When will the Blue State learn they are committing economic suicide with their current policies?
I have been reporting the accelerating trend of financial services companies abandoning New York and California for new homes in Texas, Tennessee, and Florida – all states without a state income tax.
Elliott Management pulled up stakes for West Palm Beach. AllianceBernstein moved to Nashville. Charles Schwab moved to Dallas.
Bloomberg News has examined 17,000 corporate filings since late 2019 and concluded that California and New York have lost firms that managed close to $1 trillion of assets. They also took with them thousands of high-paying jobs and left many high-end office buildings empty.
Taxes are a major factor in these relocations. Fisher Investment, which manages $211 billion in assets, abandoned green Washington state for suburban Dallas when that state’s Supreme Court recently outrageously declared the state could impose an income tax – a clear violation of the state’s Constitution.
When will the Blue State learn they are committing economic suicide with their current policies? Instead of cutting their income taxes – which exceed 13% in California and New York – they are seeking a new federal tax break to offset their high state-local tax burdens…. Go figure.
And to add insult to injury, bank lending has slowed considerably this year in the wake of the Fed’s 11 Interest rate hikes and the Silicon Valley Bank failure and the Fed reports that banks are tightening their lending standards as rates go higher.
One thing is for certain: this is the worst possible time for the Fed to be raising bank capital requirements, which would further constrain lending – so, naturally, that’s what the FDIC wants to do.
Two trends totally choking the economy… Taxes and access to capital
But according to the Biden Administration all is great and under control. Go figure
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