The Bush tax reductions will expire on January 1 unless Congress and the President extend them this year. Dr. Arthur Laffer predicts that American investors will move their income into this year. Next year, the economy will “fall off the cliff.” Laffer says.
In 2006, Laffer moved from California to Tennessee to escape the California state income tax. I made the same decision in 1975. I moved to a zero state income tax state. So did he.
He is convinced that California is a basket case because of its tax code and extensive regulations. Businessmen can move their companies to more business-friendly states.
Texas is one. There is no state income tax. The business environment is good. It has major top-notch universities. It has a growing population.
The politicians think they can tax without consequences. They can’t.