Compare two states - California and Texas
C alifornia needs a strong leader, says Texas governor Rick Perry. That strong leader, Mr. Perry thinks, needs to go to Sacramento and "take special interests out" of government. He needs to "make massive cuts" in spending and taxes. And he needs "to make major changes in the constitution," including tort reform.
What about Arnold Schwarzenegger? "Arnold—I think Arnold squandered that chance."
Six years ago, Mr. Perry's state underwent a critical tort reform that was codified in the state constitution...According to the Texas Public Policy Foundation, between 1997 and 2006 Texas' economy grew an average of 4.3% while California's grew at a rate of 3.7%. But as of 2002 (to 2007), with tort reform in place, Texas' annual economic growth jumped to 5%, while California's remained essentially the same at 3.6%.
...Mr. Perry is proud to report that "Texas created more jobs in 2008 than the rest of the states—combined." As of July, the state, which taxes neither capital gains nor income, had an unemployment rate of 7.5%, two points below the national average, while California's hovered at 11.5%, two points above.
How much to illegal aliens contribute to state income taxes? Federal taxes?
They were talking about Michigan. "The Michigan governor was making statements about having to raise taxes so [they could keep] services at the level they were, instead of, like we did in Texas, cutting, not raising, taxes and cutting spending. There was a great difference in political philosophy. In Michigan, a liberal democrat raised taxes and kept their government programs at the same level. And guess what? Their economy continued into the toilet, it continued down.
"Our economy on the other hand [improved]—let me give you a great example: We had a $10 billion budget deficit when we got here in January of 2003. We cut that budget deficit; we did not raise taxes; we came back in '05, and we had an $8 billion surplus. That's how fast it can happen.
But do Mr. Perry's pro-business, low-tax policies mean that Texas' investments in education and other crucial areas are lagging behind? Just the opposite: While California slashed education funding this year, Mr. Perry notes that a Texas "grant program for kids to go college and university . . . expanded by 44%" this last session. In that same session, the Lone Star State cut taxes for small businesses.
And when it comes to the Obama administration, Mr. Perry doesn't mince words: "To me, this is one of the great Frankenstein experimentations in American history. We've seen that movie before. It was from 1932 to 1940."
http://online.wsj.com/article/SB20001424052970203550604574361014098225036.htmlThe federal government continues down the tax and spend route. How much are illegal aliens contributing?
President Obama, iirc, with regard to illegal aliens, said something like "..if you've been here three years, you've established roots in the community..."
How much did those roots pay in taxes to support all the tax and spending programs like welfare, Medicaid, and Medicare?
How much did the roots receive from free care in the ER, welfare, Medicaid, Medicare, and wages?
Tax and spend is unfair to people who contribute and work hard. Tax and spend doesn't seem to work, and seems to lead to a larger 'death spiral'.
Perhaps it time to find out what REALLY works. Why is Texas doing so well?jmho
