Census: Fast growth in states with no income tax!!!!

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For those of us who are demographic buffs, Christmas came four days early when Census Bureau director Robert Groves announced on Tuesday the first results of the 2010 census and the reapportionment of House seats (and therefore electoral votes) among the states.
The resident population of the United States, he told us in a webcast, was 308,745,538. That's an increase of 9.7 percent from the 281,421,906 in the 2000 census -- the smallest proportional increase than in any decade other than the Depression 1930s but a pretty robust increase for an advanced nation. It's hard to get a grasp on such large numbers. So let me share a few observations on what they mean.

First, the great engine of growth in America is not the Northeast Megalopolis, which was growing faster than average in the mid-20th century, or California, which grew lustily in the succeeding half-century. It is Texas.

Source: http://washingtonexaminer.com/

Its population grew 21 percent in the past decade, from nearly 21 million to more than 25 million. That was more rapid growth than in any states except for four much smaller ones (Nevada, Arizona, Utah and Idaho).

Texas' diversified economy, business-friendly regulations and low taxes have attracted not only immigrants but substantial inflow from the other 49 states. As a result, the 2010 reapportionment gives Texas four additional House seats. In contrast, California gets no new House seats, for the first time since it was admitted to the Union in 1850.

There's a similar lesson in the fact that Florida gains two seats in the reapportionment and New York loses two.

This leads to a second point, which is that growth tends to be stronger where taxes are lower. Seven of the nine states that do not levy an income tax grew faster than the national average. The other two, South Dakota and New Hampshire, had the fastest growth in their regions, the Midwest and New England.

Altogether, 35 percent of the nation's total population growth occurred in these nine non-taxing states, which accounted for just 19 percent of total population at the beginning of the decade.

My third observation is that immigration is slowing down and may be reversed. Immigration accelerated during the 1990s, and the 2000 census showed more immigrants than the Census Bureau had estimated.

In contrast, immigration has clearly slowed down since the housing bubble burst and the construction industry went bust in 2007. And the 2010 census showed fewer residents in several high-immigration states than the Census Bureau had estimated were there in 2009.

The drop was particularly big, 3 percent, in Arizona, where state and local governments have cracked down on illegals, notably by requiring employers to use the e-Verify system to determine immigration status (that law was signed by Janet Napolitano, then governor and now homeland security secretary).

We can't be sure until more detailed data are reported, but it looks like we're seeing significant reverse migration. The lesson is that states' public policy and law enforcement practices can make a difference.

Finally, let's get to politics. The net effect of the reapportionment was to add six House seats and electoral votes to the states John McCain carried in 2008 and to subtract six House seats and electoral votes from the states Barack Obama carried that year. Similarly, the states carried by George W. Bush in 2004 gained six seats and the states carried by John Kerry lost six.

That's not an enormous change. But it's part of a long-term trend that has reshaped the nation's politics. If you go back to the 1960 election, when the electoral votes were based on the 1950 census, you will find that John Kennedy won 303 electoral votes. But the states he carried then will have only 272 electoral votes in 2012, a bare majority. And without Texas, which he narrowly carried, the Kennedy states would have only 234 electoral votes.

The bottom line: You need a lot more than the Northeast and the industrial Midwest to get elected president these days.

And to control a majority in the House of Representatives. Thanks to unexpectedly large gains in state legislatures, Republicans stand to control the redistricting process in 18 states with 204 House districts, while Democrats will control it in only seven states with 49 districts. That doesn't guarantee continued Republican majorities, but it's probably worth 10 to 15 seats.

Meanwhile, I await the post-Christmas treat of more detailed census results to come.

Michael Barone,The Examiner's senior political analyst, can be contacted at mbarone@washingtonexaminer.com. His column appears Wednesday and Sunday, and his stories and blog posts appear on ExaminerPolitics.com.
 
Lowest incomes. less educated lower standard of living. This is what you want for America! I'm not surprised.
 
Louisiana Governor Jindal proposes ending state income tax

Louisiana Governor Jindal proposes ending state income tax
By Kathy Finn
NEW ORLEANS | Thu Jan 10, 2013 8:51pm EST

(Reuters) - Republican Governor Bobby Jindal said on Thursday he wants to eliminate all Louisiana personal and corporate income taxes to simplify the state's tax code and make it more friendly to business.

The governor did not release details of his proposal, but his office released a statement confirming that the taxes are targets of a broader tax reform plan.

"Our goal is to eliminate all personal income tax and all corporate income tax in a revenue neutral manner," Jindal said in the statement.

He did not confirm reports that he will seek an increase in sales taxes in order to offset lost income tax revenue, but said: "We want to keep the sales tax as low and flat as possible."

Political analyst John Maginnis, who on Thursday reported in his email newsletter LaPolitics Weekly that Jindal will propose balancing the tax loss by raising the sales tax, now at 4 percent, said the strategy fits with the governor's interest in keeping a high national profile.

"Just proposing a plan on the scale being discussed would win Jindal acclaim among fiscal conservatives here and nationwide," Maginnis told Reuters.

Jindal is often mentioned for national office including the U.S. Senate and as a possible presidential candidate.

Louisiana's neighbor Texas has had no income tax for years, relying on a windfall from its rich energy resources and other forms of taxation. Other states in the region governed by Republicans are trying to copy Texas, including Oklahoma and Kansas, which have both considered lowering taxes.

But political analyst Maginnis questioned whether the Republican-majority Louisiana legislature would endorse Jindal's ambitious plan.

"Any tax increase (such as sales tax) or elimination of exemptions would require a two-thirds vote, a form of legislative approval that would require (Republican) solidarity and significant Democratic support," Maginnis said.

Jindal said his team will meet with lawmakers soon to discuss details of his tax reform plan.

"Eliminating personal income taxes will put more money back into the pockets of Louisiana families and will change a complex tax code into a more simple system that will make Louisiana more attractive to companies who want to invest here and create jobs," he said.

http://www.reuters.com/article/2013/01/11/us-usa-louisiana-taxes-idUSBRE90A02K20130111
 
source: thetowntalk

Tax expert warns that Jindal's tax plan will hurt lower-income earners


BATON ROUGE – Like many states, Louisiana has a tax structure that is unfair to low- and middle-income families, a study examining tax structures released today says.

But the tax revision plan pushed by Gov. Bobby Jindal, dropping income taxes in exchange for higher sales taxes, would make it worse, says Matthew Gardner, head of the Institute on Taxation and Economic Policy and lead investigator on the report.

“It’s crystal clear that to shift away from income taxes to sales taxes would make an already unfair tax system even more unfair,” Gardner said. “From the respect of tax fairness, it’s absolutely wrong.”

The study by the non-profit, non-partisan institute in Washington, D.C., shows that when state and local taxes are combined, the financial impact on about 60 percent of state’s taxpayers’ available income is double what it is on the wealthiest residents.

And when just sales and excise tax are included, the impact on low-income families is seven times what it is on the wealthiest families.

“Louisiana’s tax system absolutely is not fair and it’s not flat,” Gardner said, referring to Jindal’s statement that he wants a tax system that is “fairer and flatter.”

“The single best way to do that is to reduce the role sales tax plays and to increase the role that income tax plays” in providing state revenues, he said. “Gov. Jindal wants to do the opposite.”

“Cutting the income tax and relying on sales taxes to make up the lost revenues is the surest way to make an already upside down tax system even more so,” Gardner stated.

The Jindal administration says its goal is to grow the private economy, not the government economy, and eliminating personal and business income taxes would “put more money into people’s pockets.”

The Tax Foundation, a conservative group favored by business, supports Jindal’s move to eliminate the state income tax on individuals and corporations and shift to sales taxes as the primary source of state revenue.

Gardner said if that’s the path the governor wants to take, he should strip all exemptions on sales tax and make it apply to all goods and services.

The Institute on Taxation and Economic Policy is known fors its publication "Who Pays," which analyzes the distribution, by income level, of state and local taxes in all 50 states and the District of Columbia. The report is derived from the institute's Microsimulation Tax Model.
 
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