5/02/2009

Voting With Their Feet - Ohio Edition

If we needed any more evidence that high taxes can drive businesses and residents out of a state, there's the example of Ohio. Like California, New York, New Jersey, and Massachusetts, ever rising taxes, coupled with less effective services, failing schools, and a rising crime rate are helping fuel an outmigration from the Buckeye State.

Ohioans have been leaving the state’s large cities for four reasons, only one of which — the natural human desire for open space — is arguably not their fault. The causes the cities have failed to deal with, and which have been within their control, are high crime, lousy schools, and high taxes. For decades, their governments have been asking, “Where else can they go?” Hundreds of thousands have answered with their feet.

While some may claim there are plenty of other factors prompting the flight from Ohio, it still comes down government pulling too much money out of the economy and giving little in return, other than demands for even more money.

Some states have realized having tax rates beyond a 'reasonable' level is the kiss of death to its economic health and have worked hard to live within their means. Others have stumbled now and then and seen the effects of high taxes and were able to pull themselves back from the brink. Others have not. And yet others will fall into the vicious cycle of raising taxes, falling revenues and contracting economy, raising taxes to make up for the falling revenues, and so on ad nauseum, much like California.

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