States

The states are often used as labs to test out new policies. Because of the rising income gap there are states which are introducing policies that transfer both wealth and income from the rich to those who are not rich. California has been a leader in this type of government and there are serious problems. The top one percent of earners pay 50% of all state income tax and they are currently considering a wealth tax. Meanwhile the state has significantly increased spending on education, healthcare and public services and they are facing deep deficits. Low- and middle-income people are unable to provide for their families because of the high cost of food, housing, utilities, rent and transportation. Add to this excessive regulation, the push for zero carbon and a large homeless population and the people cannot live a decent life. The result is that people are leaving the state and that includes rich people. Other states like New York, Illinois and New Jersey are following a similar path.