Taxes and growth (employment, how much, Pittsburgh, companies)
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“Over the last three decades, large cities like Pittsburgh, Detroit, Cleveland, Buffalo, and Toledo have seen their populations shrink, while areas like Houston, Atlanta, Dallas, Tampa, and Phoenix have seen their populations grow rapidly. Examining the policy differences between high-growth and low-growth areas can provide evidence that may help declining cities reverse their fortunes.”
The study examined the 100 largest U.S. metro areas and found that in the 10 highest-tax areas, the state and local tax burden accounted for about 12.4 percent of personal income. In those areas, population grew by 21 percent from 1980 to 2007, employment grew by 40 percent, and real personal income grew by 75 percent.
But in the 10 lowest-tax areas, taxes accounted for just 8.3 percent of personal income. Population there grew by 64 percent, employment by 108 percent, and real personal income by 157 percent, according to study author Dean Stansel, an associate professor of economics in the Lutgert College of Business at Florida Gulf Coast University.
Contrasting several pairs of cities, Stansel observes that in 1980, Austin, Texas, and Syracuse, N.Y., were roughly the same size. The Austin metro area had a population of about 590,000, and the Syracuse metro area had about 643,000 residents. By 2007, Austin’s population had increased by more than 1 million while Syracuse’s population had been stagnant.
State and local taxes accounted for nearly 13 percent of personal income in Syracuse but only about 9 percent in Austin.
In Milwaukee, Wis., the tax burden is about 40 percent higher than in Tampa, Fla. While the two areas were about the same size in 1980, Tampa is now about 75 percent larger. Population in Tampa has grown six times faster, employment has grown four times faster, and real personal income has grown more than twice as fast.
“Over the last three decades, large cities like Pittsburgh, Detroit, Cleveland, Buffalo, and Toledo have seen their populations shrink, while areas like Houston, Atlanta, Dallas, Tampa, and Phoenix have seen their populations grow rapidly. Examining the policy differences between high-growth and low-growth areas can provide evidence that may help declining cities reverse their fortunes.”
The study examined the 100 largest U.S. metro areas and found that in the 10 highest-tax areas, the state and local tax burden accounted for about 12.4 percent of personal income. In those areas, population grew by 21 percent from 1980 to 2007, employment grew by 40 percent, and real personal income grew by 75 percent.
But in the 10 lowest-tax areas, taxes accounted for just 8.3 percent of personal income. Population there grew by 64 percent, employment by 108 percent, and real personal income by 157 percent, according to study author Dean Stansel, an associate professor of economics in the Lutgert College of Business at Florida Gulf Coast University.
Contrasting several pairs of cities, Stansel observes that in 1980, Austin, Texas, and Syracuse, N.Y., were roughly the same size. The Austin metro area had a population of about 590,000, and the Syracuse metro area had about 643,000 residents. By 2007, Austin’s population had increased by more than 1 million while Syracuse’s population had been stagnant.
State and local taxes accounted for nearly 13 percent of personal income in Syracuse but only about 9 percent in Austin.
In Milwaukee, Wis., the tax burden is about 40 percent higher than in Tampa, Fla. While the two areas were about the same size in 1980, Tampa is now about 75 percent larger. Population in Tampa has grown six times faster, employment has grown four times faster, and real personal income has grown more than twice as fast.
Not only do people want to be taxed less, its just to damn cold to live in Syracuse or Milwaukee.
Not only do people want to be taxed less, its just to damn cold to live in Syracuse or Milwaukee.
I agree, I think there are a lot more factors involved than just taxes. Such as overall cost of living, job opportunities, weather, etc.
For instance, I would bet if there was no Air conditioning, the population of Florida would probably be 1/10th of what it is today, or less. The population of Texas would probably be a half of what it is today.
The cost of living in Texas is largely related to relatively cheap land there. The land is cheap for a variety of reasons, but none are related to taxes(property taxes are actually pretty high in Texas). Mostly, the land is cheap because it is total crap land. You can't hardly grow anything on most of Texas' land(especially the further you go West or South).
As for taxes. Most people don't really give a crap about how much they pay in taxes. They only care about how much they make in pay after taxes(which is why so many people live in places like New York City). Businesses on the other hand hate high taxes, it means they have to make more to make the same amount. A business having to pay a 40% tax rate would have to be much more productive than a business paying a 10% tax rate, otherwise it would go out of business. And even if the business paying a 40% tax rate could actually still be competitive with the other businesses that are paying a 10% tax rate, if they relocated, they could be that much more profitable. People go where the jobs are.
Last edited by Redshadowz; 07-31-2011 at 11:42 PM..
California is the 5th largest economy in the world, it's bigger than Texas and New York combined.
Google and Apple choose to stay in California among many other new and old companies.
An educated population or a strong middle class is what determines 99% business's headquarters or outlets.
Population growth varies from quality of life to jobs to income to taxes etc...there are many variables.
07-31-2011, 11:15 PM
2K5Gx2km
n/a posts
Taxes and Growth:
Isn't that an oxymoron
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