Filed under: Capitalism, Conservatism, Domestic Policy, Economy, Freedom, Taxes, The Constitution | Tags: Budget Surpluses, Cutting Spending?, Republican Governors
The Tenth Amendment to the Constitution says simply “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” That again points out that there are specific powers delegated to the United States, and they are supposed to keep their hands off the others.
We all know the government has its fingers in all sorts of pies where they do not belong, and not content with making bad laws and fumbling the things that they are supposed to do, for some reason they keep trying to take over more duties to perform poorly. File under “power grab.”
The states still have quite a bit of room to do their own thing, and they have proved to be the laboratory for change and experiment for the nation. Now two states, neighbors, are demonstrating two very different kinds of leadership. Governor Scott Walker (R) Wisconsin, announced today that the budget he will sign this summer will include “significant” cuts to Wisconsin income tax rates.
Next door, in Illinois, Chicago mayor Rahm Emanuel (D) is making a name for himself by employing Nation of Islam wandering police forces. He announced that he will introduce a gun control ordinance. There were 19 people shot in Chicago between Thursday evening and Friday morning. Gang warfare.
According to the Congressional Budget Office, the federal government posted a $239 billion deficit in the first quarter of 2013, setting the Obama administration up for a record fifth-year of trillion dollar deficits.
In the Republican-controlled states, it is a different story. Texas has a governor , Rick Perry(R), who is committed to developing its natural resources. Texas legislators are facing an $8.8 billion surplus over the next two years. Bill Haslam (R) of Tennessee, and Rick Scott (R) Florida have also turned recession deficits into budget surpluses. Michigan’s Governor Rick Snyder (R), Iowa’s Governor Terry Brandstadt (R), and Indiana’s out-going Governor Mitch Daniels (R) can all now boast of surpluses in the hundreds of millions of dollars. They did it through spending cuts, not tax hikes. Their budgets are in the black and their economies are growing. And people are moving there from states like California that have a massive outflow of citizens and businesses. Bobby Jindall (R) of Louisiana floated the idea of getting rid of the state’s income tax.
The Democrat controlled States like Illinois, which massively raised taxes on the rich, and still has a $5.9 billion pile of bills. California, also raised taxes on the rich, and expected a small surplus, but tax collections are coming in at 10.8% below expectations. So the state is projected to be $1.9 billion in the red by the end of the year. New York is in bad shape, and Governor (D) Cuomo just announced that he wants more gun control. Maryland is also trying to fix things by raising taxes.
“Unexpectedly”the states that have high taxes and high deficits also have a deficit of children under age 10. California’s birth rate has dropped below replacement level as has the rate in Illinois, New York, Massachusetts, and Rhode Island. The productive class is leaving these states, leaving the very wealthy and the people on government assistance.
Works for nations too. Europe’s birth rates are far below replacement. People don’t have a lot of babies when they don’t have a lot of hope. There are lessons to be learned if you pay attention.