High Taxes and Lousy Service

This article provides an interesting comparison of between the governance and outcomes of California and Texas. It contrast not only how much they tax, but how they spend, and who benefits. The story of California is instructive, especially for states like Minnesota, where there is a long running debate between the “high tax” and “low tax” camps.

What makes this interesting is that California’s large revenue streams are spent so differently. The big beneficiaries are state employees. It’s difficult to see how California will work its way out of the mess it’s in. The same probably applies to other “tax and spend” jurisdictions like New York and New Jersey. My worry is that many politicians in Minnesota seem eager to adopt the policies that have gotten those states in so much trouble.


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