High Taxes = High Unemployment

One thing you never hear the Democrats talk about is the connection between high state income taxes, high unionization rates, and high unemployment rates.

This connection is not a recent phenomenon, having been proven to me back in the 1970's when the People's Republic of Taxachusetts boosted taxes across the board during a deep recession and saw unemployment skyrocket well beyond the national average as businesses closed or moved out of state (usually to New Hampshire and Vermont, neither which had income taxes). And as revenues fell they raised taxes again and saw unemployment rise again.

Is it any wonder we're seeing the same effect again? California has very high taxes, a high level of unionization (particularly among state employees), and has the fourth highest unemployment rate in the nation. There has also been a net outmigration of people and businesses from the Golden State, which shows how badly the economic conditions created by state government over-spending and over-taxation have become. It's not much different in a number of other states.

The aforementioned Massachusetts, as well as New York, New Jersey, and Michigan are suffering from the same malaise, as are a number of other states. Just look at the tax burden state by state and compare it to the present unemployment rates for each state. The comparison should be proof enough that high state tax burdens tend to kill jobs and weaken businesses.

Of course I expect this lesson to be wasted on the tax-and-spenders.

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