The phrase about turning off the lights when one leaves someplace appears to have originated with two real estate agents in Seattle. It was 1971 and Boeing was laying off employees during an economic downturn. It was meant to be humorous, though the unemployed probably didn’t see it that way.
During the Arab oil boycott in 1973, Houston newspapers invoked the phrase as they sought to lure people from the north, which was suffering from high unemployment, fuel shortages and economic stagnation. Newspaper ads told of job openings with good salaries and benefits.
Now come the folks at Unleash Prosperity, a nonpartisan group focused on “educating policymakers and the public about government policies proven to maximize economic growth,” who have resurrected a form of the phrase (linked to a Billy Joel song) and applied it to next week’s elections in New York City and New Jersey. Prosperity’s billboards, which have been placed along major thoroughfares, say respectively: “New Jersey isn’t moving up. Families are moving out.” And “New Yorkers aren’t moving up. They’re moving out.” That would be to places like Texas and Florida, where there are no state income taxes and life is perceived to be safer and less expensive.
Stephen Moore, co-founder of Unleash Prosperity, and a former senior Trump economic adviser, writes, “New York has lost nearly two million residents to other states over the last decade and New Jersey almost a half million. New York has lost roughly $111 billion in income and New Jersey has lost $31 billion. These states must change or the last person in the state will have to turn off the lights.”
Democrats, who have mostly run New Jersey and New York City (and state) for decades, are prisoners of their bad economic philosophy and seem unwilling or unable to change.
A study published last year and billed as “the first-ever systematic analysis of 110 years of state income tax implementation throughout the United States,” highlighted the consequences when taxpayers leave high tax states for states with lower or no state income taxes. It was published in the American Economic Journal: Economic Policy and titled “The Introduction of the Income Tax, Fiscal Capacity, and Migration: Evidence from U.S. States” and coauthored by Ugo Antonio Troiano, an economist and associate professor at the University of California, Riverside. The analysis looks at pre-World War II and post-World War II personal income tax impacts.
The state-level tax policies from 1900 to 2010 examined in the paper reveal that income tax adopting states increased revenue per capita by 12% to 17%, but those increases did not correspond to increases in total revenues for the government in monetary terms. This is because the introduction of state income taxes in the post-World War II era led to out-migration by wealthy Americans.
“Personal income tax means a tax upon labor income, first introduced for the purpose of redistribution of wealth,” said Troiano, whose expertise includes politics and economics. “The idea was to provide services to poorer parts of the population and reduce inequality between low-income and high-income residents.”
Unfortunately, the tax-raising Democrats failed to take human nature into account. People who have the resources also have the option of moving to more economically friendly locations.
Democrats are being held prisoners to their failed ideology by the far left. As a result, more people in New York City, New Jersey and other states with high taxes have their fingers on the light switch and their car engine is running.
Tribune Content Agency
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