Republican Rick Perry has been governor of Texas since December 2000. He is the longest-serving governor in America today and his state is the most economically vibrant of all by most measures. Thus Perry can take full credit for the success of Texas.
Perry has been visiting liberal states like California, Illinois and New York and urging businesses in those states to relocate to Texas.
The business climate in places like New York is generally terrible because they have become very liberal states that have imposed endless taxes and regulations. In one Tax Foundation survey New York ranked 50th out of 50 states for its business climate.
Here is how states like New York and California became this way: They became very wealthy and so the socialists moved in – as they always do once wealth is established – and stole every penny that they could and then took political control and imposed anti-business policies.
And so these states are now becoming poorer as they become more liberal. Every single statewide office in California is now held by a Democrat and rest assured that California Democrats are extremists. Younger, productive, skilled and educated Americans are fleeing states like California and New York by the millions. Even Intel, the “grandfather” of the Silicon Valley computer industry, is moving many of its operations out of California because the state has become so averse to business.
Meanwhile the Liberal Media constantly ridicule Tea Partiers and conservative states like Texas, yet the migration of Americans shows millions flocking willingly and freely to the conservative states for the jobs and opportunity there, leaving behind an older, sicker and poorer population in places like New York state. This once again disproves the liberal thesis that socialism produces utopia. It does not. It always produces the opposite.
Governor Perry recently visited New York to make a pitch to businesses there to move to Texas. So Democrat governor Andrew Cuomo of New York responded with a counter-pitch. He is running TV ads in Texas imploring Texas businesses to move to New York.
Yes, because after decades of economic decline, job losses and population flight even the Democrat governor of New York state has become desperate. And so he has instituted an economically conservative and capitalist policy – like the ones Perry has had all along in Texas – to give 10-year tax breaks to any company that moves to New York state or that establishes jobs in New York state.
This plan will never work in the long run. Because rational business leaders are going to compare Cuomo’s pitch to Perry’s proven 14-year record of economic excellence. They are going to say: “Texas has been pro-business all along. New York is suddenly offering tax breaks out of desperation. I think I will choose Texas. I am much more comfortable with the long-term business climate in Texas.”
You must also know that income taxes, sales taxes, property taxes, gasoline taxes and every other tax in New York state are through the roof. So even if a business gets tax breaks to move there its employees would be hammered through every other tax and thus would have to be paid more to account for the higher taxes, cancelling out the advantage from the business tax break. And when the 10-year tax break ends, who knows what New York state will do. It could get ugly. Now here are some questions for Cuomo:
How did New York allow the economy to deteriorate so badly? And of course we are supposed to say that New York had a Republican governor, George Pataki, for 12 years from 1995 to 2006, and that the state assembly and senate are about evenly matched Republican and Democrat.
But you also must remember that New York Republicans are generally very liberal and so they have been incrementally waylaid into liberalism; there are few NY conservatives to aggressively and vocally counter the socialists. You also must remember that New York state Democrats are hard-left partisans and have been relentlessly pushing a radical agenda for decades. Meanwhile the Welfare State in New York City and other cities is a money-gobbling monster that cannot be sated and that repeatedly votes for the most radical Democrats.
In addition spending on the bloated, unionized New York state government bureaucracy is out of control. New York is also home to militant labor unions and a huge organized crime population both of which make the state increasingly inhospitable to lawful wealth creation. New York also has some of the most extremist environmental wacktivists in the nation like Robert F. Kennedy Jr. and the late Pete Seeger, the folk singer. These people are unadulterated economic obstructionists. Their latest crusade halted natural gas “fracking” which would have been a huge shot in the arm for the rural New York economy which sits atop a natural gas bonanza called the Marcellus Shale.
Here is another question for Cuomo: Why are you making tax breaks for new businesses now, yet NY policies have been heavily taxing existing businesses for decades? Why not change the tax structure for everyone, for instance lowering the gasoline tax and statewide sales tax (which is 8.25%!)? And why didn’t these business tax breaks happen years ago?
The answer is that the Cuomo tax breaks are a quick-fix policy of desperation that will do little to solve the state’s long-term underlying problems. Meanwhile New York has some of the highest state income taxes in the nation on wealthy people, which is why rich New Yorkers are also departing by the thousands, taking any potential investment capital with them. So why would a wealthy business owner move to New York state in the first place? Thus Cuomo’s tax-break strategy really is only putting a band-aid on a gaping wound.
Meanwhile former Democrat New York state attorney general Eliot Spitzer, who became governor in 2007 but resigned in a scandal, went on a legal crusade as AG against major Wall Street figures who generate huge amounts of wealth for the state. This was yet another assault on the business community from the Democrat left. Virtually all of the Wall Street figures were cleared in this charade but the message was clear: The anti-business socialists are coming for you.
After Republican mayor Rudy Giuliani saved New York City with 8 years of conservative policies which were in many cases continued under 12 years of mayor Michael Bloomberg, a new leftist mayor elected in November 2013 is reversing all that and is planning to slap heavy new city taxes on “the rich”. This will drive more New York wealth away.
Here is another question for Cuomo: Why would a business move to New York when the younger, productive, educated and skilled people have been leaving for years? One radio ad said that 1.8 million people had fled New York state in the decade after the year 2000. This “brain drain” and “skills drain” represent a loss of talented people, and businesses don’t move to a place like New York just for tax breaks. They also want to locate where there is a vibrant labor pool. But that labor pool has been fleeing New York state for many years. This is one of New York’s built-in structural crises.
The Democrats are still making fun of Rick Perry because of one mistake that he made in a debate during the 2012 Republican presidential primaries. Yet the Big Picture that they want to conceal is that Perry is presiding over, and is personally responsible for one of the most vibrant economies in the world today. Therefore desperate Democrats must ridicule Perry so that millions of people will ignore the long-term state-wide economic disaster in places like New York and California, and nationwide under Obama.
I’ll take Rick Perry any day, as most rational, productive Americans will, including business leaders. They are not going to be fooled by Cuomo. And I’ll bet my last dollar that Cuomo’s tax-break strategy ultimately will fail unless other major and permanent reforms are added to it, which is not going to happen under any Democrat administration.
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