of each population annually... which is going to seriously impact its ability to collect taxes.
But California is not the only state to lose residents, people are leaving: New York, New Jersey, Illinois, Hawaii and dother states as well.
The states that are seeing the biggest increase in people relocating are: Texas, North Carolina, and Florida... and to a lesser extent other southern states.
WHY?
Taxes and the cost of living
States that have NO INCOME TAX are:
- Alaska
- Florida
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyomng
NOTE: Many of these states have a high sales tax to compensate as well as a state lottery...
As more and more families and businesses relocate to less expensive states, there will be an increase in demand for goods and services, but this will be offset by the economic impact of the money they will be spending annually.
States like New York and California will have a difficult time raising revenues and paying for the services they provide their residents. Consequently, these states will have no choice but to cut services or file for bankruptcy...
These cities will eventually die because tourists will stop visiting them as restaurants and events close down.
IT IS NOTHING PERSONAL BUT THE GENERAL PUBLIC WHICH REPRESENTS 60-70% OF THE POPULATION WILL WATCH HOW THEY SPEND THEIR MONEY... AND AS PRICES CONTINUE TO INCREASE THEY WILL CONTINUE TO CUT BACK... THE REAINING 30% WILL NOT BE ABLE TO COVER THE SHORTFALL...
State governments will soon learn that they cannot provide all the goods and services that their residents are demanding...
Sad but interesting is the fact that the poor people made the wealthy people wealthy by their spending and when the poor people stop spending, then the wealthy people will have to adjust their lifestyles as well... just not so quickly.
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