Red States, Blue States

The competition between states for businesses is being lost by the blue states, govern by Democrats, according to the report, “Rich States, Poor States.” Businesses are continuing to move out of the Northeast and Midwest to the southern states. 10 of the 12 governors in the Southern states are Republican. Nine of those states have Republican controlled legislatures. The Republicans created low tax, business-friendly environments for businesses which are why companies are moving south.

Florida, Tennessee and Texas (Republican states) have no income taxes. North Carolina and Louisiana are working towards eliminating their income taxes and replacing them with expanded sales taxes and energy extraction taxes. This is attracting companies to those states.

Three northern states with improving economies are Pennsylvania, Ohio and Michigan. All three have Republican governors. They created reasonable budgets without expanding spending and taxes. For example, John Kasich, Ohio Governor, turned the financial fortunes of the state around through his reforms. Ohio went from a $6 billion deficit to a budget surplus without increasing taxes. His reforms undermine the Democrat ideas of taxing more and spending more as a fiscal solution to debt.

The Democrats are driving their states deeper and deeper into debt and forcing businesses to move south because they refuse to face reality. They are creating an abyss of debt through their tax and spend mentality. Yet liberals in those states don’t seem to care about the consequences which will hit them in the pocketbook in the future. They continue to vote Democrats into power either out of ignorance or denial.

When businesses flee blue states their unemployment rates climb and their revenues decline. Yet they continue to do what Einstein defined as insanity, “Doing the same thing over and over and expecting different results.”

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About camden41

Retired public school administrator Retired history professor: Taught Western Civilization, American Civil War, United States History, Economic History, Ancient & Medieval Foundations, American History Since 1945
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