Wednesday, February 20, 2013

Texas' biggest problem these days is finding enough office space to accommodate all the newcomers

Left's Howls Against Rick Perry's Texas Prove Its Low-Tax Model Is A Success - IBD

Perry's state is an undisputed economic success story and has been a magnet for businesses from all over the U.S. for several years now.

With no income tax, a legislature that balances its budget and a bureaucracy that seems conditioned to ask businesses "How can I help you?", Texas' biggest problem these days is finding enough office space to accommodate all the newcomers.

For that reason, it was grimly fascinating to see Perry visit California — which has just got done hiking taxes from 10.3% to 13.3% on top earners — attracting interest from more than 200 firms, which seem to be raring for what a Forbes columnist called a "reverse gold rush."

"Gov. Brown may call it poaching," said Perry, responding to Brown's sour comparison of the visit to flatulence. "I just call it giving people an option of where they can locate their business and be able to keep more of their money." That's called reality.

Fact is, California is punishing businesses and individuals with higher state taxes, while Texas is getting inundated with California companies seeking to move to the Lone Star State, regardless of whether Perry visits.

And that seems to be behind a growing no-holds-barred effort by the media hive and its left-wing allies to claim that Perry's visit somehow was the failure....

The major media, meanwhile, cited various "studies" stating that because most businesses don't move, the movement at the margins somehow doesn't matter — specious logic by economic standards since the essence of economics is to watch activity at the margins. The New York Times and Washington Post each ran a piece in this vein, as if on cue from JournoList.

But tax actions have consequences. The left's hysteria in trying to debunk basic economic truths is just proof that Perry's trip was the right thing to do.